A Gold IRA is a type of self-directed individual retirement account that allows investors to include actual precious metals in their long-term retirement strategy. Unlike traditional IRAs that typically contain stocks, bonds, or mutual funds, a Gold IRA can hold gold, silver, platinum, and palladium in eligible bullion formats. This structure provides investors with an additional option to diversify their portfolios beyond market-based investments.
Gold IRAs are governed by similar tax guidelines as traditional IRAs. Investors may select a traditional Gold IRA, which offers tax-deferred growth, or a Roth-style Gold IRA, which allows for tax-free withdrawals in retirement. What Is a Gold IRA and Why Investors Use It . The primary difference between a Gold IRA and a traditional IRA lies in the assets held, not the tax treatment.
To set up a Gold IRA, investors must partner with an IRS-approved self-directed IRA custodian. The custodian manages compliance, recordkeeping, and reporting requirements. Investors then acquire approved precious metals through a licensed metals dealer, and the metals are stored in an approved depository with high-level security protocols.
Many investors choose Gold IRAs as a protection against inflation, declining currency value, and market instability. Gold has traditionally maintained its value over long periods, making it appealing for retirement planning. While gold does not generate cash flow, it may offer stability when markets experience turbulence.