Posted By Isaac Nuriani
An uncharacteristic drop in East Indian gold interest last year has puzzled many. In 2016, gold imports to India dropped 21 percent to only (!) 676 tons. As you might remember, 2016 saw a strike by jewelers in India, and cash was scarce in November during the Indian government’s demonetization of small bank notes. Whatever spooked them over the last year, it seems now that Indians are coming home to gold.
February imports to India show renewed interest in gold, as the amount rose to 50 tons of bullion. That’s a year-over-year increase of 82 percent from the 27.4 tons India imported in February 2016.
It’s really amazing to me that Indians are buying massive amounts of gold this year, because its price has been hovering around $1,250 an ounce, not too far below last year’s high of $1,350. In other words, Indian gold buyers don’t consider the metal to be overpriced by any means. They could have bought it last year for as little as $1,050 an ounce. Maybe they realize there’s still lots of room for gold prices to rise—not to mention the beneficial stability gold brings to any portfolio because of its inflation-hedging qualities.
Folks who own gold IRAs are smiling right now for the same reasons. Remember, a gold IRA is a self-directed account allowed by the IRS that lets you purchase certain precious metals of sufficient purity—usually in the form of gold coins. We know how popular these IRAs are becoming, because we have had a great response to the gold IRA plan we offer: the Augusta™ Gold IRA from Augusta Precious Metals. We think folks invest with Augusta because they recognize we offer unbeatable prices and proven first-class service. Our plan offers flexibility in terms of storage locations, and we stand by the quality of any coin we sell. We also sell silver IRAs.
According to U.S. tax rules, you can contribute up to $5,500 a year to your gold IRA, but if you’ve reached the ripe young age of 50, that limit rises to $6,500. So, if you and your spouse contribute the maximum, you can sock away $13,000 a year. That’s enough to buy 10.4 ounces of gold at $1,250 an ounce!
The cherry on top of this sweet sundae is that your contributions are tax deductible. If you and your spouse are in the 25 percent tax bracket, your $13,000 in contributions only costs you $9,750 after tax benefits are applied. That means you can together buy your 10.4 ounces of gold for only $937.50/an ounce after taxes, when the spot price is $1,250. After taxes, you would be saving $312.50 an ounce by buying gold though a gold IRA from Augusta Precious Metals. Let me ask you something. What are you waiting for? Maybe this is the year you follow the lead of East Indians who love gold.
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