A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. Proponents of gold IRAs argue that these costs are worth the peace of mind of being protected from a potential financial apocalypse. But let’s assume that a disaster really does occur. How would you redeem your gold if it’s in a deposit at the other end of the country?
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. Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. To help customers avoid this threat, some IRA companies, for example, buy back their gold at the then-current wholesale price.
While most IRA investors invest in more traditional assets such as stocks, bonds, and funds, the tax code allows investments in precious metals such as gold and silver through specialized IRA accounts. You must store the gold in a gold IRA in an IRS-approved depot. You can’t store it in a safe, a house safe, or under your mattress. So protect your money by investing it in tangible assets that can survive a crisis, or, as Devane puts it, “an IRA backed by gold and silver, not by paper and promises. If you suddenly need gold to trade in groceries, you’d need to call your custodian manager first and fill out the necessary paperwork to get access to your own gold.
The advantage of gold ETFs is that you can buy and sell stocks just like stocks and hold them in a traditional IRA or 401 (k). No special account is required. All Gold IRA rollovers follow the same rules as converting to a traditional IRA or a Roth IRA. Because of Noble Gold’s extensive network of partners and suppliers, customers receive competitive prices for gold purchases. While Advantage Gold appeals to gold IRA investors of all types, it is particularly attractive to first-time buyers.
The gold must be purchased and transferred to the custodian bank in such a way that the custodian bank can take care of it. Therefore, investors must work with a reliable and reputable Gold IRA company to facilitate the process. If this is the only IRA account or if there isn’t enough liquidity in the other accounts, you’ll also need to sell some of the gold to raise the money to make the RMD. In addition, the IRS only allows certain gold coins, such as the American Gold Eagle or the Canadian Maple Leaf. Those who prefer to invest in gold company stocks (such as Barrick Gold), in mutual funds of such companies (such as Fidelity Select Gold Portfolio), or in ETFs that track the performance of a gold index (such as SPDR Gold Shares) can do so with a mainstream IRA.
For example, pre-tax funds included in a Roth IRA are taxed before they are converted to a Roth IRA, while post-tax funds are not taxed.