Buy Gold with IRA: A How to Guide for 2022

Written By Colin Kuehn  |  Gold 

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If you’re looking for a safe and reliable way to invest your money, you may want to consider buying gold with your IRA.

Gold is a valuable commodity that has been used as a form of currency for centuries.

It is a great investment option because it is not tied to the performance of the stock market, and it is considered a “safe haven” asset during times of economic volatility.

In this article, we will discuss the basics of buying gold with your IRA, including the process, benefits, and any potential downsides.

We will also provide some helpful tips to make sure you are getting the most out of your investment.

So, if you’re ready to learn more about how to buy gold with your IRA, keep reading!

Types of IRAs

The first thing you need to know is that there are two types of IRAs: traditional and Roth.

A traditional IRA allows you to deduct your contributions from your taxes, while a Roth IRA does not.

However, both types of IRAs allow you to invest in gold.

The Process for Buying Gold with Your IRA

The process of buying gold with your IRA is relatively simple, and with most companies, it follows a simple, 3-Step Process:

  1. Pick a Trusted Dealer in the Precious Metals IRA Space
  2. Fund Your Account – Rollover Exiting IRA or Start a New One
  3. Buy Gold or Silver

You will first need to open an account with a broker or dealer that offers this type of investment.

Be sure to do your research to find a reputable and trustworthy company.

Once you have opened an account, you will need to fund it with cash or rollover funds from an existing IRA.

Once your account is funded, you can then begin buying gold, silver, and/or other precious. metals. Most companies will allow you to purchase gold bullion, coins, or bars.

You may also be able to invest in gold mining stocks or mutual funds that hold physical gold.

Recommended Companies for Buying Gold with Your IRA

We work with some of the precious metals IRA companies here at JamesMadisonProject.com, and you can find more detailed reviews for most of the top names in the industry.

If you’re looking for a good starting point, here’s our current Top 3 to help get you started:

  1. Goldco
  2. Augusta Precious Metals
  3. Noble Gold

1. Goldco

Goldco is a top pick if you’re looking for a reputable dealer that offers many great investment options, friendly and knowledgeable staff, and top ratings with agencies like the Better Business Bureau.

Here are just a few of the reasons Goldco tops our list:

  1. A+ Rating from BBB
  2. IRA-Approved Gold, Silver, Platinum, and Palladium
  3. Free Storage and Shipping on Most Orders
  4. Automatic Purchases with ACH or Checkbook IRA
  5. Lowest Fees in the Industry

Read our full review of Goldco here, or get their free IRA investing kit below:

2. Augusta Precious Metals

Augusta Precious Metals is another excellent choice when it comes to buying gold with your IRA.

They offer a wide range of investment options and have an A+ rating with the Better Business Bureau.

Here are some other reasons Augusta made our Top Three:

  • A+ Rating from BB
  • Full Selection of Precious Metals for IRAs
  • Free Shipping on All Orders
  • Lowest Fees in the Industry
  • BBB-Accredited Business
  • No High Pressure Sales Tactics

You can read our full review of Augusta Precious Metals here or get their free IRA investing kit below:

3. Noble Gold Investments

Noble Gold is a great choice for those looking for a company with a wide range of investment options and excellent customer service.

They offer many different types of gold, silver, and platinum products, and have an A rating with the Better Business Bureau.

Some other reasons Noble Gold is one of our top picks include:

  • A Rating from BBB
  • Free Storage and Shipping on Most Orders
  • Precious Metals IRA Experts Lowest Fees in the Industry

Benefits of Buying Gold with Your IRA

There are many pros and cons to Gold IRAs, but let’s start with the benefits:

  • Safe Haven Asset

First, as we mentioned earlier, gold is a safe haven asset that can protect your portfolio from market volatility.

Gold has also historically outperformed other asset classes over the long term.

For example, from 2000-2010, gold prices rose by an average of 12% per year while the stock market lost an average of 0.

  • Peace of Mind

Additionally, holding physical gold in your IRA can provide peace of mind and security knowing that you have some assets that are not subject to paper currency fluctuations or governments defaulting on debt obligations.

  • Diversify Your Portfolio

Another benefit of investing in gold is that it can act as a diversification tool.

By adding gold to your portfolio, you can help reduce overall portfolio risk and improve returns.

  • Tax Benefits

And finally, if you have a traditional IRA, you may be able to deduct your gold investment from your taxes.

Potential Downsides of Buying Gold with Your IRA

While there are many benefits to buying gold with your IRA, there are also some potential downsides that you should be aware of.

  • Storage

First, there is the issue of storage.

If you choose to invest in physical gold, you will need to find a place to store it where it will be safe and secure.

Many people choose to store their gold in a safety deposit box at their bank, but this may not be the best option for everyone.

  • Volatility 

Another downside to consider is that gold can be a volatile investment. While it has outperformed other asset classes over the long term, there will be periods where it underperforms.

For example, from 2011-2015, gold prices fell by an average of 11% per year.

So, if you’re thinking about investing in gold, you need to be prepared for the possibility of short-term losses.

However, if you’re investing for the long-term, these fluctuations shouldn’t deter you from adding gold to your portfolio.

Tips for Buying Gold with Your IRA

Now that you know the ins and outs of buying gold with your IRA, here are a few tips to help you get started:

  • Start with a small investment

You don’t need to invest your entire IRA in gold.

In fact, it’s generally advisable to diversify your portfolio by investing in a variety of assets.

So, if this is your first time investing in gold, start with a small percentage of your overall portfolio.

You can always add more later if you feel comfortable doing so.

  • Consider Storage

Don’t forget about storage: As we mentioned earlier, if you’re investing in physical gold, you will need to find a safe place to store it.

Many people choose to store their gold in a safety deposit box at their bank, but this may not be the best option for everyone.

So, be sure to do your research and find a storage solution that works best for you.

  • Consider a gold ETF

If you’re not interested in storing physical gold, you may want to consider investing in a gold exchange-traded fund (ETF).

Gold ETFs are a type of investment that tracks the price of gold.

So, if you invest in a gold ETF, you’ll be able to get exposure to the gold market without having to worry about storage or security.

Just be sure to do your research before investing in any ETF.

The Bottom Line

Investing in gold can be a great way to diversify your portfolio and protect yourself from market volatility.

However, there are some potential downsides to consider before making any investment decisions.

Be sure to do your research and consult with a financial advisor to make sure investing in gold is right for you.

With these tips in mind, you should be well on your way to adding gold to your IRA.

If you would like to connect with our current top-rated company, then we recommend starting with Goldco: