How to Buy Gold with Gold IRAs

The fact remains that everyone looks forward to a retirement free of stress. In order to achieve this, adequate preparation is required. For most people this means saving and investing in multiple money making opportunities.

One of such numerous opportunities is IRAs. It is quite similar to the regular 401k provided at most jobs but better. It’s more flexible and gives more control to the investor. If you are someone making plans towards retirement then you must have heard about IRAs.

There are so many aspects to cover on this topic but in this article, you will be reading about gold IRAs. As the name implies gold purchase is involved and can be done with ease. You can learn how to buy gold online and make a great use of this opportunity.

What is a Gold IRA

A Gold IRA can be categorized under the self-directed individual retirement account (SDIRA). Unlike a regular IRA, it lets you hold gold bullions and other related assets like stocks of a gold mining company or exchange traded funds.

Like conventional IRAs, when it comes to tax benefits and withdrawal rules, they are quite similar. However, because of the complicated nature of the assets this account holds, IRS upgraded their tax reporting and record keeping requirements for SDIRAs.

Forms of Gold that can be Held in a Gold IRA

Not all forms of gold can be held in a Gold IRA. There are strict rules followed by the IRS regarding the type that you can own. These restrictions are: 

  1. You can only buy gold bars with at least 99.5% purity
  2. You are also restricted to buying certain gold coins like the American Buffalo, Canadian Maple Leaf, Australian Gold Nugget etc.


How to Start Investing in Gold IRAs

If you are planning to make an investment, here are few steps to note during your investment process. You can also watch this video to learn more about Investing in Precious Metals with a Self-Directed IRA:

  • Choose a company to work with

The first step you need to take during your investment process is choosing a company to work with. You have to do proper research on different companies and understand each of their terms and conditions in order to find the best fit for you.

Any company of your choosing will have to provide you with the necessary assistance to start your account, funds transfer, purchase of the metals of your choice, and shipping of the purchased metal to an approved depository for storage.

Sometimes, the company can also act as the custodian for your account. This means they will handle the necessary paperwork and IRS compliance for your IRA as well. In other cases you get to be the custodian or choose one yourself.

These days, Gold has become quite a popular investment and there are numerous companies to work with as well. Each one of them has their unique services, fees and customer care. Therefore, it is important to choose carefully to make sure that you get the best deal at the best price possible.

  • Start funding your account

This is the next step for you once you create your account. Before you can begin to make purchases and investments in heavy metals, your account need to be funded. There are three available options you can consider for your account; they are:

  • Cash contribution 

This option allows you to fund your account through cash, cheque or wire transfer. It is quite similar to a typical savings or investment account. You have to keep in mind that using the wire transfer attracts a fee.

  • Rollovers

Rollovers are used in a situation where you want to take a distribution from an existing retirement account and into your gold IRA. To successfully use this method, you need to contact the administration of your current account for instructions to follow while they initiate the transaction.

Another method is to obtain cash distribution from your existing retirement account then deposit it into your IRA. It is important to do this within 60 days in order to avoid paying a 10% penalty.

  • Transfers

This method involves a direct account-to-account transfer. In this process you will usually fill out a form with the administrator of your existing account, you can also have the custodian of your gold IRA reach out to them on your behalf.

This transfer method can take up to five days, it is also has no penalty and is tax free. Most investors would choose this method because it minimizes stress and has no penalty.

  • Make your metal selection

When you get to this point, it means your account has been successfully created and funded. You can then start the process of purchasing your precious metal. You also have to keep in mind that the IRS has restrictions on the type and purity of gold to be held in your IRA.

Therefore, you need to pay attention to what you buy. You can check out to know more about the IRA accepted metal list.

  • Monitor the performance of your investment

Some companies have offline dashboards available for you to monitor the performance of your investments while others don’t. Your custodian should also be able to give you access to insights and updates about your IRA’s performance.


If you are looking to diversify your investment portfolio, protect your finances against inflation, or prepare for your retirement, starting a Gold IRA is a good option for you to consider. You do not need to rush; you should take your time and weigh your options.

There are a lot of companies and their services can vary greatly. You should therefore compare your options as choosing the best company for your investment goals can have a lot of impact on your investment process.

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