Gold Retired

Is Gold a Good Investment Right Now? Why Investors Buy It

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Is gold a good investment right now?

Is gold a good investment right now? With the current state of the global economy, one cannot help but want to think about what each asset class will do to their portfolio. In today’s post, we’ll take a deep look into what gold investments are all about and whether you can benefit from them. Let’s get into it right away.

A Brief History of Gold InvestmentGold Retired

Since the start of stock markets, gold has been observed to have a negative correlation with stocks and other paper assets, and a positive correlation with inflation. That said, the history of gold as a store of value goes way before the inception of stock markets. 

There is evidence that gold coins were minted and used as currency as early as 550 BC. At this time, however, gold was mainly perceived as a symbol of wealth, and this was the case long before it was used as a currency. Those who owned gold about 4000 BC were perceived as powerful and wealthy individuals. 

It was not until the late 1800s that gold made its debut in the contemporary finance industry. A significant number of nations, including the U.S., adopted the gold standard, in which the value of the currency of the day was fixed to the price of gold. 

With time, however, the gold standard was dropped and readopted in various countries, before finally paving way for the use of fiat currencies in 1971. 

During the 2008 financial crisis, experts observed that the price of gold remained relatively stagnant before it went on to rise in the following years. The spike was a result of a financial phenomenon known as Quantitative Easing by the Central Banks.  Generally, quantitative easing tends to trigger a rapid increase in the inflation rate, which in itself causes the price of gold to rise.  

The 3 Best Gold Investment Companies in 2022 [Buying Guide & Quick Review Summaries]

Why do Investors Add Gold to Their Portfolios?

Many investors in the present day world have some of their wealth in the form of this shiny metal. Why do they insist on owning gold coins and bars? Below are some of the main reasons:

1. The preservation of wealth 

Gold has, for many years, been trusted by many investors for its wealth preservation qualities. Say you had a $50 note, and your friend had a piece of gold worth $50, in 1970. If you held on to your paper money since then, then you still have the $50 note which cannot purchase as many products as it would have in the 70s.

However, things will be different for your friend since the value of gold has gone up. The piece of gold that was worth $50 is now worth over $2000, and this means that your friend would have an upper hand. As you can see, this is a very powerful secret held by secret investors who know that allocating about 5-15% of their funds to gold can be sufficient to preserve their wealth.

2. Portfolio diversification Diversification

A balanced investment portfolio ought to have assets that are negatively correlated to the stock market. Such is a financially sound strategy that helps to counter market risks and volatility many investors are exposed to today. 

3. A safe haven 

This shiny metal is a rare asset that has managed to maintain its value over the years. Beyond that, it has proven to be a useful asset during adverse economic events. Investors use it as insurance or as a safe haven during such times. 

4. A hedge against inflation 

Gold prices often go up alongside the steadily rising inflation rates, as well as the depreciation of the dollar. It is for this reason that investors tend to rely on gold to hedge their wealth so that they can avoid losing their money. 

5. Growthpros

As already highlighted, the value of gold has grown steadily over the years, and those who have held a portion of their portfolio in this precious metal can attest to this. A few decades ago, the price of 1 gram of gold was valued at less than $100, but in the present day, it is above $1800.

Clearly, gold presents investors with an opportunity to grow their wealth, just as is the case with other popular investments, with the only difference being that gold has other superior properties.

****Benefits Of a Gold IRA? | Top-5 Advantages To Consider!

Physical Gold as an Investment AssetThe Best Gold

A popular gold investment product for investors of all types is gold bullion, which is just a cool name used to refer to the refined investment-grade form of gold. Investors purchase gold bullion in the form of bars, ingots, and coins, from authorized precious metal dealers.

You can find reliable dealers in your city ( after which you can make your way into their physical stores), or you can check out the offers put up on e-commerce sites owned by companies that have built themselves a good reputation in the industry. 

Buying physical gold is the in-thing among gold investors because it enables them to tap into the benefits of gold we discussed earlier on.

Purchasing gold-based paper assets such as gold stocks, gold ETFs, and mutual funds that give you exposure to the price movements of gold may help you grow your wealth, but may not protect you from economic downturns or other unprecedented events such as wars and geopolitical tension that triggers the rapid decline in the global economy. 

