Investing in Physical Gold

While investing in physical gold is touted as a way to diversify your retirement assets and potentially counteract losses from the stock market, this type of retirement account has its own set of rules and costs that should be considered carefully. It’s also important to consult a financial, tax and legal professional before making any decisions about your retirement assets. More info

Gold IRAs are a type of self-directed individual retirement account that allows you to invest in precious metals and other alternative assets. While they provide appealing tax benefits, they also require you to be more hands-on with your investments and follow certain regulations or risk fines and penalties.

The Role of Gold in a Well-Balanced Retirement Portfolio

You’ll need to find a custodian that is approved by the IRS to manage your gold IRA, along with a depository where your precious metals are stored. Your custodian will then purchase your approved metals on your behalf, storing them at the depository for safekeeping until you decide to take a distribution from your account. Some gold IRA companies offer storage and insurance services, but these fees are typically higher than those for standard IRAs.

You’ll also be responsible for paying a seller’s fee, or markup, when you decide to sell your IRA-approved gold. This markup can vary depending on the type of product you buy (gold bullion, coins, proofs, etc.), and it may be different from the price of gold on the spot market. Regardless, it’s important to consider the markup when deciding which IRA-approved gold products to purchase.