How to open a precious metal IRA Select a self-directed IRA custodian. Your self-governing IRA is managed by a custodian bank. Next, select a precious metals dealer. The first step in a gold IRA investment is choosing a custodian bank to open the
IRA.
Opening an account requires paperwork and can be completed quickly. However, it’s important to consider account fees and service quality. You can also invest in gold ETFs, which are exchange-traded funds that track the price of gold, or in gold investment funds, which are mutual funds that invest in gold mining companies. They sell gold coins, gold bars, and the like, but they don’t offer IRA investment advice (although their websites or other
marketing materials might suggest so).
Gold IRA companies can vary widely, and choosing the best company for your investment goals is critical if you want to ensure a comfortable and hassle-free retirement. Self-managed IRAs, which include gold IRAs, have the same contribution and distribution limits based on your age as traditional IRAs. Read chapters 1-3 to learn more about the basics of Gold IRAs and everything you need to know before you get started. IRS rules allow funding a Gold IRA with funds from another IRA, 401 (k), 403 (b), 457 (b), or Thrift
Savings Plan.
Gold IRAs require a custody manager — a third party who keeps investments safe — as gold IRAs involve the purchase and storage of physical gold and precious metals. If you’re looking to open a Gold IRA account to diversify your investment portfolio, protect against inflation, boost your long-term wealth, or achieve another investment goal, you should compare your options first. Gold investment funds are another indirect route, although not many investment funds focus exclusively on gold investments. Learn about investment coins, gold funds, gold companies, gold futures contracts, gold mining stocks, the World Gold Council, and ways to sell gold
.
An important rule to know about keeping physical gold in an IRA is that your precious metals MUST be kept at an approved depository such as the Delaware Depository Service Company or Brink’s Global Services and not in your home or in a safe deposit box. If you already have an IRA or 401 (k), either Regular or Roth, you have the option to convert some or all of your funds into a Gold IRA. Unlike gold ETFs or gold company stocks, a precious metal IRA allows you to hold the physical precious metals in accordance with IRS regulations. A gold IRA is an alternative investment option for pension savers who want to own gold to hedge against inflation or diversify their assets beyond the
stock market.
So if your portfolio consists of both gold and paper investments, a loss on the gold side is offset by the gain in other assets.