One thing you ought to know about physical gold is that it cannot be stored like other assets. Holding the physical gold in your home safe may only attract thieves and lead to the loss of your wealth.

With this in mind, most investors who purchase physical gold for investment often open gold individual retirement accounts (Gold IRAs) and ensure that their assets are held in an IRS-approved precious metal depository. Such depositories are in most cases usually world-class facilities, and they are usually insured by well-known insurance companies. 

***Is Physical Gold Better Than Gold Stocks? For Retirees Today

Frequently asked questions on “Is gold a good investment right now?” FAQ

1. Is gold a good investment right now?

Depends on why you are asking. Gold as an asset will present you with some unique benefits and drawbacks, and it is up to you to weigh them and decide whether it is worth adding to your portfolio. Generally, however, it is worth noting that in times of economic unrest, an oncoming global recession, and stock market crashes, most investors turn to gold since most other paper assets are usually experiencing a very significant decline in value.

You might want to therefore consider talking to a gold investment expert or ordering a gold IRA kit to learn more about what you stand to gain (or lose) by investing in gold.

***Gold IRA Information | The Basics and Tips For Beginners

2. Should I invest in gold stocks?

It depends on what your financial objectives are, and what your preferences are as an investor. Gold stocks, as you will learn, exhibit similar behavior to most other paper assets. This may work for or against you, hence you need to position yourself in such a way that you will not end up losing your money.

If you are out to diversify your portfolio and hedge your wealth against inflation, however, you may have a better shot at this with physical gold. 

3. What should I invest in, gold coins vs gold bars? 

This is one of the most commonly asked questions by beginners getting their feet into the gold investment industry and for a good reason. Many beginners want to understand whether the two forms of gold present similar benefits or are different.

The truth about these assets is that they present you with the benefits of physical gold, but they may have some outstanding differences. If you need assets that you can liquidate faster, then gold coins should be your top pick. Gold bars may be harder to liquidate, but have also been found to carry a higher gold content, hence may be more valuable per unit of weight. 

4. How should I purchase gold?

There are many ways through which you can purchase gold. You can start by searching for a precious metal dealer near your home, or you can search for an online dealer.

Whichever option you decide to go with, make sure that you search for the company’s ratings and reviews on consumer trust sites such as Trustpilot and Better Business Bureau. If a company does not have a track record of performance, then you ought not to consider purchasing any gold from it.

That will be all for this post on whether gold is a good investment right now. I hope you found a couple of insights that will guide you as you decide on whether to purchase some gold. If you have more questions about today’s topic, drop them in the comments section and I will get back to you ASAP!

I wish you well, 

Eric, Investor and Team Member at Gold Retired!

How Can I Buy Physical Gold? Can I Do It Safely and Legally?

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How can I buy physical gold?

How can I buy physical gold? In a world where this shiny metal has proven to be a pricey rarity, then it makes a lot of sense to want to know how to get your hands on it safely. Many people who have tried purchasing gold have either ended up losing their money to scammers or paying a lot more than they ought to have paid for the gold bars or coins. Today’s article will guide you on just how you should go about buying physical gold safely. 

Introduction

Investors who are out to enjoy the touch, feel, as well as security that stems from owning gold may wish to purchase gold coins and bars, instead of putting their money into assets such as gold ETFs (exchange-traded funds). Physical gold used for the purposes of investment is known as gold bullion, and you can purchase it at a spot price. 

N.B: The spot price refers to the price of unfabricated gold plus a few additional costs, which often vary from seller to seller. 

Investors who purchase gold during seasons when the market is favorable can liquidate their holdings in the event there is a total economic collapse. 

The 3 Best Gold Investment Companies in 2022 [Buying Guide & Quick Review Summaries]

The Buying Process – Where To Buy Gold?

Online gold retailers Gold Retired

Purchasing physical gold online is quite a simple process. One of the common ways you can achieve this is by checking out the services offered by licensed retailers online. All it takes is you browsing the gold bar products that are listed for sale on retail websites such as:

With such websites, you are allowed to select the type of physical gold products that you wish to purchase by weight, quantity as well as price. 

You will, in most cases, get discounts for purchasing precious metals in large quantities from online gold retailers. Some will also give discounts to customers who pay for their gold using specific payment options such as credit cards and wire transfers. Such money-saving opportunities are worth checking out and taking advantage of, more so due to the fact that gold is in itself quite expensive. 

