How Safe Is My Gold IRA?

Current market conditions make this a very important and pertinent question.

People who have been investing even in the 'safest' stocks of large, well known companies have been taken aback lately at how much value they can lose almost overnight. This is the reality of the stock market and not surprisingly, it is also the perfect environment for the increasing allure of gold, particularly IRA gold, which will typically represent a large slice of our life savings.

The questions of the safety of physical gold IRAs revolve around two issues: price and physical safety. While no one can state with certainty where gold prices will be a year or ten down the road, it is a relatively safe bet that it will at least hold its own against other investments, given the probable demand and supply of gold for the foreseeable future. This would hold true also for gold based mutual funds, stocks and ETFs because these 'paper investments' represent legal ownership of physical gold and even the potential of future gold prices.

Regarding the physical safety for our gold coins, bars and bullion, they are held in depositories that are among the most heavily guarded facilities in the world. Think shades of Fort Knox. And even in the extremely unlikely scenario of someone decamping with our hoard of coins and bars, we can rest assured that they will be replaced because they are covered by special insurance policies. IRA custodians hold all their gold in one large holding of gold, none of which can be identifiable to our individual accounts. However, when we deposit our gold after purchasing the coins, bars or a combination, these are cataloged in our accounts by type, manufacturer, weight and denomination and we will receive the same combination of coins and/or bars as we deposited whenever we wish.

So in both cases of price and physical safety, our IRA gold is about as safe as an investment can be.
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