Should I Put My IRA in Gold?

Add precious metals to your IRA as part of a diversification strategy can be an intelligent choice, but choose carefully. Look for companies with experience handling physical precious metals and custodians familiar with dealing with the IRS.

Gold and other precious metals should only make up a minor portion of your portfolio; for greater returns it is better to invest in traditional investments or exchange-traded funds.


Gold IRAs are self-directed individual retirement accounts that invest in physical precious metals. They can either be setup pre-tax or Roth, and the same rules as traditional 401(k) accounts apply – contribution limits, penalties for early withdrawals and required minimum distributions at age 73 all must be observed.

While many individuals believe gold has an appropriate place in their portfolios, experts caution against making it a significant portion of savings. This is due to precious metals often trailing other asset classes when it comes to annual returns; also note that gold does not pay dividends or yields directly; all appreciation occurs through price appreciation alone.

An Individual Retirement Account (IRA) for gold requires the services of a custodian that will manage and store physical precious metal. They typically charge annual fees in addition to storage and insurance costs; additionally, some precious metals IRA companies may charge one-off setup fees which vary significantly, so it is wise to conduct ample research prior to choosing an IRA company.

Inflation Hedging

Gold can serve as an asset that provides security during times of economic unease. When the dollar falters or inflation surges, its value can often rise – protecting paper investments against their losses.

However, gold IRAs still bear many of the same risks as traditional IRAs: no dividends or interest are distributed and price appreciation alone dictates success; and withdrawing funds before retirement age could incur taxes and penalties.

Addition of precious metals to an IRA requires opening a self-directed IRA, which gives investors greater control and access to more investment options. Once this account is set up, physical bullion or coins that meet IRS fineness and purity requirements can be purchased through physical bullion investments or coin ETFs; alternatively you could purchase gold through exchange traded funds that track its price but this route involves greater costs as you must accurately predict future prices; it should only be attempted by experienced investors.


Tax rules surrounding IRAs can be complex and ever-evolving, yet generally speaking you must only invest your IRA contributions into investments that comply with IRS regulations – this could include securities as well as gold coins minted by the Treasury Department that contain one, half or quarter ounce of gold.

Thrivent Financial advisors can assist in designing an investment plan with taxes in mind. Your IRA type (Traditional or Roth) determines when contributions, earnings and withdrawals will be subject to taxation – something which could have an enormous effect on your retirement savings plan.

Your Thrivent advisor can assist in planning for future tax brackets that might change decades from now, such as withdrawal of funds from taxable accounts before pulling from tax-deferred and tax-free accounts to minimize taxes affecting retirement savings and help meet long-term goals. This may help ensure more savings for long-term goals are reached.

Tax-Free Withdrawals

IRAs offer tax-deferred growth until withdrawal; at that point, however, withdrawals could incur taxes and penalties depending on your account type and age. Withdrawals of physical precious metal investments typically qualify for tax-free withdrawals when meeting specific rules set out by an IRS-approved depository.

Gold and other precious metals may be expensive to acquire and store, with no yield being generated from price appreciation alone – these factors could make investing in a gold IRA less appealing for some investors.

Investment in gold through an IRA is one way to diversify your retirement portfolio, but before making a decision it’s essential that you understand all the risks and benefits involved. To find out more about your options for investing in a gold IRA consult an advisor from Augusta Precious Metals; their 5-star reviews from customers as well as top ratings from Better Business Bureau and Consumer Advocates attest to their superior service.

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