How to Buy Gold in an IRA

Amidst soaring inflation, the looming possibility of a recession, and a series of recent bank closures, numerous individuals in the United States are seizing this moment to reevaluate their financial situation and priorities.

This process often involves thoroughly reconsidering their investments and, in many cases, overhauling their investment strategy.

If you find yourself among these individuals, you might contemplate investing in gold. This precious metal has long been regarded as a secure haven for wealth, especially during inflation. One popular method is to invest in gold through an individual retirement account (IRA). Below, we will outline two approaches you can take to achieve this.

If the prospect of investing in gold intrigues you, begin by requesting a complimentary gold IRA kit to acquire more information and insights.

Here Are Two Methods for Adding Gold to your IRA

1. Opt for a self-directed gold IRA

Consider opening a self-directed IRA, commonly known as a gold IRA, which allows you to invest in specific precious metals, alternative assets, and even real estate. Unlike other types of IRAs, this option permits such investments.

To purchase gold using this type of account, you must first locate a custodian approved by the IRS to handle gold IRAs. These custodians can be banks, brokerages, or other financial institutions. Once you’ve found a suitable custodian, you can open your account and fund it. You can do this by depositing cash or transferring funds from another eligible retirement plan.

Please note that there are limitations on the amount you can contribute to an IRA, whether self-directed or not. As per the IRS, the contribution limit for most individuals this year is $6,500, while those aged 50 and older have a limit of $7,500.

Once your account is set up and funded, the next step is to find a reputable dealer of precious metals. You will then need to select the type of gold you wish to purchase, such as bullion, bars, or coins. It is crucial to ensure that the chosen gold products meet the standards set by the IRS. Otherwise, they may be classified as “collectibles,” which the IRS prohibits. In such cases, acquiring these items would be considered distributions, potentially subjecting you to a 10% penalty if you are below the age of 59.5.

After finalizing your selection of approved metals, you can instruct your custodian to purchase on your behalf. The purchased gold will be stored in an IRS-approved depository to ensure its safekeeping. It is important to note that you are not permitted to purchase the metals or store them at home personally, as this violates IRS regulations. When opting for a gold IRA, exercise caution when selecting your custodian, as the Securities and Exchange Commission warns of potential fraud risks associated with these accounts.

2. Utilize your existing IRA to explore gold investment options

Gold Investment Options

You can invest in gold within that account if you already have an IRA, such as a traditional or Roth IRA.

Although purchasing physical gold is not allowed in regular IRAs (only self-directed IRAs permit that), you can still allocate your IRA funds toward other types of gold investments. These options include gold-focused mutual funds, gold futures, gold ETFs, gold stocks, and even investments in gold mining companies.

This alternative approach can be a wise decision if you prefer to avoid the complexities of acquiring physical gold or opening a new account while still desiring the diversification and stability that gold offers, especially during challenging economic periods.

Is Gold the Right Choice For You?

Gold often serves as a reliable means to safeguard the value of your wealth in the long run. Nevertheless, it may not be suitable for everyone. If you find yourself uncertain about gold investments or any other type of investment, it is advisable to consult with a financial advisor or tax professional. They possess the expertise to guide you toward the optimal decision based on your financial goals and budget. Request a complimentary gold IRA kit today to gain further insights into this unique investment opportunity.

Frequently Asked Questions About How to Buy Gold in an IRA

Q: How can I store physical gold in an IRA?

You must adhere to IRS regulations to hold physical precious metals in an IRA, such as gold. One crucial rule is that your precious metals must be stored at an approved depository institution, like Delaware Depository Service Company or Brink’s Global Services. Keeping them at home or in a safe deposit box is not permitted.

Gold IRAs typically involve higher fees compared to traditional IRAs. If you aim solely to purchase gold or silver, you can learn more about buying gold outside of an IRA. Alternatively, if you have a conventional retirement savings account and want exposure to gold, read about how to purchase a gold ETF, which tracks the performance of gold.

Q: What exactly is a gold IRA account?

Technically categorized as a self-directed IRA, a gold IRA allows you to hold various alternative assets such as precious metals, commodities, real estate, and cryptocurrency. In addition to gold, many individuals include silver, platinum, and palladium in their gold IRAs.

Self-directed IRAs generally involve higher costs due to additional oversight and administrative requirements. It’s essential to know that these fees and expenses can impact your returns, so ensure you understand the associated costs before opening a precious metals IRA.

Q: How can I own gold in an IRA?

Gold IRA companies, essentially precious metals dealers, facilitate the establishment of an IRA designed explicitly for holding gold and other precious metals. These companies can guide you in selecting an IRS-approved account custodian and depository institution where your gold will be securely stored.

Q: What qualifies as IRA-eligible gold?

Since most gold coins are primarily minted as collectibles, there are precise regulatory criteria that determine which precious metal items are suitable for investment purposes. The IRS has detailed requirements regarding the size, weight, and metal purity that dictate which coins and bullion can be held in a gold IRA. These strict criteria ensure that investment-grade assets are held within the accounts rather than collectibles.

In Summary

a gold IRA offers retirement savers an alternative investment avenue to own gold, providing a hedge against inflation and the opportunity to diversify their assets beyond traditional stock market investments. If you prefer to possess physical gold rather than paper assets like stocks, mutual funds, or ETFs tied to gold companies, it’s essential to understand how to buy gold in an IRA.

By incorporating gold into your retirement portfolio, you can safeguard your wealth against the erosive effects of inflation, as gold historically tends to retain its value over time. Additionally, including gold in your investment strategy can offer a layer of diversification, reducing the overall risk exposure to market fluctuations.

To explore owning physical gold in an IRA, you’ll need to navigate the procedures involved in purchasing and storing gold through an IRS-approved depository. This involves working with gold IRA companies specializing in facilitating creating, and managing these unique retirement accounts.

By taking the necessary steps to understand the regulations and requirements associated with a gold IRA, you can make informed decisions that align with your financial goals and risk tolerance. Remember to consult with financial advisors or tax professionals to gain further insight into whether a gold IRA is a suitable addition to your retirement savings strategy.

Tim Schmidt


Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He's also a published author, and his views on investing have been featured in USA Today, Tech Times, The Huffington Post, Nasdaq, and many more.