Why Financial Institutions Don’t Recommend a Precious Metal IRA to You (And Why You Should Consider One Anyway)

Isn’t it surprising to notice your financial institution hasn’t offered you the options of precious metal IRAs. Why don’t they? It is expected that your financial institution makes the best decisions in your finance journey yet they seem to hold back when it comes to precious metal IRAs.

Below are some reasons why your financial advisor might not be enthusiastic about precious metal IRA:

Bias towards traditional Assets

Your financial institution is probably part of a system primed towards taking a position in traditional assets. They may not recommend a precious metal IRA because they are likely not familiar with this type of purchase. Many financial advisors and institutions are more likely to recommend traditional assets like stocks, bonds, and mutual funds because of the lack of experience handling precious metal IRA assets. They do not have the required expertise and as such would likely remain silent about it while discussing options or discourage you from a precious metal IRA altogether.

They don’t get to make much Commision

Paper assets encourage a lot of commissions moving them through hands – this is where financial institutions get to make many gains. Precious metal IRAs typically come with lower fees and commissions than other types of purchases and minimize the number of fees involved in subsequent transactions. Since financial institutions earn a significant portion of their revenue from these fees and commissions, they may be less eager to promote an option that generates less income for them.

They have little control over your choices

A precious metal IRA is a self-directed IRA and as such you have full control over choices. Exercising more control over your own funds is one thing financial institutions do not want and as such shy away from suggesting self-directed IRAs

Precious metal IRAs enable you to purchase precious metals and choose a depository where you can store your assets and have control over them anytime. This lack of control may be viewed as a drawback by financial institutions, who may prefer to manage the funds on behalf of their clients and have more control over the entire process.

Narrow View of Diversification

When financial institutions talk about diversification they often refer to assets such as stocks, bonds, and ETFs. These assets have shown over time to have less diversification value compared to precious metals as can be seen by market meltdowns experienced over the past two decades.

Financial institutions are often skeptical about the returns that may come from Precious metal IRAs, however, these fears are often unfounded.

Your money keeps the system afloat

Fiat currency and other paper assets are well within the whims of the economy and as such are affected by varying economic times. These assets are also bail-outs to the economy in such times and your financial institutions are kept afloat by then. Hence, they ensure you do not keep assets in physical precious metals.

You should consider a self-directed IRA

Many of the reasons your financial institution does not tell you about precious metal IRAs appear genuine, but are largely unfounded. Precious metal IRAs offer your financial goals stability against the volatile economic situations and are also good for :

Diversification

Precious metals can be a valuable component of a diversified portfolio. By adding physical assets to your portfolio, you can help protect against inflation and other economic uncertainties that may impact traditional assets like stocks and bonds.

Inflation hedge

Precious metals like gold and silver have historically been viewed as a hedge against inflation. As the value of paper currencies fluctuates, precious metals can help maintain purchasing power and provide a stable store of value.

Haven

During times of economic uncertainty or geopolitical turmoil, customers often flock to safe-haven assets like gold and silver. By considering a precious metal IRA, you can help protect your retirement savings from the impact of these events.

If you would like to learn more about Precious Metals IRA and how to truly diversify your portfolio, please call (888) 507-6580 to speak with a Precious Metals Specialist today.