Gold-Backed IRA

Last Updated on May 18, 2024 by Ben

Gold-backed IRA is increasingly becoming popular in recent years due to many investors looking for ways to secure their retirement savings. With the many uncertainties and conflicts happening worldwide, it is wise to think ahead of the future.

You should ask yourself if this is the right time to expand your investment and include precious metals in your portfolio diversification. If you choose to do it, you can make that happen with a reputable gold IRA company.

Top 4 Gold IRA Companies Review

Augusta Precious Metals: Editor’s Choice – Great Buyback Program (4.9/5)

Star Rating

Investing in your future is something that you take seriously. What’s the point of working and earning all that money if you will not enjoy life during your retirement?

Putting portions of your money in different IRAs is good, but do not sleep on Augusta Precious Metals’ gold-backed IRA. They are the best in the industry, and there are many reasons to support that claim.

Augusta Precious Metals is an award-winning IRA provider praised for its excellent and transparent services among its clients. They offer lifetime support to their customers regarding their gold and silver portfolio accounts.

They are a company providing educational materials to its gold IRA investors. They want them to understand how diversifying their portfolios can benefit their retirement funds.

Over the years, many magazines have recognized them, including being the “Most Transparent” and the “Best Overall” among gold IRA companies. They also have an A+ rating from the Better Business Bureau and AAA from the Business Consumer Alliance.

The only thing that makes people think twice about investing with them is the high minimum investment cost. $50,000 is steep for some compared to other companies offering a starting investment point of as low as $10,000.


  • The company prioritizes investor education
  • Setting up the process is simple and easy
  • Provides lifetime customer support
  • Helps clients curate a comprehensive and personalized plan


  • High markup on premium coins
  • High minimum investment cost: $50,000

American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)

Star Rating

American Hartford Gold is one of the country’s top precious metals IRA account providers. However, their products mainly consist of gold and silver, which puts a limitation on investors that are also interested in palladium and platinum coins.

American Hartford Gold has partnerships with several third-party custodians and storage companies within the country. This makes opening a gold-backed IRA much easier and more convenient for interested individuals.

This company’s main product is its precious metals IRAs. They can help you curate a nest egg you can always rely on, no matter what happens to the economy.

These types of accounts that handle alternative investment assets are great for portfolio diversification because of their ability to retain value and withstand the effects of inflation. If you are worried about your money’s worth in case the dollar weakens, you should consider investing with American Hartford Gold.

American Hartford Gold’s minimum investment cost starts at $10,000. This is an excellent price to begin investing in precious metals for both experienced and beginners in the industry.


  • Price match guarantee
  • Their live chat is always available for inquiries and concerns
  • They have an interactive price chart available on their website
  • Prioritizes keeping all of their clients informed with the latest market trends


  • Some transactions may take three to five business days to complete
  • International shipment is not available

Goldco: Best and Most Trusted Gold IRA Company Overall (4.6/5)

Star Rating

Goldco is another top contender for the best gold-backed IRA providers in the country. They are well-established and have provided outstanding service for over a decade.

This company provides support from Goldco Specialists to clients who are interested but don’t know where to start with gold IRAs. They can assist you in doing gold IRA rollovers from an existing IRA or setting up new tax-advantaged retirement accounts.

Goldco directly sells precious metals besides gold and silver bullion coins and bars. You can diversify your account with them by investing in precious metals, which are known to be an excellent hedge against inflation.

During the 19th Annual American Business Awards in 2021, Goldco received a national recognition called the Stevie Award for Company of the Year. The Better Business Bureau and Business Consumer Alliance also gave them excellent ratings from their respective platforms based on consumer reviews.

If you decide to invest with Goldco, you can expect to receive access to informational videos and eBooks that can teach you to reach your retirement goals with precious metals.

They require a minimum investment cost of $25,000. This is much lower than Augusta Precious Metals’ requirement but still relatively high for beginners. If you do have the budget for it, there’s no harm in going forth with Goldco.


  • They provide free retirement resources
  • Easy access to your account across devices
  • High buyback offer prices
  • All IRA bars and coins are certified


  • Precious metals prices are not available for public viewing
  • High minimum investment cost: $25,000

Birch Gold Corporation: Great Staff Overall (4.5/5)

Star Rating

If your retirement strategy needs better security, consider diversification by investing with Birch Gold. They have an excellent reputation in the industry, and some of their senior management members sit on the Forbes Finance Council.

One of the many good things about this company is that they offer all four metals. This gives their clients more options for what they can include in their IRAs.

Choose to work with Birch Gold Group. They can help you with various concerns related to your investment, such as storage for your precious metals, bullion dealership, brokerage, and assistance with your retirement planning. They have experts that are always willing to educate everyone on the benefits of physical precious metals investment.

