When thinking about retirement, you might think that the only options you have are traditional options like a 401(k) or a Roth IRA. However, in times of economic downturns and market volatility, the value of the dollar is always up and down. One way investors can protect their money while saving for retirement is to consider a gold IRA. A gold IRA is a self-directed individual retirement account that is funded by various forms of physical gold and other physical metals.
This guide explains everything you need to know about gold IRAs, including how a gold IRA account works, the benefits they offer, the top-rated gold IRA companies, and why so many people are choosing to add gold and other metals to their retirement strategy.
Whether you’re just starting your research or are ready to take the next step, this guide offers a comprehensive breakdown to help you make an informed decision.
What is a Gold IRA?
A gold IRA is a specialized individual retirement account that allows an investor to hold physical precious metals like gold, silver, platinum, or palladium instead of the usual paper assets like stocks, bonds, and mutual funds. In other words, precious metals IRAs are backed by tangible assets, and though you can have a silver IRA or other types of self-directed IRAs, the most common is a gold IRA.
How It Differs from a Traditional IRA
Unlike a standard IRA, which is generally managed by a brokerage or bank that offers limited investment options, a gold IRA is a self-directed IRA. So, instead of allowing the bank or brokerage to choose the assets that are backing the IRA, you do it yourself. In this case, by using precious metals.
As with a standard IRA, a gold IRA can be a traditional IRA, a Roth IRA, a SEP IRA, or others.
A gold IRA can be any of the following:
- A traditional gold IRA, where contributions are tax-deductible and withdrawals are taxed as income in retirement.
- A Roth gold IRA, where contributions are made with after-tax dollars and qualified withdrawals are tax-free.
- A SEP gold IRA, an IRA for self-employed individuals who have small businesses where contributions are made with pre-tax dollars and and withdrawals are taxed as income when withdrawals are made.
Keep in mind that if you have an existing IRA, you can roll it over or transfer the funds to a gold IRA.
What Types of Gold Can You Hold?
The Internal Revenue Service has strict guidelines about what types of metals can be put into a precious metals IRA. Not all gold is IRA-approved gold.
First, the gold must have a specific purity (.995), or fineness (99.5%). It also must be produced by an approved assayer, refiner, or manufacturer. Finally, only gold bars, gold bullion, or gold coins are eligible.
These specific rules also state that you cannot hold gold that is considered collectibles, jewelry, or rare coins in a gold IRA. The same can be said with a silver IRA, which can be backed by silver coins, silver bullion, silver bars, etc. In this case, the silver must be .999 pure, or 99.9% silver.
IRA-Eligible Gold Coins
Examples of IRA-eligible coins that meet the IRS standards for purity include:
- American Gold Eagle Coins – This is the one exception to the 99.5% fineness rule; these coins are actually 91.67% fine, but the IRS has still approved the coin for IRAs. These are popular among those who purchase gold because they are recognizable and liquid.
- Canadian Gold Maple Leaf Coins – Minted by the Royal Canadian Mint, a Canadian Gold Maple Leaf is also popular for IRAs. They are 99.99% pure.
- Austrian Philharmonic Gold Coins – These 99.99% pure gold coins are also legal tender in the Eurozone.
- Australian Kangaroo/Nugget Gold Coins – The Australian Kangaroo coin is minted by the Perth Mint and is 99.99% pure.
- American Buffalo Gold Coins – American Buffalo Gold Coins are the first 24-karat gold coins from the US Mint, and of course, they are 99.99% pure.
Gold rounds (similar to coins but not legal tender) are also allowed if they meet the same purity and manufacturer criteria.
IRA-Eligible Gold Bars and Rounds
Gold bars can also be added to a gold IRA. In this case, they must be produced by an approved refinery or mint, and clearly stamped with the purity and weight. In general, they are 1 oz to 400 oz in size.
Common refiners/mints include:
- PAMP Suisse
- Credit Suisse
- Johnson Matthey
- Valcambi
- Royal Canadian Mint
Non-Eligible Gold (Prohibited)
There are some types of gold that are totally prohibited from being included in a gold IRA. These include:
- Collectible coins (e.g., rare numismatic coins)
- Pre-1933 U.S. gold coins
- Gold jewelry
- Gold coins that do not meet purity requirements
- Private mint coins not certified by an approved assayer
Always verify with your IRA custodian before purchasing metals, and work with a trusted dealer to ensure you’re buying eligible assets. For your financial security, consider speaking to a financial advisor, tax advisor, or other professionals who can provide investment advice.
