Gold IRAs vs. Physical Gold: Which Should You Choose?

OK, you’ve decided that you need to secure your portfolio with gold. 

The next step is to compare a Gold IRA vs. physical gold.

Which is better? Which suits your needs? 

We will dive into the methodology of each and educate you on the pros and cons of owning physical gold vs. establishing a Gold IRA. 

Gold IRA vs. Physical Gold 

Sometimes, it’s difficult to choose between two great options. 

Investing in a Gold IRA and investing in physical gold will ultimately yield the same result. You will own real, physical, tangible precious metals that you can hold in your hand.

You must consider several factors when deciding how you will acquire your gold, including:

  • Availability of funds
  • Storage options
  • Safety concerns
  • Long-term investment goals 
  • Tax consequences

An honest and thorough examination of these factors will lead you to the method that’s right for you. 

Gold IRAs 

The physical Gold IRA is for investors who want to own gold bars and coins in their individual retirement accounts.

A Gold IRA works just like the IRA you may already own, but it is self-directed. Self-directed IRAs enable you to own all of typical paper assets—stocks, bonds, treasuries, CDs, exchange-traded funds (ETFs)—as well as physical assets such as gold, silver, real estate, and investment properties. 

There are three types of Gold IRAs:

  • Traditional
  • Roth
  • Simplified Employee Pension (SEP)

If you already have one of these types of IRAs, you can transfer it, tax-free and penalty-free, into a Gold IRA. 

If you are 59 ½ and own a 401(k) or similar plan, or if you own a 401(k) from previous employment, you may also roll over that plan into a Gold IRA. The Gold IRA rollover process is also tax-free and penalty-free. 

Withdrawals are penalty-free after age 59 ½. For traditional and SEP plans, the IRS taxes withdrawals as ordinary income. Roth plans also allow tax-free withdrawals. 

The IRS has strict guidelines for IRA-eligible precious metals. Approved metals must meet the following standards:

  • Coins must be made by a government mint 
  • Bars must be made by approved assayers, refiners, and manufacturers
  • Metals must be 99.5% pure gold
  • Coins must be new, uncirculated, and in perfect physical condition
  • Proof coins must be in original packaging and include a certificate of authenticity

These rules help guarantee that IRA physical gold includes the finest gold coins and bars available. This helps ensure the long-term health of your investment.  

Like a typical IRA, a physical Gold IRA has fees. The list includes:

  • An administrative fee—usually $50 or so—to establish your account
  • A yearly fee—typically between $100 and $300—depending on the account’s investment options

Many investors find the fees nominal considering the services included:

  • All IRA administration, reporting, statements, and custodial aspects
  • Precious metals storage in the depository
  • Insurance on the metals

A reputable Gold IRA firm, such as Advantage Gold, can walk you through the process and start your Gold IRA. They can be an invaluably helpful resource during the lifetime of your precious metals ownership. 

Advantage Gold’s wealth of knowledge and ability to help you navigate Gold IRA nuances may prove to be a deciding factor when evaluating Gold IRA vs. physical gold. 

Physical Gold 

Investing in physical gold outside an IRA is fairly simple. 

You establish your budget and decide what gold coins and bars you want to own. After remitting payment for the gold, it is sent—fully insured—to your doorstep. If you purchase them from a storefront, the metals go home with you that day.

Although the process seems straightforward, there are other factors to consider, including:

  • The best place to purchase
  • What types of metals to purchase
  • The safe transport of your gold
  • The safe storage of your gold
  • Insurance
  • Identifying a marketplace when ready to sell
  • Figuring out tax implications upon selling

Whereas a Gold IRA accounts for these considerations as part of the package, the direct-delivery method leaves you on your own to decide each. 

For your own safety and peace of mind, work out all factors before purchasing your metals. Without a custodian ensuring the safekeeping of your investment, you must have a clear and concise plan. 

Can You Have Physical Gold in an IRA? 

You can have physical gold in a Gold IRA. You can have physical silver in a Silver IRA. Your precious metals IRA may also contain platinum and palladium.  

You can choose to own only IRA physical gold, or you can mix different metals into one account. Your Gold IRA is self-directed, which means you choose what you want. If gold is IRA-eligible, you can own it. 


Who Should Invest in a Gold IRA? 

You should invest in a Gold IRA if you want gold and you:

  • Already own an IRA or convertible 401(k)
  • Want to own a tangible asset in your retirement plan
  • Want a hedge against inflation
  • Fear a stock market correction or recession
  • Are looking for a safe haven to preserve purchasing power
  • Don’t want to be responsible for storing and insuring your gold
  • Want to own gold as a tax-deferred investment 

A Gold IRA can help you accomplish your long-term investing goals. 

How to Acquire IRA Physical Gold 

For almost a decade, Advantage Gold has been helping investors like you. 

Our experienced account executives will walk you through the quick application process, educate you on the eligible metals, and assist you with the purchase. 

We’ll pack and ship your fully insured gold to the depository of your choice. It will sit there, on a shelf, in a vault, under armed guard, until you are ready for them. 

If you decide that the cash-purchase, direct-delivery method is for you, we can facilitate that transaction. In a matter of days, your gold will be delivered directly to your door. The rest is up to you. 

Either way, owning physical gold is easy. 

Call us today or click the link and tell us how to contact you.

We’re happy to help and look forward to meeting you.

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