Should Gold Stocks Be in My Roth IRA?

Precious metals in an IRA are typically funded with pre-tax dollars, just like any traditional or Roth IRA investment; however, unlike these other accounts they don’t provide dividends or interest payments.

Investment in precious metals carries additional expenses, including storage and insurance expenses, which should be factored in when allocating just 5- 10% of their portfolio towards precious metals. As a result, many financial advisors recommend that investors limit the allocation to precious metals to 5- 10% of their overall portfolio allocation.


Gold stocks offer an innovative method for investing in physical gold as a long-term asset. By giving direct price exposure without incurring storage or security costs, these stocks provide price exposure without incurring storage and security fees for physical bullion or futures trading. Plus, many gold stocks pay dividends, providing another income stream.

There are various methods of investing in gold stocks, from individual mining companies to exchange-traded funds that track their performance. You have options when buying gold stocks; from individual mining companies and exchange-traded funds that track them directly. Also consider junior (upstart) miners, senior mining companies and streaming/royalty companies which do not own mines but purchase royalties/streams from existing miners in return for a portion of gold revenue. No matter which gold investment option you select from our picks we guarantee solid solvency ratios/EPS expectations from every investment choice we provide!

Tax-Free Withdrawals

Gold and other precious metals may be held in an individual retirement account (IRA), provided you adhere to IRS regulations. There are also alternative means of accessing precious metals, including exchange-traded funds or mining stocks.

Precious metals held in an IRA grow tax-deferred, and qualified withdrawals can be taken tax-free. Unfortunately, however, these assets don’t provide regular passive income like dividends; you may not make enough to reach your retirement goals with these investments alone.

Investors seeking to comply with IRS rules on precious-metals investments must partner with a dealer, custodian and depository – each charging fees for its services – when planning their total spending. When seeking such companies with transparent fee structures (such as websites that list this info) investors may require additional phone calls before finding one that’s suitable. These costs could include annual account and storage charges plus markup on bullion purchases as well as shipping fees when withdrawing metals from depository accounts.

Inflation Hedging

In order to preserve purchasing power in retirement, investments must have the capacity to keep pace with inflation. Assets that have historically held their value during periods of high inflation such as gold or commodities may serve as good inflation hedges; other potential options include utilities, treasury bonds, real estate investment trusts and TIPS (inflation-protected treasury bonds).

Gold may seem like the ultimate anti-inflation asset, but its supply constraints make it impractical in hyperinflationary environments. Furthermore, as gold does not pay dividends it does not enjoy the compounding effects that other investments provide.

Investment in self-directed IRA can help your portfolio thrive when inflation occurs, provided you review it regularly and rebalance as necessary to align with long-term financial goals. Sign up for Money 101 for more insight into investing for the future and preparing for inflation; or visit FNRP’s platform where accredited investors can collect quarterly cash flow from diverse real estate investments.


Gold can provide your portfolio with diversification. Gold’s historical performance shows it to rise when stocks decline and can help mitigate market volatility’s effect on it.

However, like all IRAs, precious metal IRAs do come with some disadvantages. Most importantly, their lack of liquidity means you may struggle to access enough cash at retirement to fulfill required minimum distributions (RMDs).

Physical gold IRAs require special expertise and storage services, which may reduce overall returns. By contrast, investing in gold ETFs within your Roth IRA may be more cost-effective as many of them offer zero commissions.

If you are considering opening a gold IRA, consult with a financial advisor or tax professional first to assess how it might fit into your retirement strategy. Be mindful that precious metals should form only part of a balanced investment portfolio.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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