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How to Add Gold to Your IRA

Gold is the natural hedge against market uncertainties that affect the value of currency. There are a number of ways to invest in gold, and one of the most beneficial methods is adding physical gold to an Individual Retirement Arrangement (IRA). Read ahead to find out how you can go about doing this:

Select a Self-Directed IRA

Only self-directed IRAs can have gold. The difference between a self-directed and a traditional IRA is that the former allows the account holder some control over investment. Account holders can also include more types of assets, such as precious metals. You must choose this option to begin adding gold to your arrangement.

Appoint a Trustee

Self-directed IRAs must have a licensed trustee or a custodian to oversee investments. The trustee must meet federal qualifications set forth by the IRS. This trustee will be responsible for the storage of the gold you put in your IRA, among other responsibilities associated with the investments. Trustees for self-directed IRAs typically include banks, credit unions, trust companies, and brokerage firms approved by the federal government. Check Gold Roth IRA for more information.

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Start with Cash Purchases

Self-directed IRAs cannot add gold right away, mostly because of price volatility associated with the precious metal. You will have to spend several years investing in cash assets before adding gold to your IRA. You may be required to have cash assets equivalent or more to the price of gold you intend to add to your account.

Purchase Gold from a Reputable Dealer

Once your self-directed IRA is ready for gold, you should find a reputable dealer to buy physical gold from. The IRS allows only certain types of gold coins and bullion in accounts. Therefore, you must go to the IRS website and find out which types of coins you can buy. National mints are typically preferred. You will have to find a highly reliable dealer for your gold, such as Lear Capital.

Before you choose a dealer, you should do some research. Read online reviews for the dealer. Make sure the company you purchase from has a real-world address. You may be able to ask your trustee for advice. The trustee can only hold your gold for you, but cannot buy it for you.

Once you have purchased gold, you must identify it as an investment in your self-directed IRA. The trustee will hold the gold until you are ready to retire.

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