What is a Gold IRA and why you should consider investing in one

The short answer to ” what is a gold IRA and why should I consider investing in one ”  is that a Gold IRA will help you offset the losses that are occurring in the tradition investment destinations such as the stock and bond market by placing your dollar value in an up-trending asset.

The long answer is as follows:

IRA accounts are a great way to save for retirement, but did you know that there are different types of IRA accounts? One of the most popular and overlooked types is a Gold IRA, which is a retirement account that holds physical gold instead of traditional stocks and bonds. A gold IRA is an Individual Retirement Account that allows the account holder to invest in physical gold, silver, platinum, and palladium.

Is there an advantage to holding physical gold bullion coins and bars instead of stocks? Surprisingly, yes! And it’s quite easy to do.

Read on to learn more about why you should consider investing in a Gold IRA, the advantages it can offer, and how to get started.

What Is A Gold IRA?

A Gold IRA is a type of Individual Retirement Account that invests in physical gold bullion coins and bars. These investments are allowed under the IRS’s regulations, so they are tax-advantaged just like any other IRA. 

The value of a Gold IRA is based on the current market price of gold plus any applicable fees or commissions charged by the custodian (a financial institution that holds your account’s investments for safekeeping and ensures compliance with all IRS and government regulations) or broker.

If you want a gold IRA, there are certain steps you must follow. Most importantly, you cannot hold the physical gold yourself— an IRS-approved non-bank trustee will have to keep it for you. These types of self-directed IRA accounts are great because they enable investing in nontraditional assets, like real estate or precious metals.

Get Your FREE Gold IRA Guide Here!

Why Invest in a Gold IRA?

Gold IRA

Gold IRAs are becoming increasingly popular as investors look for ways to diversify their portfolios and protect their retirement savings from inflation. Here are some of the reasons why you should consider investing in a gold IRA.

1) The Value of Gold Steadily Increases

Gold has been used as currency since before 600 BC., and its value has traditionally been much more stable than traditional stocks and bonds. By investing in gold, you can help to protect your retirement savings from drastic drops in the stock market or currency devaluation.

Augusta Precious Metals

2) Gold is a Tangible Asset

Unlike stocks and bonds, Gold IRAs give you direct ownership of a physical asset. This can give you peace of mind knowing that your investments are backed by something tangible and real.

3) Gold is a Limited Asset

There’s only so much gold in the world, and it’s not something that can be created or printed like money. This makes gold a limited asset and helps to protect its value over time.

4) Gold is a Hedge Against Inflation

One of the main reasons why people invest in gold is because it is a hedge against inflation. When the prices of goods and services increase, the purchasing power of your money decreases. This is known as inflation. Many people turn to gold as a way to protect their wealth from inflation because it tends to increase in value when inflation is high. 

gold vs inflation

5) Gold has real-world Applications

Gold has many uses in electronics, dentistry, and jewelry. This means that even if its price were to drop significantly, there is still a demand for gold as a physical commodity.

6) Gold is a safe Haven Asset

When economic conditions are uncertain, investors tend to flock to safe-haven assets such as gold. This is because gold is seen as a stable investment that will hold its value even when other investments are losing money. This makes gold a great option for those who are risk-averse and want to preserve their wealth during times of economic turmoil. 

All in all, investing in a Gold IRA is a great way to diversify your retirement investments, protect against inflation, and generate consistent returns. It can also be used to add stability to your investment portfolio by providing an asset class that moves counter-cyclically with the stock market.

Get Your FREE Gold IRA Guide Here!

Disadvantages of Gold IRA’s

While gold IRAs can be a great way to diversify your investments and protect against inflation, there are also some disadvantages that you should consider before investing.

1) Custodian Fees

The cost of investing in a Gold IRA can be high, depending on the custodian. If you don’t already have an existing IRA and need to set one up, the setup fees and administrative costs could add up.


2) Storage Costs

If you have a physical gold IRA, you will be responsible for the storage and insurance fees associated with it. This can add up to several hundred dollars each year depending on the size and value of your account.

3) No dividends

Unlike stocks and bonds, gold does not pay out dividends. This means that your returns from a Gold IRA will be limited to the appreciation of the asset itself.

While these are some of the drawbacks you should consider when investing in a Gold IRA, it could still be worth it if you want to diversify your retirement portfolio and protect against inflation.

How to Start a Gold IRA?

Getting started with a Gold IRA is relatively straightforward and doesn’t require a lot of time or money.

1) Find a Custodian

You will first need to find a custodian to hold the gold in your account. This is usually done through a brokerage firm or a company that specializes in precious metals IRAs.

Birch Gold Group

2) Choose to Invest

You can choose to invest all your money in gold (not recommended), you can choose to invest part of your money in gold and part of your money in other precious metals or assets, or any combination you feel comfortable with. 

3) Set up your account and make your first purchase

Once you have decided how you want to invest your money, the custodian will help you set up your account and make your first purchase. You can do this by transferring funds from an existing retirement account or by opening a new IRA with your chosen custodian.

4) Monitor Your Investment

The next step is to monitor your investment and make sure that it is performing the way that you want it to. You should also keep an eye on the overall market conditions so that when you’re ready to retire, you can make the most of your investments.

By following these steps, you can ensure that you get the most out of your investment in a gold IRA. 

American Hartford Gold


A gold IRA is a great way to diversify your investments and protect your savings from inflation. If you are looking for a safe investment with stable returns, then a gold IRA might be right for you. Be sure to do your research before investing so that you can make the most informed decision possible about whether or not a gold IRA is right for you.

Our Gold IRA Company Recommendation

We recommend Augusta Precious Metals as the top Gold IRA company to work with. 

