Last Updated on May 7, 2023 by Ben
Gold IRA investments are not new to the scene of investments. For decades, many investors have used them to hedge a portion of their wealth against any crises that might affect the movement of particular markets.
It is becoming more popular with newer investors who want to secure their futures and build wealth. Financial advisors and other experts recommend investing in precious metals to diversify one’s retirement portfolio.
Working with a premier Gold IRA can bring you more benefits than you think. The times are changing, and no one knows how long your money can survive in this economy. In this post, let’s talk about Gold IRA accounts and how you can start investing in precious metals.
Before we get into it, check out the top Gold IRA companies in the country today.
At a Glance Rating:
Gold IRA Rollover Companies Review
Augusta Precious Metals: Editor’s Choice – Great Gold IRA Company Overall (4.9/5)
If you are looking for ways to diversify your wealth, Augusta Precious Metals can help you with that. This Gold IRA company is often called the best provider in the industry, and there are many reasons for that.
First, the company prioritizes the education of its Gold IRA investors. They want everyone to understand how this market works and how beneficial it would be for the client if they choose to include precious metals in their retirement portfolio. The last thing you’d want is to make rash and unwise decisions when the concern is your hard-earned money.
They will guide you through setting up an account and how you can align your investment with your future goals.
Before you can sign up for an account with them, you will have the opportunity to get a one-on-one web conference with their specialist. They will teach you the ups and downs of the precious metals industry, rewards, risks, and scams that you should avoid.
This can help you make an educated and confident decision regarding this type of investment.
Another good thing you will love about Augusta Precious Metals is their lifetime customer support.
They have a team of experts and professionals who are always ready to answer your inquiries.
They would never leave you hanging after your purchase. One of their main goals is to develop long-term relationships with their clients.
You will see numerous excellent ratings that verify the kind of service Augusta Precious Metals provide. If you choose to work with this company, you are up for a treat.
- Lifetime support from professionals
- Prioritizes investor education
- Excellent customer service
- Provides free guides and materials to investors
- High minimum investment cost of $50,000
- The fee structure is challenging to find
Red Rock Secured: Runner up – Best at Home Gold IRA (4.8/5)
The headquarters of this privately held firm is located in sunny Southern California. Their stated mission is to inform customers, supply high-quality items with solid security measures, and supply excellent service. They also say that honesty and integrity are of the utmost importance to them.
You can read customer reviews from places like the BBB, Trustpilot, and the Business Consumer Alliance by clicking on the relevant links on their website.
The organization makes a lot of noise about its policies and ideals. They claim their professionals can instruct you on the precious metals sector and recommend the best approach for your retirement savings. It is said that customers who call the organization will receive advice on how best to diversify their portfolios in light of their objectives.
The company lists “protection” as one of its core values. If you use their products to invest, they promise you’ll never see your money disappear. That’s how they put it: your portfolio’s value will never be $0.
They say investments come with a high return potential but also a significant potential for loss. They elaborate by saying they take precautions to ensure their consumers are safe from harm. This is an unusual claim, given that precious metals are typically sought after by those seeking safety rather than adventure.
The organization’s website does have a sizable scholastic database. In addition to the general understanding of portfolio diversification, it provides information about the precious metals business.
- They have been operating for a very long time.
- Appears to have solid foundational support.
- There have been a lot of good reviews from their clients
- The corporation creates phony testimonials and buries negative ones on external platforms.
- Lack of pricing on their website.
Goldco: Great Buyback Program (4.6/5)
Goldco was founded in 2006. Since then, they have grown into an established Gold IRA provider in the country known for their excellent services.
This company has some of the largest selections of IRA-approved gold and silver coins. They also have a relatively lower minimum investment cost than Augusta Precious Metals, which is $25,000.
In the last three years, most of their customers’ complaints are from confusion with the coins’ value, surprisingly high markups, and unsolicited texts and phone calls. However, they solved them quickly, and their clients reasonably contended with the resolution. They were also given excellent ratings from different platforms, making them a reputable Gold IRA company.
If there’s one thing you will love about Goldco, it is their emphasis on stability. They understand that there are many unexpected events in life. Investing in Gold is an excellent way to protect your funds, especially if you are still decades away from retirement.
They also provide real-time data showing Gold prices that you can monitor. This shows how committed they are to offer you the most transparent service.
Goldco offers some of the highest buyback rates that you can find in the industry. You can always sell back your precious metals if life happens. Of course, you can do this with the proper documentation and processing.
Goldco works with excellent self-directed IRA custodians, including Equity Trust. They have many depositories where you can store your precious metals assets, but their most preferred option is the Delaware Depository.
