Last Updated on April 27, 2023 by Ben
Self-directed Gold IRAs are in demand right now, with many investors wanting to create a retirement strategy that will ensure the stability and safety of their wealth’s value. As you grow older, you should think of ways to grow your money and how you will secure them against global crises.
Get to know how your funds can withstand the effects of inflation and ensure that you will have good retirement years from now.
At a Glance Rating:
Top 5 Gold IRA Companies Review
Augusta Precious Metals: Editor’s Choice – Great Gold IRA Company Overall (4.9/5)
If you’re searching for the best Gold IRA company in the United States, one name would always come up: Augusta Precious Metals. Many investors trust this company for its high-quality service and wide range of available bullion products.
This company has the best reputation in the Gold IRA industry, and you would not regret working with them when diversifying your wealth. One of the many things you will love about them is their emphasis on investor education because they want you to understand how their service works.
Investing in Gold and silver can give you a great hedge against inflation and global disasters. It’s better to learn about them now than later when the world faces economic shutdowns.
Augusta Precious Metals has some of the most well-trained professionals to assist you regarding your account. You can also discuss your financial goals with them to develop a plan that suits your needs.
Their minimum investment cost starts at $50,000. Some investors may find this steep, especially those relatively new to the market. However, remember that they are known as the guardians of the Gold Individual Retirement Accounts market, so rest -assured that your money will be safe.
- Has some of the highest ratings among Precious Metals IRA companies
- Provides one-on-one web conferences for their clients for a better understanding of the industry
- Account lifetime service available
- They don’t use any high-pressure tactics to make sales
- Higher minimum investment cost
- Some of their premium coins cost more than the bullion
Red Rock Secured: Runner up – Best at Home Gold IRA (4.8/5)
Red Rock Secured website makes account information and investment management simple and efficient. Users of any skill level can use all the tools with a click.
This technology allows consumers to monitor their investments in real-time without waiting for updates or confirmations. Red Rock Secured also protects clients from computer viruses and malware that steal personal data.
These characteristics make the website excellent for anyone who wants an easy and safe way to track their investments and finances online.
- User-friendly website
- Easy to navigate
- Provides clients with a simple and efficient way to access account information and manage their investments
- Red Rock Secured requires customers to install software or plugins, which may slow performance and cause compatibility issues.
- Security and identification verification may delay account opening for new clients.
Goldco: Great Buyback Program (4.6/5)
With over fifteen years in the Precious Metals IRA industry, Goldco is one of the few companies you can trust. They have a large customer base nationwide and create lasting relationships with their clients.
Even if you are new to the precious metals investment scene, you can easily open an account with them. They will provide everything you need to know as you explore how to make a well-diversified investment portfolio.
One thing you will recognize upon looking up Goldco is the public figures that endorse their service. Chuck Norris and Sean Hannity are reputable individuals, so believing Goldco’s commitment to good service and high-quality products is safe.
This company features a good buyback program that keeps investors at ease. When you finally reach retirement age, you can cash out with Goldco by selling the bullion back to the company at a great price.
Even if your financial status changes over the years, you can ensure that the value of your money invested in precious metals with Goldco is safe. They store all the IRA-purchased bullion in depositories nationwide, including the Brinks Salt Lake City, International Depository Services Group, and the Delaware Depository.
Their minimum investment cost starts at $25,000, which is lower than Augusta’s. If you want to invest less money, you can begin with Goldco. They are just as reputable and may offer free silver promotions at specific purchase values.
- All bars and coins are certified
- Guaranteed higher buyback price on bullion
- Free silver promotion
- Assists with paperwork
- Annual fees tend to be higher compared to other competitors
- Pricing information is challenging to find before signing up
American Hartford Gold: Best Prices on Bullions (4.5/5)
American Hartford Gold offers all four precious metals – Gold, silver, platinum, and palladium — which is excellent because most self-directed companies only focus on Gold and silver.
This company ensures a 100% customer satisfaction guarantee with their industry professionals, who are always available to answer all your inquiries and concerns.
Another good thing about American Hartford Gold is its website design. It is straightforward, so everyone can navigate it freely to find anything. Their pricing is also competitive, and they have some of the industry’s best deals for people interested in investing in precious metals.