It is highly recommended that you use a gold IRA to invest in physical gold since it is a structure that offers several benefits, the main one being that it provides investors with a tax shelter. Those who purchase and invest in gold through a gold IRA are required by the IRS to ensure that their gold ends up in a secure depository. Simply put, gold IRA holders cannot store their gold at home or at a local depository. 

Those who decide to purchase their gold outside a gold IRA structure are, however, required to make personal arrangements to store the gold. If you follow this path, you are required to keep all products in their packaging to prevent them from getting damaged. You can, in this case, store the gold in your home safe, in a local deposit box at your preferred bank. 

eBay

You also have the option to bid for and purchase gold on various auctions on eBay. Every time you are purchasing gold through the auction website, review the seller’s customer reviews and ratings. Keep off any sellers who have any documented negative feedback on the authenticity of their products. You should also avoid any seller who charges high shipping and handling fees or one who fails to deliver the product at the end of the day. 

Gold-to-go ATMs 

Investors can also purchase gold bars in high-end cities such as Las Vegas and Dubai. The downside to this approach is that the spot price of the gold sold through such machines is well above the spot price in the market and other retailers generally. 

The Purity of Gold: Top Consideration for InvestorsGold Retired

If you are like most people who purchase physical gold, then you are purchasing it for the purposes of investment and not just to hold on to it for fun.  In that case, you ought to only hold investment-quality gold bars only. Those bars should be at least 99.5% pure. Most investment-grade gold should come stamped with information and features such as:

  • The name of its manufacturer 
  • Its weight 
  • Purity 

Common mints/manufacturers of gold include the Royal Canadian Mint and Valcambi.

***Gold IRA Rules and Regulations | Put Gold in Your IRA 2022

Which is The Better Option? : Gold bars vs CoinsCan I hold physical gold in my IRA?

There are several factors to consider before settling on gold coins or gold bars. Each of these forms of physical gold has its upsides and downsides, which you should consider before whipping out your checkbook. 

Gold bars will in most cases enable you to capture more value as a gold investor owing to their higher gold content. They may, however, be harder to liquidate, since they are more expensive. Gold coins may, on the other hand, not give you as much exposure as gold bars, owing to their lower gold content.

A gold American Eagle coin is for instance only 91.67% pure, in comparison to most bars which are 99.5% pure. Gold coins however offer more liquidity since they cost way less than the bars, and are a common choice for novice gold investors. 

It is common to find people getting started with gold investing by purchasing gold coins, and then gradually advancing to the gold bars as they gain more insights into how things work in this industry.

Safety First: Avoid Rip-offsIs Premier Trust a scam?

Expert gold investors will generally advise you to review consumer trust sites such as Better Business Bureau and Trustpilot to ascertain that your preferred gold dealer has a good reputation. Most reliable and trustworthy dealers usually disclose information about their products’ pricing. 

Investors in the U.S. should also do their due diligence before purchasing any physical gold from sellers abroad. Even though the gold bars are authentic, the sellers may end up charging exorbitant prices ( one could actually end up saving a lot of money by buying their products locally). Also, clearing gold purchased from sellers abroad through the customs department may be quite hectic. 

Finally, you should be well aware that potential gold scammers are usually quite active whenever the market situation is ripe for investors to purchase more gold. With the rising inflation rates, more people are looking into purchasing physical gold to diversify their portfolios, and this is an opportune moment for the scammers to strike. If you are trying to purchase your gold, therefore, be sure to deal with legit companies only, and make prior arrangements on how you will store it safely. 

***Gold IRA Scams! | Do Not ignore them, Learn how you avoid them!

Frequently asked questions on “ How can I buy physical gold?”faq

1. How much does physical gold cost?

The price of physical gold varies from one seller to the next one. There is no constant or fixed price that you can use as your point of reference, but you can always shop around to find out which precious metal dealer is selling the gold at the lowest prices possible. I would, however, also advise that you do not go to the extent of dealing with gold dealers you are not confident about, just to get massive price discounts – you may end up with no gold and no money!

2. Who are the best physical gold dealers in the market?

It is hard to point out a specific gold dealer who is best for every investor. This is because every investor looks for different things when hunting for a gold dealer. If you are new to gold investing, however, you can click on the link below to check out our list of recommended dealers. 

