Ever since the Financial Crisis of 2008, gold has become an increasingly popular investment choice. Many people see gold as safer than investing in the stock market, and it can be a good way to protect themselves against inflation.
A gold individual retirement account (IRA) is a self-directed IRA, but instead of holding stocks or mutual funds, you invest in gold and other precious metals. Setting up a gold IRA can be confusing, and there are several steps you need to take.
One of the reasons for this is that you need to find a trustworthy company to handle your investment. Choosing the right gold IRA company is a crucial first step because picking the wrong one can cost you time and money.
10 Best Gold IRA Companies
If you’ve never bought gold before then you may be a little unsure of where to start. Listed below are eight of the top gold IRA companies you can consider.
Goldco is a leading provider of gold IRAs and is known for providing excellent customer service. The company got its start in 2006, and since then, it has helped thousands of customers invest in gold, silver, platinum, and palladium.
The company offers gold and silver IRAs that they store in a third-party vault. You also have the option to buy as well as gold and silver coins and bars from the company outright, and Goldco will either store them for you or deliver them to your home.
Patriot Gold Group is a gold investment company that has been in business since 1990 and is a certified Professional Coin Grading Service (PCGS) company.
When you set up an account, Patriot will work with your custodian and storage facility to facilitate the process. This setup process is fast and easy, and the company is known for its quick one-day turnaround.
Gold Alliance Capital specializes in gold and silver IRAs. The company can either help you set up a gold IRA or buy physical precious metals outside an IRA.
The company was founded in 2017, so it doesn’t have the same level of experience as some other companies on this list. Gold Alliance Capital also doesn’t have as many customer reviews. But the company has built a solid reputation, and it provides free precious metals storage to all its customers.
Augusta Precious Metals is a reputable gold IRA company with nearly 50 years of experience. It’s a family-owned gold IRA provider that is service-oriented and trusted by thousands of Americans.
Augusta Precious Metals assists investors with opening self-directed, precious metals IRAs and purchasing gold and silver outside a retirement account.
APMEX is the largest online precious metals dealer and offers more than 10,000 items. The company has been in business since 1999, and it helps customers set up precious metal IRAs and purchase precious metals for their own personal collection.
If you’re looking to set up a gold IRA, APMEX is a good option. The company has a huge variety of precious metals to choose from, and they will walk you through the process of funding your precious metals IRA account. You can view the company’s IRS-approved precious metals directly on their website.
American Hartford Gold is one of the most reputable precious metals dealers. They are A+ rated by the BBB and AA rated by BCA. American Hartford Gold is also publicly endorsed by Bill O’Reilly and Rudy Giuliani.
Weekly updates can be found on their website and real-time market data and reporting. They also educate their clients and provide valuable resources to investors looking to learn more. What separates them from all other gold investment companies is that they offer a price match guarantee.
Leap Capital has been a leader in the industry for over 20 years and has finalized over $3 billion in transactions. The company offers several benefits to its customers, including a no-fee buy-back program.
If you choose Lear Capital, the company will work hard to educate you on how to set up your gold IRA. The company provides tons of free information on its website, and all of its employees are knowledgeable about how the process works.
Birch Gold Group has been serving customers since 2003. They help individuals buy precious metals and set up gold IRA accounts. Birch Gold Group sells gold, silver, platinum, and palladium for personal storage or precious metals IRAs.
Birch Gold Group works hard to educate its customers on the benefits of investing in gold. And the company will ensure that your purchase meets the IRS’s guidelines for placement in a gold IRA.
Typically, Birch Gold Group works with Brink’s Global Service and Delaware Depository, which offers up to $1 billion in insurance.
Advantage Gold has been in the precious metal trading industry since 2014. They offer low minimum investment requirements, making them ideal for those just getting started. Advantage Gold utilizes Delaware Depository and Brink’s Global Services USA, Inc., both very reputable storage companies.
Like many of the others on this list, Advantage Gold offers a variety of resources and educational materials to help you navigate which path is right for you. Their buy-back program is also better than many competitors, offering current market rates rather than spot pricing.
Noble Gold Investments is a gold IRA company that is committed to customer education and transparency. You can buy gold or silver outright or purchase them with the intent of opening a precious metals IRA.
One of the advantages of opening a gold IRA with Noble Gold Investments is the low minimum investment amount. The company requires a minimum investment of $2,000, while other gold IRA companies require minimum investments from $5,000 to $25,000.
Pros and Cons of Opening a Gold IRA Account
Having an IRA account opens you up to a wide range of benefits, including protecting yourself against unforeseen future circumstances such as political instability, inflation, and uncertain market conditions. Having said that, let us take a look at some of the pros of gold IRA investments.
Pros of a Gold IRA Account:
An IRA account is exempt from taxes until you withdraw your funds. When you invest money in a gold IRA, you are also exempt from paying taxes on any gains. This means that if the value of your investment increases, you do not have to pay any additional taxes.
Disaster Insurance for Your Portfolio
Gold IRAs offer disaster insurance for your portfolio in case of unforeseen events that could damage or completely wipe out your investment. The purpose of such insurance is to help protect you and your finances against any potential disasters.
The best gold IRA companies provide this type of insurance free of charge as a part of their services. This is just one more way that they work to protect your investments and help you maintain peace of mind.
With a gold IRA, you own and have complete control over it. You can choose what you want to invest in when to take a profit, and what the terms of your investment will be. Most gold IRA providers offer a variety of investments in different types of metals, such as gold, platinum, and silver. Some also offer to hold gold coins or gold bullion.
In addition to being an investment, gold can also be used as a hedge against inflation and market volatility. It is considered one of the safest investments during economic crises because investors are not affected by the consequences of other investments such as interest rates or currency fluctuations. At the same time, diversification reduces your portfolio’s risk while increasing its potential gain.
