Gold IRA vs physical gold, what to invest in?

[Lex Further]

Hey everyone! I was reading up on investing in gold and came across this article comparing Gold IRAs vs. physical gold bars and coins. It talked about how Gold IRAs can give you tax advantages and diversify your retirement portfolio, but you have to deal with custodian fees and less accessibility. On the other hand, physical gold gives you direct ownership and quicker access, but you have to handle storage and there are no tax perks. What do you all think is better for investing in gold?

 

[Ian Eccles]

I've been thinking about getting into gold too. I like the idea of a gold IRA for the tax benefits, but the custodian fees do make me a bit hesitant.

 

[CSJ]

I bought some physical gold bars and coins last year. I like the idea of having the tangible investment, and I can sell it quickly if I need cash. I had to invest in a safe, but it feels more secure knowing I actually hold the gold. Gold in a gold IRA might take some time to liquidate, because it is being stored in a vault.

 

[Chico99]

Gold in a gold IRA might take some time to liquidate, because it is being stored in a vault.

For me, a gold IRA seemed easier since I don't want to deal with storing gold myself and being paranoid that I might get robbed. Yes, you can sell physical gold at any time, but having a precious metals IRA and having my gold and silver stored in a secure vault gives me peace of mind. Plus, I was able to roll over my IRA to a gold IRA without any taxes.

I basically transferred money from my old IRA to my new gold IRA and purchased precious metals with those funds. If I wanted to buy gold directly, I'd have to cash out my IRA and risk having a distribution tax applied. Yes, with a gold IRA, you might have restrictions on when and how you can withdraw. But I guess it depends on how flexible you want your investment to be. I'm fine with the fact that it can take a few weeks to liquidate my gold.

 

[Lex Further]

But I guess it depends on how flexible you want your investment to be. I'm fine with the fact that it can take a few weeks to liquidate my gold.

Good point! I guess it boils down to what you're looking for. If you want something for retirement with tax benefits, gold IRA seems better. If you want immediate access and control, physical gold is the way to go.

 

[Guantou]

I've been thinking about getting into gold too. I like the idea of a gold IRA for the tax benefits, but the custodian fees do make me a bit hesitant.

Custodian fees are not that big. They can vary, but typically they range from $100 to $200 a year. It depends on the provider and the services they offer. I guess if you're investing a significant amount, the fees might not be a big deal compared to the benefits. By the way, with a gold IRA you're still subject to the same rules as other retirement accounts. Make sure you understand the withdrawal rules to avoid penalties.