Precious Metals
With everything that’s going on in the world today, more and more people seem to be getting nervous about their future’s well-being. Stock markets are starting to worry about the threats of a possible recession, inflation, and the impact of tariffs.
After months of talk about how the Fed might be able to manage a “soft landing”, it seems as though markets are finally coming to grips with reality. Now more people understand just how dangerous and uncertain the future may be, and they’re looking to help preserve their assets accordingly.
Many of those people have decided to turn to gold to help safeguard their assets, as gold has a long and well deserved reputation as a safe haven asset during times of financial distress. And one method in particular, a gold IRA, continues to gain in popularity. Here is how a gold IRA works.
You may be wondering what a gold IRA is, and you’re not alone. To those who have experience with conventional IRAs, the idea of buying gold through an IRA may seem strange or foreign.
But as long as you follow all the rules and regulations, buying gold through a gold IRA works just the same as buying stocks or bonds through a conventional IRA.
Many people choose to start a gold IRA because it allows them to benefit from the many advantages of owning physical gold. There are many potential advantages to owning gold, including these three.
If there’s no other reason to buy gold, portfolio diversification could certainly be one. Because gold has a low correlation with many traditional assets, gold is sometimes looked at as an asset that can help diversify portfolios.
Many people think that holding a broad array of stocks and bonds, or mutual funds and index funds, is sufficient to diversify their portfolios. But they may neglect to consider that their assets are completely dependent on the performance of Wall Street and the US financial system for their value.
In the event of a systemic financial crisis, both bonds and stocks can lose value. If the purpose of diversification is to lower the risk of holding any single asset, then portfolios that are too highly concentrated could experience greater risk of loss.
Gold has also traditionally served as a safe haven asset during times of high inflation. With inflation having become problematic in recent years, inflation defense could become increasingly important.
The last time the US faced significantly high systemic inflation was during the stagflation of the 1970s, when inflation peaked at over 13%. During that decade, gold’s average annualized growth rate was over 30%.
If inflation becomes resurgent today, as it was during the 1970s, gold owners would certainly hope that gold could repeat that type of performance. And if that happens, those who own gold could look back in 2030 or beyond and be incredibly happy that they made the decision to buy gold.
Gold is an asset that doesn’t just gain value during bad times, either. In fact, over the long run its performance can be even better than stock markets, with gold having outperformed stock markets during the 21st century.
As you can see, gold has the ability to outperform stock markets even during a period in which stocks have seen many bull markets. And you can put that potential to good use through a gold IRA.
A gold IRA has an additional advantage over other methods of acquiring gold such as buying gold coins. The gold coins or bars that you buy for a gold IRA can be purchased with pre-tax dollars, and your gains within your gold IRA accrue tax-free until you decide to take a distribution.
This is the same as any other IRA account, which is why a gold IRA can be a popular choice for those with existing tax-advantaged retirement accounts such as a 401(k), 403(b), TSP, or IRA. As long as you follow the gold IRA rules and regulations, moving your retirement savings to a gold IRA can be done relatively easily.
As with any IRA or other tax-advantaged retirement account, you need to follow various rules and regulations. You may want to consult with your tax advisor or financial advisor to make sure that you’re following these regulations and not accidentally exposing yourself to taxes or penalties.
The rules and regulations pertaining to gold IRAs are largely the same as those pertaining to other IRA accounts. Here are some important gold IRA rules to be aware of.
Many people choose to fund their gold IRA through a rollover or transfer from an existing retirement account such as a 401(k) or Traditional IRA.
Sometimes this is done to safeguard gains made in these retirement accounts. Other times this is to put funds in orphaned accounts managed by previous employers to better use.
Most of the time these rollovers and transfers from an existing retirement account to a gold IRA can be done tax-free. Goldco has helped thousands of customers roll over their retirement savings into a gold IRA to help safeguard their existing retirement assets.
Contribution limits are the same for a gold IRA as they are for any other IRA account. For 2025 the contribution limit to an IRA is $7,000 if you’re under age 50, and $8,000 if you’re over age 50. These limits of course don’t apply to rollovers and transfers, which can be any sum you want.
Not all gold coins and bars are eligible for acquisition through a gold IRA. The tax code forbids collectibles, including coins, from being acquired by an IRA.
The exceptions are for certain coins produced by the US Mint, as well as coins and bars meeting minimum fineness requirements, which are .995 (99.5% pure) for gold coins.
Most gold coins produced today meet these fineness requirements, as they are produced with IRA acquisition in mind. There are numerous coin options that you can choose from.
What this means, however, is that most older coins are not eligible for purchase through a gold IRA. If you were to attempt to purchase these coins with IRA assets, it would be considered a distribution, and would subject you to potential taxes and penalties.
