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A gold IRA (Individual Retirement Account) is a type of investment account that allows you to hold physical gold, silver, or other precious metals as an investment in a tax-advantageous account. But like any investment, there are potential benefits and risks to consider when deciding whether to invest in a gold IRA.

In this post, we’ll present gold IRA pros and cons to help you figure out whether a gold IRA is a good investment to help protect your retirement savings account.

Important Notice!
Before we go more in-depth on this topic, we know that choosing a precious metals IRA company is an important financial decision that can impact your financial future for years to come.

Our goal is to provide you with the most accurate and reliable information to help you identify the best option to grow and protect your wealth today.

With careful and extensive research, we have reviewed and rated the 6 best precious metals IRA companies of 2023 to help make your decision easier!

>>See our list of the 6 top precious metals IRA companies (cash sales also available).

Gold IRA Pros And Cons

With no further delay, here are some pros and cons of a gold IRA to consider:

Gold IRA Pros

  • Provides an inflation hedge: Gold is typically seen as an inflation hedge because its price tends to rise in times of high inflation when the cost of living increases. So by including gold in your IRA, you can potentially reduce the overall risk of your investment portfolio. In other words, gold is a physical asset that’s not subject to the same economic forces as paper assets, such as stocks and bonds.
  • Diversification: Gold can be an effective diversifier for any investment portfolio because it has a low correlation with other asset classes. This means that the price of gold generally moves independently of other assets, which can help to reduce the overall volatility of a portfolio.
  • Protection: Gold can help you limit exposure to economic uncertainty and mitigate the effects of geopolitical instability.
  • Liquidity: Fortunately, gold is a highly liquid asset and is easy to buy and sell on the market. Also, most reputable gold IRA companies offer buyback programs when you want to liquidate your metals. This makes it a convenient investment for those who need to access their money quickly.
  • Potential for growth and long-term appreciation: Gold offers good potential for long-term growth and appreciation. The global spot price of gold has risen significantly over the past 30 years, which shows it’s an asset class investors can rely on:30 Year History of Gold Price
    Besides, the precious metals market is also projected to hit $403.08 billion in 2021-2028 and shows a CAGR of 5.6%. This makes it an attractive investment for people who are looking to grow their wealth over the long term.
  • Safe haven asset: Gold is considered a safe haven asset because it’s perceived as a stable store of value in times of economic uncertainty. In part, this is due to the fact that gold has been used as a form of currency for thousands of years and will never be worth $0.
  • Gold demand is increasing: Many investors view gold as a long-term investment because gold is a finite resource, and demand for it will likely continue to increase as the global population grows. Also, Chinese economic growth is expected to improve next year, which will boost consumer gold demand.

Gold IRA Cons

  • Volatility: The price of gold can be volatile, and it may fluctuate in the short term. This means that the value of your gold IRA could go up or down in a short period of time.
  • Storage and insurance costs: If you hold physical gold in a gold IRA, you will need to arrange for storage and insurance (all set up by your gold IRA company) to protect your investment. This can add to the overall cost of your investment.
  • Potential for scams: There are many companies that claim to offer gold IRAs, but some of these may be fraudulent or operate in a way that is not in your best interest. It’s important to do your research and only work with reputable companies. Watch out for high-pressure sales tactics and claims that you can store your gold IRA at home (this is not allowed according to IRS regulations).

For more details, you can watch these informational videos on how to avoid gold IRA scams by Augusta Precious Metals:

Avoid Gold IRA Scams

>>> Or, request a FREE Gold IRA Guide to learn more about gold IRAs.

What Type Of Retirement Accounts Can Be Transferred Into A Gold IRA?

You can transfer any type of retirement account, including a Traditional IRA, Roth IRA, 401(k), or other pension plans, into a gold IRA as long as the account custodian or trustee allows it.

Here’s the complete list of transferrable retirement accounts:

  • Employer-sponsored 401(k)
  • Self-directed 401(k)
  • Traditional or Roth IRA.
  • TSP.
  • 403(b)
  • 457(b)
  • SEP IRA.

Now that you know what accounts can be transferred, let’s take a look at two different processes for transferring your funds into a gold IRA.

What Is A Gold IRA Rollover?

A gold IRA rollover is a term for an Individual Retirement Account (IRA) that is funded by moving funds from a 401(k), 403(b), TSP, or similar retirement account into an IRA.

This process allows an individual to invest a portion of their retirement savings into physical gold or other precious metals, as well as other investment vehicles such as real estate, stocks, bonds, or mutual funds.

When performing an IRA rollover, funds from existing tax-advantaged accounts can be rolled over into a new IRA tax-free.

Investors can even roll over funds from multiple retirement accounts into a single self-directed IRA, making it easier to consolidate and manage their retirement savings.

What Is A Gold IRA Transfer?

In a gold IRA transfer, the original custodian of the IRA transfers the funds directly to the new IRA custodian you designated to receive the funds. You basically never see the money yourself.

This is something you can do at any time with your existing IRA, as long as the assets go from custodian to custodian. Meaning that the distribution check from the old IRA custodian must be made out in the name of the trustee or custodian of the new IRA account that receives the funds.

Transfers may be made as often as you want.

>>> Request a FREE Gold IRA Guide to learn more about gold IRAs.

Gold IRA Rollover Or Transfer Process

To rollover or transfer your retirement account into a gold IRA, you will need to:

  • Choose a gold IRA custodian or trustee. This is a financial institution or company that specializes in administering self-directed IRAs and holds the physical gold or other precious metals on your behalf.
  • Open a gold IRA account. Once you have selected a custodian, you will need to open a gold IRA account and complete any necessary paperwork.
  • Transfer or roll over your funds. You can transfer your retirement funds to your new gold IRA account either through a direct transfer or by rolling over your funds from the old account.

