Thinking about adding gold to your retirement account? It could be a smart move. Major investment firms like Goldman Sachs view gold as protection during uncertain times. But not all gold qualifies… so what is IRA approved gold?
Gold has a strong track record of performing well during high inflation and market volatility. Its value often increases when the U.S. dollar weakens, and commodity prices rise. Gold bullion coins or bars can act as an “insurance policy” for your portfolio, helping to balance your risk.
If you’re considering adding gold to your IRA, learn what qualifies as eligible gold. This article covers the options and benefits of adding gold coins or bars to your retirement account.
What is a Gold IRA vs a traditional IRA?
What is the difference between a traditional IRA and a Gold IRA?
Traditional IRA
A traditional IRA lets you invest in stocks, bonds, and ETFs. It’s a direct IRA account managed by common financial institutions like Charles Schwab or Fidelity. This type of account only lets you invest in brokerage types of assets.
Gold IRA
A Gold IRA is a self-directed account that holds precious metals like gold, silver, platinum, and palladium. You get all the same tax benefits of traditional IRAs, plus Gold IRAs allow you to diversify your portfolio with tangible assets.
What is IRA-approved gold?
IRA-eligible gold is basically gold that meets the Internal Revenue Service (IRS) standards for self-directed IRAs. These rules help protect you from scams and make sure you’re getting a solid investment. So when you purchase IRA-eligible gold you know you’re investing in something that’s got long-term value.
Criteria for approval
Here are the details on adding gold to your individual retirement account:
Purity standards: Gold bullion must be at least 99.5% pure.
Certain bars and coins: You can only add certain bars and coins to your retirement account, and your gold dealer can help you understand the options.
Storage rules: You’ll need to store your gold in an IRS-approved facility, not at home. These facilities provide secure storage and protect your tax advantages.
Approved refiners: The gold you buy must come from a national government mint or refiners approved by the London Bullion Market Association (LBMA) or COMEX. This guarantees that you’re buying high-quality and authentic gold.
Types of IRA-approved gold
The gold coins and bars you can buy include:
Gold coins
You can buy gold coins as small as 1/10 oz all the way to 1 oz in your IRA. Some of the more common approved coins include:
Canadian Gold Maple Leaf
Australian Gold Kangaroo/Nugget
American Gold Buffalo
Austrian Gold Philharmonic
British Gold Britannia (2013 and newer)
Chinese Gold Panda
Australian Lunar Series
Gold bars
The approved gold bars for an IRA range in size from as small as 1 gram up to 1 kilogram and come from brands like:
PAMP Suisse
Credit Suisse
Perth Mint
Valcambi Gold Bars
Royal Canadian Mint
Advantages of investing in IRA-approved gold
Here’s why investors add gold and other precious metals investments to their retirement accounts:
Portfolio diversification
Diversifying with gold helps you reduce risk. Since its value doesn’t move the same way as stocks or bonds, it can help offset drops in other investments. It’s also a completely independent asset because it’s not tied to any country’s currency.
Safe haven asset
When there’s a crisis, inflation or uncertainty, investors turn to gold. Since there’s only so much of it in the world, people perceive it as a safety net. This reaction causes gold to increase in value.
As one Reddit user, frugihoyi, from the r/Bullion forum puts it: “Inflation will always be a thing. Your $2500 will not be worth $2500 in x amount of years. But an ounce of gold that you buy for that price will likely be worth more than $2500 in that same timespan.”
Tax benefits
Precious metals IRAs give you tax benefits like either tax-deferred growth or tax-free growth in a Roth IRA. The tax advantages work the same as regular IRAs – you just hold metals instead of stocks.
Traditional Gold IRAs: Your investments grow tax-deferred until you’re ready to sell after the retirement age of 59.5. The benefit here is that you might be in a lower tax bracket when it’s time to liquidate, so you’ll pay less taxes on the gain.
Roth Gold IRAs: This type of account is different from other IRAs because you fund them with after-tax dollars. This means you can withdraw your initial contributions anytime without a tax penalty, since you already paid taxes on them. The gains from your investments must remain in the account until you reach retirement age. Once you turn 59.5, you can withdraw those gains tax-free.
Disadvantages of IRA gold investments
No investment is perfect, and there are a few drawbacks of Gold IRAs to keep in mind:
Storage and custodial requirements
Be sure to understand the various fees associated with Gold IRAs. These include custodian and storage fees for holding your approved precious metals in an IRS-approved depository. Gold IRA companies like Swiss America can recommend a custodian that doesn’t charge excessive rates, so these costs can be relatively small.
No income
Gold doesn’t earn an income like other investments. It doesn’t pay dividends or give you cash flow. We find that investors are OK with this, though, because the whole goal of owning the precious metal is for protection, not income.
How to invest in IRA-approved gold
To get started with a Gold IRA, the steps are:
Choose a custodian: Start with choosing a custodian so you can set up your self directed IRA and set up your account.
Purchasing gold: Once you have your account, work with your gold dealer to choose which metals you want to add. Direct your custodian to buy the metals on your behalf.
Storage requirements: Your gold dealer ships the metals directly to your custodian, who places them in an IRS-approved depository.
Considerations for investors
Like any investment, take a look at the market and your plans before investing in a precious metals IRA. No one can predict for sure what will happen, but here’s some common strategies investors use:
Market conditions
Be aware of what causes gold to go up or down. Generally, it goes up when there is a crisis, chaos or investors worry about the unknown. Take 2024… we have a lot of unknowns right now. This uncertainty caused central banks to buy more gold than they ever had in the past.
A recent survey from the World Gold Forum shows that 81% of central banks expect continued increases in gold purchases through July 2025. As these banks buy more gold, the price of gold rises for all investors.
Long-term strategy
Like most assets, the best way to hold gold is as a long-term investment. The longer you keep it, the more it helps diversify your savings and grows along with your wealth. Many people think of gold as “insurance” and a way to preserve and protect your money over time.
Trying to time the market for short-term gains is really difficult to do and is definitely not a good idea for your retirement accounts.
Swiss America for your precious metals IRA
Why work with Swiss America to buy IRA-eligible gold? We’ve been in business for over forty years and have helped thousands of happy customers buy gold, silver, palladium, and platinum bullion for their IRAs.
Use our resources, like in-depth guides, regular podcasts, and daily news, to better understand your options and what Gold IRAs require. You’ll get expert advice and transparent pricing, so you’ll know exactly what you’re paying.
You can also check your investment anytime through our easy-to-use online portal. This gives you real-time access to market value and allows you to get quotes for selling your gold, silver, or platinum.
What is IRA-eligible gold final thoughts
A Gold IRA can help protect your retirement savings from inflation, economic downturns, and market chaos. These accounts give you the stability of a physical asset along with the tax benefits of a traditional IRA.
If you want to learn more about protecting your retirement with gold, contact Swiss America today!
What is IRA approved gold? FAQs
What does it mean to be IRA approved for gold?
This means specific gold bars or coins that meet IRS eligibility for an IRA.
How much does it cost to have a Gold IRA?
The initial first-year cost of a Gold IRA can be between $200 and $500. This includes setup, storage, maintenance, and custodian fees.
Can you withdraw from a Gold IRA?
Yes, you can withdraw from a Gold IRA, but you must be at least 59½ years old to avoid IRS tax penalties. Once you hit retirement age, you can withdraw as physical gold or cash.
Note: The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