You also can’t purchase coins you already own with gold IRA assets, as this would violate rules against self-dealing.
With over a decade of experience helping customers buy gold coins, and with established relationships with mints around the world, Goldco’s representatives can ensure that the coins you buy are indeed eligible for your IRA.
Most gold IRAs are Traditional gold IRAs, in which purchases are made with pre-tax dollars and gains are taxed only at distribution. But you can also open a Roth gold IRA, in which assets are purchased with post-tax dollars and gains are not taxed at all when you take a qualified distribution.
There is also the possibility of a Roth conversion, in which you convert pre-tax dollars from existing retirement accounts into a Roth gold IRA and pay taxes on that conversion. In general, whatever can be done with a conventional IRA can be done with a gold IRA.
Regulations pertaining to required minimum distributions (RMDs) are the same for a gold IRA as they are for other IRA accounts. If your gold IRA is a Roth IRA, there are no RMDs.
If your gold IRA is a Traditional IRA, you will be required to take RMDs once you reach age 73. If you attempt to take a distribution before age 59½, you could be subject to potential taxes and penalties.
As with any other IRA account, your gold IRA assets will need to be managed by a custodian. Goldco partners with gold IRA custodians who have years of experience in the precious metals industry.
Your gold IRA coins and bars will also be stored at a precious metals depository. Goldco partners with depositories who have significant experience helping keep our customers’ assets safe and secure.
At Goldco, we believe that buying gold shouldn’t have to be difficult. We do everything we can to make sure that our customers can benefit from owning gold.
That’s why there are just three easy steps that you can take to start your gold IRA.
If you choose to open a gold IRA, you would first sign an agreement choosing to do business with Goldco.
Once you have opened your gold IRA, you can decide how you want to fund your account. Rollovers or transfers from existing retirement accounts are a popular option, and can be done tax-free in most cases.
Goldco’s representatives have helped thousands of customers get started with the gold IRA rollover process, and they can help you too. But be sure to consult with your financial advisor and tax advisor to make sure that you’re not going to incur any tax liabilities.
Once you have funded your gold IRA, you get to decide which gold coins or bars you want to buy.
That’s part of the beauty of a self-directed gold IRA, the ability to control your asset allocation so that you buy what you want, when you want. You are in complete control of your assets.
Goldco offers coins and bars from mints around the world, and our established relationships mean that we can offer you coins that are guaranteed to be authentic.
Once you have purchased your coins, they will be shipped to the depository you choose, which will then keep your gold safe and secure. And when you decide to take a distribution, you will be able to take that distribution either in cash or in gold.
Buying gold through a gold IRA shouldn’t be difficult. With Goldco’s years of experience and thousands of satisfied customers, we know just what it takes to streamline the process of buying gold so that you can start preserving your wealth as quickly as possible.
If you’re looking to help safeguard your retirement savings, a gold IRA could be just what you’re looking for.
The ability to seamlessly roll over or transfer funds tax-free from existing retirement accounts, the numerous gold coin and bar options available to you, and the ease of providing quick diversification make a gold IRA an increasingly attractive option in today’s uncertain financial environment.
Why let your hard-earned savings remain subject to the potential pitfalls of Wall Street?
If you’re nearing retirement, can you afford to sit through another financial downturn and watch your retirement savings possibly waste away?
If the next potential crisis ends up being long and protracted, do you have time to recoup any potential losses?
Don’t put off trying to defend and preserve your wealth any longer. Call the experts at Goldco today to learn more about how gold can help safeguard your savings.
This article was originally published in May 2022 and was updated in April 2025.
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DISCLAIMER: This site is general in nature and not tailored to the specific goals of any individual. Purchasing precious metals may carry risk. Some of those risks associated with precious metals include the following: prices may rise and fall, which means the value of your metals may go up or down over time and you may sell for more or less than you paid. Past performance does not guarantee future results. Goldco cannot guarantee, assure, or promise future market movement, prices, or profits. Customers should understand that all purchases have some degree of risk. Customers should make certain that they understand the correlation between risk and return. Commodities involve risk and are not suitable for all investors. There is no assurance that commodities, i.e. precious metals, will achieve their objectives. Return and principal value will fluctuate and your portfolio, when redeemed, may be worth more or less than the original cost. Even though Goldco and its representatives are precious metals specialists, we are not licensed financial advisors and do not give financial advice. Additionally, Goldco cannot provide tax or legal advice and will not advise as to the tax or legal consequences of purchasing or selling precious metals or opening a Precious Metals IRA. Individuals should consult with their investment, legal or tax professionals for such services.
