What is IRA Eligible Gold?

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Contributor, Benzinga
November 18, 2022

Inflation and geopolitical uncertainty have prompted many investors to include gold in their retirement savings. The Internal Revenue Service (IRS) has approved certain gold coins to be included in an individual retirement account (IRA).

In this guide, Benzinga details the specific assets that you can hold in a gold IRA and reviews the best companies to use for investing in gold. Investors will also learn about how gold is stored in an IRA.

What is IRA Eligible Gold?

The IRS has approved only certain gold coins, bullions, bars and rounds that meet specific requirements. Eligible coins are 99.5% pure. The proof coins must be in mint condition, encapsulated and include an authenticity certificate.

Non-proof coins have to be in brilliant, uncirculated condition. The American Eagle gold coin is only 91.67% pure, but IRS’s exemption made it eligible for a gold IRA. Some of the eligible coins are the Australian Kangaroo, Austrian Philharmonic and Canadian Maple Leaf gold coins. 

Bars and rounds also need to be 99.5% pure. They have to be produced by an accredited institution or a national government mint and meet specified requirements. Small bullion bars have to meet certain weight specifications. 

Why Invest in IRA Eligible Gold?

Investing in gold can make your retirement more comfortable in several ways. 

Tax Benefits

Having gold in your IRA enables you to take advantage of tax treatments offered to standard IRA investors. A gold IRA enables you to make tax-deductible contributions. Or you can enjoy tax-free withdrawals in retirement, as Roth account holders do.

Inflation Hedge

Gold has an inverse relationship with the dollar. When the dollar’s value decreases, gold’s price usually increases. During economic hardships, many investors buy gold as they believe it to be a safe haven from inflation.

At the start of the Russian-Ukrainian conflict, the demand for gold increased significantly. It resulted in gold retesting its all-time high price of $2,070.

Diversification

Portfolios that perform the best are well-diversified. Adding gold to your retirement savings reduces risk because gold’s profits may offset losses of other assets. When equities fall, many investors exit the stock market and buy gold.

Control

Investing in a gold IRA is administered through a custodian. But since this investment is a self-directed account, you instruct the custodian when to buy specific assets and when to sell.

The Best Gold IRA Companies

Benzinga found companies that make investing in a gold IRA convenient and affordable.

1. Advantage Gold

Advantage Gold simplifies the investing process with consultants who educate you about the options most suitable for your investment goals. You can buy 13 gold IRA-approved coins from this dealer and request that the consultant handles the rollover or transfer from your existing IRA account.

Advantage Gold stores your precious metals at the Delaware Depository or Brink’s Global Services. It offers a buyback policy that pays either a spot price or the fair value of your gold. You can also liquidate your gold IRA account by taking possession of the gold or cash.

 You can choose the custodian, but Advantage Gold recommends STRATA Trust Company.

2. Augusta Precious Metals

Augusta has proved that it offers great service, which is confirmed by thousands of five-star reviews from customers. Customers have access to consultants and a free library consisting of a wealth of information about gold investing.

You can choose from several private facilities to store your gold, and Augusta offers free shipping and liability insurance for qualifying purchases. Your precious metals are covered by an all-risk insurance policy while in storage.

Although Augusta doesn’t guarantee buybacks, it claims that it has never denied a request.  

3. American Hartford Gold

American Hartford Gold is the number one ranked gold company by Inc. 5000. It offers a 100% customer satisfaction guarantee and a buyback commitment.

Tracking the value of your gold IRA is available via monthly statements sent to you or by contacting an account executive. American Hartford Gold has developed real-time charts for you to view your portfolio online.

American Hartford Gold doesn’t charge shipping but includes free insurance and tracking. A minimum contribution amount isn’t applicable. Storage of your precious metals is at your preferred approved depository.

4. Lear Capital

  • securely through Lear Capital's website
    securely through Lear Capital's website
    Best For:
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Lear Capital provides investors with free storage for the first year if the initial investment exceeds $25,000. The first two years are free for investments above $50,000, and three-year storage is free for invoices above $75,000.

Other benefits that Lear Capital offers are a price-match guarantee and a 24-hour risk-free purchase guarantee. If you can find a better offer within 24 hours of receiving an invoice, Lear Capital will match or beat it. You also have one day to reconsider the purchase and cancel it without incurring any fees.

Investors who don’t qualify for free storage pay $280 for the first year and $200 annually thereafter. That includes insurance, financial statements and online account access.

5. Red Rock Secured

Red Rock Secure minimizes your investment risk in several ways. It offers free shipping to a storage facility and price protection, which entitles you to a payment from this dealer for the difference in value if your gold’s price decreases.

Investors who prefer a broad gold coin selection can buy coins such as the Gold Rose Crown Guinea and the Gold Canadian Arctic Fox from this dealer.

How to Store IRA Eligible Gold

A self-directed IRA (SDIRA) account enables you to choose the gold to include in your retirement savings. Your custodian administers the purchase and then ships your physical precious metals to a depository.

An insurance liability accompanies the in-transit gold to ensure its safety. The depository stores your gold in a vault and covers it with a policy against all risks. You can access your gold in person or track it via an online account.

Frequently Asked Questions

Q

What is the benefit of a gold IRA?

A

Gold enables you to diversify your retirement savings to offset losses in other assets with which it has an inverse price relationship. It has also proven to be an inflation hedge.

Q

Can you have physical gold in your IRA?

A

A standard IRA prohibits assets such as gold. However, individuals can open a gold IRA to hold physical gold as part of their retirement savings.

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About Goran Radanovic

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