Regarding their minimum investment cost, they offer one of the lowest available in the industry, only $10,000. You can open a new account or roll over your funds from another IRA.

Unlike other companies, Birch Gold Group allows investors to choose where to store their IRA-precious metals as long as the facility is IRS-approved. They offer fully insured shipping and discrete packaging so you can have the assurance that your shipment will arrive safely.


  • Low minimum investment cost
  • Accounts that have $50,000 worth of transfer can waive fees for the first year
  • Offers all four metals: gold, silver, platinum, and palladium
  • Over two decades of experience in the precious metals industry


  • Possible hidden fees
  • No available buyback guarantee

What is A Gold-Backed IRA?

Gold-backed IRAs, also called gold or precious metal IRAs, are a type of self-directed retirement account investors use to invest in different precious metals, bullion coins, and bars.

In a traditional IRA, you can purchase stocks from gold mining companies and exchange-traded funds (ETFs). These are examples of assets exposed to gold, but you cannot include physical precious metals. If you want to invest in physical assets, you must set up a separate self-directed gold IRA account for them.

Most large brokerage firms do not provide services related to physical assets. You will need to find a dealer where you will set up your account and get the precious metals and a custodian to manage all of the transactions.

What Are Precious Metals, And Why Should You Invest In Them?

Metallic elements naturally occurring on Earth with intrinsic worth are often called precious metals. They should not oxidize, rust, or tarnish when left alone. Based on these terms, gold, silver, platinum, and palladium are the primary elements considered as one.

For thousands of years, precious metals have been used as a currency. Nowadays, they are often utilized in different industries and applications. For example, gold is mainly employed in electronics like laptops and smartphones, aside from the more common use in jewelry and design.

These applications can drive precious metals’ market value, which is less volatile and vulnerable than stocks and mutual funds. Many investors prefer to invest in precious metals to diversify their accounts. They serve as an official gold bullion/coin nest egg to which you can always return if your venture with other assets doesn’t work out.

Precious metals offer stability and minimal risk in investing in them. However, they are not all fun and safe. You should know their drawbacks if you consider investing in them.

First, they don’t provide the quick returns and tax benefits you will find in other investment assets. No financial advisor would recommend putting all your retirement savings in precious metals. Instead, they will tell you to put around 5% to 10% of your total funds into it to safeguard against inflation.

You will get your money back once you sell them during distribution, but they still make an excellent addition to your investment strategy. Even if you leave them untouched for a few decades, you will still get almost the same value you initially invested.

A plan B for your finances is excellent in these troubling economic times. There’s no way to know how stocks and other more traditional investment assets will do in the near future. A single global disaster can immediately change the market value of these assets, and you don’t want to be left with no crumbs when that happens.

Precious metals are not associated with dollars and government entities, so they can’t interfere with their value. Even if certain political instability arises, your alternative assets may remain valuable. A diversified portfolio is your best option for wealth-building and ensuring your retirement funds are safe.

Why Is Physical Gold Considered The Most Valuable Precious Metal?

Ever since ancient times, people have been informed that gold is valuable. The most common exposure to this metal is through jewelry, often advertised as expensive and luxurious.

It’s true, though. Gold does not oxidize, tarnish, or corrode even when used for a long time. If it is well taken care of, it can last very long, and use it as it is. That is one of the reasons there is a great demand for the said metal in different industries, such as electronics, medical, automotive, and aerospace.

Regarding investments, they make significant alternative assets to a retirement portfolio. You can use it to store your wealth and maintain its value despite economic downturns. Many investors believe that it is a better asset compared to paper money.

Although other precious metals are available for investment, there’s nothing to compare to physical gold. It has the most modest spectrum of colors, making it the more popular option, even if silver can be textured in various ways.

Why Invest In A Gold-Backed IRA?

If you invest in a gold-backed Individual Retirement Account, there’s one thing you can expect from it: stability. Precious metals investments can make your retirement portfolio less susceptible to market fluctuations and reduce the chances of your wealth becoming zero in a global crisis.

Gold and other precious metals are still subject to volatility, but they rarely experience significant plunges. If you invest some of your money into these alternative assets, you can get around the same amount upon retirement.

Unlike stocks, many investors look past this investment asset because they will not get the same income over time. However, keep in mind that they are primarily for providing stability to your portfolio. You wouldn’t want to risk all of your money, and gold-backed IRAs offer a balance.

Gold-backed IRAs have unique tax benefits. Roth gold IRAs are after-tax assets that allow your money to grow tax-free. On the other hand, traditional gold IRAs are pre-tax assets, and the taxes are expected to be collected during your retirement distribution.

