Gold IRA could potential be a way of investing that is perfect for you.
Learn everything about investing in a Gold IRA. We cover the best Gold IRA companies, why invest in precious metals, and the future of gold’s value.
Top Gold IRA Companies
Why Invest in a Gold IRA
Are you looking to invest but don’t know where? A Gold IRA has massive benefits in today’s volatile markets and is excellent for uncertain times.
Precious metals have been part of our society as a conductor and for manufacturing in the latest technology. However, investors realize gold and other metals can safeguard against market crashes and volatility as the value continues to rise.
Read on to find out about Gold based IRA, the best Gold IRA companies featuring Gold IRA reviews, advantages, and much more.
The Best Gold IRA Companies
Goldco is best known for IRAs and retirement rollovers. Created in 2006, its staff has more than 100 years of experience in the industry, notably precious metals.
GoldCo is transparent with its operations, providing effortless 401(k) and IRA rollovers.
For more diversification, they offer SEP and SIMPLE IRAs. If you want to learn more, the company provides massive educational materials. If you choose this company for investing, they offer advice with a personalized, dedicated manager.
GoldCo has impressive BBB reviews with an A+ rating.
Regal Assets Gold IRA company is top-rated on the market, featured in Bloomberg and other financial publications.
Regal Assets offers competitive rates for gold or silver IRAs. They’ve expanded their services past precious metals, as they provide cryptocurrencies as well.
Investors choose Regal Assets for their Gold IRA because of their long-standing reputation and expertise.
This company has hundreds of satisfied customers on TrustLink, with a 4.6 rating out of 5 ratings.
Augusta Precious Metals is family-owned and specializes in gold and silver.
With over 50 years of experience, many investors use Augusta Precious Metals for retirement with silver and gold IRAs.
The company is different from others, as each individual receives a dedicated manager. From there, you will build a long-term relationship with the company, receiving guidance customized to your needs.
Augusta Precious Metals makes it easy for customers to create an IRA account and rollover previous retirement accounts. Any investor will receive the opportunity to defend against inflation and economic downturns.
Birch Gold Group is relatively new compared to others, as it began in 2003. Since then, thousands of customers use this company for their Gold IRA needs.
They provide competitive rates and excellent customer service.
Birch Gold Group has fantastic reviews on the Better Business Bureau (BBB) with an A+ rating.
They offer gold and silver IRAs for retirement with a personalized specialist to set up the account and offer guidance. You will receive helpful tips along the way, including access to educational content, allowing you to learn more about precious metals and IRAs.
Noble Gold is an established investment service from California, offering various IRA accounts.
You can choose to invest in either gold, silver, platinum IRAs, or silver, platinum, and palladium for more diversification.
Their services are based on customer satisfaction and provide more transparency than other Gold IRAs. There are also low IRA fees and an easy buyback policy if you want to sell our IRA at a solid rate.
Besides funding a Gold IRA, you can roll over your retirement accounts into the same asset, earning more in the long run.
All About Gold IRAs
While Gold IRA company reviews are important, you don’t want to go in blind. Opening accounts in a Gold IRA company, whether it’s Noble Gold or Lear Capital, does not guarantee profits. The more you know about Gold IRAs, the better you can increase your chances of success.
Precious metals are experiencing increased volatility and profitable return rates, better than other financial instruments on the market. But there are other factors to consider, such as recessions, uncertainty, the stock market, pandemics, and politics that affect the price of metals.
If you’re looking to diversify your portfolio but don’t know where to start, keep reading to learn all you need to know to succeed.
What’s a Gold IRA?
Individual retirement accounts (IRA) come in various forms to increase a person’s wealth over time. Most IRAs involve stocks and bonds, but precious metals are a separate market where others can invest for more diversification.
Now, people have a chance to invest in metals in their physical forms, such as bullion coins with a self-directed IRA. Gold IRAs are the most popular, focusing on the yellow metal. Since 1997, you can invest in gold, silver, and other metals.
Gold IRAs did not become mainstream until recently. Gold itself has seen stagnant prices since the 70s. However, with economic uncertainty such as the Great Recession and COVID-19, gold has become a “safe haven” asset.
Overall, people’s investment choices have expanded, providing more opportunities for retiring. However, Gold IRAs present a unique opportunity not seen with stocks and other instruments.
Gold IRAs for Economic Downturns
Since the Great Recession in 2008, with people seeing their retirement accounts wiped out as stocks dived, investors have become wary. Investing anxiety is at an all-time high, with people wary of putting their cash into anything other than a savings account.
People are looking for more stable investments but do not look into the precious metals market, as it’s not as popular as stocks.
However, gold is gaining traction because of its inverse relationship with paper assets. For instance, as the dollar decreases, the price of gold increases. As a result, with increasing inflation, people invest in gold to hedge, called an inflation hedge.
An individual retirement account has been the go-to for retirees, with a Gold IRA emerging as the front-runner for investing in economic crises.
