Amid economic and other challenges, stock market performance was sometimes lackluster in 2022.
The S&P 500 fell more than 20% in the first half of the year, for example, as the Dow Jones Industrial Average dropped more than 14% and the Nasdaq declined more than 28%. By September, all three indexes had fallen more than 20% from their high points and been classified as bear markets.
As a result, last year, according to U.S. News & World Report, buyers were drawn to gold — which is often perceived to be a more stable option during turbulent market periods. In March 2023, spot gold prices reached their highest level in over a year: more than $2,000 an ounce.
“[It] makes me sleep comfortably knowing I was able to lock in my life savings,” one portfolio holder, Robert E. — who purchased gold assets last year with assistance from U.S. Money Reserve — said in a review of the company on the Better Business Bureau website. “Having someone watch over what is going on and helping me to diversify my portfolio is priceless.”
Another customer, Rich, said he considered three companies before confidently reaching out to U.S. Money Reserve for assistance with converting some of his savings to precious metals.
“As our country and the world [seemed] to be in such turmoil, I knew I had to make a different choice with my savings to protect it,” Rich said. “Gold, I found, is the way…and my choice was U.S. Money Reserve.”
Reasons for Adding Precious Metals
Physical gold, silver, platinum, and palladium assets can be of interest to portfolio holders because of their scarcity: A finite amount of the metals exists in the world, and production capabilities dictate how much can be mined each year.
Railway and other transportation challenges have impacted resource excavation in recent years, including efforts to mine platinum. Last year in South Africa, for instance, the total mine output in the country reportedly declined by 7%, according to an Economist Intelligence Unit report.
Shortly after the onset of the Russia-Ukraine conflict, concerns arose that it might affect palladium availability around the world. Several countries prohibited Russia—a major source of palladium, contributing approximately two fifths of the global supply — from entering their airspace last year. Therefore, in February of last year, anticipating potential shipping challenges, the White House advised semiconductor manufacturers and other industry members to try to proactively diversify their supply chains.
While the overall supply of precious metals may be limited, the application-related needs for some metals — such as silver — have grown.
In addition to silver’s utilization in computers, mobile phones, and other consumer electronic products, the precious metal plays a critical role in solar photovoltaic power production. With solar photovoltaic capacity in the United States forecast to increase 84% by the end of 2024, according to a Deloitte report, the demand for silver to use in solar and other processes is also likely to grow.
How Precious Metals Are Incorporated Into a Portfolio
Portfolio holders can take advantage of the same tax benefits a traditional individual retirement account offers with a self-directed precious metals-backed IRA — making contributions on a pretax basis, with taxes deferred until the holder begins to take distributions.
If physical precious metals assets, such as coins or bars, possess a specific fineness — at least 0.995 for gold and 0.999 or greater for silver, per Internal Reserve Service guidelines—they may qualify for use in a self-directed IRA.
To include gold, silver, or other precious metals assets in a self-directed IRA, you can either add money to the IRA from a checking or savings account or transfer or roll over funds from another retirement account, such as another IRA, 401(k), SEP or SIMPLE IRA, or Thrift Savings Plan account.
Those funds can then be used to purchase precious metals coins, bars, or rounds that are stored remotely in a secure IRS-approved facility.
What U.S. Money Reserve Can Contribute to the Process of Opening a Precious Metals IRA, According to Customers
Because several steps can be involved in setting up and funding a self-directed IRA, portfolio holders may find that assistance from an organization such as U.S. Money Reserve could be helpful when establishing the account and purchasing precious metals.
In its 22 years in business, U.S. Money Reserve has served more than 785,000 clients and handled more than $2.5 billion in precious metals transactions.
Numerous portfolio holders the company has worked with say they’ve had positive experiences. Online reviews that customers have posted frequently describe U.S. Money Reserve’s employees as trustworthy, respectful, helpful, and patient; some customers say the Austin, Texas–based company is the only precious metals distributor they’ll work with, according to a Finance Digest article.
In May, Eric S. called U.S. Money Reserve’s customer service “excellent” in a review posted on the Better Business Bureau website, noting that its Account Executives “set the bar high in trust, patience, expertise, integrity, pricing, and rapport with their customers.”
Much like Paul V. — who wrote in May that the company representatives he’d spoken to were consistently knowledgeable, professional, and courteous — U.S. Money Reserve client Tom R. gave his interaction with the company and its Account Executive Corey the highest possible rating: five stars.
“I have contacted other rare metals suppliers but was disappointed to find out they are only interested in large, high-dollar investors,” Tom said. “As a small-time investor, Corey made me feel just as important as the big investors. I continue to recommend their services to everyone interested in acquiring hard asset investments.”
To support portfolio holders’ financial knowledge and position them to make the best decisions to meet their particular savings goals, U.S. Money Reserve provides numerous free resources via its website, including a library of special reports, videos, and additional information about precious metals assets.
You can also peruse U.S. Money Reserve’s available inventory of government-issued bullion, high-purity bars, and certified coins, then purchase items online or call 1-888-356-7074 to place an order or discuss your portfolio plans with an experienced Account Executive.