Explore the Benefits of a Gold IRA

• Traditional IRAs allow account holders to contribute up to $6,000 a year, and earnings are tax-deferred.
• As gold is a physical asset, physical gold accounts are typically more expensive than other types of IRAs.
• However, they also offer higher returns because gold-backed IRAs invest in physical gold whereas a traditional IRA invests in stocks, bonds, or other securities.

Gold has been used as currency for thousands of years. Today, gold is a precious metal that is valued for its ornamental and practical uses. Gold has many other practical uses, including in dentistry, electronics, medicine, and jewelry.
Investors also buy gold for its investment value. While many people invest in gold directly, gold-backed IRAs have become increasingly popular. Gold and gold-backed IRAs offer several benefits.

A Gold IRA vs. a Traditional IRA

An Individual Retirement Account (IRA) is an investment account that allows you to invest in assets such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Individual Retirement Accounts have tax advantages because they are funded with after-tax dollars.
Traditional and Roth IRAs are two of the main types of IRAs. While both offer tax-advantaged accounts, there are differences between them:
Traditional IRAs are funded with pre-tax dollars; therefore, income taxes are payable when the money is withdrawn. Early withdrawals can result in steep penalties.
Roth IRAs are funded with after-tax dollars; therefore, income taxes are payable when the money is withdrawn. Roth IRAs have tax-free distributions after age 59 1/2.

Physical Gold

A Gold IRA is different than a Gold IRA rollover. A Gold IRA rollover occurs when an individual invests in a particular precious metal, such as gold or silver, and holds the assets in their own name. On the other hand, a Gold IRA is when a person invests in a Gold IRA, which is the account for the precious metal. These funds are often managed by a professional who manages the account, and the investor only buys and holds the particular precious metal, in this case, gold.

Other Assets

Gold belonging to the precious metals IRA holder may be converted into other precious metals, including platinum, palladium, silver, and rhodium, among others.
Real Estate
Trustees can invest in real estate, including primary or secondary residences - even vacation homes and rental properties.
Cash
The government-approved trustee may purchase cash on behalf of the IRA holder.

Custodial Services

A gold IRA custodian, like a trusted IRA storage company, will hold your precious metals. The storage company will hold the precious metals for you, deliver them to you, and provide safekeeping.
Most gold IRA custodians require a storage fee to maintain the safekeeping of your gold.
Access to Markets
Gold IRA custodians provide access to markets that stock brokers can't access, such as physical bullion, which is stored securely in vaults.
Account Diversification
Not only are gold IRAs account diversification, they also increase diversity for IRA owners.

Fees

The fees associated with gold IRAs are higher than most other retirement accounts.

A traditional IRA usually costs between $50 and $250 to open, plus $25 to $75 per year to maintain the account. A Roth IRA costs $0 (no fees) for opening, but $25 to $50 per year to maintain.

Gold IRA: Should You Open One To Save For Retirement?

The Bottom Line

If you're still on the fence about a gold IRA, consider these factors:
Gold offers a hedge against inflation.

The value of gold is independent from the ups and downs of the stock market.

Gold doesn't lose its value when the Fed raises interest rates.

Gold has stood the test of time and survived numerous economic crises.

Gold is held in high regard across the globe.

Gold is not the typical investment vehicle. But these unique benefits make it one of the most attractive investments available today.