Best Gold IRA Companies
A gold IRA is a type of individual retirement account that is funded with physical gold metal in the form of bullion, coins, or bars. As you might know, gold is quite valuable so you will want to ensure that you select the right gold IRA company. There are a lot of different aspects to look for when selecting a quality gold IRA company. Doing your research to verify a company meets all of these aspects will pay of greatly.
When you look at any gold IRA company, you should consider the follow six aspects:
- Any legitimate gold IRA company will have a free information booklet that can be downloaded from their website. A good company will have a complete booklet that covers almost any question that you might have and includes thorough information on the company.
- Prior customer satisfaction is crucial for any company that you do business with. Using a website like Yelp or Google is an okay start to getting information on a company but you will also want to read verifiable reviews. Turn to websites like Trust Pilot and Trust Link to find verifiable reviews from trusted parties.
- Verify that any company that you shop with is a recognized and listed dealer with the United States Mint. Also check that they are authorized by Professional Coin Grading Services (PCGS) and Numismatic Guaranty Corporation (NGC) for a further quality guarantee.
- Check with industry watchdogs like the American Numismatic Association (ANA) and the Industry Council of Tangible Assets (ICTA) to ensure that the company is both a member and in good standing.
- Does any company you consider have good standing with general business watchdog and mediation websites/agencies such as the Better Business Bureau or Business Consumer Alliance? These websites offer ratings on businesses based on reviews and complaints.
- When it comes to the company itself, you will want to learn about the company. A reputable gold IRA company will have been in business for a good number of years. Over those years they should have built up a network of industry services such as custodians and advisors. You shouldn’t have to go anywhere besides your gold IRA company to purchase your gold, open a tax-free account, rollover an existing retirement account (i.e. IRA, 401K, 403B, or similar account) and arrange both transport and custodianship.
Creating Your Gold IRA (New Gold IRA Vs Gold IRA Rollover)
There are two different ways of starting a gold IRA. The first method is to set up a gold IRA is to create a new account and fund it with money from your income sources. Investors under the age of 50 can contribute to a maximum of $5,500 a year while those older than 50 can contribute to $6,500 a year.
Your second option is to take an existing retirement account and roll it over into a gold individual retirement account. Only certain retirement accounts are eligible for gold IRA rollover, here is a list of eligible rollover accounts: 401K, 403B, 457B, traditional IRAs, SEP IRAs, simple IRAs, Thrift Savings Plans, and Roth IRAs. A few other less common differed tax retirement accounts may be eligible and a good gold IRA company will help you to verify the eligibility of your current retirement account, should you want to perform a rollover.
Why Choose A Gold based IRA As An Investment
Four major reasons exist for choosing a gold IRA. One of the biggest reasons to invest in precious metal IRAs like gold IRAs is that they have a long history of long-term appreciation. Even when the rest of the economic world isn’t doing well. Since the beginning of time gold and other precious metals have always been recognized as valuable and accepted as currency. Other fiat style currencies have become worthless over time. Precious metals are a great way to safeguard against a downturn in the economy or loss in other investments. When other investments lower in value gold has a trend of rising even higher in value.
The last benefit you will see is differed taxes for investing into your gold IRA. You won’t have to worry about some of your income going toward the government while you build up a large amount of capital. Again, even when the economy isn’t performing well.
Using Gold To Supplement or Back Your Portfolio
You should never have all of your investments in one place, even if it is a relatively “safe” investment platform. A gold IRA is a great way to diversify because it is so different from other forms of retirement accounts. Despite gold IRAs being an amazing investment option, experts say that you should only invent between 5 and 15%, depending on your existing portfolio. Splitting investment platforms to help hedge against future changes.
Speed and Convenience of Setup is a Trait of a Good Gold IRA Company
Finding a gold IRA company that can take care of everything for you in a quick manner is essential. To figure out about the speed and efficiency of a gold IRA, look to see if they have a network of services in place. Another common way that gold IRA companies speed up the process is to use digital or only forms. It is much easier to use a computer to fill out gold IRA applications and helps to make sure they are error free and readable.
