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How To Choose The Best Gold IRA Kit for Your Retirement Planning

September 2, 2023 By Editor

Disclosure: The product review includes links that, if you decide to proceed with the recommended purchase, could earn us a minor commission. This doesn't increase your purchasing cost in any way.

How To Choose The Best Gold IRA Kit for Your Retirement Planning

Disclosure: The product review includes links that, if you decide to proceed with the recommended purchase, could earn us a minor commission. This doesn't increase your purchasing cost in any way.

Photo credit: pixabay.com

How to Invest in Gold

Gold IRA investing is increasing in popularity among investors and retirement plans because it diversifies investment income.

Many investors may uncover some gold through funds and stocks in a retirement account. A particular type of retirement account is needed to invest in the physical asset of gold. Investing in gold is a great way to improve personal finance.

An investor must get a gold individual retirement account or a gold IRA to invest in gold. The following steps guide the process of gold IRA investing.

Photo source: unsplash.com

First Step: Educate Yourself on Gold IRA Investing

It is necessary to become familiar with terms and concepts to succeed in gold IRA investing. Get acquainted with bullion coins, gold funds, gold companies, gold futures contracts, gold mining stocks, the world gold council, and ways to sell gold.

What Is a Gold IRA?

A gold IRA is a self-directed individual retirement account (IRA). IRAs are tax-advantaged accounts that allow people to save for retirement. To set up a gold IRA, investors can use pre-tax funds or post-tax funds.

Simply put, a gold IRA, also known as a precious metal IRA, is a type of IRA that specializes in an investors’ ability to use gold as a qualified retirement investment. Gold IRAs are separate from other kinds of IRAs. Different IRAs involve other assets.

What Is Gold IRA Investing?

Other types of IRAs permit investors to hold particular stocks, mutual funds, and other investments. Gold IRAs are different because investors may have a self-directed IRA.

With self-directed IRAs, holders may purchase bars or coins made from various precious metals, including gold. Gold IRAs require a custodian---a third party that safely keeps investments---because gold IRAs involve purchasing and storing physical gold and precious metals.

Gold IRAs are different from traditional IRAs. However, the regulations set forth by the IRS are the same. So, there are annual contribution limits and rules involving distributions when making withdrawals.

Distributions are made without any penalties from the gold IRA after age 59. Withdrawals made before that age are taxed an extra 10%. Always consult a tax specialist before performing a withdrawal before age 59, as there could be other options for you to consider instead of incurring a steep penalty.

What Types of Gold IRAs exist?

There are three main types of Gold IRAs in gold IRA investing.

There are traditional gold IRAs that are funded on a tax-deferred basis. These will be taxed when the investor makes withdrawals during retirement.

There are also Roth gold IRAs which are funded with after-tax money. There is no immediate tax advantage, and taxes are paid at distributions during retirement.

SEP gold IRAs are available to self-employed individuals or employees of small businesses.

Second Step: Start Self-Directed Gold IRA Investing

To start, pick the type of self-directed IRA to set up. The kind you choose will largely depend on how the IRA is funded.

A traditional gold IRA will use pre-tax dollars or roll-over funds from existing retirement accounts. Those who wish to transfer rolling funds from a Roth account will use a Roth gold IRA. After deciding the self-directed IRA type, it is time to choose a custodian for the gold IRA.

Choose a Custodian for Gold IRA Investing

The first step of gold IRA investment is to choose a custodian to open the IRA. Opening an account requires paperwork and can be completed quickly. However, it is essential to consider account fees and quality of service.

Some custodians may charge a fee to open the account. If a large deposit is made upfront, there may be no fee at all. There are other fees to consider that may come up with your self-directed Gold IRA.

Put Funds in the Gold IRA

The funds purchase precious metals and physical gold. Rolling over funds will not be taxed since the funds pull from another retirement plan. Investors may use roll-over funds or cash from a 401(k), 403(b), 457(b), or TSP plan. Funds can also transfer from a traditional IRA or Roth IRA.

Third Step: Choose Metals for Gold IRA Investing

The IRS enforces rules that govern what can be purchased in gold IRA investing. For example, gold bullions are only bought if they are 99.5% pure gold. Certain gold coins are also able to be purchased. Some rare coins are not bought and are left to rare coins collectors. Generally, it is better to avoid rarely circulated coins and focus on widely circulated coins such as:

  • The U.S. Eagle coins
  • Canadian Maple Leaf coins
  • Australian Kangaroo coins

Optional Step: Consider Direct and Indirect Ways to Own Gold

To better grasp gold IRA investing, it is helpful to know the most popular ways to directly own gold, followed by ways in which gold is obtained indirectly.

What Are Direct Ways to Own Gold?

The most direct way to buy gold is through gold bullion, which is rated by the purity of the gold and comes in the form of coins or gold bars. In other words, gold bars and gold coins are a way of owning physical gold.