Augusta Precious Metals has a highly trusted name in the gold investment industry, with an A+ rating from the Better Business Bureau, as well as a AAA rating from the Business Consumer Alliance, and loads of reviews from satisfied customers.

They can help you move an existing registered plan into an IRA, as well as set up a new one. Augusta Precious Metals team members are always there to answer your questions and concerns, and to help you pick the right precious metals that will suit your needs. With your personal financial goals in mind, the Augusta Precious Metals team ensures a smooth and clear transfer process with no additional IRS fees.

Augusta Precious Metals offers a wide variety of precious metals so that you can diversify your portfolio with a selection of gold and silver bars and coins. As you work your way towards retirement, continue to add to your IRA each year to grow your wealth.

We are confident that you’ll choose Augusta Precious Metals as your top pick as well. Visit the Augusta Precious Metals website today and fill out their application form to begin the process in setting up your IRA. You’ll be happy you did!

Augusta Precious Metals

Frequently Asked Questions (FAQ)

A Gold IRA is an example of a Self-Directed IRA. Self-Directed IRA’s were designed to give individuals more freedom in the selection of investments that they could hold in their retirement account. A Gold IRA is unique to precious metals, where the investor/individual has the ability to hold gold, silver, and other precious metals such a platinum and palladium in their account rather than being limited to traditional stocks and bonds.

By holding precious metal investments in a Gold IRA, this gives the ability for individuals to make their portfolio more diverse and prepare themselves for future financial success. Having a diversified portfolio makes for a better chance to survive a stock market crash and still have some of your funds held in other categories, such as gold.

There are various options when it comes to investing in gold. One option is to purchase gold coins or bars from a local retail shop or gold investment company. You may then hold the metals until you are satisfied with their growth, ready for retirement, or need them for another expense. 

Another option to invest in gold is by setting up a Gold IRA. These are a form of a Self-Directed IRA, only your funds can be held in gold rather than stocks and bonds. This is a good way to invest in precious metals without worrying as much about taxes.

The value of a gold coin increases as the value of spot gold increases. The number that is printed on each gold coin (known as the face-value) is not an accurate reflection of its true valuation. In fact, its value is likely much higher than the face-value based on the current price of gold today.

Depending on your age, current financial position, and personal preferences, the answer to this question will vary per person. If you are coming up on retirement, you’ll want to take fewer investment risks and may not want a large portion of your money in gold. If you’re still young and have more time to take greater investment risks, you may want a larger percentage of your portfolio invested into gold. 

Like many investments, it is optimal to buy at a low value. Generally speaking, when the stock market is over-performing, the value of gold is at a much lower amount. Gold also follows some trends such as a decrease in certain months of the year, including January, March, and April.

It is always a good idea to seek out a financial advisor to help discuss the best options for your current situation. This way you can shift your investments based on what makes the most sense for your financial goals, and the current economy.

Your current plan may not give you the option to invest in gold, but there are numerous other plans that allow gold investments. Keep in mind that there are specific rules set out by the IRS regarding how gold can be bought and stored. Because of these rules, it’s important to find a reputable company to work with.

You are legally allowed to do a 401(k) rollover and avoid paying taxes and penalties, but to do this you must follow the correct process. Start by contacting your current 401(k) plan and explain your situation. The rollover may take several weeks or months to complete, so it’s best to begin as soon as possible.

Traditional 401(k) plans and IRA’s are tax-deferred savings accounts, meaning you do not need to pay any taxes on your contributions. Once you retire and eventually withdraw your funds, you will pay taxes on those withdrawals. You will not get any tax breaks if you purchase gold for personal ownership. Right now, the only way to avoid paying taxes on gold is by purchasing it through your 401(k) plan or IRA.

Although this process is a bit tricky, you absolutely can purchase physical gold in your 401(k) plan. Since your IRA cannot be the seller and holder of the gold, they will need to store the physical gold with a third party. You are also not personally allowed to hold the gold. You may only keep gold and silver in a plan of this type if someone else is storing it, according to the IRS. While you will not be allowed to have physical control over the gold, you may still be allowed to access the storage facility.

Yes, any gains made on the gold held in a Gold IRA are subject to capital gains taxes. Additionally, if you take a distribution from the Gold IRA before you reach the age of 59 and a half, you may be subject to income taxes and a 10% early withdrawal penalty. Things may differ depending on whether you have a traditional IRA or Roth IRA.

No. You are not allowed to take physical possession of the gold or other precious metals held in an IRA account. 

No. Home storage is not allowed and could have serious tax implications if you are found to be taking physical possession of the gold held in your IRA. You must store the gold with an IRS-approved custodian. Any company that promotes home storage is not providing sound advice and should be avoided. 

No. The IRS does not allow precious metals to be stored in a safe deposit box. The custodian/depository must always maintain possession of the gold.

This is a tricky question. 

Mostly, no. For most folks, it’s impossible to take physical possession of their gold without paying severe fees.

There is however a workaround for very (VERY) few individuals. 

A “Checkbook IRA” allows the IRA owner to have more control over their investments. They can use an LLC to make investment decisions and hold assets on behalf of the IRA. The LLC is owned by the IRA and managed by the IRA owner or someone else. The assets, including precious metals, can be stored in a place chosen by the LLC, like a storage facility or the IRA owner’s home as long as it’s secure and insured. Though, the IRS has strict rules for using a Checkbook IRA and storing IRA-owned assets. 

Some of these rules include:

  • A minimum net worth of $250,000.
  • Must have a corporate legal counsel.
  • Ownership must be shared among multiple individuals.
  • And much more

Keep in mind that this loophole is not recommended. There is a possibility that you will be penalized and even possibly disallowed from future investments. It’s not worth the risk, even if you do meet all these requirements. 

Remember that your specific situation and goals should always be discussed with your tax advisor.