The Difference Between Physical Gold and Paper Gold
A gold IRA account is an investment in physical gold, you just don’t get to store the gold yourself. If you go to a brokerage firm, they don’t offer gold IRAs. Instead, they will try to convince you to purchase Exchange Trade Funds (ETFs). A broker will try to convince you that ETFs have similar or better returns and are better because you do not need a custodian, broker, or storage facility. In reality, an ETF is just paper gold, you are not investing in real gold. And you are only investing in a portion of an asset with an ETF, similar to investing in a stock.
Numerous factors affect the market, and these have a much larger negative affect on Exchange Trade Funds. The biggest reason people invest in precious metal individual retirement accounts is to protect themselves from negative trends in the economic world while still having an investment that will make money in any situation.
Products Available From Gold IRA Companies
Choosing a gold IRA company that offers a complete range of approved precious metal products is key. Precious metal IRAs only allow you to use specific gold, silver, palladium, and platinum bars and rounds. The company having options helps you to ensure you make the choice that is right for you, not compromise on an item you have.
Different pieces of precious metal have different values.
Create a Checklist for Choosing a Gold IRA Company
Creating a checklist for your gold IRA company search is the best way to track your findings. Make a list and print copies so you can use it to analyze each company. As a summary, you are looking for an experienced gold IRA company that provides quality service, fast. They should have great customer reviews, be registered and in good standing with watchdog organizations, and be recognized at a minimum by the U.S. Mint.
Don’t forget to check third party reviews websites for reviews. Trusted review sites like the Better Business Bureau can provide you with a lot of information, including how a company handles complaints.
Gold IRA Company FAQ
What Is A Gold IRA Account?
Part of the Taxpayer Relief Act of 1997 introduced gold individual retirement accounts. The relief act recognized the fact that gold and other precious metals are a long-standing universal currency and thus created a retirement plan based around precious metals. After all, the words for silver and money are the same in 14 different languages.
Another thing that helped influence the decision was the fact that gold has shown during historical periods of economic uncertainty that precious metals move in the opposite direction. It can offset losses for American citizens to help prepare them for a downturn. Even if the market is in a positive trend, gold gradually gains value over time.
One of the first things that armies go for after defeating a country in battle is their gold and silver supply. These are valuables that will continue to be worth something after the fall of a country. After they defeat their country, the fiat currency is worthless just like many other types of investments the country once had.
Besides fineness requirements, gold, silver, and other precious metals that are eligible for precious metal IRAs must be produced by a NYMEX or COMEX-approved refinery in the form of a bar or round.
A precious metal IRA has the same reporting and distribution requirements as a traditional IRA. The main difference, besides the investment asset, is the fact that the gold must be stored by a trustee or custodian that is approved. Examples of approved precious metal IRA custodians include banks, federally insured credit unions, savings and loan associations, or an entity specifically approved by the Internal Revenue Service for such job.
You can start any IRA from scratch. Alternatively, you can rollover an existing retirement account into your gold IRA. Here are a few examples of retirement accounts that are eligible for rollover:
- Deferred Compensation Plan
- Non-Prototype IRA
- Pension Plan
- Roth IRA
- Thrift Savings Plan
- TIAA CREF
- Traditional IRA
- SEP IRA
- Simple IRA
- Beneficiary IRA
What is IRA Approved Gold?
We already mentioned that gold must be in the form of bars and rounds and produced by a NYMEX or COMEX-approved refinery. There are other requirements too. A fineness requirement applies, as does a requirement for the gold to be in the form of specific bars or rounds.
For gold investments you must have a .995% fineness. Here are the options you have for gold products:
- American Gold Eagle Bullion Coins
- American Gold Eagle proof coins
- American Gold Buffalo
- Uncirculated coins (proofs not allowed)
- Australian Kangaroo/Nugget coins
- Austrian Gold Philharmonic coins
- Canadian Gold Maple Leaf coins
- Chinese Gold Panda coins
For the rest of the precious metals, there are also fineness requirements and limits on the rounds, bars, coins, etc.