- All silver and Gold bars and coins are certified
- Accredited by the Consumer Affairs
- Endorsed by prominent media figures
- Provides updated news about the market and industry
- No available information on storage and custodian fees
- Information kit usually takes days to arrive
American Hartford Gold: Best Prices on Bullions (4.5/5)
American Hartford Gold excels in providing some of the best IRA investment plans that include all four approved precious metals: Gold, silver, platinum, and palladium.
They sell precious metals to families looking for ways to secure their future. They want all their clients to succeed and take advantage of the benefits Gold IRA can provide for long-term investments, especially in these changing times.
American Hartford Gold has a team of knowledgeable professionals that helps all of their customers with their concerns. They are also rated A+ by the Better Business Bureau as an accredited business. This signifies their reliability as a precious metals IRA provider in the country.
Another thing you will appreciate about this company’s competitive pricing compared to other precious metals companies. Their minimum investment cost starts at $10,000. This way, you can start with your Gold and silver IRA investments at a much lower starting point.
For years, people praised them as one of the fastest-growing private companies in the country. Their excellent service, customer support, and swift processing are only some of the reasons why they are among the top Gold IRA companies.
If you’re wondering if you can trust American Hartford Gold, know that they were ranked as the #1 Gold Company by Inc. 5000 2021.
- Provides special deals, such as $1,500 free silver without account maintenance for up to three years
- Excellent ratings and price-matching promises
- Prioritizes customer service quality
- Complete cost disclosure
- The price list is not available on the website
- International shipment is not available
Birch Gold Group: Great Staff Overall (4.2/5)
Birch Gold Group is known for its exceptional customer service and competitive pricing. They are dedicated to providing all clients with the best possible precious metal IRA investing experience.
What people love most about this company is its transparent fee structure. All their offered bullion products are listed on their site and accessible for everyone to see, so you can make a wise decision when buying physical Gold.
Their wide range of products includes palladium and platinum coins, in case you are also interested in investing in them. For non-IRA purchases, you can arrange a home delivery, and they will deliver the assets straight to your doors.
With more than twenty years of valuable experience in the industry, Birch Gold Group was able to help many people build their wealth and secure their life savings.
Their minimum investment for their IRA accounts starts at $10,000, which is relatively lower than what other companies offer.
For the fees, you can expect one-time costs like the set-up fee of $50 and the wire transfer fee of $30. You will also be expected to pay the annual fees once you decide to invest with them. Their storage/insurance fee is $100, while the management fee is $100.
- Provides updated articles and news about the precious metals industry
- Transparent fee structure
- Non-IRA purchase is always available
- They also offer platinum and palladium bullion for IRA
- The website can be confusing with too much information
- There are limited ways to contact the company
What Is A Gold IRA?
Gold IRA is often used as an alternative term for the specialized individual retirement account. It allows investors to own Gold and other precious metals to secure their retirement funds, called Precious Metals IRAs.
This IRA only allows storing qualified bullion that should meet the qualifications provided by the IRS. Collectible and rare coins are not subject to investment unless they are at least 99.99% pure and government-minted.
Gold IRA accounts are held separately from your traditional retirement savings accounts. However, some rules involved in conventional IRAs, like distribution and contribution limits, are the same. Interested individuals can open an account through their custodian or a broker-dealer.
Gold IRAs are a good option for retirement portfolio diversification. This is a good strategy, so you will have your money spread across different markets. If one market is affected by inflation and other global crises, you will still have money-earning income in other assets.
The primary purpose of a Gold Individual Retirement Account is to hedge your money against inflation. People also like owning physical Gold and other precious metals, even if they cannot hold them at home for security reasons. Aside from Gold and silver, you can also invest in platinum and palladium.
Unlike stocks and bonds, people go to precious metals to maintain the value of a percentage of their funds. Experts are against putting 100% of your money into precious metals because you won’t gain significant income from this asset.
Since there are little to no earnings in a Gold IRA, tax-deferral on payments still applies to this asset. To build an effective hedge against inflation, you should put 5% to 10% of your total funds into precious metals. It would help if you diversified the remaining balance to other assets that would bring you passive and long-term income.
You should also know that upon reaching 70.5 or 72 years old, you will be required to take a minimum distribution (RMD) from the account. You can sell your Gold back to your Gold IRA provider. If you are unsure how to utilize this kind of account, it would be best to consult a financial advisor.
Traditional and Roth IRAs require your assets to be stocks, mutual funds, funds, and other eligible securities. On the other hand, the Gold IRA must be self-directed. You can control the type of precious metals you want to invest in instead of having predetermined options.
Aside from physical gold bullion, a Gold IRA account also allows you to invest in gold-related paper assets. This may include exchange-traded funds and stocks from mining companies, precious metals mutual funds, and precious metals commodity futures. However, know that this doesn’t apply to all IRA companies.