Investing in precious metals is gaining traction, as it’s also essential as materials for construction and everyday products, such as the iPhone.
With economic uncertainty with COVID-19, gold saw an all-time high price per ounce. People stored their money in gold as paper assets, such as the dollar, saw yearly lows. Other metals followed gold’s trend, making them attractive to investors to diversify their portfolios besides bonds and mutual funds.
Lastly, not everyone has the purchasing power to buy pure physical gold. Gold IRAs allow investors to make money based on gold’s value during economic hardships through other options, such as bullion.
Advantages of a Gold IRA
Let’s look at the benefits of a Gold IRA compared to other IRAs and retirement accounts.
Price of Gold Continues Rising
Gold’s price per ounce has increased by a tremendous rate that stocks have yet to achieve. For instance, gold rose by 700% within 12 years, from 1999 to 2011. Besides the growth, a recession did not hinder gold’s price, but further increased its value.
Gold has become a safe haven asset during uncertainty to protect retirement accounts.
While the price of gold leveled off since 2011, it rose to an all-time high after COVID-19 in 2020. These events show that gold rises to the occasion when the economy is in peril.
The price of gold will continue to increase steadily, with more people investing as pandemics and economic crises continue.
Safeguard Against Inflation and Crises
Inflation is an inevitable part of our money that affects our daily lives and our investments in the future.
Gold is not affected by inflation like the dollar. Paper assets have an inverse relationship with precious metals and other safe-haven assets.
As a result, gold provides long-term protection against inflation. Also, recessions occur about every decade, where stocks, bonds, and mutual funds suffer corrections.
While stocks are in an uptrend, short-term volatility leads to uncertainty. However, the price of gold will strengthen during economic crises, making it an attractive investment.
Lastly, physical gold in bullion or gold coins will not be affected by market crashes.
Expand Your Portfolio
Opening a precious metals ira allows your portfolio to be diversified.
For example, if the stocks, bonds, and mutual funds lose value because of a recession, you can offset losses with gold, silver, platinum, and palladium. A precious metals IRA will more than likely go the opposite direction of money and stocks because of their inverse relationship.
A traditional IRA is filled with assets prone to market crashes. Securities such as bonds are not enough to protect retirement savers and investment owners, as people look towards gold to expand their portfolios.
Like most IRAs, you will receive tax benefits as long as the gold stays in your retirement account. Withdrawing your profits early from the account or taking possession of bullion will subject you to tax penalties.
The amount you owe on your gains if you withdraw depends on the tax code and your income.
Most IRAs use a marginal tax rate to determine how much you owe on gains, which is the same for a Gold IRA. High-income brackets will have to pay more than 28% in taxes according to the tax code.
Fortunately, gold is projected to reach all-time highs as uncertainty in the market continues.
Ultimately, an investment in gold will be more rewarding long-term with its massive gains and tax benefits compared to other financial instruments.
What to Consider Before Opening a Gold IRA
While Gold IRAs have their advantages, we do acknowledge there are challenges investors will face. Let’s look at some issues an investor may encounter when opening a Gold IRA.
Fees and Expenses
A Gold IRA is unique, requiring complex procedures that come with additional expenses and fees. Compared to traditional IRAs, precious metal IRAs have higher expenses to maintain the account. Especially physical gold and silver coins require more costs than traditionally holding stocks.
The main reason for increased fees is Gold IRA services involving additional financial caretakers and custodians. Also, it costs more to store physical metals as companies may charge an annual fee for added protection.
There is no way around this requirement, as you cannot privately possess gold you bought through an IRA.
Luckily, fees are decreasing as Gold IRA becomes more mainstream, notably during economic downturns. In the past decade, the return rate on gold balances the additional costs, making it a worthy investment.
No Additional Profits
With stocks, you can earn dividends for holding as it’s a long-term incentive that can increase profits.
Gold does not provide dividends or interest. However, the risk exposure is lower as stocks are susceptible to market crashes.
The main profits from gold and other metals are due to its safe-haven status as the price continues to rise.
Economies suffer corrections, ultimately affecting any investment. Despite no additional incentives, gold is still an attractive option for an IRA as more people funnel their money for asset protection.
Fraud and Theft
Opening a precious metals IRA means hiring someone on your behalf to oversee your transactions, called a custodian.
Because a custodian is responsible for storing your physical gold and accounts, it may increase fraudulent behavior, violating your privacy rights. Thankfully, you can avoid fraud by choosing a top Gold IRA company with a good reputation.
Before you choose a firm for your investment in metal, ensure the company is licensed and regulated. Search for reviews online through the Better Business Bureau or reputable review sites.
Steps to Open a Gold IRA
Now that you’ve learned about Gold IRAs, consider opening an account. We will cover the steps to begin investing in gold and other precious metal using a self-directed retirement account.
Sign Up for a Self-Directed IRA
To begin investing in gold and other precious metals, open a self-directed IRA.
