In general, a Gold IRA charges three fees. An investor’s gold bars and other precious metals are stored in vaults to protect their investments in a secure and impenetrable investment. Depositaries charge an annual fee that depends on the value of the precious metals stored in their vaults. These deposits usually calculate around half to 1% of the value of the stored metals per year.
Gold IRAs allow you to hold these precious metals in an individual retirement account and offer the same tax benefits as IRAs invested in mutual funds. Gold IRAs follow the same general rules as traditional IRAs when it comes to tax benefits. You can choose between a traditional IRA or Roth IRA contribution limit and withdrawals. Customers who buy gold and silver outside of an IRA will continue to receive advisory and administrative services from the firm. And remember that if you sell your gold back to the Gold IRA, you could earn up to 30% less than the price of gold, as the IRAs calculate the “spread gold.”
Before you open a gold IRA, keep in mind that it’s not the only way to invest in gold with your retirement funds. If you want more flexibility with your precious metals or want to keep them at home, find out how you can buy gold outside of an IRA. Gold IRA rules require that you store eligible precious metals with a national depositary, bank, or IRS-approved trustee. You can invest in gold stocks, such as stocks of gold mining companies or gold licensing companies, which help finance mines.
Setting up a gold IRA involves numerous fees and costs that go beyond buying real gold and other precious metals. Most gold IRA companies buy back gold or other precious metals that they’ve sold you, but these repurchase programs are typically run at a wholesale price, which is around a third cheaper than the retail price. If you’ve decided that a Gold IRA is right for you, you can contact your retirement plan administrator or have the Gold IRA firm do it for you. Some gold IRA companies also refer to stocks and bonds as “paper stocks” and state that they are a single asset class.
You can invest in gold ETFs that own physical gold, such as SPDR Gold Trust (GLD) or iShares Gold Trust (IAU). It uses Delaware Depository, a popular choice among gold IRA providers, to store customer assets such as gold coins and gold bars. With its diverse precious metals catalog, from gold bars to platinum coins, Birch Gold is aimed at a wide group of investors. A gold IRA is a product that is best for sophisticated investors with experience in precious metals investments.