A Gold IRA is a type of self-directed individual retirement account that allows investors to add actual precious metals in their retirement savings. Unlike traditional IRAs that typically hold equities and investment funds, a Gold IRA can hold various precious metals such as gold and silver in approved forms. This account structure provides investors with an different method to broaden portfolio diversification beyond paper-based assets.
Gold IRAs follow the same general tax regulations as traditional IRAs. Investors may choose a traditional Gold IRA account, which offers tax-deferred growth, or a Roth Gold IRA, which allows for tax-free distributions in retirement. What Is a Gold IRA and Why Investors Use It . The key difference between a Gold IRA and a standard retirement account lies in the types of assets included, not the tax treatment.
To establish a Gold IRA, investors must partner with an approved self-directed IRA custodian. The custodian manages compliance, recordkeeping, and reporting requirements. Investors then acquire IRS-approved metals through a precious metals dealer, and the metals are kept in an approved depository with high-level security protocols.
Many investors use Gold IRAs as a protection against inflation, loss of purchasing power, and financial uncertainty. Gold has traditionally maintained its value over long-term cycles, making it well-suited for retirement-focused investing. While gold does not produce income, it may offer stability when economic conditions are uncertain.