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  • The Gold IRAs 101 Team

Start Here -What Is a Gold Backed IRA?

Updated: Nov 19, 2019

There are many ways of investing for your retirement. Traditional IRAs, 401(k)s, and Roth IRAs are some of the most popular and well-known options available to the average investor. A Gold Backed IRA however is a lesser-known choice in investing circles but just as powerful (and dare I say important) when invested in correctly. Gold ownership is an interesting concept to a lot of people and recently it seems more and more Americans seem to be taking advantage of fluctuating gold prices by adding the precious metal to their retirement portfolios.

Why? Well there are numerous reasons and we’ll discuss some of them below, but a couple key reasons off the top of my head is that gold gives the ability to preserve wealth and hedge against inflation as well as adds portfolio diversification. Important Note - A diversified portfolio with the proper investment classes should be the goal of any investor. Precious Metals just happen to be one of those classes.

I have researched Gold Backed IRAs in-depth over the years and have invested in them personally with a company by the name of Regal Assets (great company to work with by the way) so I know the ins and outs of these little gems quite intimately.

This guide contains much of the information I have learned about Gold Backed IRAs and will be a great starting point for your investment education. It is by no means the end all and be all Gold IRA document, but for the average investor curious about Gold IRAs, this will help you decide if one is right for you.

Let’s start at the beginning…

What Are Gold Backed IRAs?

A gold IRA or a precious metal IRA is a self-directed individual retirement account (IRA). Traditional IRAs let you invest only in cash, stocks, and bonds while gold IRAs give you more freedom in investment options. Gold IRAs let you include precious metals such as gold, platinum, silver, and palladium in your retirement portfolio. You can hold precious metals in the form of bars, bullion, and coins in your retirement account when you open a gold IRA. Where IRA contributions, taxes, and disbursements are concerned, gold IRAs follow the same procedures and regulations as traditional IRAs.

Pros and Cons

Similar to any other investment, precious metals investing has its pros and cons. You need to understand these advantages and disadvantages before investing in gold IRAs for your retirement. That way you will be able to make an informed decision when converting all or a portion of your traditional IRA into a Gold IRA.

Similar to traditional retirement accounts, gold IRAs offer tax incentives to individuals who invest in them. Portfolio diversification is another advantage of gold IRAs - which lets you protect your investment over time. You have full control over your investment portfolio when you invest in gold IRAs. While the IRS regulates the types of precious metals you can buy, you still have the freedom to choose between gold American Eagles, PAMP Suisse bars, Canadian Maple Leaf coins, Australian Kangaroo coins, and a host of other options.

Technically, gold is a unit of exchange and a store of value since ancient times. Gold can withstand the test of time. That's why the precious metal is considered a proven safe-haven investment. Gold is an ideal portfolio diversification tool because of its negative correlation to bonds, stocks, and the U.S dollar. Investing in gold for your retirement is one of the best methods of minimizing the risk of inflation and withstanding political and economic crisis. That's why I recommend investing at least a portion of your portfolio in a Gold IRA to save for your retirement.

Like any other retirement account though, a gold IRA also has its drawbacks, too. You won't get any interest or dividends when you invest in a gold IRA. But the interest and dividends that come with paper-backed assets have their drawbacks. Your entire paper-backed savings can be lost in an instant due to economic or political reasons. That's why Gold IRAs are a great diversification tool. I would never recommend that anyone put their life savings in to a Gold IRA or any other gold investment, but I consider it a must for healthy portfolio diversification. It doesn’t have to be a Gold IRA, buy physical bullion if you can store it at home, but I suggest precious metals to everyone.

In addition, holding gold in your retirement account comes with fees and expenses. There are expenses in setting up a gold IRA. There are initiation fees, storage fees, and annual custodian fees when setting up a gold IRA. The fees may vary depending on the trust company you choose. Doing your research before choosing a custodian will help minimize the fees involved in setting up your Gold IRA. On the other hand, theft and fraud become a risk of investing in physical gold and silver. This can be minimized by choosing a trust company that insures every financial transaction. In my opinion, there are more advantages to investing in a Gold IRA than disadvantages.

What Are The Steps Involved In Investing In A Gold Backed IRA?

If you currently have a traditional IRA, you should consider converting part of it to bullion coins or bars to protect against inflation, economic uncertainty or currency debasement. While you can simply transfer funds from your traditional IRA to a gold IRA, a rollover is a much safer procedure that comes with tax advantages. There are many differences between transfer and rollover.

As simple as this sounds, I’d say the first step is to check with your employer whether you have an actual active retirement account . Some retirement accounts don't allow gold investment as part of their plan. Before starting your gold IRA rollover, you should check with your employer whether your plan allows for a gold IRA rollover or not. Once you have sorted this out, the next step is to find a reputable and trustworthy IRA custodian for your new gold IRA. You should research the background of any gold IRA custodian before choosing the right provider for the rollover. Research the business practices of the custodian before you choose the right one. Make sure your retirement savings are handled by a certified and trustworthy company and not a scammer. A profit-hungry dealer may persuade you to invest in numismatic coins instead of pure bullion coins because they get a higher profit margin from such an investment but realize that most numismatic coins aren't allowed in a IRA.