How Does a Gold IRA Work?
Setting up and managing a gold IRA is a bit different than sitting up a traditional IRA, but having the added security and diversification of your retirement assets generally makes it worthwhile when compared to traditional investments.
Here’s a basic step-by-step overview of how the process works:
Step 1: Choose a Self-Directed IRA Custodian
The first step in opening a gold IRA is to choose a custodian and precious metals dealer that offers self-directed IRAs. I will list my favorites later in this guide.
A custodian is a financial institution responsible for helping with account setup and helping you buy gold for your IRA. They will also help with things like contribution limits, paper work, explain tax benefits, IRS reporting, required minimum distributions, and ensure that everything is in compliance with IRS regulations.
Step 2: Fund the Account
You then can fund the gold IRA, and this is done in one of three ways:
- You can do a rollover, which means you move the funds from an existing 401(k), 403(b), or other qualified retirement account.
- You can transfer from an existing IRA directly into a gold IRA.
- You can add money each year, though the contributions are subject to IRS limits.
Typically, you do not have to pay taxes on rollovers or transfers when they are done correctly. The most common method is a 401(k) to gold IRA rollover.
Step 3: Buy IRS-Approved Metals
When your IRA is funded, you can then buy physical assets to hold in the IRA. The company you work with for your IRA will often make suggestions on which metals might be best for your investment strategies. You don’t have to follow these suggestions, however. You are free to choose any metals you want, as long as they are IRS-approved.
Step 4: Store in an Approved Depository
The IRS requires that all IRA-backed metals must be stored in a depository for the life of the IRA. These are basically secure storage facilities that offer insurance, high-level security, and audits. Keep in mind that most companies charge storage fees. However, facilities ensure that the metals are safe. Some of the well-known depositories include Brink’s Global Services, Delaware Depository, and International Depository Services (IDS).
Step 5: Monitor and Manage Your Investment
Your chosen custodian will help you keep track of your holdings. They will perform appraisals regularly and ensure that everything meets IRS rules. When you reach retirement age, you can liquidate your metals. Depending on the type of IRA you have, you may have to pay taxes on that. Also, if you take your holdings out before you are 59 1/2, you will pay a steep penalty.
Gold IRA Benefits
There are many benefits to having a gold IRA, and it can be a very strategic part of your retirement portfolio.
Here are some of the main benefits that show why gold IRAs are becoming increasingly popular:
1. Hedge Against Inflation
One of the main reasons investors will turn to gold is because it has a historical resilience against inflation. Unlike paper currency, which may lose value due to economic shifts or government policies, gold maintains it’s value, even when the dollar weakens. In fact, when this happens, gold prices often rise.
2. Diversification
By diversifying your portfolio, you reduce the risk that comes with putting all your eggs into one basket. Gold and other precious metals don’t react like stocks and bonds to the economy.
3. Safe-Haven Investment
Speaking of the economy, gold is one of the rare assets that tend to thrive during economic turmoil. It doesn’t matter if it’s a global pandemic, a stock market crash, or geopolitical instability. Historically, investors use gold as a safe-haven asset.
4. Tangible Asset Ownership
Unlike paper assets like stocks and bonds, gold is a tangible asset; you can hold it in your hands. This brings a level of security that paper or digital assets can’t offer.
5. Tax Advantages
Gold IRAs allow for tax-free or tax-deferred growth, depending on whether it’s a traditional gold IRA or a Roth gold IRA. Long-term investors can see a lot of savings overtime, which leads to more money in retirement.
6. Wealth Preservation
Gold has been used for thousands of years as a valuable commodity. It is recognized around the world, and it’s fairly easy to liquidate when necessary.
Best Gold IRA Companies
As promised, I want to mention some of my favorite gold IRA companies. There are many out there, but not all of them are trustworthy in my opinion.
Choosing a gold IRA company to work with is extremely important, and I highly suggest that you do your research before settling on one over others. Some might have a confusing fee structure, some might have higher fees than others, or one company might offer amazing educational materials where another doesn’t.
Also, consider looking up reviews on sites like the Better Business Bureau and reading customer reviews on any company you are considering.
All of this should be taken into consideration before you sign on the dotted line.
Here are some of my recommendations for gold IRA companies:
Augusta Precious Metals
Augusta Precious Metals is one of the most popular and trusted companies offering gold and silver IRAs. This company is known for amazing customer education, transparent pricing, and a zero-pressure approach to sales.
