Gold has traditionally been used as a hedge against inflation and a bad economy. Since the economic collapse in 2007, many people have seen their 401k value diminish, and many are looking for a way to diversify into gold. There are a couple of ways to do this.
Use GoldMoney.com. This is a site that started in 2006 and lets you invest in gold bullion through your IRA or 401k accounts. It is administered by the Entrust Group, which is a leading provider of services for self-directed retirement plans in the U.S. for the past 25 years. GoldMoney is the fastest growing digital gold currency and also the largest. So you can actually use the funds in your GoldMoney account to make purchases. Also unlike paper gold programs such as an exchange traded fund (ETF), with GoldMoney.com, there is actually gold being held in a vault for you, which means you will always be able to redeem your money for cash even if many holders wish to do so at once. With an ETF, you won't always have that assurance.
Open an account. Go to the website and fill out the application form. It's free to open up an account. Complete the identity application, then transfer funds. To invest from a 401k or IRA, you will need to go through a specialist. You can contact one at 1-877-867-6185, x109, or you can email one at PreciousMetals@IBandT.com.
Buy an exchange traded fund. As noted above, there can be restrictions with ETFs if for some reason, there is a sudden panic, and everybody wishes to redeem their stock at once. However, this is a very unusual scenario and not likely to happen. A 401k will generally have investment alternatives, which will allow you to purchase ETFs. A few gold ETFs include:
SPDR Gold Trust (GLD)
E-TRACS CMCI Gold ETN (UBG)
ELEMENTS MLCX Gold Index ETN (GOE)
iShares COMEX Gold Trust ETF (IAU)
PowerShares DB Gold Double Long ETN (DGP)
ProShares Ultra Gold ETF (UGL)
Tips & Warnings
- Make sure to only invest a small percentage of your portfolio in gold. 10 to 15 percent is a reasonable amount.
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