The Internal Revenue Service (IRS) allows for one tax-free rollover every year. This rollover should happen within 60 days of removing the funds from your current IRA custodian to avoid any penalty. That's why you need to choose a reliable custodian so that you don't have to keep changing them every year. Changing custodians involve tax penalties on the money you are moving. If not, you must wait the full 12 months before making the change.

A trustworthy gold IRA custodian should be able to provide you with all the paperwork for the rollover. There are fees involved with the rollover of your current IRA and these should be discussed with your IRA custodian before you decide to choose the potential company for the process. Once you have chosen a trustworthy gold IRA custodian to affect the rollover, the next step is to decide on your gold IRA allocation strategy. What percent of your investment portfolio should be allocated to gold? The answer to this question depends on your future goals. How is your portfolio performing so far? What is your main objective when investing in physical gold - whether it is protection, diversification or profits? These are some things to consider when deciding the percentage of precious metals in your retirement investment portfolio. I'd say a good starting point is 10-15% of your portfolio. Your mileage may vary though.

I’d also suggest contacting Regal Assets, they will send you a gold investing kit if you request one. I had a great experience with them and found them to be one of the more knowledgeable companies on Gold IRA’s out there. and VERY easy to work with.

What Are The Rollover Rules

In a rollover, the money you need to invest in the gold IRA account is paid to you and you then deposit the money in the other account. You have 60 days from the date you receive the funds to deposit the money in the precious metal IRA company or the custodian you have chosen for the process. If you don't deposit the money within the stipulated 60-day period, the money will become a taxable withdrawal. There isn't a 10% early withdrawal penalty involved if you are below 59 1/2 of age.

There is no 60-day rule in a gold IRA transfer. The transfer can be done by a direct wire transfer between the respective IRA custodians. You never receive the money like in the rollover process. The original IRA custodian can help you with the transfer by issuing a check to the custodian of the receiving IRA. This is an easy way to invest in precious metals through your traditional IRA because all the work will be done in the background by your existing and new custodian. But a rollover has more benefits compared to a transfer.

Who Should Invest In A Gold Backed IRA?

In retirement, you will need an investment that helps generate at least your current income. Many people see a precious metal IRA as a supplement to their other retirement funds. This is because the value of gold tends to move in the opposite direction to paper-backed assets such as bonds and stocks. Even when stocks and mutual funds are losing money for them, gold seems to gain money for them. Gold, historically speaking, will most likely increase in value over time to help compensate for the losses of other retirement funds.

People who want to diversify their investment portfolios, IRA rollover prospects and any other investor who wants to compensate for losses of paper-backed retirement funds should consider investing in gold IRAs.

Even though the value of gold fluctuates like any other commodity, it remained a precious and valuable commodity for thousands of years. It is likely to remain valuable for many decades to come. That's why you need to consider opening a Gold IRA. It is one of the best investment options for your future.

When Is The Best Time To Invest In A Gold IRA?

If you are planning to invest in a Gold IRA, you may wonder what's the best time to do it. Gold is seen as a safe-haven during turbulent economic times. Gold will provide a hedge against inflation and it doesn't correlate to the stock market. Hence, there isn't a specific time in the year to invest in a Gold IRA. You can do it at any time of the year and still come out ahead if you hold your investment long enough.

Where Are The Best Places To Buy A Gold Backed IRA?

The best way to invest in a Gold IRA is to choose a trustworthy Gold IRA company, either in your home town or online. There are tons of such companies out there, but all of them are not created alike. Your own research plays a big part in choosing a reputable and trustworthy Gold IRA company to do business with.

Choosing the best one, isn't as easy as you would think. Lucky for you, I researched dozens of Gold IRA companies when I was looking for the best choice for me.

We narrowed it down to our top pick to make it a great starting place for you :

Regal Assets

Regal Assets was founded in 2003 and is based in Burbank California and is who I have personally used to open-up a Gold IRA of my own. They have established a reputation for being one of the largest and most experienced gold IRA custodians on the market today. The company has an A+ rating from the BBB or Better Business Bureau. They have 5-star reviews for their business practices and customer care. The company has a 99.9% customer satisfaction rating - which is rare for a gold IRA custodian. They have compiled a free gold IRA rollover kit for new clients who aren't familiar with the rollover process. To qualify for a gold IRA with them, you should have a 401k and be able to move the existing 401k to them. The company has extensive experience in moving 401ks to gold IRAs. They are my number one choice.

Contact them via the link above and request their free, no obligation gold investing kit to determine who you’d want to work with.


There are several methods of saving for your retirement. Roth IRAs, traditional IRAs, and 401ks are commonplace in today’s world but many people are moving to Gold IRAs as a way of diversifying their retirement investment portfolios. Gold IRAs come with many advantages to individuals who are planning to save and invest for their retirement. Look into them further, I think you will like what you will find.

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