Gold IRA Pros & Cons

A gold IRA (also called a precious metals IRA) is a type of self-directed Individual Retirement Account (IRA). The key difference between a traditional IRA and a self-directed IRA is the degree of investment freedom offered.

What Is a Gold IRA Account?

While the traditional option is limited to stocks, bonds, and cash, its newer counterpart allows for the inclusion of alternative investments, such as real estate and precious metals: gold, silver, platinum, and palladium. 

As with any investment, there are benefits and drawbacks to an IRA containing gold, as well as other precious metals. Understanding them can help you make an informed investment decision.

What Are the Pros and Cons of a Gold-Backed IRA?

Pros of a Gold IRA

Tax Benefits

Full Control

Portfolio Protection

Similar to a traditional individual retirement account, a gold IRA offers tax incentives—with the added bonus of protecting those savings through portfolio diversification.

Pro: Tax Benefits

While the IRS has rules on which types of precious metals products you can buy, a gold IRA still gives you greater freedom and control than a standard individual retirement account. You can choose between many coins and bars.

Pro: Full Control

The precious metal is a proven safe haven investment. Its negative correlation to stocks, bonds, and the dollar make gold the perfect portfolio diversification tool. Gold in your IRA can help minimize the risks of inflation and financial, political, or economic crisis.

Pro: Portfolio Protection

Learn More Benefits of a Gold Backed IRA

Gold IRA Cons


Cons of a Gold IRA

No Interest, Dividends, or Yields

Fees and Expenses

Theft and Fraud

Unlike paper-backed assets, gold does not pay interest, dividends, or yields. However, those perks of stocks and bonds come with risks: the small gains from interest—and even your entire savings—can be lost in an instant. It’s happened before, and it can happen again.

Con: No Interest, Dividends, or Yields

There may be expenses to setting up and holding metals in your IRA. These fees may include: a one-time initiation fee, annual custodian fees, and storage fees. However, you’ll encounter the first two expenses with a traditional IRA. Also, fees vary depending on the Trust company you choose.

Con: Fees and Expenses

Fraud and theft can be risks of investing in physical gold. But depositories that qualify to hold precious metals for IRAs must be insured. Then there is the risk of custodians stealing from their clients, but, this can be mitigated by hiring a custodian that insures every transaction.

Con: Theft and Fraud

There’s never been a better time to start a gold backed IRA. With rising inflation, a stock market set to correct, and the dollar predicted to decline, we could see continued jumps in the price of gold in 2022 and beyond.

Why Start a Gold IRA Now?

Don’t Wait to Buy Gold

Buy Gold and Wait!

Don’t wait to invest in this valuable asset until it’s too late. Get all the information you need to get started in precious metals investing by requesting your FREE COPY of our Popular Gold & Silver Investment Guide Today!