Cons of a Gold IRA Account:
Not for People Looking to Get Quick Profits
Sadly, gold IRAs are not suitable investments for people looking for fast profits. In reality, gold IRA companies are only suitable for long-term investors because the fees associated with buying and selling gold are so high that you would barely make any profit in the short term.
Gold IRAs Don’t Pay Interest and Dividends
For most investors, the primary reason for investing is to earn interest and dividends from their investments. But when it comes to investing in gold, that is not the case. If you are an investor in gold, you can only hope that your gold holdings will appreciate over time.
You Are Not Allowed to Inventory Your Gold Holdings Physically
While you’re purchasing physical gold, gold IRA companies do not physically allow clients to manage their gold holdings. Clients are only informed of which depository their holdings are stored in. You will need to go through the company holding your investment assets if you want to verify their existence.
Premiums and Fees
Most gold IRA companies charge fees and premiums. This additional expense is required for the physical storage of your investment. Storage fees vary from company to company. Additionally, some gold IRA providers charge additional commissions for each transaction, decreasing your purchasing power.
Things to Look for in a Gold IRA Company
Choosing the best gold IRA company is crucial for protecting your investment and making the most of your time and money. But it’s hard to know what you should be looking for if you’ve never bought gold before.
At the end of the day, you’re going to have to listen to your gut and choose the company you believe will be the best fit for your goals. But here are a few things to look for in a gold IRA company:
- Setup charges, storage fees, and annual fees: When choosing a gold IRA custodian, one of the first things to consider is whether they charge a flat-rate or sliding scale fee. You’ll also need to know how much the setup fee, storage fee, and the annual fee is. All of these fees can increase the cost of opening and owning a gold IRA.
- Company license: Anyone can set up a website and call themselves a legitimate business, so you’ll need to do a little extra digging. Check to ensure that the company is licensed before doing business with them.
- Length in business: Just because a company is new doesn’t necessarily mean you should exclude them as a possibility. But more time in business does mean that the company has helped more customers, so it’s worth considering.
- Customer reviews: It’s always helpful to see how other customers rate their experience with a particular company. Check the Better Business Bureau or Business Consumer Alliance to see what kind of customer service rating the company has and any complaints lodged against it. A Better Business Bureau (BBB) rating lower than a B is generally a cause for concern.
- Reputation: And finally, when searching for the best gold IRA company, you need to know about their reputation in the industry. Are they known for customer education and transparency? If not, then you may want to stay away.
FAQs About Gold IRAs
What is a gold IRA?
A gold IRA is a self-directed individual retirement account that holds gold coins, gold bars, and gold bullion. They can also hold other precious metals such as silver, platinum, or palladium. In many ways, a gold IRA is similar to a Roth IRA, only it is self-directed, and you will own the physical assets held in your account.
How does a gold IRA work?
Gold IRAs typically allow for pre-tax contributions and have similar income and contribution limits as well as withdrawal rules. When investors purchase precious metals through a gold IRA, they must be stored outside your home. This is done with a custodian in a secure depository, bank, or a third-party trustee approved by the IRS.
Custodians also help you manage the paperwork and tax reporting to meet the IRS requirements for retirement planning.
How is gold taxed in an IRA?
Taxes on gains from gold IRAs are due once you cash out. The IRS taxes them the same way as ordinary income; using a marginal tax rate. So, the amount you pay in taxes will depend on your income bracket.
If your investments generate losses, you will not be able to deduct them on your tax filing.
You must start taking distributions from the IRA by the age of 70 1/2.
Is a gold IRA safe?
Gold has a long, proven history as an asset and hedge against inflation. Gold IRAs also offer the same tax perks as regular IRAs.
As mentioned above, the IRS approves secure depositories for storing gold in IRAs. These companies must go through a strict auditing process to ensure that the gold they receive is the gold you ordered.
Are precious metal IRAs a good idea?
There are conflicting opinions on this topic, but precious metals are generally considered a solid investment since it tends to move in the opposite direction of the stock market. That means that if the market is dropping, your precious metals IRA will still be doing well. A precious metal IRA can help you diversify your portfolio.
Can I store my gold IRA at home?
No, unfortunately, home storage is not an option. The IRS actually has strict guidelines about where your physical gold and other precious metals can be stored. They must be stored in an approved, third-party facility.
Can a gold IRA hold other precious metals?
Yes, gold IRAs can also hold silver, platinum, or palladium. According to IRS guidelines, the precious metals must meet a certain purity standard to be held in a precious metals IRA. Here are the purity standards for each precious metal:
- Gold: At least 99.5% pure or higher
- Silver: At least 99.9% pure or higher
- Platinum: At least 99.95% pure or higher
- Palladium: At least 99.95% pure or higher
How much does it cost to start a gold IRA?
The upfront cost will depend on the gold IRA company you end up choosing. Most gold IRA companies will have a minimum required investment, and some investments can be quite high.
You’ll also need to consider storage fees and custodian fees. Make sure you ask many questions when evaluating different companies and keep an eye out for any hidden fees.
Can I choose a gold IRA rollover?
Yes, a gold IRA rollover is how many new investors get started. A self-directed IRA custodian can help you do a rollover or transfer your existing traditional IRA or 401(k) into a gold IRA.
Opening a gold IRA can be a good way to diversify your portfolio and protect yourself from inflation. However, the process of opening a gold IRA can be tricky, so you want to choose the right company to assist you during this process.
The ten best gold IRA companies outlined in this article could all be good options as you’re getting started. Make sure you consider all your options, ask plenty of questions, and choose the gold IRA company you believe will be the best fit for your gold investment goals.