A self-directed IRA expands your investing capabilities for further diversification besides precious metals, such as bonds, assets, real estate, and more. You can also invest in bullion coins and private companies.
After you’ve chosen the company you want to invest with, open a 401(k) type account, such as a traditional IRA or Roth IRA. Research both options to determine which is the best for you and your financial goals. Usually, a custodian may guide you in the right direction.
If a self-directed IRA is not optional from the company you want to invest with, consider looking around. It’s best to seek a self-directed IRA because it will expose you to more options that can boost profits long-term and safeguard your investments with diversification.
Select a Custodian
Custodians are unique to a gold individual retirement account and must report to the IRS.
They do not ensure the firm meets governmental requirements or purchases on the customer’s behalf. A custodian holds a passive role overseeing a customer’s transactions.
Lastly, a custodian has specific licenses and training. It is essential to find experienced custodians and a brokerage to avoid fraud.
Some tips for finding a custodian include:
- Proper licensing: The IRS expects Gold IRAs to have an authorized custodian to record transactions. If the custodian does not have a license, you may face legal action.
- Competitive prices: Search for firms with transparency regarding their fees and competitive prices. If the costs are too high, it may cut into your profits.
- Reputation: Find a firm with a solid track record to prevent fraudulent custodians.
- Customer service: The market changes, including your account. Find a company that allows flexibility and has responsive customer service.
- Knowledgeable: The best companies provide many educational materials to help their customers and their investments.
About Purchasing Bullion
After your IRA is ready, it’s time to start investing. Deposit money into the account where a custodian will oversee the transactions.
The custodian will work with certified metal dealers to purchase bullion bars or coins on your behalf. Besides physical gold, you can choose silver, platinum, or palladium as well.
Silver coins are the second most popular metal investors choose because it follows the same uptrend as gold. Platinum and palladium bullion is intriguing to many investors as they are backed by sovereign nations, such as Russia.
You must not purchase directly from a precious metals dealer, as it is not allowed by the government.
Lastly, investors will pay the spot price, or current price, of these metals, which can change over time.
Storing Bullion in Gold IRA
After purchasing bullions or coins, the custodian places them in a licensed storage facility.
The IRS does not allow personal storage of these entities, meaning no lockboxes or safes.
The custodian will likely store your items in an IRS-approved storage unit. They are the only ones allowed to purchase, store, and supervise these transactions.
The IRS has strict standards on what they deem collectibles, including gold, silver, platinum, and other precious metals.
There are “IRS Fineness Standards,” which gauge the purity of bullion or coins. Only approved trustees, such as a bank or non-bank, can hold possession of these items.
Specific purity standards include:
- 5% Gold purity
- 9% Silver purity
- Platinum and palladium 99.95% purity and more
- Only accredited refiners and manufacturers can distribute rounds, coins, or bars
- A certificate of authenticity must come with proof coins and be unopened; proof coins must be in perfect condition with no damage
IRS Approved Precious Metals in Gold IRA
While gold, silver, platinum, or palladium are eligible for any metals IRA, they must be approved by the IRS. Let’s look at the IRS-approved manufacturers you can choose to put in your IRA.
Gold and Silver
The most popular gold coins and silver coins to purchase from are American Gold Eagle. Other approved metals include:
- American Silver Eagle
- Canadian Silver/Gold Maple Leaf
- British Silver/Gold Beasts
- NYMEX approved bars
- Chinese Gold/Silver Panda
For a full list, contact your custodian, as different firms offer various coins and bullions.
Platinum and Palladium
There are fewer options for platinum and palladium, with only seven approved coins:
- American Platinum Eagle proof coin
- British The Queen Beasts Platinum
- NYMEX or COMEX bars and rounds
- Canadian Palladium and Platinum
- Isle of Man Noble Platinum coin
- American Platinum and Palladium Eagle coins
- Australian Platinum Koala coins
Rollover from Traditional IRA to Gold IRA
If you want to roll over another IRA account, such as a Roth IRA to a Gold IRA, most companies will allow you to do so.
You can directly or indirectly roll over the accounts as the custodian oversees the transfer of funds.
With a direct option, the custodian will be connected to the other account and complete the transaction to your Gold IRA. Indirectly, you will cash out and mail a check to your custodian, funding your Gold IRA.
You have 60 days to complete this procedure. If you fail to meet the guidelines, you may be subject to tax penalties, as a withdrawal will catch the attention of the IRS. The IRS will not count it as a rollover and issue your taxes and fees.
Conclusion: Gold IRAs
We hope we answered the questions you may have about a Gold IRA investment. Having a retirement nest egg for the future is more than mutual funds, stocks, and cash assets. You can further diversify your portfolio with precious metals.
An IRA with gold alone can safeguard your content profile in the event of a market crash due to the inverse relationship with paper assets.
In all, economic uncertainty is making metals more attractive to invest in more than ever, with the price inevitable to rise in the future. If you are undecided and need more information, check out our Gold IRA investors guide.