Gold has experienced sharp declines in price since reaching its all-time high in 2011, and this robust depreciation has created potential opportunities for those who are interested in taking advantage of gold backed IRAs.
Since late in 2011, the price of gold has plunged 39 percent from its record value above $1,920 per ounce to less than $1,200 an ounce late in June, according to The Wall Street Journal. As a result of the sharp drops, many individuals who previously engaged in physical purchases of the metal have been holding back.
The commodity rallied in the weeks after, but the increases represented a far shot from the losses incurred since the metal reached a recent high, Bloomberg reports. During the week ending on July 12, the price of bullion rose more than 5 percent in London.
Amid this environment, where metal is trading at a substantial discount to its record high value, individuals who are interested in using the commodity in their retirement planning efforts might benefit from setting up gold backed IRAs. By doing so, these individuals can enjoy the various benefits provided by gold and also obtain the tax-advantaged treatment afforded by using an IRA.