A gold IRA often has higher fees than a traditional IRA or Roth IRA, which invests exclusively in stocks, bonds, and mutual funds. Proponents of gold IRAs argue that these costs are worth the peace of mind protecting yourself from a potential financial apocalypse. But let’s assume that a disaster really does occur. How would you redeem your gold if it’s in a deposit at the other end of the country?
Gold IRAs are a special type of self-directed IRA that allows you to invest in physical gold and other precious metals, such as silver, platinum, and palladium. Investing in a gold IRA requires the services of a custodian bank, a broker to purchase gold, and an approved depositary to store gold. Like other self-directed IRAs, Gold IRAs can be Traditional or Roth. Augusta’s two major drawbacks are its limited selection of metals and the high minimum investment requirements for setting up a gold IRA
Gold has proven to be a source of steady and stable growth compared to the more volatile stock market, meaning that more and more retired investors are turning to gold IRAs. Therefore, the first step to operating a gold IRA is to search for a custodian or trustee that provides gold IRAs. For example, pre-tax funds included in a Roth IRA are taxed before they are converted to a Roth IRA, while after-tax funds are not taxed. While most IRAs invest in conventional assets such as stocks or mutual funds, tax legislation also allows special IRAs that are “self-managed” or “alternative investments” that can hold physical silver
Popular gold IRA companies include Orion Metal Exchange, Birch Gold Group, Red Rock Secured, Gold Alliance, Oxford Gold Group, and Goldco. No other Gold IRA company goes to such lengths to present investment information in an organized and objective way to earn the full trust of its customers. This is less of a problem if a gold IRA was only part of its overall pension portfolio as part of a diversification strategy in which gold provides inflation protection. In addition, the IRS only allows certain gold coins, such as the American Gold Eagle or the Canadian Maple Leaf
While Advantage Gold appeals to all types of gold IRA investors, it has a particular appeal for first-time buyers.