Pros and Cons of a Gold Ira

Gold IRA

    A gold IRA is also called a precious metals IRA or a self-directed IRA, all terms mean the same thing. A self-directed IRA is one that you get to choose what to invest in, and not your broker. This means that you can choose your own stocks and bonds, and you get to choose to invest in precious metals, if you wish. 

    You will have to have a custodian to manage your gold purchases and you will have to have a broker that can buy the gold for you. If you are looking for a gold broker, you can look at to get some idea in which to go to find one. They have done some reviews, so you can be more sure of the broker that you choose. 

    This article will tell you a little about gold IRAs and the pros and cons of having one. There are many pros and cons, but this article will list just a few. If you would like to see more information, you can do some research to find that information.

Pros and Cons of Gold IRAs

    Pros – 

    Hedge Against Inflation – Gold IRAs are a hedge against inflation because gold will hold its value over time and will usually be worth at least the same as when you bought it. There has been some debate about this in recent years, but investors still think that gold is one of the best investments that you can make. 

    Store of Value – Although stocks can plunge down to zero, gold has never been that low. And it will not be that low, gold will always have value. Even when an economy can increase the amount of currency to lower the value of it, it is difficult to make new gold. This means that gold will hold its value better than currency will. 

    Diversification – Gold adds diversification to any portfolio because it is a hedge against inflation and does not fail as often as stocks do: You can reduce the risk in your portfolio if you can add gold to it. Diversity in your portfolio will always be a good thing for you and your investments. 

    Tax Benefits – Gold IRAs have the same tax benefits as traditional IRAs, contributions to the IRA are non-taxable. They are also tax-deductible and can save you money over time. Withdrawals after a certain period are also tax free. 

    Greater Control – You have more control over gold IRAs because they are self-directed IRAs, and you can choose what goes into it. You and only you make all the decisions that are a part of the gold IRA. 

    Cons – 

    High Fees – There are all kinds of fees attached to gold IRAs such as account setup fees, maintenance fees, seller’s fees, brokerage fees, storage fees, insurance fees, and then any penalty for withdrawing early. Although there are fees associated with many stocks and bonds, they usually are not annual fees and generally do not cost as much. You will need to make sure that you have the money to pay all the fees along with the cost of the gold that you want to invest in. 

    Difficult to Liquidate – Unlike traditional stocks and bonds, gold is often more difficult to liquidate. If you get in a hurry to liquidate, you might have to settle for a lower price than you were looking for just to cash out. This can lead to issues down the road if you are planning on keeping the gold IRA for your retirement. 

    Volatility – Gold can sometimes be as volatile as stocks and bonds, making it as much of a risk as other investments. Although gold will hold its value over time, it can be volatile on a day-to-day basis. Because of this, you can sometimes lose a lot of money in the short term. 

    Risk of Loss – Because gold is a physical investment, it can be stolen or lost. This is unlike stock and bonds that are on paper. This is unlikely to happen, but it can and has happened. You need to make sure that your gold investment is insured, which is another cost that you have to think about. 

    No Tax-Advantaged Income – With gold, you do not get any interest from your investment like you do with other investments. The biggest tax advantage that you get is when you sell your gold you will not have to pay capital gains taxes. 

    Funding Restrictions – You can only use certain types of gold and precious metals to invest in your gold IRA. The precious metals must meet strict purity level requirements from the IRS. You also cannot buy your own gold and put it into your gold IRA, it must be bought and sold by a broker. 


    There are many ways in which a gold IRA is beneficial for you. It is a great hedge against inflation and economic downturns. Although you cannot buy the gold and precious metals on your own, you get to choose what precious metals that you want in your gold IRA. Gold will hold its value for many years, making it a great investment for your retirement portfolio. 

    There are cons to having a gold IRA, as well. It is more costly than the traditional IRA because of all the extra fees that go along with it. You must pay storage fees and insurance fees, for example. There are also restrictions as to what type of precious metals that you can put into your gold IRA, for example, gold must be 99.5% pure to be added. You also cannot buy the gold or precious metals on your own, you must have a broker do it for you.

    You have to decide if a gold IRA is for you. You can do more research and see what other pros and cons there are. You do not want to decide on this because you read this one article, you also want to talk to others who have a gold IRA. 

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