More people are securing their financial future by setting up Gold IRA Accounts than ever before. And in today’s unpredictable economic climate, with inflation on the rise, can you blame them?
However, if you’re new to the world of gold IRAs, there are some things you need to learn and be aware of to succeed.
Starting with the most important aspect of all: how to choose the right company to set up your gold IRA account. In the next few minutes, we’ll discuss how gold IRAs work, how to choose the best company to help you establish your gold IRA account, and the red flags and pitfalls to watch out for.
Let’s get started.
What is a Gold IRA Account?
A gold IRA is a self-directed individual retirement account that allows you to invest in alternative assets like precious metals, unlike traditional IRAs that only permit you to invest in “paper” assets like stocks, bonds and mutual funds.
Investing in a gold IRA account allows you to own real physical gold, silver, platinum and palladium as part of your retirement portfolio.
Why Should You Consider Investing in a Gold IRA?
Just like in life, timing is everything when considering whether or not to invest in a gold IRA. Let’s look at some of the reasons why investing in precious metals right now makes sense.
- Gold and silver are on the rise.
- Central banks are buying record amounts of gold.
- Gold has been a safe haven asset for thousands of years.
- Real inflation is over 12% per ShadowStats.
- The National Debt is over 34 trillion and counting.
- Stocks are at all time highs.
- Geopolitical tension in Ukraine and the Middle East.
- Precious metals typically have an inverse relationship with paper assets.
- Less than .5% of people own any precious metals.
- It’s still early in the precious metals bull market.
What is a Gold IRA Company?
A gold IRA company is a precious metals dealer that specializes in helping clients set up and manage their gold IRA accounts. These companies will typically assist you to establish your new self directed IRA, transfer funds to it, and buy gold or other precious metals.
How Do Gold IRA Companies Work?
Gold IRA providers are the crucial link to help you invest in physical precious metals with your retirement account, but not all gold IRA companies are created equal. In fact, there are some red flags you need to watch out for so you don’t end up overpaying for your gold and silver. We’ll address them below in the Red Flags and Pitfalls to Avoid section.
Help Establish Your Self Directed IRA
Most gold IRA companies will help you to complete the required paperwork to establish your precious metals IRA. They’ll have a gold IRA custodian or two that you can choose from. Your new account will typically be set up within 48 hours.
Help You Transfer Funds to Your New IRA Account
Once you open a gold IRA, you can transfer funds to it. The options to fund your account are:
- IRA Transfer — An IRA transfer is when you move funds from an existing IRA to your new one.
- Rollover — A gold IRA rollover is when you move funds from a 401(k), 403(b), 457(b) or TSP to your IRA.
- Contribution — You can contribute up to $7,000 if under 50 or $8,000 if over.
Your chosen gold IRA provider should help you to complete the transfer documents to be sent to your existing IRA custodian.
If you’re executing a gold IRA rollover from an old 401(k), 402(b), 457(b) or TSP, you and your dealer will have to call your existing retirement account provider to initiate the rollover. If you’re still employed with the company that sponsors your plan, you may be limited to an “in-service” transfer if over 59.5.
Help You Purchase Precious Metals
One of the main responsibilities of gold IRA companies is to help you buy gold and other precious metals for your retirement account.
This step is crucial!
Because what you buy and what you pay for it will determine how well your gold IRA investment portfolio can perform. If you buy the wrong type of precious metals and overpay for them, you’re in trouble.
You’re typically best off sticking to widely traded, popular gold bullion and silver bullion coins, such as the American Eagles and Canadian Maple Leafs.
See our Red Flags and Pitfalls to Avoid section below for more information.
Help You Store Your Precious Metals
Your new gold IRA custodian will have a few different storage options to choose from: the most popular being the Delaware Depository Service Company (DDSC), as self-directed IRAs require a 3rd party depository to securely store your assets. This ensures that your precious metals IRA investments are safe, insured and protected at all times.
Assist with Selling Your Gold Investments
In addition to helping you purchase gold and silver, reputable gold IRA companies will also assist with selling your investments when the time comes.
Help You Take Required Minimum Distributions
Per the IRS, once you reach 72, you’re obligated to take RMDs. Your gold IRA company will help you to sell the required amount of precious metals so you can take a cash distribution. Or they can assist you in taking an in-kind distribution where physical gold or silver is sent to your home to satisfy the RMD amount.
Keep You Updated on Gold Prices
The best gold IRA companies will keep you updated on the latest market trends at your request. They can provide valuations of your gold coins based on current gold prices and provide insight on how your portfolio is positioned based on that.
What to Consider When Choosing the Best Gold IRA Company
Choosing the right gold IRA company is crucial for your success. It’s by far the MOST IMPORTANT step you’ll take when starting a precious metals IRA.
With so many options available and all of them claiming to be the best, it can be overwhelming to make a decision. To help you choose the best option, here are some essential factors to consider when selecting a gold IRA company.
