Gold IRA symbolized with IRA written on three gold bars

Gold IRA

A gold IRA or precious metals IRA is an Individual Retirement Account in which gold or other approved precious metals are stored, as opposed to paper currency or paper-based assets.

It functions in the same way as a regular IRA, only instead of holding paper assets, it holds physical bullion coins or bars. Companies selling precious metals IRAs often work with a private IRA services entity to act as a custodian for their clients, which may have its own fees and account restrictions.

Precious metals IRAs are usually self-directed IRAs, a type of IRA allowing more diverse investments to be held in the account and giving the holder more control over those investments.

Although most gold IRAs are self-directed IRAs, many other types of retirement accounts are eligible to be converted into a gold IRA, including Roth IRAs, Thrift Savings Plan (TSP), and 401(k)s. You can discuss what is your best option, with any of the best gold ira companies on the market today. They will all happy advise you according to your circumstances.

The four precious metals allowed to be held in an individual retirement account are gold, silver, platinum and palladium, provided they are in the form of IRS-approved coin or bar products.

Since gold is the most commonly purchased of the four, the overarching term “gold IRA” is used most often in the industry to mean a retirement account containing any combination of precious metals.

Depending on the portfolio contents and which metal is being marketed, the terms “precious metals IRA”, “silver IRA”, “platinum IRA”, or “palladium IRA” may also be used.

Investors often use precious metals as a long-term hedge against inflation, making them an attractive addition to a retirement portfolio. In order to create one, the former retirement plan must undergo either a transfer or “rollover” process, which is IRS-approved and tax-free if the individual qualifies and all rules and regulations are complied with.

The tax free gold IRA may be stored in an IRS-approved depository, and investors may have their metals shipped directly to them or liquidated for cash, depending on the depository and the company that sold the plan.

Written by
Nathan Tarrant

Nathan has worked in financial services, marketing, and strategic business growth for over 30 years, as well as working in internet marketing since 1998.

In 2008 after the financial crash, Nathan operated as a financial & investment advisor to delegates of the United Nations, the World Health Organization, and senior managers of Fortune 500 companies in Geneva Switzerland.

He started Gold Trends as he enjoys working with alternative investments, having advised on them in the past.

Please note: Nathan is no longer a financial or investment advisor. The information he shares on this site is purely for education and information purposes only. You can read more on the About page

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Written by Nathan Tarrant