Silver must have a fineness of .9999% or greater. Here are the options you have for silver products:
- American Silver Eagle bullion coins
- American Silver Eagle proof coins
- Australian Silver Kookaburra coins
- Austrian Silver Philharmonic coins
- Canadian Silver Maple Leaf coins
- Chinese Silver Panda coins
- Mexican Silver Libertad coins
Platinum must have a fineness of .9995% or greater and your options for platinum products are:
- American Platinum Eagle bullion coins
- American Platinum Eagle proof coins
- Australian Platinum Koala coins
- Canadian Platinum Maple Leaf coins
- Isle of Man Platinum Noble coins
Palladium is accepted for precious metal IRAs when it has a minimum fineness of .9995% or greater. For palladium IRA you can have the following product in your account:
- Canadian Platinum Maple Leaf Coins
Is Gold IRA a Good Investment?
Many people here gold IRA and wonder if it is a good retirement option. Is it safe? Is it a long-term option? Is it viable? Etc.
Gold is a great precious metal because it has a history of gaining value when the rest of the economic world is in turmoil. Rarely does gold reduce in value, and when it does, it is only a temporary reduction. It doesn’t take long for gold to come back up in value. This makes it a relatively safe investment. You don’t have to worry as much about making a positive return compared to stocks or other products that vary based on the market.
Just like a traditional IRA, a gold IRA is a long-term retirement account. The only major difference is the fact that the underlying asset is a precious metal. That means that these accounts are regulated by the federal government, making them safer and providing you with benefits like deferred tax.
Many people around the country store gold as a bet against negative times in the economy. There are several problems with storing gold at home. One of the first being that you have to buy it with taxed income. With a gold IRA, you are making the investment without tax being paid upfront. Another benefit is that the storage is secure and guaranteed when you use a gold IRA custodian.
Between 1970 and 2015 the gold world has outperformed the stock market.
Economic inflation happens and the value of anything associated with the dollar gets skewed. That is, with the exception of precious metals. The values of precious metals hold strong as they are a currency of their own.
Part of saving for retirement is securing your investments against the future. Gold is a great investment to secure your future against changes in the financial world, so as a secondary retirement account it is great option for many people. A gold IRA specifically is better because of the secure storage, actually ownership of physical gold, and the deferred taxes.
Can I Use My Existing IRA to Buy Gold?
Like with some other retirement accounts, you can rollover your existing IRA into a gold IRA. This can be done from a number of deferred interest retirement plans such as a 401k or traditional IRA.
The purchase process of a gold IRA transfer is conducted between the old custodian and the new one. At no time do you have physical possession of your gold or have to transfer the money yourself.
A gold IRA rollover is slightly different. You have to withdraw the funds from your current retirement account and then deposit them into the account of the gold IRA company that you are using to buy and store your gold. A gold IRA rollover must be completed within 60 days of being started to ensure that you actually plan to use the funds for a rollover.
How Does A Gold IRA Work?
A gold IRA works similar to that of a traditional IRA. It is a self-directed IRA that is open through a gold IRA company. Taking the time to check a company thoroughly will help to make sure you get the best deal, many companies have a host of fees and costs that you might have to pay.
After setting up the gold IRA account the owner must finance it from contributions, transfers, and/or an IRA rollover. Then they must purchase the gold that they wish to store in their gold IRA.
What Is A Gold IRA Custodian?
A Gold IRA custodian is a certified party that is in charge of storing your gold for your gold IRA. For a variety of reasons, the federal government requires that you store your gold for a gold IRA with a professional custodian. These people have secure storage and safeguard your investment.
What Is the Best Gold IRA?
Taking the time to look at the various options will help you to find the best gold IRA company. Reputation, experience, metal options, prices and fees, and more go into making a company reliable and successful. If you want to see our research, take a look at this company.
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