Reputation
The reputation of a gold IRA company is paramount, but to get an accurate sense of a company’s reputation, you have to look below the surface. You can no longer simply trust an A+ rating with the Better Business Bureau. Many gold IRA companies with an A+ rating have countless complaints.
For example, a supposed “Best Gold IRA Company of 2024” as rated by Forbes and CBS News has 42 complaints with the Better Business Bureau in just the last 3 years. They have an A+ rating.
Also, beware of top ratings from the Business Consumer Alliance and Trustpilot. The same company mentioned above has an apparently impeccable rating with them as well.
Complaints
To get a good sense about the company you’re considering, you have to search for and read the complaints lodged against them.
The Better Business Bureau is a good place to start. You can see how many complaints the company has had within the last 12 months and 3 years. But they’ll frequently not allow you to read all of a company’s complaints.
So you’ll want to search through their “reviews” and look for the 1 star ratings as well. These are additional complaints but were lodged as reviews.
Ideally, you want to choose a gold IRA company that doesn’t have any complaints like the Certified Gold Exchange.
Lawsuits
If a gold IRA company that you’re considering has pending lawsuits against it, you’ll obviously want to avoid them. Make sure to search the “company’s name” and “lawsuit”. Several gold IRA companies, apparently rated as the “best”, have outstanding litigation against them.
Experience
The experience of a gold IRA company is important to consider. How long have they been around? You’re typically better off working with a company that has decades of experience, rather than a new kid on the block.
Commissions
How much do gold IRA companies charge? It’s important to read and understand their contract and not just take a salesman’s word for it. Many unscrupulous gold IRA companies will charge a commission anywhere from 37% — 57%, according to their own contracts! Be sure to get a free copy of CGE’s “Top Gold IRA Scams Dealers Use On You” report.
A reputable gold IRA company should have excellent customer service to assist you with any questions or concerns you may have. Frequently, a company will be very easy to get a hold of in the beginning, but once you buy, that’s another story. Make sure your chosen company has a track record of excellent customer satisfaction and service before and after you make a purchase.
Red Flags and Pitfalls to Avoid When Looking For The Best Gold IRA Account Provider
It’s unfortunate that this section is even necessary. But it is, because there are quite a few supposedly “Top Gold IRA Companies” out there that will take advantage of you being a first time gold IRA investor. Below are the most common red flags to watch out for and pitfalls to avoid:
- “Best Gold IRA Companies” — Many gold IRA companies partner with affiliate marketers, who promote them for a commission. If you search “Best Gold IRA Companies”, you’ll get countless websites that are supposedly “rating” who the best companies are. They’re not, they are being paid to recommend those companies. And most of them will end up overcharging you, and by a lot.
- Free Fees — There is no such thing as “Free Fees” or “Zero Fees”. The gold IRA company is going to pay the fees out of the inflated commissions they’re going to charge you.
- “Bonus” or “Free” Gold or Silver — There is no such thing as a free lunch, or “free” or “bonus” gold or silver. You’re paying for that metal one way or another because you’re about to be overcharged for your precious metals.
- “Premium” or “Exclusive” Coins — If a gold IRA company tries to sell you an obscure coin you’ve never heard of, it’s a red flag. They may even tell you that their gold coins are exclusive and have collector value. It’s BS. They’re attempting to sell you precious metals that are difficult to price check so they can overcharge you.
- Fake Reviews — Unfortunately, you can’t trust the “review sites” like the Better Business Bureau, TrustLink or Business Consumer Alliance because many of the “reviews” are fake. Just search “buy BBB reviews” and you’ll find pages of “review brokers” that you can pay to write fake reviews about your business. So don’t be fooled by the claim of 1,000s of positive reviews!
- Conservative Celebrity Endorsements — Paying a celebrity to endorse a company can cost a fortune. Where do you think those funds are coming from? You’re paying them. Don’t arbitrarily trust a company because your favorite conservative celebrity endorses them. It could cost you dearly.
- Located in Southern California — For some reason, the vast majority of the unscrupulous gold dealers are located in Southern California. If you’re dealing with a company in the Los Angeles area, you could be in hot water. Call CGE at 800–300–0715 to make sure you’re not.
A reputable gold IRA company won’t use any of the above shady tactics. For more information on how to not overpay for precious metals IRAs, visit our Gold IRA Scams page.
Benefits of a Gold IRA Account with the Right Company
Investing in a gold IRA with the right company can offer numerous benefits for retirement planning. Here are some of the key advantages when you open a gold IRA with a reputable gold IRA company:
Diversification
One of the main benefits of buying gold with your retirement account is diversification. Unlike investments, such as stocks, bonds and mutual funds in a traditional IRA, gold bullion offers a unique hedge against economic downturns and instability. Gold has historically maintained its value during times of market volatility, making it an essential asset for diversifying your retirement portfolio.
Hedge Against Inflation
Inflation is a significant concern for many retirees and rightly so. The costs of food and energy have skyrocketed as of late. In fact, we’ve recently seen inflation at the highest point in 40 years. Unlike paper currencies, which can be devalued by inflation, gold has maintained its purchasing power because it’s a tangible asset with a limited supply. By including gold and other precious metals in your investment portfolio, you can protect your savings against the effects of inflation.
