First some history: back in the 1970s, Congress passed the Employee Retirement Income Security Act (ERISA), which included among its provisions the Individual Retirement Account (IRA). The IRA was intended to help workers save for retirement using their own tax-deferred, personal investment accounts available through commercial financial institutions. It would also enable workers changing jobs to keep their employer-sponsored retirement plan assets by allowing them to transfer, or "roll-over" their plan balances into IRAs.

Since those days, the IRA and other so-called "self-directed" personal retirement plans like the 401K have been altered so as to provide expanded investment alternatives. For example, in 1986 the US tax code was amended to allow IRAs to hold American Eagle Gold and Silver coins, in addition to fixed income, equities, money market investments and real estate investment trusts (REITS).

What are the pluses to including a precious metal component in your retirement investment portfolio? Some of the chief ones:

1. The market prices of precious metals tend to move opposite those of stocks and bonds. Studies show that portfolios containing modest amounts of precious metals exposure will experience less overall volatility and greater long-term returns than the same portfolios minus the precious metals component.
3. You can further diversify your retirement holdings by adding a tangible asset, precious metals, which, unlike stocks and bonds, have inherent or innate, value.
5. While you may pay income taxes on withdrawals from the account once retired, the market gains earned from precious metals investments are exempt from capital gains taxes. This is especially important when you consider that the precious metals bull market we have been enjoying over the last decade (the price of gold has increased by an average of 38% + every year during this period)!
7. In the US, gains on precious metals, including EFT's, held outside of an IRA are taxed at the 28% so-called "collectable rate", as compared to the capital gains rate of 15%. Obviously, this feature can result in ample savings and, especially under current market conditions, considerably increase one's retirement investments over the life of the plan.

So we can't say it too many times: financial advisors owe it to their clients to explain the substantial advantages of including a precious metals component in their portfolios.