Since the world is facing concerns regarding the weakening of the dollar and inflation, people are becoming more inclined to consider less traditional investment vehicles to better protect their hard-earned retirement funds. What better way than investing in precious metals?
Those in the investment industry have all heard of gold and silver investments in passing. It’s impossible not to since this particular investment has been making noise in the past couple of years due to its inability to be affected by market volatility. As such, more investors are becoming curious about the possibilities and advantages of this investment.
To celebrate the increasing demand, here are the best precious metals investment firms in the country today.
At a Glance:
Best Precious Metals IRA Companies of 2023
|Fees||* Setup Fees – $50
* Annual IRA Fees – $80-$100
* Storage Fees – $100 per Year
* Other Fees – $30
AMERICAN HARTFORD GOLD
|Fees||* Annual IRA Fee – $75
* Accounts Valued – $100,000 or Less and $125 for Accounts Valued at $100,001 or More
* Annual Storage Fee – $100 Fee in Most Cases
AUGUSTA PRECIOUS METALS
|Fees||* Initial Setup Fee – $50
* Annual Custodian Fee – $100
* Annual Depository Fee – $100
|Fees||* Initial Setup fee – $ 50
* Wire Transfer fee – $ 30
* Annual Maintenance fee – $ 80
* Annual Storage fee – $ 100
Editor’s Choice – Overall Best Precious Metal Firm
Rated 4.9/5 Stars
Other Metals: Silver
Website Features: Educational resources, live chat, spot price charts
Why We Chose It
Goldco is a reputable gold IRA company famous for its extensive educational resources. They have an entire library of informational content, including blog posts, videos, webinars, and articles dedicated to teaching gold investors more about gold IRA investments.
Drawing from our experience of trying out various precious metals IRA companies, Goldco stood out as a leading firm in providing gold bullion and silver products. It is a top-rated company due to its wide range of services and goods that help investors better secure their retirement funds.
With over a decade of experience in the industry, it isn’t surprising that Goldco built its reputation as one of the most trusted names in the gold IRA industry. They are a known name globally and are accommodating and managing thousands of investors around the world.
Among the features that best distinguish Goldco from other gold IRA companies is the company’s outstanding customer service. They have skilled representatives who take a customized and unique approach to meet and complement each customer’s needs and goals. They develop a specially customized investment strategy that will correspond well with their objectives.
After trying it out, we found that Goldco’s official website is user-friendly. They offer forms on the site to help clients open their self-directed IRA. After the initial setup, they will be assisted by a specialist tasked to help them transfer funds into the gold IRA. The rest of the process will go smoothly from there.
Pros of Goldco
Here’s what we like most about Goldco:
Runner Up – Unbeatable Prices for Bullion Products
#2 AMERICAN HARTFORD GOLD
Rated 4.8/5 Stars
Other Metals: Silver
Website Features: Educational resources, live chat, spot price charts
Why We Chose It
American Hartford Gold is almost always on most lists of best gold IRA companies. It is a company best known for having lower fees than gold IRA companies. The firm offers a wide range and selection of gold bars, coins, and rounds that investors can use for their gold IRA.
After trying out their services, we found that the company’s staff are not only highly skilled and knowledgeable but are also friendly and highly personable. They have a team that intensely listens to the specific needs of each client. With what they gather, they will then offer a personalized and customized solution for that investor.
Since American Hartford Gold has a 24/7 accessible customer support line, clients can reach out to their experts in no time and at any point of the day. This feature is certainly helpful to international clients who have an entirely different timezone than the base country of American Hartford.
Moreover, American Hartford Gold promises to deliver quality products and services at reasonable fees and competitive prices. They charge no fees for account setups, annual maintenance, and transfers. They even run frequent promotions wherein clients can get their storage fees waived for 2-3 years.
Unlike other gold IRA companies, American Hartford also makes it a point to have a transparent fee structure. They promise a fully insured and secured gold investment and no hidden fees that can catch an investor off guard.