Tangible Asset
Another significant benefit when you buy gold bullion in your IRA is that you own a tangible asset. In a world where most investments are digital, owning physical gold can provide peace of mind and security. With a gold IRA, you can potentially take physical possession of your assets, and are not subject to cyber attacks.
Potential for High Returns
Gold has historically performed very well during bull markets. From 1970 to 1980, gold rose from $35 to $850, an increase of 2,400%. From 2000 to 2011, gold rose from $265 to $1,900, an increase of over 700%. How high can gold go in the current bull market? Check out what the worlds top analysts believe.
Tax Advantages
Another significant advantage of investing in a gold IRA is the tax benefits. If you own gold or other precious metals outright, they’re subject to capital gains taxes as high as 28%. However, with a traditional gold IRA, you can enjoy tax-deferred investment growth until you start taking distributions.
Legacy Planning
Gold and silver IRAs also offer the opportunity for legacy planning. By including physical gold and silver in your retirement portfolio, you can pass down tangible assets to your heirs, ensuring that they have a secure financial future.
What are the Risks of Opening a Gold IRA Account?
While there are many benefits to investing in precious metals IRAs, it’s important to consider the potential risks with this type of retirement account. As with any investment, there is always some level of risk involved, and it’s crucial to understand what these are.
Market Volatility
Market volatility is one of the primary risks associated with investing in a gold IRA. While the gold market has historically performed well during economic downturns, it can also experience significant market volatility, and you could potentially lose money if selling gold while the market is down.
This is why it’s important to have a multi year outlook on your precious metal investment so you can avoid having to liquidate if the market is down.
Slower Transactions Because of Physical Metal
Being that your gold IRA holds physical precious metals, transactions take longer than with digital assets because the metal needs to be moved from one location to another.
Precious Metals Stored by 3rd Party
Per the IRS, your precious metals must be stored by a 3rd party depository so you are not able to store your gold and silver yourself. Which means if you wanted to access your precious metals in a state of emergency, you don’t have immediate access to it.
Fluctuating Demand
The demand for physical gold can also impact the value of your investments. While gold has historically been a highly sought-after asset, its demand can fluctuate depending on various factors, such as economic conditions and geopolitical events. This could potentially affect the overall value of gold IRAs.
Conclusion
In this article, we have discussed quite a bit about precious metal IRAs and gold IRA companies. Let’s recap the key points of this article.
Recap of Key Points
- Gold IRAs are self-directed individual retirement accounts that allow individuals to invest in physical gold, silver, platinum and palladium providing an alternative to traditional IRAs.
- Investing in a gold IRA offers benefits, such as portfolio diversification, protection against inflation, long-term stability, owning tangible assets, potential for high returns and tax advantages.
- However, there are also risks associated with gold IRAs, such as market volatility, fluctuating demand and slower transaction times.
- Choosing the right Gold IRA company is imperative. Consider factors, such as reputation, complaints, commissions charged, pending lawsuits and customer service.
- Red flags and pitfalls to avoid are “best gold IRA companies”, celebrity endorsements, free gold and silver promotions, free fees, “exclusive” coins, fake reviews and Southern California location.
- By understanding the risks and benefits of gold IRAs, you can make an informed decision about whether this type of retirement account is right for you.
FAQs
What is the best gold IRA company?
The Certified Gold Exchange ranks among the top gold IRA companies. We’ve been in business for over 3 decades and have never had a single client complaint. Contact our gold IRA department at 800–300–0715 to get started now.
Can I convert my existing retirement accounts to a precious metals IRA?
You can convert any existing traditional IRA or Roth IRA into a gold IRA through a process called a transfer. If you have an inactive 401(k), 403(b), 457(b) or TSP, you can convert those accounts as well, which is called a gold IRA rollover. However, if you’re still employed with the company that sponsors your retirement account, you may only be eligible to perform an in-service distribution with a portion of your funds. Call our IRA department at 800–300–0715 to confirm your eligibility.
Is investing in physical gold better than other forms of investment?
It depends on the timing of your investment. The stock market is currently at all time highs, and inflation is on the rise. Historically, precious metals have performed well in similar environments. It’s up to you to decide if a gold IRA is right for you depending on your individual financial goals, risk tolerance and overall investment strategy. Consulting with a financial advisor or expert can help you make informed investment decisions.
How much does a gold IRA cost?
Each custodian will have a different fee structure, but on average, you can expect to pay around $300 to open a gold IRA and for management fees and storage fees. Visit our gold IRA custodians page for fee schedules.
What types of precious metals are allowed in gold IRAs?
Per the IRS, certain gold, silver, platinum and palladium coins and bars are permitted in self directed IRA accounts. The precious metals have to meet certain purity requirements to be eligible in gold IRAs.
Now that you know how to open the best gold IRA account, call the Certified Gold Exchange at 800–776–7253 to get their 2024 free gold investors retirement kit.