Understanding Gold IRAs
Individual Retirement Accounts are generally tax-advantaged, so they can provide more benefits to Gold IRA investors as they prepare for their retirement. This can come in various forms, including Roth, traditional, and self-directed IRAs.
Gold IRAs work differently than other IRAs, as it is the only account that allows people to invest in physical precious metals. They are also stored in a depository within the country, and a separate custodian manages them for the investors.
When opening a precious metals IRA account, you can set it up as a Roth IRA bought with post-tax or pre-tax funds. Before your custodian can store them, you must choose which products to purchase.
That’s why you need to find a reliable custodian because they will be the one to handle your account until distributions, either a bank or a brokerage firm.
You can hold different Gold, silver, platinum, and palladium products in a Gold IRA account. Other than that, these are some of the assets that you can also include in this self-directed account:
- Stocks from gold mining companies
- Precious metals mutual funds
- Precious metals commodity futures
- Exchange-traded funds (ETFs)
Precious Metals Eligible for Gold IRAs
The products eligible for a Gold IRA should meet the finest standards established by the Internal Revenue Service. Gold must be at least 99.5% pure, silver at 99.9%, while platinum and palladium should be 99.95%.
Here’s a list of eligible products for Precious Metals IRAs:
- American Eagle gold coins
- Uncirculated Gold Buffalo coins
- Canadian Maple Leaf coins
- Austrian Philharmonic coins
- Australian Kangaroo/Nugget coins
- PAMP Suisse bars
- American Eagle coins
- Canadian Maple Leaf coins
- Australian Kookaburra coins
- Mexican Liberated coins
- American Eagle coins
- Canadian Maple Leaf coins
- Australian Koala coins
- Isle of Man Noble coins
- Canadian Maple Leaf coins
On the other hand, here’s a list of the precious metals that are not eligible for a self-directed Gold IRA:
- Austrian Corona
- Belgian Franc
- British Sovereign and Britannia
- Chilean Peso
- Dutch Guilder
- French Franc
- Hungarian Korona
- Italian Lira
- Mexican Peso
- South African Krugerrand
- Swiss Franc
Important Factors Before Starting a Gold IRA Account
It’s good to understand how Gold IRA works and the advantages you can get for your portfolio. Still, knowing how this type of account will affect you differently is essential.
Type of Account
Before you continue with this account, you must first understand the type of account you want to open. Self-directed IRAs can be in the form of Roth or traditional IRAs, and the main difference lies in how you want your invested money to be taxed.
With a Roth IRA, you will be required to pay your taxes during contribution, while traditional IRAs allow investors to pay the taxes during distribution.
Gold IRAs limit how much you can contribute depending on your age. If you are below 50 years old, you can only contribute up to $6,000 per year. After reaching 50, that limit goes up to $7,000.
It’s been mentioned that you should store IRA-purchased precious metals in a safe depository. Most Gold IRA companies are partnered with banks and depositories where they will keep your assets.
You cannot keep them on your property even if you plan to store them in a vault. In most cases, the IRS will consider this an early distribution, and you will be required to pay the penalty.
The most common depositories by more popular Gold IRA companies are Delaware, Texas, and Brinks. If you are inquiring with an IRA company, you can ask them about the storage of your assets after the purchase.
You can expect that there will be several fees when you invest in Gold IRA accounts. This includes set-up fees, maintenance fees, and storage fees. Some are just one-time payments, while others are required to pay annually.
The fees can range between $250 to $350 during your first year and $150 to $250 in the following years.
These assets are physical, so they will need more protection than traditional assets. They will also be insured if something happens at the storage location that affects your precious metals.
Types Of Gold IRAs
There are different types of Gold IRAs that you can invest in, including:
Traditional Gold IRAs
The accounts are funded with pre-tax money. In that case, all your contributions and earnings from the account will be tax-deferred. On the other hand, you will be taxed during withdrawals.
Roth Gold IRAs
Roth Gold IRAs are funded with after-tax money. There will be no immediate tax advantage, and you will pay the account taxes upon beginning to take your distributions during retirement.
SEP Gold IRAs
Just like the traditional SEP IRAs, this type of account is available for self-employed individuals and employees of small businesses. You will be taxed during your retirement rather than during your contributions. There is also a limit to the amount of contribution that you can make.
How To Open A Gold IRA
Opening a Gold IRA account is pretty straightforward. You will still have to fill out some paperwork for the orders and management of your assets, but there’s no significant difference to opening a traditional IRA. However, there are some additional steps that you’ll have to take, given that precious metals are physical assets that require better protection.
