How to Buy Gold in Your IRA
IRAs provide tax benefits that many investors find appealing, making them suitable for storing various investments – including gold.
When investing in precious metals for an IRA, there are a few things you should keep in mind. First and foremost, make sure the company offers a buyback policy should you need to liquidate.
1. Buying Physical Gold
Gold and other precious metals have long been touted as an effective way of diversifying a retirement portfolio by protecting it against inflation, as well as rising in value during stock market fluctuations.
Before investing, it’s essential to fully comprehend all fees involved – brokerage fees, account setup fees and storage and insurance costs are among them.
Additionally, sales costs and close-out fees may incur additional markup. When purchasing physical precious metals, take note of their market price; it can change rapidly.
Be wary of companies that advertise no annual fees, storage costs or insurance fees. Checking their Better Business Bureau profile can help protect you from being taken advantage of; also keep an eye out for any complaints lodged against the firm in question.
2. Buying Gold Bullion
If you want to purchase gold bullion in an IRA, you’ll need to work with a precious metals company that adheres to precise IRS regulations on what metals you can own – these regulations include standards on size, weight and purity that guarantee items you invest in are investment grade as opposed to collectibles.
There are companies that specialize in offering precious metals as part of retirement portfolio diversification strategies, such as Noble Gold who sell IRA-approved precious metals with free delivery directly to customers’ homes or the storage depository of their choice.
Birch Gold Group, a physical precious metals dealer, works with multiple IRA custodians. Additionally, this company boasts an excellent A+ Better Business Bureau rating.
3. Buying Gold Coins
Investing in gold coins is another method of purchasing physical gold, but requires working with a specialist in precious metals who will recommend which coins to buy and how much you should purchase. Furthermore, this investment includes both one-time setup fees and storage fees that must be covered as part of the overall cost.
However, investors must remember they will require a custodian for their IRA in order to safely store coins, as the IRS prohibits physical investments being kept at home. Furthermore, when selecting your dealer to buy gold coins from, ensure they possess all required licenses, registrations, insurance policies, bonds and registrations to meet IRS standards and work with companies offering buyback options – this way you’ll avoid paying transaction fees that might otherwise arise when selling back coins in the future.
4. Buying Gold Bars
Many investors enjoy owning physical gold bars in their IRA. Although this process can be more involved than purchasing coins, an IRA custodian must store the actual bullion, while an approved precious metals specialist may need to review and approve of the transaction before moving forward with it.
Establishing and maintaining a retirement account incur fees that vary widely and are usually charged by its custodian.
Investors should keep in mind that bars typically command a higher premium than coins, though their potential profit-making properties could offset any associated fees.
5. Buying Gold ETFs
If you’re considering investing in gold through an IRA, exchange traded funds (ETFs) offer a more efficient means of investing than buying physical bullion or coins. ETFs offer greater liquidity and diversification while being tax-efficient than physical assets.
If you decide to invest in gold ETFs through your IRA, be sure to choose an investment firm that has been reviewed and vetted by investors for transparency and pricing, along with offering potential buybacks with an easy process.
Keep in mind, according to IRS regulations, any precious metals purchased for your IRA must be stored at an approved depository or bank – this is because physical precious metals cannot be kept at home or kept in a safe deposit box as this would violate IRS rules.
Categorised in: Blog