Gold IRA Retirement Plan

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For any person looking for an excellent way to invest for their retirement days, gold should be the first option to think about.

With the solid track record held by gold in being the safest and most stable investment option, it is a sure way to maximize your investment portfolio at no extra cost.

Keep reading to the end as this is a comprehensive and detailed article.

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Why Add Gold To Your Retirement Portfolio?

If you are looking for financial security in your retirement days, consider adding gold to your portfolio. Gold is a smart way to invest for retirement as you get to be sure your future is secure.

Gold is considered the safest investment option as its value is not tied to the economic performance of a country or the recession. Its value keeps rising and the price of gold does not fall sharply as is the case with stocks and bonds in times of economic turmoil.

There is no guarantee however that the value of gold will rise but most people investing in gold for retirement bet on its continued stability over the past years. 

If you have been wondering why this is the case, well, people want to buy something that will hold its value compared to the volatile securities markets. The price of gold does not get affected by market fluctuations or inflation.

To invest in gold, one needs to open an individual retirement account where they will hold the physical gold and other precious metals like silver, platinum, and palladium bullion.

This type of account is known as a gold IRA or a precious metal IRA and helps one protect your wealth and savings from economic stability and inflation.

A self-directed IRA custodian handles and stores the metal for you upon opening a gold IRA. The IRA custodian helps in ensuring the purchased physical gold, silver, palladium bullion and platinum meet the Internal Revenue Service requirements.

With the recent turn of events globally, gold IRAs have gained popularity amongst investors who are looking for ways to protect their wealth from economic instability and inflation.

The reason why gold is considered a safe haven when it comes to investments is that its interest remains constant despite its price rise and fall. Its value also continues to rise over time providing a hedge against inflation.

Is Adding Gold To Your Retirement Portfolio A Wise Choice?

For any investment, most people are concerned about the returns. Gold is a favorite option for investors looking to diversify their retirement accounts and preserve wealth.

This is because even when the price of gold fluctuates, its value has risen by about 225 percent in the last decade, and in the last two decades, it has risen by over 500%.

Even with the above compelling information on the value you would get from investing in gold, it is important to go through the advantages and disadvantages associated with investing in gold and figure out if it is the right pick for you in an objective manner.

Pros of Investing In Gold For Retirement

Some of the advantages associated with investing in gold for retirement are outlined below.

Anyone who has invested in gold before, they are aware of the financial perks that come with this, but here we now look at the benefits that come from retirement savings.

  • Gold is Profitable in Times of Crisis

During political and economic volatility, the price of gold tends to increase and is considered a stable investment.

This is one lesson most investment advisors always pass on to those new to investing and sometimes, gold is considered an insurance policy.

This is because it offers the potential for long-term growth and is always considered the number one means to protect wealth during political and economic instability.

  • Hedge Against Inflation

Since the price of gold is not directly linked to the performance of any industries or countries, its value remains almost constant and is mostly determined by demand or supply.

The prices of goods and services rise over time and so does the price of gold. Investors use gold to safeguard their savings against inflation.

  • Gold Is A Tangible Asset

You can physically hold gold if you purchase gold bullion such as gold bars and gold coins.

You can access it easily too and the fact that you know you have something valuable that you can access readily in times of volatility compared to other no-tangible assets like gold stocks is one of the main reasons people invest in gold.

  • Value Continues To Rise

For centuries, the price and value of gold have continued to rise significantly. There have been secure levels of supply and demand which pushes the price up.

If you choose to invest in gold IRAs, you are looking at the possibility of having more wealth in your retirement given the uncertainty in the world today which could push the prices quite high.

Cons Of Investing In Gold For Retirement

The above advantages could be enough reasons for one to dive right in and invest in gold for retirement but it is important to look at some of the disadvantages which could sway your opinion.

No Interest Or Dividends 

The only way you can make something out of the gold in storage is if you make a withdrawal and sell it. With all the perks above, gold sorts you out in times of turmoil as it is better to hold than the paper currency which could lose value.

It is important to note that you will need to keep abreast of the market news if you intend to sell your gold so you can sell it at the opportune time.

Gold may not be the best inflation hedge. The price of gold may as easily go down as it may have gone up and from some market watchers' point of view, it may not be the best hedge against inflation.

Storing Gold Requires Space And Money

When you purchase the gold bullion, you will need a secure location and a storage method that ensures it is well kept even if it is in your home.

However, most advisors may suggest storage facilities that are insured from damage and theft and also secure but they also have associated costs and you also will have limited access to your gold.


The gold price has gone through seasons of higher highs and lows under our watch which makes this a risky investment. However, in contrast with other investment options like stocks and bonds, the long-term price of gold has been appreciating.

About Gold IRAs

For anyone looking to open an IRA account, it is important to understand how they work, why you should open an account, and also how to identify genuine IRA account holders.

Self-Directed IRA

Your employer makes it possible for you to invest in a handful of mutual funds with stocks and bonds as investment options under the traditional IRA.

If you open a self-directed IRA, you have the option of investing in a variety of asset classes all of which are under your control. 

You can choose to invest in gold and other precious metals, real estate, private businesses, and more but the self-directed IRAs are under custodians.

The custodians provide you with support on how to manage your accounts, advise on the investments you can make in the account, and also ensure you comply with the IRS rules.

