The term gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualified retirement plan. Investors with gold IRAs can hold physical metals such as gold bars or coins as well as securities related to precious metals in their portfolio. Gold IRAs are known as self-directed IRAs, but you can use them to purchase certain IRS-approved gold bars and precious metals. They can also be used to buy real estate, businesses, and other assets.
Gold IRAs are individual retirement accounts that hold physical gold as an investment instead of traditional stocks and bonds. With a gold IRA, you can hold physical precious metals while receiving the same tax benefits as traditional IRA investments in paper assets such as stocks, bonds, and mutual funds. One option is to set up a self-directed gold IRA, which allows you to buy physical gold and silver with retirement funds. 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.
If gold seems like a solid choice for you, Sentell suggests investing no more than a third of your retirement savings in a gold IRA. If you depend on your IRA for retirement income, as most people open gold IRAs are, you could be forced to sell at a loss. If you want to own gold because of its investment potential, you could benefit from holding your precious metals in an IRA. Many investors choose gold to diversify their portfolio, either by investing in a gold IRA or buying the metal outright.
A gold IRA is a type of IRA that allows investors to own physical gold, silver, platinum, and palladium. Given the many scams and misleading advertising, it’s important to do your research before opening a Gold IRA account. Make sure you do this through unbiased third-party sources (not Gold IRA companies that have a financial interest in selling you a Gold IRA). While the price of gold rose to new highs over the summer, you’ve probably seen a number of ads recommending investing in gold via an IRA.
If you’ve considered investing in gold and other precious metals, such as silver, platinum, and palladium, you may have seen ads for so-called “home storage gold” IRAs. To own gold, whether in the form of coins or precious metals, you need a genuine, self-directed IRA in an IRA, which is offered by a few custodian banks. For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. Simplified gold IRAs for employees, also known as SEP Gold IRAs, are available to self-employed people and small business owners.