Last Updated on November 14, 2023 by Ben
Inflation is a problem in almost every country at the moment. This has been happening for years and shows no sign of stopping anytime soon. If you invest in a gold IRA right now, your future self will thank you.
Lucky for you, this blog post tackles everything you might need to know about gold individual retirement accounts (IRAs).
At a Glance Rating:
1. Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
2. American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
3. Augusta Precious Metals: Great Buyback Program (4.6/5)
4. Birch Gold Corporation: Great Staff Overall (4.5/5)
5. Red Rock Secured: Best at Home Gold IRA (4.2/5)
Top 5 Gold IRA Companies Review
There are many options for investing your retirement funds, making it challenging to know where to start. As you have probably heard, gold investments are the best hedge against inflation today.
This article provided a list of reputable gold IRA companies to help you start investing and making the most of your retirement savings.
Goldco: Editor’s Choice – Best and Most Trusted Gold IRA Company Overall (4.9/5)
Goldco Precious Metals is another top provider of precious metal IRAs. Partnering with Goldco Precious Metals is easy, with a customer service representative guiding clients through each step. They have assisted clients in diversifying their retirement portfolios more efficiently and securely.
Goldco is a highly prominent gold IRA investment company offering precious metals in the United States. They offer a lot of preferences for individual gold retirement accounts, including silver, gold, and cryptocurrency. However, remember that this is separate from equities, government bonds, or a more traditional IRA.
Seasoned and beginner gold or silver IRA investors will not have to stress navigating Goldco’s website interface because they are straightforward. In addition, there is a manual on how to set up a self-directed gold IRA.
Furthermore, gold IRA companies like Goldco stock all the precious metals their clients’ have purchased in an approved IRS facility. Once you reach retirement age, you may decide whether to receive your return on investment in cash or gold.
Check out this pros and cons list to discover if Goldco Precious Metals fits your investing goals perfectly.
- Goldco is one of the oldest precious metal dealers. Their longevity in the market could be a good indicator that they have been supplying superb investment products and services to their buyers since day one.
- Goldco provides a wide selection of retirement investment alternatives suitable for all individual investor’s preferences.
- They have a buy-back program that guarantees a high fee. Goldco also handles 401(k) accounts, making investing with them securely, worry-free, seamless, and easy.
- Goldco Precious Metals give a complimentary rollover kit. They also provide 15 reading materials and 21 videos that are free and available for download.
- Goldco gold IRA clients need an initial investment of at least 50,000 USD to open their accounts.
- They do not take debit or credit cards as payment alternatives.
American Hartford Gold: Runner up – Best Price for Bullion (4.8/5)
This next company supplies various investment opportunities for buying and selling precious metals, including individual retirement accounts. Their services are easy to follow. You may check them below:
The first thing you must do is speak with an American Hartford Gold (AHG) representative. The IRA product professional will assist you in filling out all the required paperwork. It is also the best time to ask queries concerning your IRA rollovers.
Secondly, you must fund your IRA account. Once funded, you may now choose which metals fit your criteria. Moreover, you may choose between silver and gold asset investments or a combination of both.
Lastly, you can now start ordering the precious metals you prefer. For higher protection, the precious metals purchased must be in an IRA-certified vault across the United States.
To top things off, American Hartford Gold has quality customer service. They have their own mobile and online chat opportunities, making it convenient for you to send them emails or letters.
Inspect the list of pros and cons of American Hartford Gold below.
- All physical gold investments from American Hartford Gold get shipped via a nondescript package. This guarantees that any acquisitions or financial dealings are unassailable and secured.
- American Hartford Gold provides a price-match warranty, unlike most gold IRA custodians.
- American Hartford Gold has a hundred percent investment retirement account (IRA) rollover with insurance maintenance storage for up to three years free of charge.
- Several satisfied clients and testimonials indicate how promising American Hartford Gold is. Even Bill O’Reilly speaks admirably about his investment ventures in American Hartford Gold.
- AHG’s online catalog does not present a complete list of fees. The best way to know about their products and services costs is to ring them for inquiries.
- As the name suggests, AHG does not ship commodities outside the United States. There is no way overseas clients can avail of their products and services.
Augusta Precious Metals: Great Buyback Program (4.6/5)
Augusta Precious Metals is currently one of the market’s top gold IRA companies. The firm’s image has no hint of a blemish in the precious metals industry. In addition, they have been working at it for over 45 years, supplying numerous investment products including self-directed gold IRAs.