Pros & Cons
Extraordinary Repurchase Initiatives
#3 AUGUSTA PRECIOUS METALS
Rated 4.6/5 Stars
Other Metals: Silver
Website Features: Educational resources, live chat, spot price charts
Why We Chose It
Dubbed as the ‘Most Transparent’ firm by Investopedia, it is no wonder that Augusta Precious Metals is at the top of this rank list of the best gold IRA companies.
Established in 2012, Augusta Precious Metals has steadily made a name for itself recently. It paid off since it is now among the most popular choices for the best gold IRA companies in the country. This firm is famous in the precious metals industry as a global market leader in regard to gold and silver IRAs.
Augusta Precious Metals has a reputation for caring extensively for their client’s gold investment education. They strive to educate investors on how they can better protect their retirement funds by diversifying their portfolios and adding in gold IRAs.
The gold IRA firm has risen to the top of the ranks over the years, and they can only credit their success to their dedication to delivering quality customer support and commitment to making the investment process transparent and easy.
Based on our first-hand experience with Augusta Precious Metals, they are among the only ones in the industry that offers lifetime customer support services. Whether an investor transfers their portfolio to another gold IRA company, Augusta will always support them.
As it stands, Augusta Precious Metals has a separate department dedicated specifically to precious metals investing. This model of operation ensures that each client that goes through them is thoroughly supported and served.
Pros & Cons
Extensive Customer Service
#4 BIRCH GOLD
Rated 4.5/5 Stars
Other Metals: Silver
Website Features: Educational resources, live chat, spot price charts
Why We Chose It
Birch Gold Group is a trusted precious metals dealer in the market. Being in the field for almost two decades, Birch Gold Group is proven and tested to be one of those veteran companies in the industry. They know what they are doing, which is why thousands of investors trust them completely with their gold investing ventures.
The company is known for offering many gold bars, coins, and rounds. Though, that is not the only physical metal in their product catalog. Birch Gold Group also sells precious metals of different types, including silver, platinum, and palladium. They have a broad selection of products that investors can purchase directly or through their gold IRAs.
Birch Gold Group is a top-tier player that can make clients feel safe and secure with their gold investments. They work directly and closely with investors, ensuring every single one genuinely understands where their money is going and why gold investment is a great option for their retirement portfolio.
To do that, they offer a large library containing reliable and valuable gold investing information and content. Clients can find this on their official website. Moreover, Birch Gold Group also has prolific and active social media accounts and even a podcast, where they offer insights on precious metals investments.
The firm’s dedication to helping and educating its clients makes them a great gold IRA provider. This and their commitment to delivering exceptional customer service and products makes Birch Gold Group a leading gold IRA company.
Pros & Cons
What is A Precious Metals IRA?
Both old and new investors have heard of traditional investment products such as traditional IRA accounts and 401(k). These retirement accounts permit investors to invest in stocks, mutual bonds, index funds, and other paper investments. However, among the biggest drawbacks to these accounts is that an investor cannot invest in physical gold with it.
Nowadays, more people are interested in gold investments mainly since they are a hedge against inflation and can withstand market volatility. Given the unpredictability of the stock market, one can imagine how attractive that kind of advantage is to an investor. Unfortunately, traditional IRA accounts do not accommodate gold and other precious metal investments.
The good news? Precious metals or gold individual retirement accounts (IRAs) now exist for that specific purpose.
Precious metals IRA, more commonly known as gold IRA, is a niche investment vehicle or product specializing in physical precious metals investment and diversification of retirement portfolio. With a precious metals IRA, investors can hold various assets like gold, silver, platinum, palladium bullion, bars, and coins.
A gold IRA is a retirement account subset that can facilitate physical precious metals. All this while retaining the same advantageous regulations as standard and traditional IRAs. Though these features and advantages are already appealing to investors, the real trademark of a precious metals IRA is its relative non-volatility aspect.
This IRA allows rollovers and transfers. These specific features allow investors to transfer or roll over the funds on their traditional 401(k) or 403(b) account to their precious metals IRA. By doing this, an investor can diversify their retirement savings by spreading them out, helping them avoid an impending total loss.
Though, note that gold IRAs also have limitations. These accounts follow specific IRS-imposed regulations. Failure to follow said rules may lead to consequences like tax penalties of at least 10% of the investor’s withdrawn amount.
