Gold IRA Investments to Store in Your Account

If you’ve decided to open a gold IRA, you likely understand its advantages. These accounts let you access valuable tax benefits while saving for retirement. Moreover, you can invest in an asset long considered an ideal way to protect against inflation.

However, you must be mindful of IRS rules when purchasing gold IRA investments. The government only allows certain precious metals to be held in these retirement accounts. Keep reading to learn what gold IRA investments are allowed and where to buy them.

What types of gold IRA investments can you hold?

Gold IRAs aren’t limited to just gold investments. These accounts are sometimes called precious metals IRAs because you can also hold silver, platinum, and palladium in your retirement account.

Across all types of metals, you have three options for investment:

• Bars
• Rounds
• Coins

Rounds differ from coins because private companies print them, and they have no face value.

You must also meet IRS requirements for purity, origin, and size. The table below outlines the purity requirements for various gold IRA investments. 

Investment type	Purity
Gold bars	99.5%
Gold rounds	99.5%
Gold proof coins	99.5%*
Gold non-proof coins	99.5%*
Silver bars, rounds, and coins	99.9%
Platinum bars, rounds, and coins	99.95%
Palladium bars, rounds, and coins	99.95%

Remember that collectible and rare coins do not qualify as gold IRA investments. Even if they meet other requirements, their value is deemed to be based on their rarity or desirability rather than their precious metal content.

Most gold IRA companies clearly mark IRA-eligible gold on their websites or inventory sheets.

How do you invest in a gold IRA?

If you don’t already have your gold IRA set up, you must do that first. You must purchase any gold you want to put in your retirement fund through the IRA.

Here’s a brief overview of the steps involved.

1. Open a self-directed IRA with a custodian: Only self-directed IRAs can hold gold and precious metals, and you’ll need a custodian to oversee the account. Some custodians, such as STRATA Trust and Equity Trust, are experienced in managing gold IRAs.
2. Purchase from a reputable dealer: Compare your options to look for a company with competitive pricing and benefits, such as a buyback program. Choosing a dealer experienced with gold IRAs is ideal because the staff will be familiar with IRS rules.
3. Have gold shipped to a depository: You can’t store gold IRA investments at home, so you must send them to an approved depository for secure storage.

The easiest way to complete all three steps is to choose a gold IRA company, such as one of the options listed below. These companies specialize in precious metal IRAs and are experts in setting up and funding a retirement account with gold. They can connect you to a custodian and depository and walk you through the paperwork.

Where do you invest in a gold IRA? 

Based on our experience and review, the following four companies are all solid choices for those looking to create and fund a gold IRA. Take a look at each one and decide which is best for you.

American Hartford Gold Group

Lear Capital

Anthem Gold Group

Goldco

How to choose the best gold IRA investments

When it comes to buying gold IRA investments, keep in mind the following considerations:

• Personal preference: Some people prefer to own coins rather than bars, while others want a mix of metals rather than just gold. Before making a purchase, consider what investment approach appeals to you.
• Markup: You can easily find and track the spot price of precious metals, but remember that every dealer will apply a markup to the items they sell. This is similar to how retailers buy products at wholesale prices and then add a markup for sale to consumers. Just as you would shop around for the best deal on other purchases, it pays to compare prices on gold.
• Liquidity: When it comes time to withdraw in retirement, you’ll need to liquidate your gold if you want cash. With that in mind, it might be best to have bars and coins of various weights in your gold IRA to allow you to withdraw the precise amount you need.  

If you still need help deciding which gold IRA investments are right for you, talk to a trusted financial advisor for personalized advice. Specialists with gold IRA companies may also be able to provide guidance on popular products and other factors to consider.

FAQ 

How much does it cost to open a gold IRA?

The cost to open a gold IRA can vary depending on the provider, but it generally includes several key fees. A setup fee, ranging from $50 to $200, covers the cost of establishing the IRA account. Annual administrative fees, which might range from $75 to $300 per year, cover the cost of account maintenance. Storing physical gold in an IRS-approved depository incurs storage fees between $100 and $300 per year. Purchase fees, often involving a markup over the spot price of gold, are also associated with buying the gold.

Do you pay tax on a gold IRA?

A gold IRA follows the same tax rules as other IRAs. If it’s a traditional gold IRA, you won’t pay taxes on contributions but will pay taxes upon distribution. Distributions taken before age 59½ may also be subject to a 10% early withdrawal penalty. For Roth gold IRAs, contributions are made with after-tax dollars, and qualified distributions are tax-free. Selling gold within the IRA doesn’t trigger a taxable event, preserving the tax-deferred status of the investment until distributions are made. 

What are the downsides of investing in a gold IRA?

Investing in a gold IRA has several potential downsides. Gold IRAs often incur higher fees than traditional IRAs, including setup, storage, and administrative fees. The physical gold must be stored in an IRS-approved depository, which can add logistical complexity and cost. Physical gold can be less liquid than other types of investments, making it harder to access funds. The value of gold can be volatile and is influenced by market demand, economic conditions, and geopolitical events, adding to the investment risk.

Can I hold my own gold IRA?

​​No, you can’t hold your own gold IRA. The IRS regulations require that the physical gold in a gold IRA be stored in an IRS-approved depository, so you can’t take physical possession of the gold. Instead, the gold must be held by a custodian or trustee on behalf of the IRA owner. This requirement ensures the security of the investment and compliance with IRS rules.

Recap of companies for gold IRA investment