The answer to the question of how to choose the right Gold IRA usually comes down to choosing the right Gold IRA company. There are several companies that offer Gold IRAs, but they differ significantly in the specific services they provide. Different companies also charge different fees.
So, these are the two primary things to look at when comparing gold IRA companies:
- The level of services the company provides.
- What the company charges for the services it provides (When comparing prices, it’s important to keep in mind what amount of account services a company offers. If one company charges $200, but provides very limited account services, then it is probably not actually a better deal than a company that charges $250 but provides total, comprehensive Gold IRA services.)
Why Invest in Gold?
While gold and silver have always been popular investments, the number of investors looking to invest in precious metals skyrocketed in the current economic situation. Rapidly rising inflation, worsening supply chain shortages, fears of recession, and overall severe economic uncertainty have many investors eyeing alternative investments such as precious metals. Why? Because, historically, gold has proven itself a reliable “safe haven” investment. Additionally, it is one of the few investment assets that performs well during bad economic conditions.
As a physical asset, gold also offers distinct advantages over paper assets such as stocks and bonds. Tangible assets are less exposed to theft by hackers or identity thieves, and to government or creditor seizures.
Advantages of a Gold IRA
Gold IRAs were only approved by the U.S. government as a retirement account vehicle in 1997. Therefore, a lot of investors don’t even know they exist. This is unfortunate because a Gold IRA offers several advantages for investors.
Among the many investing advantages you get when you choose a Gold IRA are the following:
- A Good Hedge Against Inflation: Historically, gold has time and again been the one investment asset whose value keeps pace with rising inflation. That makes gold a good hedge investment to protect yourself from loss of purchasing power in paper money.
- Tax Benefits: As a self-directed IRA (SDIRA), you get substantial tax benefits, regardless of whether you choose to go with a traditional IRA or a Roth IRA.
- Diversification of Your Total Investment Portfolio: Gold is an alternative asset to stocks and bonds. Therefore, investing in gold provides you with a more diversified investment portfolio, offering extra risk protection.
- Potential for High Return on Investment: Gold prices have been on the rise since early this century. Many market analysts see gold possibly doubling or tripling in value over the next several years.
Choosing the Best Gold IRA ─ What You Need to Know
Before choosing the right Gold IRA company to set up and manage your account, be aware of the main IRS regulations that govern Gold IRAs.
Acceptable Gold
The IRS only allows certain types of gold bullion or gold coins to be held in a Gold IRA. A good Gold IRA company gives you a clear list of the approved gold bars and coins you can choose to invest in with your precious metals IRA. (“Gold IRA” is an umbrella term for any precious metals IRA. Therefore, you can also opt to invest in a silver IRA, platinum IRA, or palladium IRA, as long as you abide by the IRS rules for acceptable IRA assets.)
Management by a Custodian Trustee
The IRS also requires that your Gold IRA be managed by a custodian trustee. This is one area where Gold IRA companies differ significantly. Some Gold IRA firms, such as Regal Assets, provide comprehensive Gold IRA services in-house and arrange custodian trustee management of your account for you. Other companies don’t directly provide custodian services. You must find a custodian firm and arrange things yourself, and that often means extra fees.
Proper Storage
The third major IRS requirement is that your gold must be kept in an IRS-approved storage facility. This is another service that some Gold IRA companies handle for you, while with other companies you must arrange storage yourself through a third party.
Kitco, JM Bullion, and Regal Assets are three of the most widely used Gold IRA firms. Regal is the only one of the three that provides complete Gold IRA services directly for investors.
How to Choose the Best Gold IRA ─ Summary
Gold and other precious metals can be an excellent retirement investment, especially during times of widespread economic uncertainty. A Gold IRA offers you many advantages, but only if you are careful to abide by all the IRS rules. This makes choosing the right Gold IRA company critically important. Again, the major factors to compare are service fees and what level of Gold IRA services the company provides. For further information, see also: What is a Gold IRA Investors Risks vs. Benefits.
Find out if a Gold IRA is right for your investment strategy. You may also want to consider learning about Crypto IRAs and how it can benefit your retirement portfolio.
