IRA gold offers the opportunity to diversify an investment portfolio by adding physical bullion to it. The precious metal has demonstrated resilience in times of economic uncertainty and is widely viewed as a store of value, helping to reduce inflation risk and protect wealth from stock market declines. It can also act as a safe haven during crises and pandemics.
But while investing in gold is often touted as a way to boost retirement savings, there are some important things you need to know before opening such an account. First, you need to understand that precious metals IRAs are not like regular individual retirement accounts (IRAs). There are three separate entities involved with an IRA gold purchase: the precious metals dealer, the custodian and the depository. Each one charges fees that can add up and can vary from company to company.
The most popular way to invest in a Gold IRA is to open a self-directed individual retirement account that allows investors to buy and hold physical gold and silver investments. This option is typically more flexible than a traditional IRA and can be opened as either a pretax or Roth IRA. However, as with other IRAs, there are restrictions on contribution limits, penalties for early withdrawals and required minimum distributions at age 73.
Most IRA gold providers require that the investor buy precious metals through them and then transfer them to an approved depository, per IRS rules. Investors should be aware that these transfers are considered an in-kind distribution and come with extra costs, including shipping and insurance.
Another option is to find a company that sells directly to the consumer and then partners with an approved depository for storage. These types of companies often offer lower prices than their competitors. But they can be risky if the dealer or depository goes out of business.
An important factor to consider when evaluating the best IRA gold providers is their customer service. You can judge this based on their responses to your emails, how quickly they process your order and whether or not they charge for additional services such as delivery and storage.
A trusted and established IRA gold provider is American Bullion, founded in 2009. It offers competitive pricing on its products, excellent education resources and quick turnaround time for new customers. Its annual account fee is on the higher end compared to some of its competitors, but it waives the first year’s storage and custodian fees for new or rollover accounts with a value of $50,000 or more. American Bullion has high marks from the BBB and other consumer review sites. But its website is somewhat cluttered and it doesn’t have chat support. It does offer free workshops and consultations. It also has a wide range of bullion products, from bars and rounds to sovereign minted coins that can function as currency. This enables you to find the right investment to fit your specific needs. In addition to its IRA offerings, American Bullion also sells unallocated gold to non-IRA investors.