Recommended physical gold dealers.

3. Are there any alternatives to physical gold that I can invest in?

Yes. If you do not have sufficient funds to purchase gold bars and coins, or if you do not believe physical gold is the best asset for you, then you can check out gold-based paper assets such as gold ETFs, Mutual funds that have gold mining stocks, gold mining stocks, gold futures, and options. 

4. Is there a limit to the amount of physical gold I can purchase?

No. The government does not prohibit you from purchasing any amount of gold, but you may be subject to certain restrictions if you use certain gold investment structures. Generally, however, you can purchase as much gold as you want, provided that you can convince those hoarding or selling the gold to sell it to you. 

That will be all for today’s post in which we have addressed the question“ How can I buy physical gold?”. I hope you found it helpful, and that you now know how to go about acquiring this shiny metal. Let me know if you have more questions pertaining to this article, and I will respond to them ASAP- drop them in the comments section below.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

What is a Home Storage Gold IRA? Here’s All You Need To Know

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What is a home storage gold IRA?

What is a home storage gold IRA? What are the rules surrounding the opening of such an account? Is it actually allowed by the IRS? Join me in today’s post, in which I will take you through a very important topic that you ought to know as a potential or current gold investor. Let’s get into it right away.

Introduction

Many people often turn to precious metals to seek the safety that conventional investments have denied them. With the current state of the global financial system, it makes more sense why more investors would want to consider adding some gold to their investment portfolios. 

Individuals who try to open a special precious metal investment account known as a Gold IRA are often waylaid by companies claiming to offer them the opportunity to store their physical gold at home.

It is quite easy to fall for the allure of the home storage gold IRAs. You, however, may want to familiarize yourself with the laws pertaining to the opening of such accounts and ensure that you are upholding all gold IRA investment rules and regulations.

The one thing you will discover as you are getting started with investing in gold through an IRA is that there is conflicting information pertaining to the risks and benefits of home storage gold IRAs. You will, as such, need to cut through the clutter to establish what the truth really is. 

The 3 Best Gold Investment Companies in 2022 [Buying Guide & Quick Review Summaries]

Regulatory Compliance: What the IRS says about Home Storage Gold IRA!traditional IRA withdrawal rules

The one thing every investor ought to be careful about during their investment journey is to never do anything that leads to unnecessary attention from the IRS.

It can take a single visit (read audit) from the IRS for your entire investment portfolio and investment dreams to come tumbling down like a house of cards. 

You can read about this tax-horror story of a couple who decided to store their IRA gold at home. 

For starters, let me say that the IRS is generally against investors opening home storage gold IRAs. If you, however, feel that you cannot do without seeing your gold bars and coins, then you can go ahead and prove to the IRS that you have what it takes to open such an account. 

Here are some of the qualifications that you are expected to meet:

  1. You need to open a Limited Liability Company (LLC) and obtain a special Operating Agreement from the IRS. 
  2. Ensure that your account custodian has a publicly known business premise. 
  3. Make arrangements for very detailed annual audits from a certified public accountant. 
  4. Have multiple owners of your LLC.
  5. Establish an ongoing retainer agreement with an attorney.
  6. Prove that you have a net worth of $250,000 or more. 
  7. You should have a fidelity bond of $250,000 for every owner and employee of your LLC. 

As you can see, the IRS is not highly interested in having many individuals open home storage Gold IRAs. An assessment of the above-listed rules will show you that very large administrative costs are required to get a home storage gold IRA up and running. Not forgetting that putting everything together will come with extra and time-consuming paperwork. 

Woe unto you if you try to open a home storage gold IRA, and the IRS finds out that you have not been compliant with all investment rules. 

 If you get audited and it is discovered that you slipped on some minor details, then the retirement funds you have deposited in your home storage gold IRA could be treated as a distribution. This in itself translates to the automatic loss of your tax benefits. It gets worse if you are under 59 ½ years old – the IRS will strike with an additional 10% early withdrawal penalty. 

That, my friend, means that you will have close to 40% of your investment going into the taxman’s pockets. Sadly, there is no recovering those funds once they leave your gold IRA.

