A gold IRA is an individual retirement account (IRA) that invests in physical gold rather than stocks, bonds or other assets. Gold IRAs are typically offered by self-directed IRA custodians and brokerage firms.
In addition to the traditional IRA options of stocks, bonds and mutual funds, investors can now add precious metals like gold or silver to their retirement portfolios. The idea is that these metals will protect against inflation and help preserve the value of your retirement savings over time.
How Does It Work?
When you open a gold IRA, you’ll be able to buy bullion bars directly from the custodian or through a broker. You can then store your metal at the depository or have it shipped to you directly. Some companies charge storage fees for this service while others offer it free of charge.
The metal is typically stored in a secure vault, often located on the premises of the custodian or depository. This means that it’s not just sitting in your home or office, which could be vulnerable to theft or other threats. Once you decide which company to go with for your gold IRA, you can start buying bullion bars and coins from them directly.
How To Choose The Best Gold IRA Company?
There are many factors to consider when choosing a gold IRA company. You should start by looking for one that has been around for at least couple of years and has a good track record of customer satisfaction. You’ll also want to make sure that your chosen provider is insured, licensed, and regulated by either the U.S. Securities and Exchange Commission (SEC) or another government entity such as the Commodity Futures Trading Commission (CFTC). When selecting an IRA custodian, ask about their policies regarding storage fees and other costs associated with buying gold bullion from them.
Another important consideration is how you want to invest in gold. Do you want to buy the physical metal or do you prefer a derivative such as ETFs or futures? You should also take into account the costs of storage and insurance when comparing different IRA companies.