An investor must choose a reliable gold IRA company to work with to set up a gold IRA. They will administer and help manage the account. Aside from that, the company’s role includes:
- Purchasing the precious metals, the investor chose
- Storing those metals in a secure and safe IRS-approved depository
- Manage transactions related to the gold IRA
Essentially, the gold IRA company can help free up the stress from working on the mountain of paperwork so investors can focus more on their investment strategy.
How Investing in Physical Gold and Silver Helps to Protect Your Savings
Choosing to invest in gold and silver bullion can be wise for investors looking for a secure means of protecting and holding their retirement savings. Gold has had immensely great value in the market for centuries now, so rest assured that gold investors can gain a good valuation for it in the future.
Investors are all eyeing gold investment recently, mainly due to its ability to protect their retirement savings in the long run. However, how exactly does this investment product do that? How can physical precious metals help protect an investor’s retirement savings?
Here are the top reasons:
In terms of asset allocation, the main role of gold is diversification. It makes it different from other assets like shares, property, and bonds — which all provide investors capital growth, income, and stability. Precious metals historically display a low correlation with other investment assets.
Where other assets struggle, gold tends to excel and perform well, helping ease the limit losses. Gold does this due to its ability to thrive during crises and market fluctuations. For this reason, incorporating gold and other precious metals into gold individual retirement accounts can help protect the savings against drawdowns.
Investing in gold can diversify a retirement portfolio and reduce the risk of losing assets during economic crises and market downturns. Gold and silver prices might move differently than traditional investments, which is good since it can reduce overall portfolio volatility.
Adding gold and silver products to an IRA can act as insurance against unexpected market shocks and systematic risks. Precious metal IRA investments tend to perform well amid economic stress, market volatility, or stress. That offers the investor a much-needed buffer against losing other parts of the portfolio.
Hedge Against Inflation
When it comes to the investment industry, one thing an investor should know about is inflation since it can kill an entire investment account and retirement portfolio. Inflation pertains to the gradual and significant loss of purchasing power. It reflects in the broad rise and increase of prices in services and goods across the economy over time.
If a person’s only saving is cash, they will eventually depreciate due to the growing economy. What people might consider a good savings amount now will eventually not be enough in the future because of the continuous rise of prices.
Instead of saving in a bank account, investors can consider gold investment — or other safe assets that might protect them from inflation. If one were to look at the historical performance of gold, one would notice that it outperforms the inflation rate. That proves that an investor can reduce the overall inflation risk by a huge margin if they invest in gold and silver.
Store Of Value
Precious metals can retain value during times of economic crises and uncertainty — a fact proven over and over again. It is why adding gold coins and bars into gold IRAs is much more assuring than any other investment. Doing so offers security that other investment vehicles and products, like traditional IRA or money, may not be able to provide.
Gold bullion has been utilized as a store of value for years, serving as an industrial metal and offering money security. The intrinsic value and scarcity of precious metals make them durable tangible assets that can retain purchasing power in the future.
Unlike fiat currencies, where economic events and government actions can devalue anytime, precious metals do not have the same risks. That makes them more valuable to an investment portfolio and individual retirement account.
In a world that has gone crazy with unlimited debt spending, financial mismanagement, and unlimited money printing, physical gold offers a new perspective and material. It acts out as a counterbalance to human’s reckless financial actions.
Safe Haven Assets
Precious metals act as haven assets during financial instability and geopolitical uncertainty. They are known to retain value and are an effective hedge against inflation.
Investors tend to flock to precious metal IRA investments as they consider them a safe store of value when other investment products and vehicles are facing significant risks and experiencing volatility. The stability of gold investments can offer a sense of security to an investment portfolio.
IRA Assets In Physical Bullion and Metal Coins
Gold IRA investors can own certain precious metal bullion coins if they want. That is the beauty of gold IRAs, after all. For now, people can choose from plenty of IRA-eligible precious metal coins. These tangible and physical assets are a great way to diversify an investment portfolio to protect one’s wealth against inflation.