Here are the steps when opening a Gold IRA:
1. Select a self-directed IRA custodian
A custodian holds all self-directed accounts, which can be a bank, a trusted company, or other entities approved by the IRS. Investors can own alternative investment assets on self-directed accounts, including precious metals and real estate.
Your custodian will record all transactions you made that concern the account, and they will mail it to you and the IRS. They will also ensure the safety and maintenance of your physical assets in your chosen depository.
2. Choose a dealer
Once you have a custodian, you can choose where you will get your precious metals. Keep in mind that it should be a reputable and licensed company so you won’t have any issues regarding the authenticity of the products.
Many Gold IRA companies offer different services and features. Some even offer special deals and discounts when you reach a certain amount of order. Most companies only focus on Gold and silver, but some also offer platinum and palladium.
At this stage, research is essential. You’d want to look for the company reviews and how their services affect their clients. This way, you can get an idea of what you will experience if you choose to work with them.
It will help if the Gold IRA company you have in mind is associated with groups like the Industry Council for Tangible Assets (ICTA), Professional Numismatic Guild (PNG), and American Numismatic Association (ANA).
The company you choose will be the one you set up an account with, and they will work with your custodian to transfer funds and purchase your precious metals. They will also handle shipping your chosen products to the storage depository.
You should choose a company that suits your financial needs as much as possible. You should consider their fees and customer care quality. Handling a retirement account is long-term, and you wouldn’t want to encounter any problems.
It’s also ideal to consider their minimum investment cost. Some companies require as high as $50,000 in precious metals purchases before you can open an IRA with them, while some may require as low as $7,500.
3. Fund your account
After setting up an account with a Gold IRA company, you must decide how to fund your purchases. You have three options for this:
With cash contributions, you can do this through cash, wire transfer, or check. It is simple, much like how you pay your contributions to a typical savings account. Just keep in mind the fees when using a wire transfer.
Gold IRA Rollovers
Gold IRA rollovers are when you use the fund from an existing IRA through distribution and put it into a new precious metals IRA. If you want to do this, you can contact your account administrator for the steps that you can take.
You can also deposit the cash contributions from your account into your new IRA account. However, the IRS requires that you complete this process within 60 days to avoid a 10% penalty.
You can also do a direct transfer to fund your Gold IRA account. All you have to do is to fill out a form with your account administrator. Your custodian can also do this on your behalf.
This funding usually takes up to five days and is generally penalty- and tax-free.
4. Select your precious metals
The next step would be to select the products you want to incorporate into your account. You can
check out your IRA provider’s list of available bullion.
The most popular product people choose is the American Gold Eagle coins issued by the U.S. Mint. Of course, you are not limited to Gold products. You can also include silver, platinum, and palladium in your Gold IRA.
Remember that the IRS requires the type of precious metals you can add to your account. Always research before investing your money, even if a reliable Gold IRA company offers it.
It will help if you choose a Gold IRA company that directly sells precious metals, so you won’t need to find a separate dealer.
If you are unsure which product is best for your account, you can get help from an IRA company representative or specialists to help you based on your preference.
5. Monitor the precious metals’ performance in the market
Some companies offer dashboards that allow investors to monitor the performance of certain precious metals in the market. This can help you understand the market changes that might affect your assets.
If this is a priority, you can ask the company representative if they have this feature when inquiring with them. If they don’t, your custodian can help give you access to these things.
6. Choose a storage
Usually, this is the last step of the process. Once everything is set up, you can choose which depository you want to store your precious metals.
You can ask your Gold IRA provider if they are partnered with depositories in the country. If they are not, you should find your storage, or your custodian can help you.
The IRS should approve your chosen depository. They will store your assets for you for a long time, so choosing a good one would benefit you more. Home storage is never an option, so don’t try it if you don’t want to be penalized.
7. Complete the transaction
After choosing a depository, a Gold IRA provider, and a custodian, you can complete the process. Your custodian will handle all of the payments and transactions from here. You will receive reports regarding your account.
If you have any questions concerning your physical assets, contact your Gold IRA custodian.
Final Thoughts – Gold IRA Accounts
If you are looking for a reliable Precious Metals IRA company where you can start investing in alternative assets, you can never go wrong with Augusta Precious Metals.
Their main goal is to provide satisfaction to their clients. The company is always ready to resolve any issues and concerns so everyone can end the day happy and contented with their Gold IRA services. You can also get a comprehensive Gold and silver bullion option to customize your retirement account based on your preferences.
Choosing one precious metal provider can be challenging with the many companies that offer the same products and features. All the best Gold IRA companies listed above have established reputations in the industry, and they will be your best options to make your way through the market.
If you’re unsure about this one, check out the rest of the article to learn more about how you can start navigating this industry.