Should You Get a Gold IRA?

You’ve already decided you want physical gold. 

Should you go to the local pawn shop to see what they have? Should you visit a coin dealer? Should you order online and have it delivered? Or should you get a Gold IRA?

In this guide, we’ll explore owning gold in an individual retirement account (IRA). We’ll explain what a Gold IRA is, how it works, and its pros and cons.

Most importantly, we’ll arm you with knowledge to make an informed decision. 

Are Gold IRAs worth it? We think so. After reviewing the facts, we think you will, too. 

What Is a Gold IRA? 

A Gold IRA is a self-directed individual retirement account in which you hold physical gold as an investment. 

The Taxpayer Relief Act of 1997 expanded the types of precious metals you could hold in an IRA, establishing the rules from which the Gold IRA was born.

Since its inception, thousands of investors have turned to the precious metals IRA as a safe and trusted way to own gold, silver, platinum, and palladium on a tax-deferred basis. 

How Gold IRAs Work 

The Gold IRA works just like a common IRA.

You fund your precious metals IRA in three ways:

  • IRA transfer
  • 401(k) rollover
  • Direct contribution

The IRA transfer is a lateral move—meaning funds move from one account into a like account. All common IRAs can convert to a Gold IRA. 

The 401(k) rollover is available to anyone at least 59 ½ years old or those who own a 401(k)—or like plan—from a previous employer. Your 401(k) easily rolls over to a self-directed precious metals IRA. 

The transfer and rollover are tax-free and penalty-free processes. The amount of funds in your current plan will match the amount of funds in your new Gold IRA. 

Direct contributions are cash deposits into your IRA account. For traditional and Roth IRAs, you are allowed up to $6,500 ($7,500 if age 50 or over) in contributions for the 2023 tax year. That will rise to $7,000 ($8,000 if 50 or older) in 2024. For simplified employee pensions (SEP), contributions max out at $66,000 or 25% of compensation—whichever is less—for 2023. That limit will rise to $69,000 in 2024.

Penalty-free withdrawals begin at age 59 ½ for traditional and SEP plans. They are taxed as ordinary income. 

Withdrawals from Roth plans are tax-free, as a Roth is funded with after-tax dollars. 

What Can You Invest Into a Gold IRA? 

The IRS enacts strict guidelines on the quality, purity, condition, and source of IRA-eligible precious metals.  

Only gold, silver, platinum, and palladium bars and coins that meet the following criteria are eligible for the Gold IRA:

  • Coins must be new, uncirculated, and originate from government mints.
  • Bars must be manufactured by companies publicly traded on exchanges such as the COMEX.
  • Gold must be 99.5% pure.
  • Silver must be 99.9%.
  • Palladium and platinum must be 99.95% pure.

The IRA is meant to be a long-term investment plan. These guidelines help ensure that only investment-grade metals enter the account. 

Pros and Cons of a Gold IRA 

As with any investment, the Gold IRA has pros and cons. Understanding the advantages and disadvantages helps you make an informed decision.


  • Gold IRAs offer portfolio diversification.
  • Owning gold provides a reliable long-term store of value.
  • IRAs offer tax-deferred or tax-free growth.
  • Owning gold in an IRA includes safe storage and insurance of precious metals.


  • Gold doesn’t pay a dividend or earn interest.
  • With few exceptions, you can’t withdraw IRA funds without penalty until age 59 ½. 
  • Gold IRAs have application and yearly maintenance fees.
  • IRS guidelines limit new contributions.

How to Decide if a Gold IRA Is Right for You 

Here’s how to decide and calculate whether a Gold IRA is right for you. 

Investing Goals 

Are you a long-or short-term investor? A Gold IRA is built for long-term investing. Gold—and its precious metals family—tends to shine over time. 

Many investors buy gold in the IRA, set it, and forget it. They sleep soundly knowing that gold is the physical foundation of their portfolio. 

Tax Implications 

IRA funds grow tax-free or tax-deferred. Withdrawals at the eligible age don’t incur capital gains taxes or any penalty. 

Early withdrawals are penalized 10% and affect your taxes as earned income. Be thoughtful, and know the consequences of any early withdrawal. 

Consult your tax professional for more details. 

Risk Tolerance

Gold’s ascension is not linear. Owning gold is not a get-rich-quick scheme. You must be prepared for holding physical metals over the long term. 

Be patient through the ups and downs of the gold market, and you should be happy in the end.

Are Gold IRAs Worth It? 

Can you make money with a Gold IRA? If timed and executed correctly, of course you can. But there are no guarantees. 

Remember that the gold in the Gold IRA is a tangible, real asset that you can hold in your hand. Since the times of ancient civilizations, societies have valued gold. It will probably always have worth, and it can’t disappear at the push of a button. 

Peace of mind is priceless. 

The precious metals experts at Advantage Gold are ready to help you transfer, roll over, or establish your Gold IRA.

We are the highest-rated gold company, and welcome you to read some of the thousands of online five-star reviews our clients have written. 

Click the link and tell us how to contact you, or call us today. An account executive is here and happy to help. 

We look forward to your call.

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