For those wanting to start their own precious metal coins collection, here are the most popular and common ones to consider:
- Canadian Maple Leaf Coins
- American Eagle Coins
- Australian Kangaroo Coins
- US Buffalo Bullion Coins
- British Britannia Coins
- Austrian Philharmonic Bullion Coins
- Chinese Panda Coins
- Australian Lunar Series Coins
The Benefits Of Precious Metals In An IRA
Paper assets may be the most common type of investment, but they are risky since the stock market can be cruel sometimes. Relying solely on these assets can be an investor’s downfall. If the market downturns, they can experience a total loss of savings.
Despite the unfamiliarity, looking into precious metals can benefit most gold investors in the long run. Here are some of the benefits to look forward to in opening and setting up gold IRA accounts:
A self-directed IRA with gold assets has its fair share of tax advantages and benefits. Investors can physically possess their physical gold and withdraw their precious metal holdings under the same rules and regulations that typically cover conventional IRA distribution arrangements.
With a gold IRA account, an investor can hold, sell, and purchase precious metals in the same manner as other assets held in a general or standard retirement fund account.
Long-Term Protection and Safeguarding
Gold investments have a low correlation with other investment products like stocks and mutual funds. That means gold investors do not need to constantly worry about their physical gold assets every time the market fluctuates or downturns.
Compared to past rates, gold prices are more stable than other assets in the investment world. Even years from now, gold IRA investors can rest easy knowing that their gold investments still have a good value in the market, giving them financial stability.
The stability of gold prices makes this investment vehicle a reliable option for those preserving their capital.
Direct precious metals investment is the common way of gold IRA investing. It involves purchasing physical gold and other precious metals and having a custodian or depository safeguard them.
Though, what most investors are not aware of is the other opportunities that gold investments present. There is now an indirect method to invest in gold.
The indirect gold investment pertains to purchasing shares from mining firms and companies. Another indirect way is to buy government bonds using existing assets and get paid with interest after a certain period.
Direct precious metals investments are mainly to safeguard retirement savings and funds. However, through indirect gold investment, an investor can turn their precious metals with paper assets into a passive growing source of income.
This gold investment allows the investor’s money to grow the same way as paper assets — all while having the stability and safety nest of a gold IRA account.
Does Not Deteriorate Over Time
Gold does not deteriorate or lose value over time. It will not lose its price with age. Bring and trade old golden ornaments. They should acquire the same price in the market as new ones. That is how stable the price is.
Easy To Pass On To The Next Generation
Passing along gold and other precious metals to the next generation is easy enough with gold IRAs. Parents in retirement with a good sizable amount in their gold IRA can distribute those gold assets to their children, which can undoubtedly help them financially.
Since gold does not deteriorate, the assets in gold IRAs will not lose their sheen even after decades pass. Its market value will remain stable regardless of age and time.
Among the best parts of precious metal IRAs is that it does not require regular maintenance. Despite that, investors can easily leave their IRAs in a safe place. Expect it to remain that way even after years. Its low need for maintenance makes it stand out from other assets.
Take property assets, for instance. Investors with property assets must ensure that it is regularly and properly maintained. That means everything should be clean and in order. Years of that can be tiring for an investor, especially if they have multiple investments that also require frequent checking.
On the other hand, through gold IRA investing, a person can purchase precious metals and keep them in a depository for safekeeping. They can leave those assets there for several years untouched.
Which Metals Can I Include in a Precious Metals IRA?
Investors can choose coins, rounds, and bars when investing in precious metals IRAs. Nowadays, gold coins are the most common precious metal product to invest in. They are appealing to investors since they come in many types and sizes.
Gold bars and rounds are also available for those interested in opening a precious metal IRA. However, they are heavier, larger, and more expensive than gold coins.
Though gold is the most popularly used asset in precious metals IRAs, other precious metals are also allowed. Silver, platinum, and palladium are also allowed in gold IRAs. However, investors must know that they cannot hold and store all precious metals they find in the market in the IRA.
The precious metals must first meet the rules and regulations set by the IRS before an investor can hold them in a gold IRA account.