It’s an easy and quick process that usually takes around 10 days to complete.

In summary, a gold IRA can be a good investment option for those looking to add diversification to their portfolio, protect against inflation and ride out a recession.

As with any investment, it’s important to do your due diligence and carefully consider your financial goals and risk tolerance before making a decision to invest in gold.

Best Gold IRA Companies

To help you identify the best option to protect and grow your wealth today, we have reviewed and rated the top 5 gold IRA companies in the industry.

We have rated each gold IRA company on a variety of factors including BBB/BCA ratings and complaints, customer reviews, annual fees, precious metals selection, storage options, promotions, and buy-back programs.

Choosing any of these gold IRA companies will ensure a safe investment where a gold IRA specialist will hold your hand and walk you through the whole process of setting up your gold IRA.


Company Reviews Annual Fees Investment Minimums (IRA) Preferred Custodian Free Gold Kit
Goldco: Best Overall Gold IRA Company Reviews $180 $20,000 Equity Trust
Reviews $0 $50,000 Equity Trust
Reviews $100 $10,000 Equity Trust
Reviews $180 $10,000 Equity Trust
Reviews $80 $2,000 Equity Trust

About the Author

Stina is an entrepreneur who's passionate about personal finance, investing, and digital marketing. She's been a writer in this space for over a decade.

Frequently Asked Questions & Answers

Is investing in precious metals a good idea?

We believe it is. Throughout history, gold and silver prices have moved in the opposite direction of paper assets and can, therefore, provide a good hedge against inflation. Past performance doesn’t guarantee future gains, but the numbers show that the weaker the dollar has become in the past, the better gold generally has performed. In fact, the relationship between gold and the dollar is often seen as an inverse one.

Why starting a gold IRA?

Traditional IRA accounts may not be enough to provide for you and your loved ones, post-retirement. Not if the economy remains as uncertain as it has looked recently.
For eons, investors have looked to gold to help them potentially offset losses due to economic turmoil. A gold IRA or precious metals IRA permits you to diversify a portion of your retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning physical gold (and silver) within a retirement plan. As a result, you can securely possess physical precious metals in a tax-deferred account.

Should I invest in physical gold, futures options (EFTs), gold mining stocks, or gold funds?

Indirect forms of investing in gold are much riskier than physical metal. You are relying on any third party individual or company to look after your wealth for you, and depending on the company’s success or failure, you risk losing your investment. With physical gold, you are in control of your wealth. Physical gold offers you that layer of protection and security which Gold Exchange Traded Funds (ETFs), gold mining stocks and funds do not.

When investing in a gold IRA, you will get the same tax benefits as a traditional IRA, while actually owning physical gold coins or gold bars.

Do my precious metals have to be bars or can they be coins?

While some coins can be included in precious metals IRAs, only certain coins are IRS approved for inclusion in IRAs. In fact, not all bars or bullion are IRS approved. The IRS maintains a list of acceptable forms of precious metals for IRAs. You can be certain that a reputable gold IRA company offers a variety of metals for IRAs within IRS guidelines.

Can I choose any custodian and storage company to store my metals?

Yes. While established gold IRA companies often recommend Equity Trust as their preferred custodian and Delaware Depository for storage, you can choose your own custodian and storage companies.

Can I store my precious metals at home?

Non-IRA precious metals, yes. Not metals for an actual IRA. IRS rules forbid keeping your IRA precious metals at home or in a standard safety security box. They must be held by an approved non-bank trustee or a bank within IRS guidelines that restricts access. In other words, just like a traditional IRA, the access to the precious metals in your precious metals IRA must be restricted in specific ways to ensure deposit and disbursement laws are followed.

Are the values of the precious metals I buy for my IRA guaranteed?

No. Like all investments, the future value of precious metals is not guaranteed and can rise or fall based on a variety of market influences. But we believe physical precious metals are your safest bet to hedge against a stock market crash, inflation, and the debasing of the dollar.

When will I be eligible for distributions from my gold IRA?

At age 59½, you or the beneficiary of your precious metals IRA can start taking penalty-free distributions from the account, according to the IRS.

How long does it take to rollover a traditional IRA into a gold or silver IRA?

Usually around two-three weeks, although each application is different and the amount of time varies on a case-by-case basis.

What is the advantage for customers to set up an IRA with a gold IRA company as opposed to going to the custodian and setting it up with them?

The customers will receive top-notch service and specialized account setup knowledge provided by the gold IRA company’s IRA Processing Department throughout the process from start to finish. They do 95% of the paperwork with them. Customers can feel safe knowing they will be kept up to date every step of the transfer process by daily calls or e-mails from the IRA Processing team with any gold IRA company listed on How To Invest Gold. These companies also often provide lifetime account support.

About How To Invest Gold

Our Mission

For over a decade, our mission has been to provide investors and retirees with all the information they need when it comes to precious metals and cryptocurrency investing.

Gold backed IRA - Goldco, Regal AssetsNot only do we provide a complete guide on the best ways to invest in precious metals, but we have also carefully vetted the best precious metals companies in the US to help you choose the best provider for your investment needs.

We believe that investing in precious metals and cryptocurrencies through your 401(k)/IRA is one of the best ways to invest in this asset class, due to the tax-saving component. A gold IRA or crypto IRA is the best way to protect your retirement account against an unstable market.

Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase. Learn more in our Terms of Service.

We are happy to answer all your questions

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