On top of that, Augusta Precious Metals offers the most competitive fees and pricing with lifetime support on their client’s accounts. The clients are also eligible for a one-on-one web meeting to enhance their understanding before acquiring precious metals. What is more compelling is that a Harvard-trained economist leads the forum.
Their starting payment prerequisite is another consideration for most gold asset investors. In Augusta Precious Metals, the base fee is pricey at 50,000 USD – somewhat upgraded compared to other gold investment company competitors.
While some companies only view their clients as factors to add significance to their cash flows, Augusta Precious Metals does things differently. They are more open anytime for queries – just message or ring them for straightforward and real-time responses.
The discussion below explains the pros and cons of choosing Augusta Precious Metals as your custodian for gold IRA investments.
- Unlike other financial custodians, they provide lifetime investment support and assistance to their beloved clients. It also includes support from account setup until your gold investment journey ends, contributing to a longer time for peace of mind.
- Numerous clients rave about the commodities and services offered by Augusta Precious Metals. They have a large number of 5-star ratings on the most reputable sites.
- Augusta Precious Metals is one of the gold IRA firms with no BCA or BBB complaints since its operation in 2022.
- They have a unique no-pressure web forum offered on a one-to-one basis free of charge for clients. Designed and facilitated by a trained Harvard economist, you can expect the best investment learnings.
- Sadly, Augusta Precious Metals lacks bullion choices on its website. Their online setup also needs some updates.
- Their minimum investment is expensive. The 50,000 USD can be significant because some companies only require as low as 10,000 USD.
Birch Gold Corporation: Great Staff Overall (4.5/5)
Simply Birch Group is a gold IRA investment firm offering various investment choices. They deliver physical acquisitions of precious metals and individual retirement accounts. Their low minimum prerequisite makes them stand out and accessible to almost all retirement savers.
On top of that, they have already established a dependable image and stable standing over nearly two decades of providing services to investors. Birch Gold’s team is all skilled with equipped knowledge and expertise in retirement portfolio diversification, providing solid financial recommendations to clients.
What’s even more interesting is that Birch Group Gold has appeared various times on major news outlets, such as the Ben Shapiro Show, where they discussed the factors leading to market influxes.
In addition, this gold investment enterprise works closely with an equity trust. Every precious metal investor must have an IRA custodian to administer their retirement plans. Luckily, Birch Gold Group partners with various options for a depository.
With all this encouraging information about Birch Gold Group, you should still be cautious of the pros and cons it presents.
- One of the gold IRA custodians with the lowest costs of entry
- Ben Shapiro endorses this company
- Has sizeable choices for palladium items
- Free shipping for orders worth 10,000 USD and above
- Has excellent company representatives
- This gold IRA company has no overseas depository alternative. If you are outside the United States territory, you may start seeking new gold investment dealers.
- Vital fees, including initial setup costs, must be clearly shown on their online catalog.
Red Rock Secured: Best at Home Gold IRA (4.2/5)
Red Rock Secured is a reliable investing platform that educates novice precious metal investors. The organization recognizes that investing in precious metals is complicated, especially for newcomers. Thus, Red Rock Secured provides articles, tutorials, and webinars on anything from precious metal investing basics to market trends and analyses.
These resources assist investors in comprehending the precious metals market, making informed decisions, and reaching their investment goals. Red Rock Secured helps clients to manage their investments and make informed decisions based on their needs and preferences through transparency and education.
- Helpful educational resources for those new to investing in precious metals
- Provides clients with the knowledge and tools to make informed investment decisions
- Can help clients better understand the risks and benefits associated with investing in precious metals
- The limited investment advice provided
- Due to jargon and terminology, Red Rock Secured online courses may be challenging to grasp.
What is A Gold IRA?
A gold IRA is one type of self-directed IRA that permits you to invest in gold, silver, palladium, platinum, and other precious metals. Investing in gold IRAs requires the service and management of an IRS-approved custodian, a broker for buying physical gold bullion, and a depository for storing the items.
Like other self-gold-directed IRAs, you can place gold in an IRA through Roth or traditional means. Either way, you can enjoy your gold IRA funds at retirement age.