For the IRS to approve a precious metal, it must meet the minimum fineness requirements. For gold, the minimum purity of the metal must be 99.5%. Silver needs to be 99.9% pure, while palladium and platinum are required to be 99.95% pure.
This strictness in purity and fineness ensures that the precious metal product is high-quality and truly valuable. By adhering to these standards and requirements set by the IRS for their IRA-eligible coins, investors can be confident that their gold investment is of the highest possible quality and will, without a doubt, hold its value over time.
Though, for those investors looking to purchase gold and other precious metals, note that the purity of the product is not the only factor to consider when choosing assets for the gold IRA account. They must also consider their funds since precious metals are often pricier than other investment options.
Things To Look For in A Good Precious Metals IRA Company
The precious metals industry is a complex world that is hard to navigate alone. Working with a reputable gold IRA company should help make that easier. With their help, an investor can properly meet all the IRS guidelines while managing their gold IRAs for the long term.
Though, with the growing demand for precious metals IRAs, there also has been a steady increase of gold IRA companies around. With the growth of gold investments and investors, looking for the best gold IRA companies has been harder than ever.
Here are the factors to consider when looking at the top gold IRA companies.
The best gold IRA companies should have buyback programs in their services. This program permits investors to sell back their precious metals to the company and receive a payment within market value. This process is one of the most efficient ways to liquidate physical gold assets upon retirement.
In choosing the best gold IRA company, there should be a reliable buyback program. Most gold IRA companies with good buyback deals typically feature a straightforward process with little to no charges. Moreover, the best ones handle the shipment before asking for payment.
Gold IRA Fees & Cost
Aside from good service and deals, an investor must consider the gold IRA fees and costs. Most gold IRA companies need a minimum investment to open a gold IRA — ranging from as low as $2,000 to as high as $50,000. Better check this before settling with a gold IRA company, as it can seriously break the bank for some unprepared investors.
If one were to go through most gold IRA companies in the industry, one would find that many offer similar types of products and services. The main difference would often lie in the quality and price. Top gold IRA companies also usually have an expert team on standby to help guide new investors or clients in using their precious metals investing services. Some others would offer free access to a library of resources to help clients learn more about gold IRA investment. Meanwhile, a few would make attractive deals and promotions like free silver products or discounted prices.
Setting up a precious metals IRA account requires more effort than traditional paper asset accounts. There are many things to take into consideration — account setup, administration, purchases, transactions, transportation, storage, maintenance, documentation, and many more. Most of that work falls on the shoulders of the gold IRA companies, hence the plethora of fees and costs in the final billing.
Due to that, it would be best to choose a gold investment company with a transparent fee structure. The last thing a gold IRA investor would want to deal with is hidden fees.
To choose the best gold IRA company, an investor must find one that has a good product selection. Most gold IRA providers offer IRS-approved and IRA-eligible precious metal assets like gold, silver, platinum, and palladium.
Though, offering them to buyers is not enough. The gold company must have a marketplace where clients and investors can buy and sell these precious metals. Having one will undoubtedly make the company more appealing to new and veteran gold IRA investors.
It will also be a bonus if the gold investment company offers a range of products — not just a single kind. A good precious metals product selection has a wide variety of bars, rounds, coins, and ETFs.
Speed and Efficiency
Find the best gold IRA company offering simple, fast, straightforward processes. A quick account setup, an uncomplicated purchase process, an efficient transfer or rollover, and a simple payment transaction — these are all qualities that can make a gold IRA company stand out.
Most investors opt for gold IRA providers that can deliver efficiency and speediness. They prefer those that can make things happen in a few business days. Also, with the best gold investment companies, there won’t be a need to compromise quality with speed. They should still be able to provide good and fast service without making it look sloppy.
Reviews and Reputation
Reputation and credibility matter for a gold IRA company. These are the aspects that potential clients will look into if they decide to check out a gold investment company. Since a gold IRA investment requires a lot of money, investors will want to choose the best to ensure they receive quality services and a positive experience.
There are a few factors to look into if an investor wants to check out the reputation of a gold IRA provider — years in operation, industry ratings, and overall customer reviews. These factors will help an investor determine if a gold IRA provider is worth trusting.