Can it get worse than that? Oh, yes, it can? Breaking one of the regulations put in place by the IRS is akin to opening a can of worms. The IRS will send its tax mercenaries to help you put your finances in order, and I can guarantee you that this single move may lead to tears – premium tears. 

You may end up paying more penalties, and possibly end up liquidating your gold assets anyway, leading to the loss of the financial safety that you sought in the first place. 

The IRS has the option to loosen the regulations pertaining to opening home storage gold IRAs, but it decisively avoided this, by ensuring that gold IRAs are overseen by qualified custodians and that all gold assets are stored in IRS-approved depositories. 

I Managed to Open a Home Storage Gold IRA Anyway, What Next?Gold Retired

First of all, congratulations on bypassing the hurdles set by the IRS. Hopefully, you have put in place all the necessary administrative structures to ensure that you are compliant. The one thing that will be a major concern, however, is the safety of your gold coins and bars. 

With a net worth of over $250,000, and the financial capacity to meet all administrative costs, my assumption is that your gold IRA will be worth a large amount of money. What security measures will you put in place that will possibly surpass the peace of mind that an IRS-approved depository has to offer? 

The possibility of a thief accessing the safe with the gold bars and coins in your home may be quite low, but the relative safety of your assets in such a setting pales in comparison with what an authorized and insured depository has to offer. 

IRS-approved depositories are required to meet very strict requirements and safety standards and are mostly world-class facilities.

Does storing the precious metals in such a structure mean that they will touch the depository’s balance sheet? No! Fortunately enough, the storage of IRA gold in such facilities is protected from government entities and any trouble that may befall the facility itself. 

Frequently Asked Questions on “What is a Home Storage Gold IRA?” faq

1. Is a Home Storage Gold IRA legal?

Yes, it is. You may, however, want to tread very carefully when opening one, since it calls for one to meet very strict qualifications set by the IRS. There are a couple of technical, legal, and administrative requirements that you need to attend to before you can comfortably say that you have a functional home storage gold IRA. It is generally way easier to open a gold IRA with depository storage and to work with a custodian since it takes the compliance burden off your back. 

2. How does a home storage gold IRA work?

Gold investors who are interested in holding their gold at home are required to establish a gold IRA with checkbook control. This structure gives the investor more control over their account and essentially places them in charge of all the administrative duties for their IRA. You will then proceed to prove to the IRS that you have what it takes to store your physical gold at home. This you can achieve with the help of a reliable custodian or gold IRA expert, who can hold your hand as you attempt to achieve your objectives. 

3. What type of precious metals can I hold in a home storage gold IRA? 

The Internal Revenue Service (IRS) Code 408(m) specifies the type of physical gold coins and bars that an investor can hold in their account. The rules regarding the purity and weight of the assets held in a home storage gold IRA are similar to those pertaining to assets held in a gold IRA that has depository storage. 

4. Which type of retirement account can I transfer or roll over into a home storage gold IRA? 

Most types of retirement plans are eligible for conversion to a home storage gold IRA. You can contact a gold IRA specialist to establish whether you can do a rollover if you have a Traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 401 (k), 403(b), TSP, Annuities, etc. 

That’s it for today’s article on what a home storage gold IRA is about. I hope you found it enlightening and that you now know whether such an account is worth opening. If you have more questions pertaining to this type of IRA, then you can drop them in the comments section and I will get back to you ASAP. If you’re a home storage gold IRA owner, you can share your experience to let us know whether we have the right or wrong perception of this investment structure.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

A Couple Stored IRA Gold at Home | $300k (Tax-Horror) Story

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A couple stored IRA gold at home

A couple stored IRA gold at home and ended up on news outlets for the wrong reasons. The Rhode Island-dwelling couple owes the IRS over $300,000 for the lack of knowledge about a very significant detail in the gold IRA-investment process – It is illegal to hold IRA gold at home. This is a rule that may be unknown to many potential gold investors, and I’d urge you to read on till the end of this article to know what exactly went down, and what you ought to know to ensure that you do not end up in the same predicament as this couple. 

What Happened to The McNultys?

Investing in the present-day world calls for one to tread very carefully by ensuring that they do not get on the wrong books with the IRS. This holds for all types of assets, but you will want to practice extra caution when investing in alternative (non-traditional) assets, such as precious metals, cryptocurrencies, mineral rights, and real estate.