Gold IRA investments often entice investors because of their tax advantages. Sometimes, their money can grow tax-free depending on the account they choose. They can also make contributions without worrying about initial tax requirements.

If you decide to invest in a gold-backed IRA, choose a reliable gold IRA company. Even a minor decline in the stock market can cause significant shifts in your paper assets, thus setting your retirement plan a few years back.

If you’re younger, you still have time to take risks with your investment assets. However, the closer you get to retirement, the more cautious you should be with risk management. Many investors close to retirement age choose to include precious metals to secure their funds.

The value of gold does not fluctuate as much as other paper assets. This pattern is more likely to persist in the coming years, given its continuous demand from the technological industries and other applications.

Steps To Follow While Investing in Gold IRAs

Setting up an account with a reliable gold IRA may be easy, but other steps come with it. These are the correct order of steps that you should follow in investing in a gold or silver IRA:

Step 1: The first step in investing in a gold IRA involves creating a self-directed individual retirement account. Many companies sell precious metals and physical gold bullion, and you should choose the one that matches your financial goals and needs. Individuals who wish to diversify their portfolio can buy gold and include it in their accounts.

The good thing about self-directed IRAs is that you have control over which assets you want to invest in. It could be all gold, all silver, or a mix of all four metals.

Opening a gold IRA can be challenging to do on your own. There are also rules set by the Internal Revenue Service that you must follow. Working with a gold IRA provider to set up your account is best.

They can help you move your funds, either from an existing IRA or through cash contributions. If they also offer custodial services, they will handle all necessary paperwork to ensure your account conforms to the IRS rules.

Step 2: The next step that you should do after setting up your account is to fund it. You can do this through cash contributions, wire transfers, checks, and gold IRA rollover.

You can use this fund to choose which businesses are best for your investment. Your custodian will transfer this money to pay for purchasing gold and other precious metals.

Step 3: Now that your funding is confirmed, you can choose which precious metals you prefer in your account. If you are unsure of your options, consult your custodian, a gold IRA specialist from your gold IRA providers, or a financial advisor to help you.

They can ensure that the precious metals you choose meet the standard provided by the IRS, whether in the form of gold bars, gold coins, or silver bullion bars.

Step 4: The last step would be to finalize the amount of the precious metals you want to buy. You can coordinate with your custodian and gold IRA company about this. Then, they will send your purchased precious metals to a depository.

The Pros and Cons Of A Gold-Backed IRA

There are advantages and disadvantages to a gold-backed IRA. They are as follows:

Pros of Gold-Backed IRA

  • Hedge Against Inflation

If you choose to hold physical gold in a retirement account, one of the first things you will hear about is its ability to hedge against inflation.

Unlike other paper assets, the value of gold is not directly affected by the inflation rate, no matter what happens. If the dollar’s value somehow diminishes, just like what happens to the hyperinflation in Venezuela, your precious metals will still retain their value.

Gold is also considered in the financial world to be a safe haven in times of economic downturns. During a recession, stocks, mutual funds, and bonds may decline. On the other hand, the value of gold may increase if that happens.

This is one main reason why a gold-backed IRA is an excellent way to diversify one’s retirement portfolio.

Cons of Gold-Backed IRA

  • Volatility

Despite popular belief, gold can still be subject to volatility, but not as much as paper assets. The value of gold can go up and down over short periods, making them less of a good investment for people who only have a short horizon before their retirement.

  • Fees

Remember, investing in physical precious metals will incur additional costs and fees. You will need to pay your custodian for their account management and your assets’ insurance and storage fee.
You can also expect to pay taxes on your gains while selling your gold holdings.

  • Less Growth Potential

Unlike other alternative and traditional investment assets, the value of gold tends to stay steady over a long period. In that case, it will not provide significant gains even if you leave it on your account for a few decades.

If your main goal is income generation, this asset will be something other than your cup of tea. They are mainly used to preserve your wealth rather than build it.

Final Thoughts – Gold Backed IRA

Among the top gold IRA companies above, it’s clear that Augusta Precious Metals offer the best services and products in the industry. Although they only have gold and silver products, that doesn’t limit their capabilities to provide high-quality assistance to their beloved clients.

This company has been in the precious metals scene for years, giving them enough time to make a name for themselves. Different review platforms have given them excellent ratings based on the satisfaction of their customers, and it only goes up from them. They receive almost zero complaints yearly. If they do, they resolve them immediately.

Augusta Precious Metals remains the best gold IRA company to set up your gold-backed IRA. However, many gold IRA companies provide the same excellent services as well. You can always continue reading the whole article to learn how to start with this type of investment.

Scroll to Top