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Noble Gold Investments IRA Review: The Pros and Cons of Investing in Precious Metals

Are you looking for an investment that is relatively stable and could hold its value in times of economic instability? If so, you may want to consider investing in precious metals. Noble Gold Investments is a company that can help you do this. In this article, we will review Noble Gold Investments and discuss the pros and cons of investing in precious metals

Minimum rollover of $20,000 is lower than some competitors.

Offers both Roth Gold IRA and Traditional Gold IRA rollovers

Also offers platinum and palladium in addition to gold and silver

Precious metals, such as gold and silver, have been used as a form of currency for centuries. They are also considered to be a relatively stable investment in times of economic instability. The value of precious metals is often not correlated with the stock market and historically, precious metals values tend to increase during times of market instability.

What precious metals can I invest in?

Noble Gold Investments primarily specializes in gold and silver bars and coins but they also offer platinum and palladium bars and coins.

Noble Gold Services

Noble Gold, in business since 2016, is a full-service precious metals company and can help you with everything from buying and selling gold to storing it safely. They also offer self-directed Gold IRA accounts, which are helpful if you want to transfer or rollover an old IRA or employer retirement account. A customer service agent helps you open the account, take care of the storage (they do it all for you), and assist with movement of old retirement accounts if needed.

Noble Gold allows you to purchase bars and coins directly or allows you to purchase bars and coins within a Self-directed Gold IRA or Self-directed Gold Roth IRA.

Gold IRAs

IRA is short for Individual Retirement Account and it is a tax-advantaged way to invest for retirement. A Traditional (pre-tax) IRA allows you to contribute to a retirement account on a pre-tax basis, get tax-deferred growth, and then your contributions and earnings are taxed as ordinary income when you withdraw funds, which is helpful if you are in a lower tax-bracket in retirement compared to earning years. A Roth (post-tax) IRA has after-tax contributions, tax-deferred growth, and tax-free withdrawals. Withdrawals before age 59.5 for both Traditional IRAs and Roth IRAs result in tax penalties in many cases.

A Self-directed Gold IRA (also called a Gold IRA for short) is different from a regular IRA because it can hold physical precious metals instead of only precious metal funds. A regular IRA can hold precious metal exchange traded funds (ETFs) or mutual funds but not actual gold or other precious metals. While some gold funds track the value of gold fairly close are considered suitable investments for some, not everyone wants to rely on the stock market for their gold and precious metal holdings. Some investors fear that gold ETFs will no longer remain correlated to the actual value of gold, especially if there is an event in the stock market causing a major bear market. This is where holding physical gold and precious metals can be advantageous- it adds diversification by holding physical bars, which some investors prefer in a world that is increasingly going online and digital.

A Gold IRA is helpful if you want to move some of your current retirement accounts to precious metals and keep the tax-advantages of an IRA. While it is generally called a Gold IRA, you can also purchase silver, platinum, or palladium in a Noble Gold IRA. If you decide to move over old retirement accounts, you can roll over an existing IRA, Roth IRA, 401(k), Roth 401(k), 403(b), Roth 403(b) or other qualified retirement accounts to a self-directed Gold IRA (or Self-directed Gold Roth IRA). If you don’t want to move your other retirement accounts over you can simply purchase precious metal bars or coins directly.

Why Choose a Gold IRA over gold ETFs in an IRA?

Some investors fear that gold exchange traded funds (ETFs) will no longer remain correlated to the actual value of gold, especially if there is an event in the stock market causing a major bear market. Other investors simply want to get away from traditional financial institutions and financial professionals and have more control and autonomy in a self-directed IRA compared to having an IRA at a traditional financial institution.

Also, it’s possible you could have lower fees in a self-directed IRA (depending on amount invested). This is where holding physical gold and precious metals can be advantageous- it adds diversification by holding physical bars, which some investors prefer in a world that is increasingly going online and digital.

Gold Storage

Noble Gold does not hold your precious metals directly, but they take care of the details so you don’t have any additional work. Their main servicer is International Depository Services. The set-up, transfer, and maintenance are included in the annual and set-up fee. International Depository Services has highly-secure facilities with large insurance policies through Lloyd’s of London for additional risk management.

Noble Gold Pros:

Offers a transparent flat fee of $250/year ($100/year for the custodian fee plus $150/year for the storage fee). This fee is fairly competitive, but not the absolute lowest.

They offer segregated storage (not aggregated, like some companies), so the metals you buy remain your metals, physically separated from other metals.

Rated A+ by BBB with an average rating of 4.8 stars and TrustLink and Consumer Affairs readers rate Noble Gold 5 out of 5.

Minimum rollover of $20,000 is lower than some competitors.

Offers both Roth Gold IRA and Traditional Gold IRA rollovers

Also offers platinum and palladium in addition to gold and silver

Noble Gold Cons:

Minimum rollover amount of $20,000 for Self-directed Gold IRAs (note- this is a lower minimum that some other gold IRA companies so not necessarily negative). Due to their flat fee of $250/year, the fee percentage is a bit high if you are sticking close to the minimum.

While they have overall high ratings, the customer service was slightly questionable when information was requested for this article. There was a hesitancy to provide information and requested follow-up information was not provided as promised and it was necessary to reach out a second time. To be fair, other reviews have noted better customer service.

Diversification Considerations

While many choose gold over a portfolio of stocks and bonds due to the reputation of gold as a “safe” alternative, it's important to know that the price of gold and other precious metals can be volatile. There are some misconceptions that gold is never volatile compared to investing in stocks or that it will always be a hedge against inflation. While it’s true that gold is not necessarily correlated with stock indices such as the S&P 500, gold has times of volatility as well and can lose value. Also, while it has historically held value compared to the dollar since 1971 this is not guaranteed so it should not be purchased as a guaranteed hedge against inflation because in many circumstances a diversified stock and bond portfolio will be a better hedge against inflation (it just depends what times of history we look at).

While having gold and precious metals in your portfolio can be helpful, it is important to diversify your investments between stocks, bonds, cash, real estate, various precious metals and perhaps consider other alternative asset classes as well. It is generally not recommended to move all of your retirement accounts to gold and silver out of market fear. However, if you have an account that you’d like to move to precious metals then rolling over to a Noble Gold IRA could be a good option. Noble Gold can also help you diversity between metals by investing in gold, silver, palladium or platinum.

Conclusion

For investors with a limited amount to rollover, Noble Gold provides some of the lowest minimums. Also, if you want to make sure your gold is segregated in storage, they are one of the only companies that guarantees this. Their ratings, partners and processes are all in good order making them a good option for your precious metals purchase.

All investing contains a degree of risk. Some investments are riskier than others. The information and recommendations on GoldAdvocacyGroup.org should not be construed as financial or investment advice. The owner / operator of this website does not have any financial or investment certifications or licenses. The information on this website is for general educational purposes only. We recommend that you consult with your financial adviser before making any investment decisions regarding information gathered from this website or any website.