Self Directed Gold IRAs: Fees, Benefits, & Top Custodians

Written By Colin Kuehn  |  Gold 

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Precious metals IRAs are becoming increasingly popular in today’s investing environment. There are a few reasons for this, but chief among them is the current inflationary environment.

Self-directed gold IRAs offer investors the ability to protect their retirement savings from inflation by investing in physical gold and other precious metals.

In this article, we will take a complete look at self-directed gold IRAs. We will discuss what they are, how they work, and some of the key benefits that they offer investors.

By the end, you should have a complete understanding of whether or not a self-directed gold IRA is right for you.

What is a Self-Directed Gold IRA?

A self-directed gold IRA is a retirement account that allows you to invest in physical gold and other precious metals.

With a self-directed gold IRA, you have complete control over your investment choices. You can choose to invest in gold bullion, coins, or even mining stocks.

Gold IRA Benefits

a chart showing the growth of money over time

The main benefit of a self-directed gold IRA is the ability to protect your retirement savings from inflation. Historically, gold has been considered to be a very effective hedge against inflation, meaning it tends to go up in value as the cost of living increases.

Over the long term, this can help you maintain the purchasing power of your retirement savings.

Another benefit of self-directed gold IRAs is the increased diversification that they offer. By including gold and other precious metals in your retirement portfolio, you can potentially reduce your overall risk and improve your long-term returns.

How Does a Gold IRA Work?

A self-directed gold IRA works just like a traditional IRA, with a few key differences.

With a traditional IRA, you are limited to investing in stocks, bonds, and mutual funds. With a self-directed IRA, you can invest in a much wider range of assets, including physical gold and other precious metals.

To open a self-directed gold IRA, you simply need to find a custodian that offers this type of account. Once you have found a custodian, you will then fund your account and begin making investments.

One of the key things to understand about self-directed gold IRAs is that you are responsible for making all investment decisions. This means that you need to do your own research and carefully consider all of your options before making any investments.

While self-directed IRAs offer a lot of flexibility, they also come with some additional responsibilities.

What Are the Risks of Investing in Gold?

Like any investment, there are risks involved with investing in gold. The price of gold can be volatile, and it can go up or down over time.

However, gold has tended to hold its value better than other investments over the long term, which makes it an attractive option for many investors.

Another risk to consider is the possibility of theft. If you choose to invest in physical gold, you will need to store it somewhere safe. This can add some additional costs and complexity to your investment.

Finally, it’s important to remember that self-directed IRAs are not for everyone. If you’re not comfortable making your own investment decisions, a self-directed IRA may not be the right choice for you.

How to Get Started with a Self-Directed Gold IRA

two people shake hands after completing a deal

If you’re interested in opening a self-directed gold IRA, there are a few things you need to do.

First, you need to find a custodian that offers this type of account. Not all custodians offer self-directed IRAs, so you may need to shop around to find one that does.

Once you’ve found a custodian, you’ll need to open and fund your account. You can do this by transferring money from another IRA or 401(k), or by making a direct contribution.

Finally, you’ll need to make your investment choices. Remember, with a self-directed IRA, you’re in complete control of your investments. This means that you’ll need to do your own research and carefully consider all of your options before making any decisions.

If you’re not sure where to start, there are plenty of resources available to help you learn more about self-directed gold IRAs.

Recommended Self-Directed Gold IRA Custodians

Choosing the right custodian is an important decision, and there are several factors to consider. We recommend doing your own research to find the custodian that best meets your needs.

When it comes to self-directed gold IRAs, Goldco, Augusta Precious Metals, and Noble Gold are three of the most reputable custodians in the industry. All three offer a wide range of precious metals products, and they all have experience in the industry.

Goldco and Augusta both have A+ ratings from the Better Business Bureau, and Noble Gold is a full-service precious metals dealer.

All three companies offer IRA accounts, but only Augusta and Noble Gold offer non-IRA accounts.

Augusta Precious Metals is one of the few companies that offer IRA-eligible platinum and palladium products.

Goldco (read review), Augusta Precious Metals, and Noble Gold all have some complaints about customer service, but overall they are three of the most reputable custodians in the self-directed gold IRA industry.

Goldco

  • One of the largest precious metals dealers in the U.S.
  • Offers a wide range of gold and silver coins and bars
  • Has an A+ rating from the Better Business Bureau

Pros

  • Large selection of gold and silver products
  • BBB accredited business with an A+ rating

Cons

  • Some complaints about customer service

Augusta Precious Metals

  • Augusta Precious Metals has over 20 years of experience in the precious metals industry
  • Offers a wide range of gold, silver, platinum, and palladium products
  • They are one of the few companies that offer IRA-eligible platinum and palladium products

Pros

  • Wide selection of precious metals
  • Experience in the industry
  • Offers IRA-eligible platinum and palladium products

Cons

  • Some complaints about customer service

Noble Gold

  • Noble Gold is a full-service precious metals dealer
  • They offer a wide range of gold, silver, and platinum products
  • They offer both IRA accounts and non-IRA accounts

Pros

  • Full-service precious metals dealer
  • Wide range of products offered
  • Offers both IRA and non-IRA accounts

Cons

  • Some complaints about customer service

How Much Money Can You Put into a Gold IRA?

The amount of money you can contribute to a self-directed gold IRA depends on a few factors, including your income and the rules of the custodian you choose.

For example, if you’re under the age of 50, the maximum contribution limit for a traditional or Roth IRA is $6,000 per year. If you’re 50 or older, the limit is increased to $7,000 per year.

Self-directed IRAs have the same contribution limits as traditional and Roth IRAs. However, there are a few other things to keep in mind when it comes to self-directed gold IRAs.

First, you’ll need to choose a custodian for your account. Not all custodians allow self-directed gold IRAs, so you’ll need to do your research to find one that does.

The three custodians we mentioned above are good places to start.

Once you’ve found a custodian, you’ll need to open an account with them and fund it. The amount of money you can contribute to your self-directed gold IRA will depend on the custodian’s rules.

For example, Goldco requires a minimum investment of $5,000 for self-directed IRA accounts. Augusta Precious Metals has a $10,000 minimum investment requirement for self-directed IRAs.

And Noble Gold requires a $2,500 minimum investment for self-directed IRA accounts.

So, as you can see, the amount of money you can contribute to a self-directed gold IRA will vary depending on the custodian you choose.

Self-Directed Gold IRA Fees

There are a few fees you may incur when opening and maintaining a self-directed gold IRA.

The first fee is the set-up fee, which is charged by the custodian you choose to open your account with. This fee is usually around $50.

The second fee is the annual maintenance fee, which is also charged by the custodian. This fee covers the costs of storing and insuring your precious metals. It’s typically around $100 per year.

And finally, there’s the buy/sell spread, which is the difference between the price you pay for precious metals and the price you sell them for.

The size of the spread will vary depending on the dealer you’re working with.

So, as you can see, there are a few fees you may incur when opening and maintaining a self-directed gold IRA. However, these fees are typically very reasonable.

Summary

A self-directed gold IRA is a great way to invest in precious metals and diversify your portfolio. However, there are a few things you need to keep in mind before you get started.

Make sure you choose a reputable custodian and open an account with them. Also, be aware of the minimum investment requirements and contribution limits.

By following these simple tips, you’ll be well on your way to investing in gold through a self-directed IRA.