Is Gold IRA Good Investment? Experts Answer 10 Common Questions


If want to try managing your retirement fund yourself, then a gold IRA is a good investment. However, you need to know what you are doing and understand the intricacies of gold IRA to maximize your returns and retire comfortably. 

The most important thing you need to know about gold and silver IRA is that it allows you to invest your savings in gold and other precious metals. You buy actual, physical gold, whether in the form of gold bars, gold bullion, or gold coin. You can also invest in gold-related paper assets or ETF.

Birch Gold Group and American Hartford Gold are popular brokers specializing in precious metals IRA. You’ll need to find a custodian like them to store your gold assets. Augusta Precious Metal, Regal Asset, and Noble Gold also have good track records and have been in the business for a long time. 

What is the Safest Place to Keep Gold?

The safest place to store your precious metal IRA is at an IRS-approved depository. As mentioned above, you will need to find a custodian who will store the American bullion you bought. This isn’t just for safety, it is also the law. Individuals are not allowed by the IRS to store physical gold assets. 

These custodians charge storage fees, IRA account set-up fees, and others, so before making the jump and doing a gold IRA rollover, make sure that you’ve already decided on which broker to go with. 

Some reliable companies that offer gold IRA include:

  • Oxford Gold Group

  • Lear Capital

  • Patriot Gold Group

  • Rosland Capital

  • Equity Trust

  • Advantage Gold

Which Gold IRA Company is Best?

The best gold IRA company is the one you resonate with. Any of the companies mentioned above are reliable and established. At the end of the day, you must make your decision based on how open they are to answer questions, and how knowledgeable they are about precious metal IRA and the gold IRA you will choose. It is also helpful to have a supportive IRA account executive handling your portfolio. 

Don’t underestimate the value of a good client-account executive relationship. If you are dealing with your retirement, it helps to work with people who don’t treat you like you’re just a number and a contract. Having rapport with the person handling your IRA account means that you can ask for financial advice about your gold IRA investment. If you have Noble Gold investments, make sure to really get to know the people handling your account. 

When you start looking around for an IRA custodian, remember to ask as many questions as you can. List down some questions in advance, listen carefully to the account executives’ answers, and most importantly, take your time. 

Has Gold Been a Good Investment Over the Long Term?

Gold has been an excellent long-term investment, but it has not outperformed the stock market or mutual funds. Except for a few years in the 2000s, gold has generally moved sideways, with plenty of short-term price surges. Because of the nature of the precious metal, a permanent bull market is not possible. In fact, historically, a precious metals IRA is prone to very long bear market phases. 

For the most part, however, gold is still a valuable investment. In the 1960s and 1970s, the price of gold was under $100. In 2022, it’s $1858. It even bucked the trend, or went opposite of, the US dollar’s strength. In the last ten years, gold has almost doubled in value, whereas the stock market and mutual funds have, on average, a 14% return. 

On the other hand, what makes buying gold so appealing is also what makes it risky. The global supply and demand fuels the price shifts in gold. This means no one can really forecast the prices of this precious metal. It might have been a bull market in the past ten years, but that can quickly shift to the bear market of the 60s and 70s. 

Despite the peaks and troughs, a gold investment has proven to be is an excellent tool to hedge against inflation. If you use gold to balance your portfolio, you can maintain your retirement funds through stock market fluctuations and recessions.

What is the Best Type of Gold to Invest In? Physical Gold vs ETF

Buying ETFs is the smartest way to hedge against the effects of inflation on your retirement account, sources say. However, a better understanding of the pros and cons of each type of gold will help you make your own informed decision.

Exchange-Traded Fund (ETF)

An exchange-traded fund allows you to buy gold stocks. It’s pretty much the same as buying it from the stock market. However, instead of actually owning the physical gold, you buy into  mutual funds that echo gold’s price in the real world.

Every unit of gold ETF is one gram of actual gold. It is very rare, though, that you can exchange ETFs for actual metal because there aren’t any custodians or brokers who allow such transactions. 

Think of ETFs as a way to invest and profit off of gold’s value without having to pay the custodian any maintenance, storage, and security fees. These assets are more flexible and fluid, too. Physical gold is very involved and the process of selling, trading, and transporting it is much more difficult. ETFs are sold and traded as normal stocks, and all you need is a computer to complete the transaction.

Some fees related to owning and trading ETFs include an annual charge that covers administrative management and a commission every time you sell. If you are using a broker to trade, then it is likely that you will also pay a broker’s fee. 

ETFs have comparable returns and risks as gold bullion and a minimal difference in value. Gold-related paper assets, in a way, represent the gold that exists in real life. Therefore, the “purity” of these assets is top-notch and their condition is always perfect. 

Lastly, ETFs can be bought in smaller denominations, the smallest of which is one gram or one unit. It’s a great way to get exposure to the market without risking too much of your retirement account. 

Physical Gold

The biggest benefit to actual gold is that you have complete control over when to sell your assets. The value of gold changes slowly over time, so there is no need to trade as often as ETFs to avoid losses. If you don’t really want to follow stock market trends, and you just want a reliable placeholder for your retirement fund, physical gold is the way to go.

Investors feel a lot more financial assurance with physical precious metals. It’s tangible and it’s tucked away in a safe space. In a way, it stays safe compared to stocks that are open to potential risks and threats. 

On the other hand, real gold is expensive to maintain and is slow to move, sell, and trade. If you need money right away, you can’t rely on it to sell quickly. The biggest downside, though, is the fact that it does not grow or earn dividends. You must not consider gold as something that will dramatically increase your retirement account. It should only be used as a tool to hedge inflation.

What is the Benefit of a Gold IRA?

Gold IRAs serve as a hedge against stock market fluctuations, especially in the 10 years after the COVID-19 pandemic. They protect investors from macroeconomic pressures including geopolitical issues. Lastly, investing in gold IRAs now is a good way to prepare for surges in demand for gold in the future. 

The years after the COVID-19 pandemic will prove to be challenging for global economies. While it is well-established that gold can be used as a hedge to protect against inflation, it is especially important to consider buying gold now because analysts are forecasting a recession and possibly a correction or a bear market in the next 10 years. 

Macroeconomic pressures from countries at war, for example, can derail economies and cause a surge in gold prices. The current political and economic stand-off that Russia and Ukraine are having, and the stance that the United States has on it, has influenced economic sentiment and is currently pushing the prices of gold up. 

In terms of future demand for the precious metal, industrial analysts predict an increase in demand in the next 10 years. It is said that industries like aerospace and satellite technology, medicine, and telecommunications will use more gold in the next decade. 

What is the Smartest Way to Invest in Gold? Traditional vs Roth IRA

Experts recommend a Roth IRA because all the taxes are paid upfront and your money will grow tax-free. You are also allowed to make tax and penalty-free withdrawals until retirement. A traditional IRA, on the other hand, will not require you to pay tax upfront, but your earnings will be tax-deferred. This means that you will be taxed later when you start making withdrawals. You will have to pay income tax on your earnings from a traditional IRA and you also get charged for your withdrawals.

Simplified Employee Pension (SEP) IRA

A SEP IRA is a cross between a traditional IRA and a 401(k) that is accessible only to employers or self-employed individuals. Think of it as a “simple IRA” that is designed specifically for business owners. These IRAs have higher annual contribution limits. If you have a SEP IRA, you can roll over some of the funds to a gold IRA account, too.

What is a Gold Rollover and How Does It Work?

A gold rollover is simply the transfer of retirement funds from one IRA to a gold IRA. If you have a SEP or traditional IRA, or Roth IRA, and you want to transfer some of the money to a gold IRA, you can “roll over” the funds by simply filling out a form. The gold IRA will be funded within 24-48 hours. 