Unlike traditional assets, which more often than not require an investor to coordinate their investment efforts with an expert such as a broker, there is minimal supervision when it comes to investing in gold since the gold IRA structure is meant to give the investor more control and freedom. 

This freedom, unfortunately, led to Mr. McNulty and his beloved wife Donna Dearly storing their IRA gold at home. The perception most people have is that once they open their gold IRAs, they will get the opportunity to hold their physical gold at home, or at a local storage facility. 

I mean, who would not want to be smiling back at their reflection on a gold bar that they purchased using their hard-earned money? That’s what the McNultys thought too. Not for long, though. It was just a matter of time before the IRS came sniffing and established that they had broken the rules of gold IRA investing.

Upon the completion of an annual audit, the judge overseeing the case in the Tax Court gave the verdict that this couple would pay:

  • $270,000 in taxes on their IRA assets worth $730,000 
  • Over $50,000 in related penalties.

Putting to Rest Home Storage Gold IRA Myths

The ruling, which was given in a Rhode Island Tax Court, dispelled the myth about the storage of IRA gold at home. For many years, some Gold IRA companies have lured investors by proclaiming that one of the advantages the gold IRA owners would get upon opening their accounts was the ability to store their IRA gold at home.

The McNulty case proves how detrimental the repercussions of following such companies blindly can be. 

Many other investors who have fallen prey to such home storage gold IRA scams have mostly done so out of the need to avoid the gold storage fees, which depending on the type of precious metal depository used, can be quite high.

Thing is, however, you may save about $350 in storage fees by storing your IRA gold at home, only for you to lose thousands of dollars in taxes and penalties when the IRS finds out that you are not following the rules. 

False and Misleading Gold IRA Ads

If you are new to gold IRA investing and you have no idea about how to identify which companies in this industry are legit, then it is highly likely that you will encounter a pretty convincing Ad about how you can open a Home Storage Gold IRA.

Such Ads often carry the appeal of helping you get your hands on expensive precious metals so that you can grow your wealth faster. It is easy to fall for such lies, but the truth of the matter is that Gold, just like any other asset, is subject to price rises and declines, subject to many factors in the market. 

Most of the misleading Ads will often be coated with some truths you already know about gold IRAs, such as the fact that you can transfer or rollover the funds in your existing retirement plan ( e.g. your Traditional/Roth IRA, or 401(k)), into your gold IRA.

Such companies are usually waiting on the other end to sell you the expensive precious metals, after which they leave you out there to figure out how you will store the assets on your own. The IRS is ferocious, and if it catches you lurking in unsafe territory, it will strike hard and tear your dream of having a blissful retirement to pieces. 

****The 3 Best Gold Investment Companies in 2022 [Buying Guide & Quick Review Summaries]

I Still Want to Open a Home Storage Gold IRA, is There any Chance I can do That?

Yes. However, the odds that you will not regret your decision to do so are very low. The IRS generally prohibits home storage gold IRAs but provides an opportunity for those who would love to give it a shot to do so anyway. 

They, however, have to meet a list of qualifications, and if they are found not to be compliant, the opening of the home storage gold IRA will be perceived as a taxable deduction from their retirement account, and that as you know is not a good thing. For you to even think you could open a gold IRA, you must:

  1. Establish a limited liability company in your name, and ensure that you have a special operating agreement from the IRS. 
  2. Prove, after the incorporation and audits, that you have a net worth of over $250,000. 
  3. Have all employees and trustees of the LLC put up $250,000 to act as corporate insurance.
  4. Ensure that the trustee corporation is divided among different parties. 
  5. Prove that you have verifiable fiduciary experience and that you have the capacity to handle retirement funds.
  6. Choose a trustee or custodian company that has a publicly known and accessible location.
  7. Have corporate legal counsel on a retainer basis. 
  8. Give a detailed audit done and presented by a qualified public accountant annually. 

As you can see, an attempt to open a home storage gold IRA is akin to inviting the IRS into your business. 

The chances that your finances will be audited and that you will be perceived as a non-qualifying candidate are quite high, and they will only cost you dearly in the form of immediate taxes and penalties. 

If you are under 59 ½ years old, the IRS will strike with a 10% early withdrawal penalty, and that may severely hurt your portfolio in a manner that you may never fully recover. 

