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. With a traditional IRA or other retirement account, you can invest in gold through the stock market by buying stocks in mining companies or mutual funds that hold those
stocks.
For a gold IRA, you need a broker to buy the gold and a custodian to create and manage the account. Therefore, the first step to operating a gold IRA is to search for a custodian or trustee that provides gold IRAs. 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. A common way to fund a new Gold IRA account is to use funds that are already in another retirement account, such as another IRA, 401 (k), 403 (b), 457 (b), or Thrift Savings Plan,
in accordance with IRS rules.
Most gold IRA companies recommend or require that you work with a specific custodian and custodian, although some give you a choice of two or more. They also make it easier to open your Gold IRA account, but they don’t provide investment advice, and you shouldn’t use the marketing material they publish as a guide in this regard. You want to choose a Gold IRA company that is transparent, straightforward about fees and has a good reputation. If this isn’t a priority for you, there are other ways to add precious metals to your portfolio besides a gold IRA
.
Popular gold IRA companies include Orion Metal Exchange, Birch Gold Group, Red Rock Secured, Gold Alliance, Oxford Gold Group, and Goldco. Record gold sales combined with the appearance of many more companies processing and simplifying transactions have made investing in a gold IRA a one-stop shop. Surprisingly, a gold IRA actually doesn’t just have to hold gold, you don’t have to hold any gold in one at all. A gold IRA firm will help you set up your account and sell you the gold (or silver) coins or bars that fund
the account.
If you already have an IRA or 401 (k), either Regular or Roth, you have the option to convert some or all of your funds into a Gold IRA. If you need advice, you should contact a trusted advisor rather than relying on representatives from the Gold IRA firm
.
