Gold IRA companies are essentially brokers that sell IRS-approved coins and bars of gold and other precious metals so you can invest a gold IRA. Many of these companies also sell non-IRA precious metal coins and bars to collectors. Most gold IRA companies don’t charge a commission for buying or selling gold. However, many add a premium to the spot price, which is essentially their job to facilitate the transaction.
Some companies are transparent about their markup and others aren’t. Companies that buy directly can eliminate the middleman so they can reduce their markup. A gold IRA works like a traditional IRA, which allows investors to use their money before paying taxes to invest in gold or other precious metals. If you’d rather not invest in a gold IRA, you can also buy gold, silver, platinum, and palladium directly through this company.
A gold IRA is a specialized, self-managed individual retirement account designed to store precious metals. However, since gold IRAs are a type of self-governing IRA, they can hold alternative investments as long as they comply with IRS rules. Your custodian bank can refer you to an approved institution and process the gold transfer as part of setting up your Gold IRA. Self-directed IRAs enable unconventional investments such as bonds, real estate, precious metals, and private companies.
Physical gold is considered an alternative investment, which is not allowed in a regular IRA. All in all, investing in a gold IRA is a smart option to consider if you want to stabilize and diversify your portfolio. Government coins from the UK and gold coins from South Africa are not accepted in gold IRAs. You must discuss the various options available with your Gold IRA’s custodian bank before making any purchases.
An easy way to diversify your investments is to invest in a gold IRA along with your traditional retirement savings. Thankfully, Gold IRA companies make it easy to meet these requirements and add precious metals to your retirement plan. However, unlike traditional IRAs and 401 (k), s, which hold paper assets, gold IRAs contain physical precious metals. You can invest in gold stocks, such as stocks of gold mining companies or gold licensing companies, which help finance mines.
With the repurchase program, you can sell your gold bars back to American Hartford Gold (or another company) and save on liquidation fees.