Over the years, they received excellent ratings from verified platforms like the Better Business Bureau and Business Consumer Alliance. People praised them for their service and reasonable pricing for their products.
Their minimum investment cost for their Gold IRA account is $10,000. This is a reasonable price for beginners uncomfortable starting with a much larger price point.
- Lower minimum investment cost
- Some fees are waived during the first year of the account
- Complete cost disclosure before the final sale
- They prioritize customer service
- Pricing options are not available on the website
- International shipment is not available
Birch Gold Group: Great Staff Overall (4.2/5)
If you are considering diversifying your retirement account, Birch Gold is a good company to start that journey with. They offer various products, so you can fully customize your account. They are among the IRA companies that provide lower minimum investment cost, which starts at $10,000.
If you choose to work with them, you can expect to have your asset analysis discussed with you by a professional from their company. They are clear and concise about it and want you to have an excellent overall experience.
They will send all of the products you purchase from them to the Delaware Depository or Brinks. These storage facilities are insured, and you won’t have to worry about your assets’ safety.
You have to look out for the possible hidden fees from this company. Many of the complaints they received stem from that. If you want to work with them, always ask questions about your concerns so you can go through the process quickly.
- Waived fees during the first years on accounts that reached a certain amount of purchase
- Provides educational resources to all clients
- Emphasis on good communication and fostering lasting relationships with investors
- Excellent ratings from verified customers
- Possible hidden fees are included
- High minimum investment cost applies to IRA and non-IRA purchases
What is A Gold IRA?
A self-directed Gold IRA is a retirement account where you can hold precious metal assets like Gold bullion, silver, platinum, and palladium. Many investors open such an account for alternative investments in a way to diversify their portfolio and add a hedge against inflation. They also like this because of its tax advantages. So these Gold investment companies can be a great addition to your portfolio.
These accounts require a separate custodian to manage them and handle your paperwork. They will record all transactions related to your account and send a report to you and the IRS. You will also have to pay them an annual fee for their service and your expenses on the product purchase.
Investing In Gold Using A Self-Directed IRA
Investing in precious metals is like putting some of your money in a safety deposit box. The process should be quick and easy if you have a precious metals dealer in mind and a reliable custodian.
You would want to choose a custodian first to help you purchase physical bullion. The precious metals you can invest in are limited to Gold, silver, platinum, and palladium.
This often includes silver American eagle coins and gold American eagles. Gold prices may vary, as well as with silver coins, depending on the company where you open an account.
All of your purchased precious metals will be under your IRA’s name. They will be held in an approved depository until retirement or when you decide to take them out early. However, keep in mind that there will be early distribution penalties.
You can’t have direct physical possessions of physical precious metals unless you purchase them for non-IRA purposes.
What Are Self-Directed IRA Custodians?
Self-directed IRA custodians are firms responsible for keeping all of your investments safe. They also monitor it to ensure that it is aligned with IRS-provided regulations and its tax-advantaged status.
Major brokerage firms, trust companies, banks, insurance companies, mutual fund companies, and other qualified financial institutions mostly manage traditional IRAs. An IRS-approved nonbank trustee or a capable precious metal investing specialist can handle your account for self-directed IRAs.
When you are looking for a self-directed IRA custodian, see that they are knowledgeable regarding Gold IRAs so you can be sure they can do the job well. This is crucial, especially if you want to do a rollover from your 401(k) as you buy Gold and other metals.
If they are not as detailed as you initially thought, you can end up with penalties, which could affect your valuable investments. As much as possible, you should look for the following:
- Transparency: They should know all the costs beforehand so you can avoid surprises and hidden fees after signing up with an IRA provider.
- Track record: They should have an excellent reputation in the industry. You can do this by looking for customer reviews and ratings from different platforms.
- Flexibility: Each investor has their unique goals. A good custodian should be approachable and accommodating to your needs.
You should know about a self-directed IRA account’s additional charges. These are the special costs that you can expect:
- Set-up fees: This is a one-time fee and is mostly charged if you want to set up a new IRA account with a specific provider. The amount may vary per company.
- Custodian fees: these are annual fees that you will be expected to pay to your custodian. Depending on the account, this can be higher or lower.