To buy a gold bar or gold coin is to buy physical gold. Buying gold bullion is a direct investment in the value of gold. There are also storage and insurance costs that come with gold bullion.

What Are Indirect Ways to Own Gold?

Almost all gold IRAs require some type of fee. You can invest gold IRA funds in paper investments related to gold for a higher cost.

These might include exchange-traded funds (ETFs), gold mining company stocks, precious metal commodity futures, and gold-oriented mutual funds, all of which have indirect ways to own gold.

Owning gold doesn't necessarily mean storing physical bars or coins in a safe. There are various indirect ways to invest in gold, each with advantages and risks. Here are some of the most common:

  1. Gold ETFs (Exchange-Traded Funds): These funds track the price of gold and are traded on stock exchanges. They offer the advantage of being easy to buy and sell while not requiring you to store physical gold.
  2. Gold Mining Stocks: Investing in companies that mine gold is another way to get exposure to gold prices. These stocks can be volatile and are affected by management performance, mining costs, and overall stock market trends.
  3. Gold Mutual Funds: These managed funds invest in various gold-related assets, from physical gold to mining companies. Professionals drive them and offer diversification, but they come with management fees.
  4. Gold Certificates: Some financial institutions offer certificates representing ownership of a specific amount of gold. These certificates can be easier to manage than physical gold but often come with storage and management fees.
  5. Gold Futures and Options: These financial derivatives allow you to speculate on the future price of gold. They can be complex and risky but offer a way to invest without owning the physical asset.
  6. Gold-focused IRAs (Individual Retirement Accounts): Some retirement accounts allow for investment in gold or gold-related assets, providing a long-term investment vehicle.
  7. Digital Gold: Some platforms offer digital ownership of gold, where the gold is stored in a secure vault, and right is represented digitally. These platforms often allow for easy trading and low entry costs.
  8. Structured Products: These are financial instruments designed to offer customized exposure to gold prices, sometimes offering features like capital protection or leveraged returns. These can be complex and are typically recommended for sophisticated investors.
  9. Gold Royalty Companies: These firms finance mining operations in return for a percentage of the future gold production. Investing in these companies gives you indirect exposure to gold prices.
  10. E-Gold or Tokenized Gold: With advancements in blockchain technology, some platforms offer tokenized gold, where each digital token represents ownership of a certain amount of physical gold.
  11. Foreign Currency Accounts tied to Gold: Some financial institutions allow for accounts connected to the value of gold rather than a traditional currency.

Each option has its own risk and reward profile, as well as varying levels of complexity and costs. Always do your own research and consider consulting a financial advisor before investing.


ETFs represent a fixed amount of gold. The funds are purchased and sold like gold stocks. Another indirect way is through gold mutual funds, although not many mutual funds focus solely on gold investing. Both ETFs and mutual funds pose a low risk and are easy to navigate.

Another low-risk gold investment is gold mining companies. Gold miners and gold mining companies may specialize in refining or mining precious metals.

Gold Futures Contracts

Gold futures contracts are contracts that outline when to buy and sell an amount of gold in the future. Futures contracts are not traded by shares but rather by contracts.

Related to gold futures contracts are gold options, which allow buyers to buy a futures contract within a certain amount of time, rather than just buy a futures contract from the get-go.

Gold Jewelry

Another way to own gold is through gold jewelry. Almost half of the global gold production is dedicated to making jewelry. To invest, buyers will purchase gold at retail price. The markup is substantial, however, at 400%. Another way is to search for gold pieces at auctions or flea markets.

Photo source: pixabay.com

Safety of Investing in Gold

There is debate over the safety of investing in gold. It is important to note that most advisors recommend that gold plays a part in a portfolio but does not consist of the entirety of the portfolio.

Advocates of gold IRA investing claim that one of the significant benefits of gold is that it is an effective hedge. Gold offers a resilient asset during economic uncertainty.

Historically, it is true that gold has been used as a hedging asset against rising inflation. The value of gold stays the same during economic uncertainty. The stock market falling and high inflation have virtually no effect on gold prices. Even when the value of a currency falls, gold is not affected.

Additionally, an increase in wealth in some market economies boosts demand for gold. In some countries, gold has cultural value. In China, for example, gold bars are the typical form of saving, so the gold market expanded.

For these reasons, many investors swear by gold IRA investing. Gold is an asset that acts as a safe haven. The reliability of gold is observable through gold’s historically unchanging worth. Gold’s value sustained throughout time.

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Before beginning gold IRA investing, consider the risks. Do your research on gold IRA investing. Decide if gold is a good investment in the long run.

Gold performs best when there is a lot of economic uncertainty, especially in the stock market. Consider meeting with a financial advisor to guide gold investments and other investment advice.

We are often asked which are the Best Gold IRA Companies, and we are finishing up our list to release to the public soon.

For other retirement options, you may be interested in what Larry Benedict Reviews has to say.

Disclaimer: The owners of this website may be paid to recommend options listed on this page. The content on this website, including any positive reviews may not be neutral or independent.

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