What is the Difference Between a Gold IRA and a Traditional IRA?

Below are ways in which the gold IRAs differ from the traditional IRAs:

- Gold IRAs allow you to hold physical gold and other precious metals like palladium in your retirement account, but with the traditional IRA, you can only invest in asset classes like stocks, bonds, and other paper assets.

- With the gold IRAs, you have more control over the direction your investment takes as they are self-directed. With the traditional IRA, your employer or sponsor has offered the mutual funds hence making the investment options limited.

- There are special standards that must be met when it comes to gold storage. The gold must be stored in line with the special rules such as being stored in a gold depository which ensures your gold is insured against damage, and loss and is safe.

Benefits of a Gold IRA

There are very many benefits associated with gold IRAs for investors such as:

Portfolio Diversification 

A gold IRA allows investors to diversify their portfolio by including gold. This helps protect retirement savings from the ever-volatile stock market.

Safe Haven Asset 

Gold has been considered historically a safe haven asset during times of political and economic turmoil. Hence we can say gold is a perfect addition to any retirement portfolio.

Hedge Against Inflation 

With the ever-increasing cost of living, the value of gold also continues to rise hence gold IRAs can be used as a hedge against inflation.

Gold is a long-term investment option for those retirees who may be concerned about their purchasing power when the time comes.

Valued Across the Globe 

Gold is one tangible asset that every culture in the world values. The gold market is huge and for this reason, gold can easily be converted to cash when necessary.

Non-Approved IRA Gold Bullion

The Internal Revenue Service is the body responsible for setting the purity standards for the gold bullion. If gold bullion does not meet the purity standards, then it can not be included in a gold IRA at all.

For the gold bullion bars, rounds of gold and silver to be held in an IRA must be at a 99.9% fineness level as these are the specific purity requirements set by the IRS.

As an investor, you may still purchase non-approved gold from some dealers, including gold-filled items, gold coins, and gold-plated items but if they do not meet the IRS requirements then they are not considered for investment and can not be held in your IRA account.

Numismatic coins are classified as collectibles and are therefore not allowed in your IRA account. The IRS considers numismatic coins as collectibles and you are not allowed to hold collectibles in your IRA account.

There are consequences to holding collectibles in your IRA account which is a huge tax penalty so avoid this at all costs.

The reason why the IRS does not allow collectibles in your IRA is that they are not able to tell the value of the collectibles.

So, if they are not able to know the value of your collectibles, then they will not know how much tax you will need to pay. Avoid the temptation to hold numismatic coins in your gold IRA account.

Avoid IRA Scams

When you plan on investing in a gold IRA, it is important to do your due diligence to avoid landing in the hands of scammer and getting ripped off.

There are very many gold dealers lying in wait to take advantage of investors who may not be well informed about gold IRAs.

They may give you over-the-top quotes which are higher than the market value of gold or sell you impure gold. Always do your research before making any decisions and settle for a gold dealer with a reputation.

Also, be careful of the gold IRA storage fees. Be sure to find out if the storage fees are something you can manage or if they will eat into your investment returns.

Gold IRA Rollover

A gold IRA rollover is the process by which an individual retirement account holder decides to transfer their assets into gold. Gold IRA rollovers are done with different types of accounts such as 401k, 403B, TSP to gold IRA, SEP, and other simple IRA accounts. 

Simply put, your existing retirement account is simply converted to a gold-backed IRA as long as you identify a legit broker who knows how to go about it as they can easily help you set up an account and transfer the funds.

Rollovers are only done for old retirement accounts from past employment and can not be done for current retirement accounts as your current employer contributes to the account.

Below are the steps to open a self-directed IRA account:

1. Find a custodian that allows gold to be held in the IRA. Open the account and then following your instructions, the custodian transfers the available funds from your current IRA to purchase gold.

2. Identify a reliable, trustworthy gold broker or dealer to complete the transaction and ensure you are aware of the prices and transaction fees beforehand.

3. The gold is stored in a secure depository until your retirement. You have the option to take your gold or sell it, whatever works best for you at the time of retirement when you retire.

Home Storage Gold IRAs

Investors should be aware of the challenges and dangers that come with home storag gold IRAs.  Your gold may be stolen from your home and chances of getting it back are minimal. 

Secondly, if you store gold in your home, it becomes a taxable property and you become subject to capital gains taxes.

The tax risk associated with home storage gold IRAs is very high and you do not want to run into trouble with the IRS and suffer huge penalties.

Thirdly, if your gold is damaged or stolen, you can not claim a loss on this from your taxes.

A traditional gold IRA under a third-party custodian is the best investment option for IRAs. The gold is stored in a secure and safe place and as an investor, you don't have to worry about the capital gains taxes or even theft or damage of your gold.


A gold IRA account allows investors to in gold as well as other assets.

Gold IRAs are gaining popularity as investors are looking for means by which they can protect their wealth and savings from the ever-volatile market and increasing inflation.

Even as you open the gold IRA account, ensure you fully understand the risks and rewards that come from investing in gold and the different types of gold that can be held in the IRA. 

Investing in gold IRAs is a smart way to diversify your investment portfolio and protect your wealth and savings against inflation but it all boils down to your priorities as an investor.

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