In a Roth IRA, you pay taxes on the money you put into the account, but when you withdraw it, you do not pay taxes on the earnings. On the other hand, when you open a traditional IRA, you receive a tax deduction on your contributions and pay taxes after withdrawing the money.
Your options are not limited to investing in gold bars, coins, and bullion for your existing retirement account. People who prefer investing in gold mining stocks, mutual funds, or ETFs (exchange-traded funds) that track the gold index performance can do so with a mainstream IRA.
Aside from that, one gold IRA can include other rare metals, such as platinum, palladium, and silver. Similar to gold, these metals must also be in their physical form.
According to IRS regulations, each IRA account can have gold or silver coins minted by the US Treasury Department. Moreover, investors can add various platinum coins and platinum and palladium bullion.
How Does a Gold IRA Work?
In a nutshell, a gold IRA works the same as a regular IRA. The similarities include their contribution limits. The main difference depends on the type of assets inside the individual retirement account.
Listed below are the critical steps on how you can start investing in gold IRAs.
Find a Custodian
It is common knowledge that you must find an investment company or custodian to set up your gold individual retirement account (IRA). It is crucial to look for a trustee or custodian providing gold IRAs because some only permit traditional assets.
With the rising number of companies, you can easily find one and open a gold IRA account with them. However, you must consider checking their minimum investment gold IRA fees, customer support, track record, accountability, and transparency.
Further, you should seek which gold investment company will work best for your financial goals and follow its instructions. After picking a custodian or company, they will provide paperwork for you to complete and return.
Fund the Gold IRA
Whether you want to fund your precious metals IRA through lump-sum payments or regular or monthly contributions is up to you. If you prefer both, find some companies that allow investors to do both options.
You can fund your gold IRA by contributing a specific annual contribution limit. If you are more youthful than 50, your limit is only 6,000 USD. On the other hand, your contribution can go as high as 7,000 USD if you are 50 or older.
Consider the following measures before funding your gold IRA.
1. Distinguish what your retirement options are
There are numerous IRAs, so it would be advantageous to acquaint each option. You must explore and compare all the available choices to reach a suitable investment decision. Remember that no matter which type of individual retirement account you pick, you still need taxable revenue to open and continually contribute to it.
2. Re-energize your balance
After opening your IRA account, you can now put money inside. Note that the sooner you start building a balance, the more time your money grows and appraises.
Regarding rollovers and transfers, any existing retirement plans should move directly into your IRA without any stopovers on your other accounts. This avoids unnecessary taxes on your amounts.
3. Familiarize the IRA Contribution Guidelines
The last thing you desire to do is get penalized for not understanding the IRS contribution rules. It says investors can contribute to more than one IRA in the same year. Your total contribution must not exceed your annual limit.
According to the rules the authority sets, you must complete your contributions before April 15 next year.
4. Opt to contribute regularly
Activate an automated transfer from your checking or savings account to your individual retirement account at a scheduled time. You can make a regular contribution like this through automation. Your options can vary between once-a-month or biweekly contributions.
Buy Approved Gold
Authorities like the IRS have strict rules concerning precious metals assets like physical gold. For instance, your gold bars can only pass as IRA-eligible gold if they are 99.5% pure. On the other hand, physical silver must be at 99.9% purity, while palladium and platinum should be at 99.95% purity level.
Check out other eligibility conditions:
- Proof coins should be in excellent condition. The certificate of authenticity must be present with original and complete packaging.
- The precious metals producer must be certified by COMEX, NYMEX, LBMA, LPPM, ISO 90000, LME, or other national government mints.
- Bullion coins should be free from scratches or any damage. Further, they must still be in a brilliant uncirculated state.
- Certain small bullion bars must be in exact weight specifications the IRS sets.
Once you have seen an approved gold for buying, you can complete the transaction with the precious metals broker.
The trustee or custodian oversees accounting. However, the SEC dictates that these custodians are not responsible for the gold broker or seller that investors use. Though they can provide recommendations, they should not be held accountable for investors’ choices or decisions.
Use an Approved Depository
You cannot just store your gold and silver bullion assets anywhere. IRS must keep these precious metals approved depositories for explicit purposes. Most importantly, the IRS does not allow investors to take their precious metals at home.
The IRS considers keeping gold and silver metals at home a withdrawal, subjecting to investor taxes and penalties. Some reputable and certified depositories are HSBC, JPMorgan Chase, Delaware Depository Service Company, and CNT Depository.