I’d generally advise that you simply follow the regular gold IRA investment process, in which your precious metals are stored in an IRS-approved depository. You can also request that your gold coins and bars be stored in a segregated storage unit.

Ok, So are Gold IRAs Worth Opening Anyway? Gold Retired

Well, I am sure at this point your prospects of investing in gold may be dwindling fast. This is quite understandable because no one wants to lose their retirement savings to such scams.

Now, before you turn the other way and start looking for other assets, let me drop one fact real quick- there are legit gold IRAs that you can still turn to if you need to invest in physical gold. You will, however, need to take some more time to do your due diligence.

I have been reviewing many gold IRA companies for several years now, and I have managed to shortlist a few that have proven their worth in this industry. 

If you spot any company on that list that has the features that you are looking for, you can proceed to check out its consumer trust ratings and customer feedback on consumer trust sites such as Trust Pilot and the Better Business Bureau. 

Having a hard time deciding which Gold IRA company to rely on?

Enjoyed this article about how a couple stored IRA gold at home? Let me know by dropping a comment in the section below this post. If you also have more questions about this post and gold IRA investing in general, let me know as well. Finally, share this post with anyone who you know is thinking about opening a gold IRA, so they can avoid making the grievous mistake this couple made. 

I wish you well.

Eric, Investor and Team Member at Gold Retired!

How can I Invest in a Gold IRA? 4 Key Steps You Should Know!

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How can I Invest in a Gold IRA?

How can I invest in a gold IRA? What should I expect when investing through a gold IRA? Is using a gold IRA to invest complicated or easy? Such are questions that those who are trying to get started with investing in precious metals often ask themselves. Today’s post is dedicated to providing the answers to these questions, to help you understand what goes on in the gold IRA industry.

Introduction

Gold IRA investing is gradually becoming popular amongst investors and those shopping around for retirement plans, due to the fact that it plays a significant role in the diversification of investment income. With most of their funds stuck in stocks and ETFs, investors are opting to protect their wealth by purchasing some physical gold through these unique retirement accounts. Fortunately, most of these investors follow a specific number of steps during the investment process, that you too can follow today as you also begin investing in physical gold. Read on to find out more. 

The 3 Best Gold Investment Companies in 2022 [Buying Guide & Quick Review Summaries]

Steps to Follow when Investing in GoldGold Retired

Step 1: Educate yourself about Gold IRA Investing

It is essential to familiarize yourself with the basic concepts in the gold IRA industry. It is the mark of a prudent investor to do their due diligence before spending their money on any type of asset. In the case of gold IRA investing, you ought to acquaint yourself with:

  • Bullion coins 
  • Gold funds
  • Gold companies
  • Gold mining stocks 
  • Royalties
  • The world gold council 
  • Types of gold 
  • IRA-approved gold 
  • Gold futures contracts

What is a gold IRA?

A gold IRA is essentially a self-directed individual retirement account that allows the account holder to mainly invest in physical precious metals such as gold. The fact that it is known as a “Gold IRA” does not mean that you cannot use it to invest in other precious metals. You can, in fact, use your account to invest in IRA-approved silver, platinum, and palladium. 

What is gold IRA investing?

Other types of IRAs allow investors to hold certain stocks, mutual funds, and other paper assets. Gold IRAs are different in that they allow investors to purchase and hold bars and coins, and have the investment overseen by Gold IRA custodians. Gold IRA custodians are companies or financial institutions that specialize in the oversight of gold IRAs owned by investors. 

Gold IRAs are in many ways similar to regular IRAs, moreso when it comes to the rules set forth by the IRS. The difference arises in the type of assets allowed for use in these accounts. With a gold IRA, you can invest in alternative assets, which is something you cannot do with a regular IRA. 

Note that the annual contribution limits and the rules pertaining to taking distributions are similar for Gold IRAs and regular IRAs. You can as such take distributions from your Gold IRA without getting penalized after hitting 59 ½ years. All withdrawals made before this age are perceived as early withdrawals, and they attract a 10% early withdrawal penalty. 

The different types of Gold IRAs Gold Retired

The three main types of gold IRAs that investors can open include:

1. Traditional Gold IRA

This type of IRA is funded using pre-tax dollars. The investor’s contributions and earnings on the contributions are taxed when they are making withdrawals during their retirement years. 

