By Jacob Markowitz
Back in September, Barrick Gold announced that it would be acquiring Rangold Resources in a $6 billion deal to create the world’s largest gold mining company. Now, not even four months later, a new merger has evolved to push Barrick off of its short-lived top spot. In a whooping $10 billion deal, Newmont Mining will be acquiring fellow rival Goldcorp to create the world’s newest largest gold mining company. For comparison sake, Newmont and Goldcorp combined to produce nearly 8 million ounces of gold in 2017, a noticeable advantage over the 6.6 million ounces of gold Barrick and Rangold combined to produce in that same time span.
Why the sudden gold rush? There are likely many reasons, but it certainly is no coincidence that the gold mining competition is heating up on the heels of many investors predicting a strong 2019 for gold, including Goldman Sachs forecasting an increase of over 5.5% to $1,425 an ounce (which would be the highest gold has been valued since 2013).
This certainly appears to be an opportune time to go over the guidelines of holding gold or other precious metals in a retirement account. In what we have found to be one of the lesser known facts regarding IRS retirement law, it is certainly possible to obtain gold or other precious metals with a Self-Directed IRA or Self-Directed Solo 401(k). One would even be able to take physical possession of certain types of precious metals, such as American Eagle coins. Unfortunately, even some gold dealers are unfamiliar with this rule and spread misinformation to their clients regarding gold in a retirement account.
For more information, feel free to consult with one of Broad Financial’s experts at 800-395-5200