Investing in gold IRAs can be complicated, but we’ve researched the companies that offer the safest and most cost-effective ways to own gold in an IRA. If you decide to invest in a precious metals IRA, you should do so conservatively. Depending on your financial situation, most experts recommend investing no more than 5 to 10% of your retirement savings in precious metals. Mint, the corresponding authority of certain other countries, or named private minting companies can be held in a gold IRA.
A gold IRA is characterized by the fact that you own the actual precious metals, as opposed to stocks or fund shares in mining companies. Due to federal laws and regulatory requirements related to the sale of investment products or investment advice, most custodian banks limit IRA account holdings to company-approved stocks, bonds, mutual funds, and CDs for other types of IRAs. And remember that if you sell your gold back to the Gold IRA, you could earn up to 30% less than the price of gold, as the IRAs calculate the “spread gold.” Gold IRA companies differ in that some allow you to choose between multiple custodian firms and depositories, while others require that you use custodian banks and custody services of their choice.
A gold IRA is a product that is best for sophisticated investors with experience in precious metals investments. The IRS has extremely detailed regulations that dictate which coins and bars can be stored in a gold IRA. If you choose to fund the account with assets that are currently in another IRA, the Gold IRA company will help you manage the rollover (more on that process below). Complex tax rules — When you invest through a self-directed IRA, you must comply with complex IRS tax rules that don’t apply to other IRAs.
Augusta’s two major drawbacks are its limited selection of metals and the high minimum investment requirements for setting up a gold IRA. We’ve rated the websites of Gold IRA companies together with consumer protection organizations Better Business Bureau and Business Consumer Alliance, as well as websites with customer reviews such as TrustPilot. No verification — With a self-directed IRA, you are solely responsible for evaluating and understanding the investments in the account. We took into account the reputation, transparency, and quality of the online education and resources they offer from each Gold IRA company.
Traditional IRA accounts can be easily opened and managed through a custodian bank, but setting up and managing a Gold IRA involves a few more steps.