The rules and regulations set by the IRS regarding selling off precious metals like gold for cash depend on whether the IRA is Roth or traditional.
Here are what you can expect when withdrawing a Roth gold IRA:
- No taxation on withdrawals
- No required minimum distributions
- Investors wishing to withdraw before turning 59 and ½ and before the IRA is five years old are eligible for a 10% penalty.
On the other hand, here are the rules for traditional gold IRA withdrawals:
- Both required and voluntary withdrawals are taxed
- The required minimum distribution set in at 72 years old
- Investors wanting to withdraw before turning 59 and ½ also attract a penalty
Benefits of a Gold IRA
Historical data shows that precious metals, especially gold assets, have ascended in value through the years, despite challenging economic and market times. This suggests that investing in a gold individual retirement account diversifies your entire tax-deferred retirement portfolio while maintaining a preferential tax treatment.
In addition, a gold IRA can be a better store of value than various currencies and stocks. Gold asset value can never reach zero.
Pros and Cons of Gold IRAs
If you are curious about why financial experts say gold is an excellent alternative investment for retirement planning, this article will answer just that. There are many benefits in doing so, and of course, there are downsides too.
Pros of Investing in Gold IRAs
1. Hedge against deflation and inflation
Over time, inflation erodes anyone’s investments, especially when discussing traditional investments. However, gold assets provide a hedge against deflation and inflation. They immunize your retirement portfolio from the effects of this market circumstance.
2. Profit opportunity
According to historical data, the performance of gold shows that they have a significant profit potential in the long run. For instance, the gold value in 2000 was about 200 USD per ounce. In 2007, it rose to 1,200 USD an ounce, resulting in a five times return on investment.
3. Portfolio Diversification
Unlike traditional paper assets, gold investments have intense portfolio diversification. It does not matter whether the market is not performing well. Precious metals will still thrive, making physical precious metals like gold the ideal choice for an added layer of protection and diversification.
Cons of Investing in Gold IRAs:
1. High gold IRA fees
Most gold IRA companies charge high minimum investments and other relevant fees than mainstream IRA accounts. However, gold is more expensive compared to real estate SDIRAs and cryptocurrencies.
Gold IRA fees include one-time account setup, annual account maintenance fees, seller and brokerage fees, insurance and storage fees, and cash-out expenses. When you add them all together, the amount can be expensive.
2. Prohibition for early withdrawals
Early withdrawals result in a 10% penalty cost. If you plan to access your funds before a designated age, consider paying an extra fee when withdrawing and liquidating your gold.
Do not worry because you can still withdraw them. However, a higher account balance can quickly increase the penalty cost.
Gold IRAs are suitable for long-term investments. If you are looking for short-term investments that you can quickly withdraw for cash, you may opt for traditional assets.
The process of looking for precious metals buyers is challenging. You may end up selling your commodities for a price lower than the market price. Moreover, failure to make the required minimum distribution with their accounts gets penalized.
Although this article points out that gold does not go with the flow of inflation and deflation, gold can still be volatile because it is still a currency in the first place.
5. Risk of loss
There will always be a chance that a physical asset like precious metals gets stolen or lost due to unforeseen circumstances. If you wish to add a layer of protection, you must pay extra to insure your precious metals against losses.
Diversify and Preserve Your Assets with a Gold IRA
There are many reasons to diversify your investments, but one of the most significant is to preserve your assets. A gold IRA is another way to diversify your assets and prepare for the future.
Once you find the custodian to help you with your precious metals investment, you can invest. Opening a self-directed IRA with a reputable gold IRA company will empower you to make sound investment decisions and pick your approved gold coins, bars, and bullion to invest in.
Should You Invest in a Gold IRA?
Only you can decide whether a gold IRA is a perfect fit for your financial objections. The best IRA investment advice we can provide is to ask a certified financial wealth planner to incorporate your goals into a plan of action.
Final Thoughts – Invest in a Gold IRA
Data and research are your most potent assets in discovering gold IRA investments. With this knowledge, you can increase your chances of achieving your retirement goals. And as you choose a gold IRA custodian, consider an overall most trusted in the game right now.
You can inquire about Augusta Precious Metals to invest in a gold IRA. If they do not resonate with your objectives, you may hop into the next gold IRA companies in this article!