When you work with Augusta, you get lifetime support from the team and one-on-one chats to help you understand both the risks and benefits to investing in precious metals. Augusta only works with IRS-approved custodians and depositories, which ensures your IRA is both secure and compliant.
There are thousands of 5-star reviews for Augusta, and it has a reputation of being trustworthy, educational, and transparent.
>> Read My Augusta Precious Metals Review
Goldco
Goldco is another great choice for those who are looking for a gold or silver IRA. One of the things I like most about Goldco is how easy they make the rollover process, and they have amazing access to both gold and silver coins and bars. The customer service is top-notch, and it has a fabulous buyback program.
Thousands of people have left 5-star reviews for Goldco, and it has an A+ rating on the Better Business Bureau. Goldco also often offers promotions to their customers, which include free silver, free storage, or other promos.
GoldenCrest Metals, LLC
GoldenCrest Metals, LLC is one of the newest names in the gold IRA industry, but just because it’s new, that doesn’t mean it’s not an amazing company.
It offers a very personalized approach to investing in IRS-approved precious metals for IRAs. GoldenCrest also emphasizes education for their clients, and they work with you every step of the way.
The team works with some of the most trusted custodians and depositories in the country, and this ensures that your IRA will remain secure and in compliance with IRS rules.
GoldenCrest is also known for its lower costs and responsive support. It helps investors by offering a hands-on approach, too.
Even though GoldenCrest is a new company, it’s reputation is extremely positive thanks to a strong commitment to customer satisfaction.
>> Read My Golden Crest Metals Review
American Hartford Gold
American Hartford Gold has been around for a long time, and serves as a precious metals dealer that offers both gold and silver IRAs.
The company is known for its no-fee IRA rollover program as well as transparent pricing and support program that makes investors feel more comfortable.
As with other companies, American Hartford Gold offers a lot of educational materials to its customers, a buyback program, and a price-match guarantee. It has very high ratings on sites like Trustpilot, Consumer Affairs, and the Better Business Bureau, too, which makes it even more trustworthy.
>> Read My American Hartford Gold Review
Noble Gold
Noble Gold is a standout when it comes to customer support and it has a wide range of gold, silver, platinum, and palladium IRA options.
In addition to offering precious metals, Noble Gold also offers “Royal Survival Packs,” which include precious metals that are sent to customers for emergency use. The company partners with reputable custodians and depositories, and it is known for it’s transparent fees, low minimum investments, and educational resources.
Why Invest in a Gold-Backed IRA
If you still aren’t sure a gold-backed IRA is right for you, I have a few more reasons to consider investing in a gold IRA.
1. Long-Term Stability
When you invest in gold, you get an investment that has better value when compared to other assets during times of economic volatility. Stock prices might rise and fall, but gold has always been historically stable.
2. Economic Uncertainty
We live in a time of rising national debt, wild inflation and government bailouts. Gold offers more security and reliability in a world of economic uncertainty.
3. Non-Correlation to Stocks
Though we know that gold has always been a valuable asset, we can look to modern times to see this in action. During the 2008 financial crises and the 2020 pandemic, stocks plummeted. Gold, however, not only maintained its value, but it rose in value.
4. Legacy Planning and Estate Security
Gold is easy to pass on to heirs as part of an estate. Unlike stocks or mutual funds that may require complicated transfers, precious metals can be physically passed down or liquidated with ease.
5. Alternative to Volatile Markets
Many investors simply want to avoid the volatility of the stock market or are looking for an alternative to low-yield bonds. A gold IRA offers a secure and tangible alternative that’s historically proven to hold value.
Summary
A gold IRA is more than just an alternative investment—it’s a proactive approach to protecting your retirement savings. Whether you’re concerned about inflation, stock market crashes, or just want more diversification, a gold IRA offers a powerful way to hedge against risk.
Here’s what to remember:
- Gold IRAs hold physical gold and must be set up through a self-directed IRA custodian.
- You fund the account through rollovers, transfers, or contributions from your bank account
- Gold must meet IRS purity standards and be stored in an approved depository.
- Leading gold IRA companies like Augusta, Goldco, and GoldenCrest Metals offer secure, transparent services.
- Gold offers diversification, inflation protection, and tangible asset ownership—making it a smart move for many retirement portfolios.
If you’re looking for a way to protect your financial future, now may be the perfect time to explore what a gold IRA has to offer.
