Can I Put Gold in My IRA?

Can I put physical gold in my IRA

Individual Retirement Accounts (IRAs) can be an excellent way to save for retirement, yet most mainstream IRAs invest in only stocks, mutual funds and ETFs – and should you withdraw them prior to retiring you’ll incur ordinary income taxes and a 10% penalty tax.

As it happens, self-directed IRAs offer an excellent way of investing in gold and other precious metals. All that is necessary to get started is finding an outside custodian with expertise in this particular type of investment.


IRAs are tax-advantaged savings accounts designed to help people prepare for retirement. Unlike 401(k)s, which require employer sponsorship for them to function, IRAs can be opened by self-employed individuals and small business owners without restrictions from an employer sponsoring. They offer multiple investment options – traditional IRAs, Roth IRAs, SEP IRAs and SIMPLE IRAs can all be opened – though each year contributions to an IRA have limits that must be adhered to.

IRA withdrawals made before age 59 1/2 could incur a 10% penalty tax; however, this penalty can be avoided by redepositing funds into another IRA within 60 days from when they were originally distributed.

IRAs allow investors to invest in various assets, from real estate and collectibles to artwork, rugs, antiques, metals gems stamps and coins. Some investments, however, such as artwork rugs antiques metal gems stamps coins are prohibited from investment as the IRS considers these types of property Uncollectible Personal Property (UBTI). When purchased and when withdrawn they are taxed.


Gold has long been considered an attractive safe haven investment during times of economic distress and it has proven its resilience time after time. Furthermore, its use as a hedge against currency devaluation and inflation makes it an invaluable component of a diverse portfolio.

Physical gold bullion comes in the form of coins, bars and ingots and is available from several dealers. Backed by real gold, these metals can be stored at home to reduce storage costs while providing less risk for theft or damage than depository precious metals products.

Exchange-traded funds (ETFs) offer another means of purchasing physical gold: these investments store it in vaults around the world and trade like stocks. ETFs generally feature low expense ratios so as not to incur excessive fees and charges on your investments, and can be easily accessible through most online brokers and investing apps.


Liquidity measures the ease with which an asset or security can be converted to cash quickly. Market and accounting liquidity measurements provide valuable indicators when considering investments; both should be carefully taken into account by investors when making investment decisions. IRA regulations stipulate that investors’ assets be liquid to reduce risk or ensure tax-exempt distributions are eligible.

Cash and its equivalents such as money market accounts and certificates of deposit (CDs) are highly liquid assets. Other financial instruments, including stocks and bonds on exchange, also tend to be very liquid while tangible assets like real estate and fine art tend to be less so.

Physical precious metals may be relatively liquid investments, but investors must still account for storage and transportation costs as well as difficulties verifying them. Investors should take measures to ensure they can sell their precious metals quickly without incurring significant costs or jeopardizing their IRA’s tax-exempt status – this is particularly relevant to accounts featuring more complex or less liquid investments like alternative funds or funds that provide long-term returns such as bonds.

Investment options

Gold can make an ideal asset in your retirement account, but it is crucial that you carefully consider all your options. For instance, it is not recommended that physical gold be stored at home as this would count as withdrawal and potentially incur taxes and penalties; rather use a third-party custodian instead for its safekeeping.

IRA Financial’s Self-Directed IRA allows investors to invest in anything allowed under the Internal Revenue Code, including gold and other precious metals. Its flexible investment options make this type of IRA particularly suitable for long-term investors who believe in its long-term stability; furthermore, diversifying portfolios is made easier thanks to this type of account.

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