VALOR Precious Metals

“Our top priority is to earn your trust and keep it."

Patrick S. CEO [NAVY | ARMY ] vet

What is a precious metals rollover?

A precious metals rollover refers to the process of transferring funds from a retirement account (like an IRA or 401(k)) into a new account that holds precious metals, such as gold, silver, platinum, or palladium. The idea behind this is to protect and grow your retirement savings by investing in tangible assets, like metals, instead of traditional stocks or bonds.

Here's a simple breakdown:

1. What’s a Rollover?

• A rollover is just moving money from one retirement account to another. Typically, this is done to maintain the tax benefits of your original retirement account without paying taxes or penalties for withdrawing the funds.

2. What Are Precious Metals?

• Precious metals, like gold and silver, are valuable metals often used as a way to store wealth. People invest in precious metals because they tend to hold or increase in value over time, especially when the economy is unstable. They can act as a "safe haven" for your money when other investments (like stocks) are volatile.

3. How Does a Precious Metals Rollover Work?

• Step 1: Open a Precious Metals IRA: To start a rollover, you first need to open a special retirement account called a "Precious Metals IRA" (also known as a Gold IRA). This is similar to a traditional IRA, but instead of stocks, bonds, or mutual funds, you hold precious metals in this account.
• Step 2: Transfer the Funds: Once the new Precious Metals IRA is set up, you contact the company handling your current retirement account (like a 401(k) or a traditional IRA) and request to roll over the funds.
• Step 3: Purchase Precious Metals: Once your money is rolled over into the Precious Metals IRA, the money is used to purchase physical precious metals, like gold or silver, and these metals are then stored in a secure facility.

4. Why Would Someone Do a Precious Metals Rollover?

• Diversification: People use precious metals to diversify their investments. This helps reduce risk, because precious metals often do well when the stock market is struggling.
• Inflation Protection: Precious metals are seen as a hedge against inflation. When the value of paper money decreases, precious metals usually hold their value or even rise.
• Economic Uncertainty: During times of economic instability or uncertainty, people turn to precious metals because they’ve been a store of value for thousands of years.

5. Tax Benefits:

• Just like with other retirement accounts (like a traditional IRA), a Precious Metals IRA offers tax-deferred growth. That means you don’t pay taxes on the money you earn in the account until you withdraw it.

6. Important Considerations:

• Storage: The metals in a Precious Metals IRA have to be stored in an IRS-approved depository. You can’t just take the metals home; they must be kept in a secure location.
• Fees: Precious Metals IRAs come with additional fees, such as storage fees and insurance costs, which can be higher than regular IRAs.