Can I Hold Gold in My IRA?

Gold can provide an effective defense against inflation and increase long-term wealth accumulation. To be kept under IRS control and insured properly, precious metals should always be stored at an IRS-approved depository with secure vaults and insurance protection.

Physical gold differs from more conventional investments in that it does not generate cash flows or distribute dividends – unlike stocks and mutual funds which require IRS taxes upon distribution.


Gold IRAs can be an excellent way to diversify your retirement savings, but you should be wary of their tax implications. For example, any losses will be taxed as collectibles while gains will incur higher ordinary income taxes. Furthermore, early withdrawal of gold before age 73 requires payment of an extra 10% penalty tax.

To avoid these consequences, it’s best to invest only in IRS-approved bars and coins which meet specific purity and production requirements. It is also advisable to store them in an IRS compliant depository. Lastly, keep in mind that precious metals tend to be more costly than paper assets and additional fees may apply such as storage charges or custodial charges; all these expenses could reduce returns over time while not providing guaranteed protection against inflation or market risks.


Precious metal IRAs typically incur higher fees than traditional IRA accounts, including setup, transaction, custodial storage and markup costs for physical gold purchases. All these costs can significantly lower an investor’s total return on investment.

Investors must also pay close attention to which types of gold bullion and coins they buy, as some could count as collectibles and violate IRS rules. Unfortunately, the IRS doesn’t maintain a list of approved dealers, so investors must do their homework and find an approved vendor before purchasing gold products.

Gold investments offer diversification benefits and may help protect against inflation; however, they don’t produce yields like dividends or interest income, plus physical gold must be stored at an approved warehouse or vault – something many prefer instant access for. Plus, any withdrawal of your precious metals IRA will incur taxes upon withdrawal as with any traditional IRA account.


Hiring an appropriate custodian may be one of the most essential steps when investing in your Self Directed IRA. Aim for a large, reputable firm with proven performance and positive third-party reviews as a custodian that’s also bonded, insured, and approved by the IRS.

Custodians offer safekeeping, asset management, record-keeping and financial transaction processing services. In addition, they may act as brokers in securities trading; any fees earned are considered income. Finally, custodians provide oversight services that protect against fraudulent activities.

Custodians for single-member LLC IRAs play an essential role in overseeing investments owned by these structures, providing you with greater investment options while increasing risks due to prohibited transactions. It’s wise to consult a knowledgeable investment advisor prior to investing, as well as considering fees structures, service offerings and technology platforms; you want someone that meets all these criteria as they’ll provide oversight while meeting all your needs for oversight and protection.

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