Gold IRAs: How to Invest in Gold in a Self-Directed IRA

Some people who invest in gold and other precious metals believe these assets are critical to survival if the global economy faces trouble. They think in times of crisis, gold and other precious metals present a universal form of currency. That may be true, but you can also build wealth for retirement with gold IRAs. And this article explains how to invest in gold in a self-directed IRA.

What Are Gold IRAs?

Gold IRAs are self-directed retirement plans that allow you to invest in gold and other precious metals. As the account owner, you can choose many different alternative investments for your plan. And gold presents a solid asset, provided Stacks of gold coins and gold bars that can be bought with gold know the rules to invest. Precious metals in your portfolio creates diversity. You also have the potential to score tax-sheltered gains if you decide to sell when gold prices start to rise. You can invest in gold with other self-directed plans, too. Self-directed solo 401(k)s, health savings accounts and education savings accounts can use precious metals to build wealth.

How to Invest in Gold in a Self-Directed IRA

  • Self-directed IRAs that invest in gold are commonly called gold IRAs. But these accounts can also invest in other precious metals such as silver, platinum, and palladium.
  • Your IRA purchases the asset, and it’s titled in the name of the IRA.
  • Precious metals must be physically held in a depository in your IRA’s name. This protects the tax-advantaged status of the assets.
  • Some IRA custodians, like Advanta IRA, have relationships with depository facilities for precious metal storage.
  • Not all precious metals are permissible assets in gold IRAs. Know the rules for IRA approved precious metals before you invest.
  • When you sell precious metals owned by your IRA, all income is deposited directly into the account on a tax-sheltered basis.
  • You can take a distribution of your precious metals—but if you do so before you reach retirement age, you’ll pay tax and early distribution penalties.

Make Your Investments Wisely

It is critical that you understand the IRA investment restrictions set forth by the IRS. For example, your IRA cannot invest in jewelry. The IRS does not permit collectibles in IRAs. And, only certain types of coins are approved for IRAs. Make sure you research before you invest. Check with a professional for advice on precious metals that are IRS-approved assets.

Even in times of economic challenges, you can make sensible investments in tangible assets with gold IRAs that have the potential to build wealth for your retirement. Gold is often touted as a potential hedge of sorts to stock market downturns, as the cost of gold typically rises during these times. So, it’s worth considering.

Advanta IRA serves clients across the nation who invest for their futures using alternative assets. We are knowledgeable, our costs for self-directed IRAs are competitive, and our team enjoys helping our clients reach their retirement planning goals. If you’d like more information on investing with gold IRAs, contact Advanta IRA.

This article was first published on March 19, 2020 and has been updated with current information.

About Scott Maurer

Scott is an attorney and a graduate of the University of Florida Law School. Scott started his career with Advanta IRA in 2006. His experience with various investment types and their unique processes makes him an invaluable asset. Scott holds the designation of Certified IRA Services Professional (CISP) and leads engaging seminars and webinars that educate the public on the intricacies of self-directed IRAs.