When investing for retirement, it is always good to diversify. You might be a little anxious about making your investments “smaller” because they’re broken up into smaller retirement accounts. However, this is the smartest way to ensure that you maximize your funds because it’s virtually impossible to lose all your investments if they are diversified enough. 

Gold Bullion or Gold Coins? Which One Should You Buy?

You can buy gold bullion or gold coin and it will still be the best gold IRA because physical gold is always a good idea to have in your retirement portfolio.  

It is important to note that there is renewed interest in gold from central banks all over the world. There was an 82% rise in gold purchases in 2021. According to the IMF, global reserves are at a 30-year high and the demand can go higher in the following decade. The biggest buyers of gold include India, Thailand, Hungary, Uzbekistan, and Kazakhstan, indicating that even smaller economies are seeing the potential of gold in the future. 

The trends seem to indicate that gold will remain a safe haven in the next decade. Buying gold, whether in bullion or coin form, are likely to give you good returns.

Unsure Whether Gold IRAs are for You?

You don’t lose anything by investing in gold IRAs. In the long term, it will be a sound investment for your portfolio. The gold market is currently experiencing all-time highs because several geopolitical issues have prompted investors to seek a safe haven for their money. 

You’ve read this before, but it must be said again: gold is a hedge against inflation because generally, gold keeps its value when fiat currencies decline. True, it becomes less attractive when interest rates go up, since it does not earn interest or dividends. However, a closer look at gold value trends prior to 2000 shows that gold value increases at the same time as interest rates. 

An interesting study about the stability of gold’s value is the way macroeconomics influenced its prices. The gold market is under a lot of pressure because the US Federal Reserve, the Bank of England, and the European Central Bank have increased rates aggressively in 2022. They have also announced more rate increases into 2023. However, gold’s prices are still quite high, as the conflict between Russia and Ukraine has made investors cautious about the stock market. 

At the end of the day, gold may not be a perfect, risk-free investment, but it is strong and stable enough to earn a spot in your portfolio.

Don’t Invest in Gold if…

If you see yourself needing the money soon, or if your situation requires you to have ready cash all the time, investing in gold is not for you. While the general trend of gold is predicted to go upward in the next 10 years, it shifts in price on a daily basis. If you need access to ready funds, you might end up selling gold at a loss.

A good gold-related option for you is to invest in ETFs. These assets can be liquidated much more easily than actual gold. While you are still subject to fluctuating prices, you won’t have to deal with the complicated paperwork that is required to sell, transfer, and turn over physical assets. You also pay less for withdrawal, brokerage, and security. 

Another factor that you need to consider is when you will retire. Since gold is currently at an all-time high, buying gold right now means that your dollars will buy less of the precious metal. This, in turn, means that you have to wait longer before gold prices surge again before seeing a profit. 

For example, let’s say you bought an ounce of gold right now for $1800. Since the market is still going strong, you might see short-term gains until 2027. After, when the market correction hits, or when it enters a bear phase, the value of the precious metal might decline to $1500. If you will retire in 2032, you will be taking a loss. However, if you will retire much later, when the market has re-adjusted, you will definitely reap the rewards. 

Aside from this, you also need to look at your portfolio and see how balanced it is. If you have invested in very high-risk stocks, or if you are into cryptocurrency, those risks might not be mitigated simply because you also have precious metal IRAs. Proper research is the key to deciding whether or not gold is a good investment for you. 



Retiring in the next 5 years


Gold is >15% of total portfolio


Need accessible funds


Investing for wealth creation


Final Thoughts: Which Gold IRA Company is Right for You?

Several companies including Patriot Gold and Birch Gold Group can be the best IRA company for you if you are armed with the right knowledge about precious metal IRAs. Just remember to ask as many questions as you can, understand the numbers, and take your time deciding which company you will entrust your gold to. Lastly, experts recommend investing only 10-15% of your funds into gold IRAs. If you have a higher risk appetite, 30% maximum. Investing more will increase your potential losses exponentially without really adding that much value to the entire portfolio.

About the author 

Emillene Torres

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