If you are thinking about making an investment for future use, no portfolio is complete without gold and silver. Precious metals are considered a safe haven by professional investors and use them as an hedge against risky investment.
Right now, gold prices have taken something of a fall so now is a good time to add gold to your pension portfolio. You may be questioning the fact that if gold falls why would you want to include it in your pension portfolio?
Upon analyzing historical charts, it seems inevitable that gold will stay in a bear market for the foreseeable future, giving investors plenty of time to build their gold stocks and get ready to cash in once the dollar weakens again and investment banks put their trust back in gold.
The time to sell your gold is when prices hit a peak. As the strength of currency fades, precious metal prices gradually rise. It may depend on the nature and severity of the next economic downturn, but you can again turn to history to show us that an banking crisis is inevitable.
Investing precious metals in your pension scheme
In 2006, the UK Government launched SIPP, Self Invested Personal Pensions which allow pension owners the opportunity to have more control over the type of investment they want for their pension.
The scheme encourages policy holders to invest in a range of approved gold types as bullion is regarded as the best investment you can add to your portfolio. That is not to say that you should coat your pension in gold, that may not be wise either, but precious metals should at least be part of your pension portfolio.
Contributing to a SIPP qualifies you for income tax relief. All investment that you add to your pension is also gains tax free and not liable for income tax. Gold on the other hand is subject to 20 per cent capital gains tax and next year silver will also be subject to tax in the UK.
Therefore if you but gold as a separate investment to your pension you will be liable to pay taxes on any profit you make, which will eat into your profit margins. Even if you already have a pension with your employer, it is therefore in your financial interest to also take out a personal pension which you have control over.
SIPP´s allow you to consolidate your pension schemes into one scheme and thus accrue more interest. Together with a variety of sound investments including gold and silver, you can look forward to retirement knowing you are financially secure.
For the latest gold and silver prices visit coininvestdirect.com and start investing in your pension today.