Yes, you can invest in real gold or other precious metals for your IRA. Learn about the special rules for gold IRAs and what you should consider before investing. You can also choose to buy a gold ETF or gold investment fund. These funds buy up a basket of gold-related investments, such as stocks in various gold mining companies.
There are also funds that directly track the spot price of gold using futures trading strategies. Gold IRA companies streamline the account opening process. They sell gold coins, gold bars, and the like, but they don’t offer IRA investment advice (regardless of what their websites or other marketing materials might suggest). When choosing, it is important to do your research.
For more information on what to look for when choosing a Gold IRA company, check out Money’s Guide to the Best Gold IRA Companies. Given that the stock market typically rises by around 7% in an average year, it would be rare for a gold IRA to outperform other retirement investments. In fact, this general rule prohibits IRAs from investing in precious metals or coins made from precious metals. People who believe that physically owning gold or other precious metals is safer can achieve that peace of mind with a gold or silver IRA.
If that doesn’t matter to you, there are other ways to add exposure to precious metals to your retirement portfolio, such as buying stocks in gold mining companies. Gold IRAs are usually defined as alternative investments, meaning that they are not traded on a public stock exchange and require specialized expertise to value them. It’s important to be aware of all costs and expenses before you buy physical gold to keep in an IRA. Self-directed IRAs can be either traditional IRAs or Roth IRAs, and the difference is how you want to tax your money.
So if your portfolio consists of both gold and paper investments, a loss on the gold side is offset by the gain in other assets. One important rule to know about storing physical gold in an IRA is that your precious metals MUST be stored at an approved depository institution such as the Delaware Depository Service Company or Brink’s Global Services, not in your home or in a safe. If you’re not sure whether a gold IRA or a silver IRA is right for you, contact a fee-based financial planner who isn’t affiliated with a gold IRA company to determine whether it would be a good addition to your portfolio. Self-directed IRAs, of which gold IRAs are one type, have the same contribution and distribution limits, which depend on your age, as traditional IRAs.
However, the IRS has introduced additional tax filing and record keeping requirements for gold IRAs due to the more complicated assets they own. According to the latest PLR, the rules that prohibit direct IRA investments in gold do not apply if the gold is held by an independent trustee. Gold IRA companies can vary widely, and choosing the best company for your investment goals is critical if you want to ensure a comfortable and hassle-free retirement. For example, you could have an IRA that is invested in precious metals and another IRA that invests in liquid assets such as publicly traded stocks and mutual funds.
