Gold IRAs appeal to investors who want a diversified retirement portfolio. A gold IRA is a type of self-directed IRA that allows you to invest in gold bars for retirement. In a regular IRA, you can’t own physical gold, although you can invest in a wide variety of assets that are invested in gold, such as gold stocks or gold ETFs. These investments are available in a normal brokerage IRA, which means you don’t have to go through the work and additional costs of setting up a self-directed gold IRA.
Gold IRA rules require that you store eligible precious metals with a national depositary, bank, or IRS-approved trustee. Gold provides an additional source of diversification and is (perhaps mistakenly) seen as a hedge against volatility. By opening a standalone IRA with Allegiance Gold, you are able to make your own investment decisions and select IRS-approved coins, gold bars, and bars to invest in, and they bear the weight and security of tangible assets. Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium.
For example, to be IRS-eligible, gold bars must have a purity of 99.5%, silver a purity of 99.9%, and platinum and palladium a purity of 99.95%. The IRS does not allow popular gold coins such as the South African Krugerrand or British sovereign coins to be stored in a gold IRA. Allegiance Gold can help you meet regulatory requirements, avoid tax pitfalls, and diversify with physical precious metals to stabilize your retirement portfolio. Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA.
Self-directed IRAs can be traditional IRA (traditional SDIRA) or Roth IRA (Roth SDIRA), and they have the same rules regarding contributions, income limits, and distributions as mainstream IRAs. Once you’ve opened a self-employed gold IRA, you can transfer cash to the account to fund your purchase of physical gold. The rules for withdrawals (selling the gold for cash) depend on whether the gold IRA is a traditional or a Roth IRA. You can invest in gold stocks, such as stocks of gold mining companies or gold licensing companies, which help finance mines.
Still, a gold IRA can be a good option for investors who want to diversify their retirement accounts and also take advantage of the hedging benefits that the yellow metal offers over other financial assets, such as fiat currency and stocks.