Let's discuss gold IRA pros and cons. Is it worth to invest?

[Rudolph]

Hi. I'm considering moving part of my IRA into gold. I keep hearing about the tax benefits, like tax-deferred growth and deductions. Seems like a nice hedge against inflation, but I'm still skeptical. Anyone have experience with a gold IRA?

 

[Will H.]

I set up a gold IRA last year, and I think it’s been one of my better moves. The tax deferral aspect is great, and having physical assets feels reassuring when the market gets volatile. Plus gold is up more than $800 per ounce. That said, it doesn’t have dividends or interest like other investments, so if you're expecting that, gold isn’t the best pick.

 

[Roscoe Cole]

Gold IRAs have some fees. You’ve got custodian fees, storage fees, and sometimes gold IRA account opening fees. I calculated that I spend around $200 a year just on fees alone. That might not seem like a lot, but if you decide to invest a small amount, let's say $10k, the fees get more noticeable. Just consider it as part of the cost.

 

[Will H.]

@Roscoe Cole I totally agree on the fees, but compared to the potential of losing everything in the stock market, $200 a year feels like an insurance premium to me. Plus gold is liquid if you need to cash out, unlike some real estate or niche investments.

 

[Rudolph]

@Will H. @Roscoe Cole thanks for your comments! I've been on the fence because I hear that gold IRAs attract misleading dealers. Some sell overpriced “exclusive” coins and promise “free” gold that doesn’t actually add any real value. Is this really something to worry about, or is this just fear-mongering?

 

[Barry Finley]

@Will H. @Roscoe Cole thanks for your comments! I've been on the fence because I hear that gold IRAs attract misleading dealers. Some sell overpriced “exclusive” coins and promise “free” gold that doesn’t actually add any real value. Is this really something to worry about, or is this just fear-mongering?

It’s not fear-mongering, some dealers are definitely sketchy. Read reviews and complaints on the BBB (https://www.bbb.org/), and be sure to choose a reputable gold IRA company that is transparent about fees, purity ratings, and IRS-approved assets. If what they're telling you sounds too good to be true, it usually is.

 

[AbrahamBlair]

Hi. I'm considering moving part of my IRA into gold. I keep hearing about the tax benefits, like tax-deferred growth and deductions. Seems like a nice hedge against inflation, but I'm still skeptical. Anyone have experience with a gold IRA?

The tax benefits of a gold IRA are definitely underrated. You can roll over from a traditional or Roth IRA, keep those tax advantages, and add diversity with physical assets. Plus, the IRS lets you hold multiple IRAs, so a gold IRA doesn’t mean closing your other accounts.

 

[Victoria R.]

Anyone have experience with a gold IRA?

My husband and I put some retirement savings into a Gold IRA five years ago. It’s been a safety net during downturns, and we like knowing it’s there. But be prepared to lock up your funds for the long haul! As @Will H. has already pointed out, gold doesn’t pay interest, so it's not the best investment if you’re looking for quick growth. Gold can be problematic to liquidate if you need emergency access to your funds, and we also pay annual fees, but it’s worth it for us.

 

[G. Hunt]

I think it's worth it. As someone who has a gold IRA, I can say that its advantages include asset diversification, inflation protection, the comfort of a physical asset, and tax-deferred growth. On the downside, gold IRAs don’t generate interest or dividends, have limited growth potential, and come with service fees that are worth weighing before you decide to invest.

I'd suggest you download a free gold IRA guide that covers key details on tax advantages, potential downsides, risks of investing in precious metals, rollover information, and more. There's a lot of helpful information to read.