Should You Invest in a Gold IRA?

Date: August 19, 2021

For years and years, gold has been an appealing investment for many people. Though it’s a precious metal, gold is valuable – and it’s also a reliable method for growing your cash over time. In fact, gold can be a great investment opportunity for those looking to increase their retirement savings over time.

You can both save for retirement and increase your wealth by investing in gold. And there’s a special investment option made for doing exactly that: a gold IRA. A fantastic choice for those looking to diversify their investment portfolios without taking big risks, a gold IRA could help you retire comfortably.

Trustworthy, reliable, and relatively low in risk, here’s why you might want to consider opening a gold IRA.

What is a Gold IRA?

You’re probably already familiar with IRAs. An IRA is one of the most common retirement investment options. You can put money into an IRA, and that money is then invested in stocks, mutual funds, securities, and bonds. Over time, it can accumulate value based on the stocks, bonds, and funds it’s tied to.

A traditional IRA and a gold IRA are actually quite similar. The two financial products have just one primary difference. And that difference is in how your money is invested.

Instead of investing your money into stocks and bonds, a gold IRA puts your money into gold. Your funds are used to purchase gold in some form, whether that’s gold coins, gold bullion, or another gold product. Some gold IRAs also include purchases of other precious metals, such as silver, platinum, or palladium.

Basically, a traditional IRA invests your money in the stock market. A gold IRA invests your money in actual pieces of gold.

Choosing to invest in a gold IRA is like choosing to purchase physical proof of your investment. Over time, just like traditional investments, those physical items can increase in value, giving you a return on your initial investment.

A Gold IRA Can Be a Smart Investment

While a gold IRA might seem riskier than a traditional IRA, it can actually be a smart and highly valuable choice. Instead of investing your retirement savings in the stock market, you can reap the benefits of investing in gold.

And there are plenty of reasons people choose gold IRAs over traditional investment strategies. The following are a few of the biggest benefits of a gold IRA.


One of the best reasons to invest in a gold IRA is diversification. A gold IRA is the ideal supplement to any retirement funds, investments or savings you already have. It can diversify your investment portfolio and offer a certain level of increased financial security.

According to the Motley Fool, a gold IRA can keep your investment – and your retirement savings – steady. When stocks, bonds, and other assets lose value, your gold IRA may not. In fact, it may even perform in the opposite way and gain value.

Increased Stability

Because a gold IRA diversifies your investment portfolio, it can also offer you increased financial stability. Stock market-based investments can be very volatile, and this means your funds can lose money as the market fluctuates. In times of economic downturn, this means the bulk of your retirement assets and investments can take a significant hit – if they’re all in a traditional IRA.

However, a gold IRA can balance out these types of losses. While all types of assets and investments can increase and decrease in value over time, gold is relatively steady. Gold has long been valuable, and that isn’t going to change. A gold IRA may decrease slightly, but this precious metal continues to see its value grow decade after decade.

Gold IRAs Can Come With High Fees

Like all investments, there are some risks and potential drawbacks associated with putting your money in a gold IRA. You may see your investment lose money at times, and you may see some limitations,

One of the biggest drawbacks that you’ll face with a gold IRA is fees. You’ll be charged fees that can add up quickly as soon as you set up your account, including:

  • Account opening and setup fees.
  • Transaction fees, such as fees for purchasing more gold.
  • Withdrawal fees.
  • Annual custodian fees.
  • Storage fees (which often go to the custodian).

Other fees may apply depending on the specifics of your gold IRA. While these fees and many others are common, they can be expensive. And they can also be more expensive than the fees charged on other investments. This is because gold IRAs are less common investments, so custodian and management companies tend to take larger percentages from customers.

It’s also recommended that you avoid putting all of your investments and retirement savings into gold. Financial experts say it’s best to invest no more than 10 percent of your retirement savings in a gold IRA. If you’re older and closer to retirement, opening a gold IRA may not be a smart investment at all. These IRAs can be risky for those who may need their retirement funds sooner rather than later.

How Investing in a Gold IRA Works

If you think a gold IRA is a smart financial investment for your retirement, you can get started right now. A gold IRA will allow you to continually deposit funds and increase your investment over time – which means there’s no better time to open an account than right now.

Here are the steps you need to take to begin investing in a gold IRA:

  • Find a Custodian: You can find a gold IRA custodian online with ease. Search for different custodians, compare their fees and pricing, and determine which is best for you.
  • Make Your First Deposit: After securing a custodian, you’ll be ready to open an actual IRA account and deposit money. You can either deposit funds from your bank account or roll over an old retirement account, like a 401(k) or traditional IRA.
  • Hire a Metal Dealer: A metal dealer is the person who will actually purchase your gold assets. You’ll work with your IRA custodian to find and select a metal dealer, but you should do your research online to vet each option.

Once these steps are completed, you’re officially investing in gold with your own gold IRA. Of course, before you reach the final stage of this process, make sure you do your research along the way. Opening a new investment account, particularly one meant for your retirement savings, is no simple task. You need to research, learn more, and determine if it’s the best move for your money.

Source: Keep Asking

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