- Storage fees: These charges are for the safekeeping of your purchased assets and may vary depending on the availability of your chosen storage facility.
- Buyback fees: If you sell your assets back to the company, they will typically buy the bullion coins for a lower cost than your original purchase. However, this may still vary depending on the current market value. Some companies will also provide a guarantee of asset purchase.
- Transaction fees: This may vary depending on the type of transaction.
When buying precious metals for physical possessions, you should contact your IRA provider regarding the information.
Top 5 Benefits Of A Self-Directed Precious Metals IRA
If you choose to invest in precious metals IRA as a way to protect your wealth, these are the benefits that you can expect from it:
Investing in precious metals is an effective way to diversify your retirement account. Financial advisors often recommend alternative assets for long-term investments as a good retirement strategy.
Physical assets such as Gold, silver, platinum, and palladium can help protect your wealth against inflation and other crises that may affect the dollar’s value. Although investing in Gold with all your money is not recommended, it can still make a good addition to traditional paper assets like stocks, bonds, and mutual funds. You’d want an investment that retains its value for a long time and is away from volatile stock markets.
Investing is all about taking risks, but some investments can pose more insurance than income generation. Putting a portion of your retirement portfolio on precious metals is like getting insurance for your wealth. Even after decades, it will still have the same value and not plunge dramatically, unlike other asset classes.
Hedge Against Inflation
When looking for an asset that can withstand the effects of inflation, one of the assets that would come up is precious metals. If the value of the dollar drops, it easily affects the value of stocks and mutual funds. Inflation can also further weaken the value of money if it lasts for a long time.
If that happens, your money will have less purchasing power, no matter how much you have. On the other hand, investing it in precious metals will retain its value.
How does that happen? Well, the value of physical precious metals is not linked to the dollar’s current value. It can always change, but precious metals would experience little volatility.
It is also never going to reach the value of zero. Gold and other precious metals are finite assets. If the Earth happens to run out of them, their demand in industrial and other applications is more likely to increase, thus also increasing their value.
Gold IRAs are self-directed, giving you more control over the asset mix. You can choose the products you want to include in it. It can be all Gold, all silver, or a blend of different precious metals.
You can also choose to focus on palladium bullion if you want. However, remember that collectible coins are mostly not IRA-eligible, and you can’t hold physical Gold in your home.
Other retirement accounts have a predetermined set of assets that you can purchase. You can diversify your IRA based on your needs and wants. This also provides you with better control over your money’s risk exposure.
As the account holder, you are responsible for your financial future, making all of these happen when you invest in precious metals.
When the economy suffers, this affects many IRA accounts that are dependent on it. This includes assets like stocks, bonds, and mutual funds.
Many economic factors may weaken the performance of certain stocks that IRA owners should be aware of. On the other hand, precious metals can score tax-sheltered gains from their IRA contributions during inflation.
How To Hold Precious Metals In A Self-Directed IRA?
The Internal Revenue Service has a set of IRS rules on the type of coins and bullion you can include in a self-directed IRA. The defining attribute of bullion is measured based on its purity and mass rather than its monetary value.
If you open a Gold IRA account with a specific company, you can choose how to fund it to purchase Gold and other metals. You can do a rollover for your new Gold IRA from an existing IRA or pay them in cash. You would not be required to pay taxes or penalties through a rollover because the retirement funds will remain within a qualified retirement plan.
You can also make yearly deposits to the account, subject to annual IRA contribution limits. After the funding, you can choose the products you want to invest in from your IRA provider.
Final Thoughts – Self Directed Gold IRA
Regarding self-directed Gold IRAs, there’s no doubt that Augusta Precious Metals is the best on the list. Their services and available products combined are high-quality and have been praised by many investors over the years.
They have a wide range of bullion available for purchase. You can also take away some valuable information from their educational materials to help you learn how the precious metals market works.
Some people don’t appreciate the higher minimum cost of IRA investments. Still, you can be relieved knowing that the value of your invested money on Gold and silver will remain safe and protected.
If you are not yet set with Augusta, you can always check out the other companies listed above. You should also read the rest of the article to find out how to invest in precious metals successfully.