For the ratings, it is best to check the company’s rating on official rating sites like Better Bureau Business, TrustPilot, and Business Consumer Alliance. The higher the rating the company has, the better. That can help signify their excellence, dependability, and trustworthiness.
Moreover, check the customer feedback and written reviews. Positive customer feedback and rave company reviews can indicate the firm’s dedication to providing service quality and customer support.
For those that are still in doubt, consulting an independent financial advisor can help clear their minds. The financial advisor should not have any affiliation with the gold IRA company since that could mean bias. Asking for help from a financial advisor or any other professional can help an investor make wise and informed decisions when selecting the best gold IRA company.
Customer Support and Service
When it comes to the best gold investment companies, quality customer support and service is essential. The best gold IRA company knows how to handle and assist its customers and clients. As a company responsible for gold IRAs, it is their team and staff’s job to guide and help every investor that comes to them.
By that, they should always have a gold IRA expert or professional to help new investors open and set up accounts. They should be able to deliver sound advice while ensuring that the transaction and process go smoothly.
How to Open Your Precious Metals IRA Account
Now that factors in choosing the best gold IRA companies are laid bare, it is only appropriate to tackle the steps in opening a precious metals IRA. Here are the necessary steps an investor must take:
Choose a Gold IRA Custodian
Many gold IRA companies do not offer precious metals. In that regard, they need to work with custodians. A gold IRA custodian is approved by the IRS to manage assets like precious metals. They can be an institution, bank, or an equity trust company.
A gold IRA custodian is essentially one that acts as an intermediary between the investor and the gold market. They ensure that the gold assets have proper documentation and are legally and securely stored in facilities and depositories approved by the IRS.
Investors can find gold IRA custodians through their gold IRA company’s preferred custodians. They can also find one through the Retirement Industry Trust Association (RITA) website.
Choose a Dealer
After looking for a custodian, the next step involves choosing a precious metals IRA dealer to work with. Like choosing precious metals IRA custodians and companies, selecting a dealer is also an intricate process.
Comb through various dealers and compare firms to each other. Consider certain factors — deals, qualifications, reviews, and years of experience. Furthermore, be sure to check the company’s legitimacy.
The easiest way to check for a company’s legitimacy is by seeing if they are part of the Industry Council of Tangible Assets, the American Numismatic Association, and the Professional Numismatic Guild. Also, searching the company on verified rating sites to see their customer reviews can help an investor get a proper gauge of their dependability.
Choose Which Items to Buy
For the next step, the investor can purchase precious metals. To do so, they need to research the different gold and silver products available, ensuring that each choice they make meets the requirements set by the IRS for IRA-eligible precious metals.
Keep in mind that some gold IRA companies have a minimum order requirement. Some are low. Unfortunately, a few can reach as high as $50,000. Investors can ask precious metal experts for advice on the type of gold and silver coins they should add to their accounts. Those that include palladium and platinum in their gold IRAs will have a harder time finding products since these metals are rare.
Once the investor decides on the precious metals, they must communicate that with their custodian and dealer. They will help with the purchase and transaction.
Pick a Storage
After selecting the products, picking a storage option comes next. Remember the most important factors: it must be secure and IRS-approved. Most top gold IRA companies have partnered depositories already. It would be easy to entrust the products with these storage facilities since they are already vetted by gold IRA companies.
International Depository Service, Delaware Depository Service, and Brinks are among the most famous and reputable storage facilities.
Since there are many depositories in the US, choosing the closest one within an investor’s budget should be fine. They can pick segregated-type vault storage if they have funds to spare.
Finish the Transaction
Finally, the final step — finishing and completing the transaction. Once everything seems in order, the investor can proceed with the transaction. After that, the custodian and depository will manage their physical assets.
Final Thought – Best Precious Metals Investment Firms
Going for the right gold IRA company can be a real challenge. With how many options for gold firms there are, selecting one that is worth trusting is hard. However, one can make a well-informed decision about this matter by doing proper research and reading through customer reviews.
