Direct Ownership vs. Mutualized Ownership of Gold

investmentIf you’re new to the world of gold investing, you might not be aware that there are two ways to own gold: direct ownership and mutual ownership. What’s the difference between the two? It’s somewhat like the difference between investing in a stock and investing in a mutual fund. In the first, you have 100 percent ownership of the product. In the second, you share ownership with a number of other investors. What are the advantages and disadvantages of each?
Costs of Direct vs. Mutualized Ownership
Mutualized ownership tends to be cheaper than direct ownership, but you don’t have sole ownership of the metals. With direct ownership, any fees are entirely your responsibility, not split among a variety of investors. Additionally, there may be multiple pieces of gold, coins, bars, etc., requiring documentation, shipping, care and storage that Fortress can explain thoroughly in detail.
Verification of Direct vs. Mutual Ownership
With mutually owned gold, you will receive a storage certificate with numbers identifying all the investors and identifying the gold you own. However, physically verifying your gold will be difficult if not impossible. You do not have easy access to mutually owned gold, and if you want to withdraw your ownership share, you will probably incur serious exit penalties.
With direct ownership, it’s your gold. You’ll receive the necessary documentation verifying your ownership. You can access it and control your gold the way you want to. You can physically hold your investment and you own it completely.
Risks Associated With Direct vs. Mutual Ownership
With direct ownership, the risk is assumed by you and you alone. You decide how much to buy and when, as well as the best way to store your gold.
With mutualized ownership, most of the risk comes from your storage partner. The bank or other financial entity holding your gold is generally the only one that will see and have full access to your gold, and if your gold is lost, stolen or the company goes bankrupt, you may have little recourse.
What Is the Best Method of Gold Ownership?
Different methods may be better for different individuals, but if you are concerned about having control over your gold investment – especially if you are planning on gold investing for retirement – your best option may be to own gold directly in an account managed by gold investment professionals, like a precious metals IRA from Fortress Gold Group. Fortress Gold Group, rated the No. 1 Gold Firm in America by Inc. 500, offers a Gold IRA and precious metals IRAs that works just like a regular IRA, except with gold as the investment product. Fortress Gold experts can help you choose your gold and plot your best investment strategy.
If you’re going to invest in gold, it’s smart to learn all you can about the benefits of gold and the gold investment process.
To learn more about direct ownership and other aspects of gold investing CLICK HERE or call our precious metal specialists today at 1-800-777-6177.

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