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How a Gold IRA Works

Gold is an effective and simple way to diversify a retirement portfolio. Gold can be a balancing asset to smooth out risk, especially over the long term, and protect against inflation, making it a smart choice for retirement investments. Establishing a self-directed IRA with gold is easy, but it's important to understand the differences between a self-directed IRA with gold and a traditional IRA.

Self-Directed IRAs

Most retirement funds are held in a conventional IRA, TSP or 401(k) and typically include stocks, mutual funds, bonds, and annuities. Physical gold and other precious metals may be held in a self-directed IRA. With a self-directed IRA, the investor is empowered to make his or her own investment decisions from a wider range of products, including precious metals.

Gold-Backed IRAs

Often called a Gold IRA or Gold Backed IRA, a self-directed IRA with gold provides the opportunity to buy gold coins and bullion and other precious metals. There are many gold, platinum, silver and palladium coins and bars that can be invested in a Gold IRA, but not all precious metals products are eligible. To be included in a Gold IRA, each precious metal or gold coin and bar must meet specific fineness or purity requirements as stated by the IRS. This ensures the investment will leverage the tax benefits an IRA provides.

Opening a Self-Directed IRA with Gold

The investor wanting to add physical gold and precious metals to their retirement account simply establishes a new account with a custodian (Goldline can assist in identifying a custodian, upon request).

Funding a Self-Directed IRA with Gold

Once the account is established, the account is funded with a transfer from an IRA or a rollover from a qualified retirement plan, such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP) or annuity. The transferred funds are then used to purchase your gold and precious metals for your self-directed IRA.

Gold Storage

The precious metals you purchase for your self-directed IRA must be held in the custody of an IRS approved custodian that is in charge of administering your IRA and stored in a licensed, insured depository. Your self-directed IRA gold and precious metals will be moved to a designated depository administered by your custodian.

Selecting a Gold Dealer for Your IRA

Selecting a gold dealer for your IRA purchases is an important decision. Here are factors to consider when choosing a gold dealer:

  • History. Select a dealer with a long history of working in the industry and which has a stellar track record from objective third parties, such as the Better Business Bureau. Reading testimonials from confirmed customers (not just customer quotes on a dealer’s website) on review sites like Trustpilot can provide valuable insight into the customer experience.
  • Transparency. Look for a company that is transparent and honest in their pricing and provides all necessary information upfront and in writing to avoid any surprises, such as hidden fees.
  • Customer Focus. Choose a dealer that is focused on its customers, delivers excellent client support, and offers a broad inventory of precious metals.
  • Qualifications. Only work with a dealer that has all the appropriate and required licenses and registrations.

Diversify your retirement portfolio with gold to help protect your hard-earned assets against market volatility and inflation.

For more information on the benefits of gold and precious metals as part of your retirement savings, please read Gold for Retirement.

Speak with a Goldline Account Executive today to learn more about Goldline's Express IRA program, a unique, expedited process for acquiring precious metals for your retirement portfolio.