After considering the main factors in choosing the best precious metals investment firms, Augusta Precious Metals came out on top. Augusta is a reputable gold IRA provider specializing in precious metals IRA investments. They offer quality service, deliver outstanding customer support, and provide deals and promotions that are truly valuable to investors.
It is the best company to work with if one decides to take gold investment seriously.
Precious Metals IRA FAQs
How Can You Know That Precious Metals IRA Is For You?
A precious metals IRA can be a viable option for investors concerned about market volatility, inflation, and economic uncertainty. It is also a great choice for those with an extra budget to diversify their investment portfolio.
A gold IRA is relatively more expensive than traditional investment products like stocks and bonds. Not to mention that it also includes various fees like storage fees, administration fees, etc.
If an investor is willing to spend, a gold IRA should be an appropriate investment to spice up their retirement account. Precious metals do not carry as much risk as traditional IRAs and are easier to manage than tangible assets like property.
Can You Roll Over The Funds From Your 401(k) to Your Precious Metals?
Investors can roll over their funds from a 401(k) to a precious metals IRA. It’s called gold IRA rollovers. A gold IRA rollover pertains to transferring funds from one existing retirement account to a self-directed IRA solely for precious metals.
To initiate a gold IRA rollover, the investor must find a reputable custodian specializing in precious metals and gold IRA rollovers. The investor can then initiate the gold IRA rollover process by transferring the funds from their current traditional individual retirement account to their new gold IRA. The process alone can take up to a few weeks.
Once the fund is transferred, the investor can work with the custodian to purchase precious metals suited to their investment and retirement goals. That includes gold and silver coins, bullion, and bars.
How Much Of Your IRA Should Be Made Of Gold, Silver, Platinum, and Palladium?
A gold investor should only incorporate about 5%-10% of their retirement savings into precious metals, then diversify the rest and place them in different assets and markets. For an investor, they must not put all their eggs in one single basket. That is a disaster waiting to happen. Most financial advisors would recommend this and call it a sound investment strategy.
If an investor wants to place everything he has on paper assets, they could face immense loss if the market turns on them. It would be smart to spread the retirement savings between various assets and investments to reduce the overall risk.
The goal of an investor should be diversification. It is a vital step in the investment world as it ensures a more comprehensive safety net.
Why are Precious Metals IRA More Expensive Than A Regular IRA?
Gold IRAs are more expensive than a standard individual retirement account due to the many fees that come with it:
- Account application fees
- Custodial fees
- Administration fees
- Commission and Markups
- Transaction fees
- Yearly Maintenance fees
- Wiring fees
- Storage fees
- Miscellaneous fees
Aside from those, there are also the costs of the actual physical precious metals to wonder about. Maintenance fees of precious metals IRA companies also tend to be higher mainly due to the additional costs of investing, storing, and insuring gold. There’s even an additional account closure fee if an investor decides to close a gold IRA.
How is a Transfer and a Rollover Different?
The main difference between gold IRA rollovers and transfers is the penalties and the involvement of the account holder. A gold transfer automatically moves funds from one custodian or trustee to another. Meanwhile, a gold IRA rollover is a manual moving of funds from a retirement account to a gold IRA.
A rollover evokes withdrawal penalties, while a transfer does not since the latter is automatic rather than manual. Also, a transfer happens without the account holder’s direct involvement, while a rollover gives the holder more control over the funding process.
However, note that a gold IRA rollover has more room for human error since the holder does the transferring themselves — not a professional.
When Can I Withdraw From The Gold IRA?
The investor must be 59 ½ years old to withdraw from the gold IRA. Withdrawing from the gold IRA before reaching that certain age will amount to penalties. Those that do end up will face a 10% penalty.
The early withdrawal penalty fee is designed to discourage investors from withdrawing and accessing their retirement funds in gold IRAs prematurely. It also ensures that the funds are utilized for their intended purpose. That rule helps an investor have better chances of enjoying financial security during their retirement period.
An investor can start withdrawing upon reaching the right age. Although, they are not required to take any withdrawals until they reach the age of 70 ½. At that age, they must withdraw at least the minimum withdrawal amount each year. That gives the investors an extra 11 years to decide if they should let their precious metals grow.