What is a Gold IRA?
A gold IRA or precious metals IRA is an Individual Retirement Account in which physical gold or other approved precious metals are held in custody for the benefit of the IRA account owner. It functions the same as a regular IRA, only instead of holding paper assets, it holds physical bullion coins or bars. Precious metals IRAs are usually self-directed IRAs, a type of IRA where the custodian allows more diverse investments to be held in the account. Gold self-directed IRAs can include other types of retirement accounts such as, Roth IRAs, SEP IRA, SIMPLE IRA, HSA, Thrift Savings Plan (TSP), and 401(k)s. ~ Wikipedia
Ownership of precious metals has a long history of safeguarding wealth during periods of economic downturn. However, it’s over the past decade in particular that gold, silver and platinum have proven their ability to greatly outperform many other asset types. As economies all over the world continue to struggle with an array of troubling issues, this could point to tremendous upside potential of gold, silver and platinum. Market predictions even suggest the price of gold could hit new record highs in the future.
From a threatened U.S. dollar to ongoing geopolitical concerns around the world, there are a number of reasons that many people are deciding to move a portion of their assets into U.S. government-issued gold in particular.
A Gold IRA is an IRS approved precious metal and forms of bullion for IRA’s. Although investment in “Collectibles” using IRAs and Qualified Plans is not allowed, here is a carve-out allowing for investment in certain coins, as well as bullion meeting certain fineness requirements.
There may be advantages to holding gold coins as opposed to bars in a gold IRA in terms of liquidation. However gold bars are more difficult to sell due to their higher price and easier ability to counter-fitted. There are currently a variety of precious metals that meet the minimum purity requirements that are acceptable for inclusion into a gold IRA account.
Some gold IRA companies argue inclusion of certain coins in a precious metals IRA; however, several of those companies have been investigated by the government for misleading customers and aggressively selling numismatic coins over gold bullion. Numismatic coins pay the gold company higher commissions, but bullion bars more directly reflect the spot price of the precious metal.