2. Roth Gold IRAs 

These IRAs are funded using post-tax dollars. One does not get the immediate tax advantage, but they do not pay taxes on their distributions during retirement. 

3. SEP Gold IRAs

They are available for self-employed investors as well as the employees of small businesses. 

****How Much Does it Cost to Start a Gold IRA? What To Expect

Step 2: Start Gold IRA InvestingHow can I invest in 401k Rollover

With an understanding of what happens in the gold IRA industry, you can proceed to open your account and invest. Here is how to go about it:

Choose a Gold IRA custodian 

The first step is to choose a reliable custodian so that you can open the gold IRA. Opening the Gold IRA only requires you to fill out some forms or paperwork, and can in most cases be completed quickly. Be sure to compare the fees, quality of service, and customer reviews for various Gold IRA custodians, to avoid ending up with a company that does not take your investments seriously. 

Some custodians may charge you a fee to open your gold IRA, but if you are necessitated to make a large deposit upfront, you may end up not paying a fee at all. Consult with the IRA custodian about any other fees that they charge their customers before committing to open an account. A company that is not transparent about its fees upfront is a company that you should avoid.

Fund your Gold IRA 

You can fund your Gold IRA by depositing some cash (check or wire) into your account. These funds will be used to purchase the physical gold or other precious metals that you prefer. If you have a pre-existing retirement plan, you can roll over or transfer the funds in those accounts, after consulting the customer representatives at the Gold IRA custodian firm. Investors who have 401(k), 403(b), 457(b) or TSP plans may attempt a Gold IRA rollover or Transfer. 

Step 3: Choose the Metals you will use for Gold IRA Investing Gold Retired

The IRS requires that you only invest in IRA-approved precious metals if you are using a Gold IRA as your investment vehicle. IRA-approved precious metals have set purity requirements that must be met. With gold bullion, for instance, any product you purchase must be 99.5% pure. You can purchase gold coins for use for investment, but you cannot include rare and collector coins in your portfolios. You cannot also add circulated or pre-owned gold coins to your Gold IRA. 

****Check out these IRA-approved gold coins that you can add to your account. 

Step 4: Track and Follow up 

With the right investments in your account, all that is left is for you to track the performance of your portfolio. Remember that gold performs better as a long-term asset, hence you should not start panicking due to short-term volatility. Also, do not invest all your retirement savings in gold. You should put aside about 5 to 15% of your portfolio for the purpose of Gold IRA investing. Investing in this asset has its unique risks, hence putting all your eggs in one basket will end up being detrimental to your financial future. 

Frequently Asked Questions on “How Can I Invest in a Gold IRA?” FAQ

1. Where will my gold be stored?

If you invest in gold through a Gold IRA, then you do not get to hold the Gold at home or at a local depository. You, instead, have to ensure that the physical gold is stored in an IRS-approved precious metal depository. Such a depository is not only safe and secure from access by thugs, but is also insured by an internationally or nationally recognized insurer. 

2. Will I be required to store storage fees?

Yes, You will, in most cases, be required to pay storage fees for the gold held in the precious metal depository. The storage fees may vary depending on a couple of factors, including whether the gold is stored in segregated or unsegregated storage (commingled storage). Segregated storage, in which your precious metals are stored separately from those of other investors, may cost you more in terms of fees. 

3. How much money can I contribute to my Gold IRA? 

The annual contribution limits for gold IRAs (and other types of IRAs) change from time to time, as the IRS takes into consideration some factors such as inflation. In 2022, however, investors aged below 50 can contribute $6000 per year to their gold IRAs, while those aged above 50 can contribute up to $7000.

****Gold IRA Rules and Regulations | Put Gold in Your IRA 2022

4. Will I be allowed to take possession of my gold at any point?

Yes. Upon hitting 59 ½ years, you can withdraw the gold in the same form that you purchased i.e. coins or bars. Those who take physical possession of their gold after hitting the required retirement age are not usually penalized. Early withdrawals attract a 10% penalty. 

That will be all for today’s post: How can I invest in a gold IRA? I hope that you enjoyed it and that you found it helpful. If you have more questions about it, kindly let me know so that I can respond to them ASAP. All you need to do is to drop them in the comments section below. 

I wish you well, 

Eric, Investor and Team Member at Gold Retired!