By Doug Young

What Is the Difference Between a Traditional IRA Account and a Gold IRA Account?

If you want to protect your wealth, safeguard your investments, secure your future and enjoy your retirement to the maximum then you owe it to yourself to learn more about Gold IRA accounts and why nowadays it is more important than ever to include physical gold in your retirement investment portfolio.

Unlike the more traditional types of investments that are typically included in retirement planning such as savings accounts, annuities, bonds, stocks and shares, gold is unique because it does not rely on others such as corporations and individuals to enhance its value.

What’s more, by including physical gold in your pension fund you will have something that is real when you retire, not just paper.

What Are Gold IRA Accounts?


First off you should know that there are some IRA accounts that allow gold to be included in the overall plan. Do you know if your IRA allows for this? Well it would be a great idea to check. I would recommend that you speak to someone who runs your retirement fund or your IRA custodian to get a definitive answer.

Can I Own Physical Gold In My IRA?

If it turns out that you cannot include physical gold in your IRA, which is most likely the case, then you might want to consider a gold IRA. If you are already thinking about buying gold as an investment then there are lots of good reasons to do so via your retirement plan.

Gold IRAs give you the option of including physical gold in your retirement account or plan. Actually with this type of IRA you can include silver, platinum and palladium as well. This must be done in accordance with IRS regulations.

Since this is a retirement plan that allows you to lessen your tax burden the IRS oversees these accounts and therefore chooses to regulate them as well. It is essential therefore that you undertake this procedure under the guidance of specialists in the fields of both precious metals and retirement accounts.

It is interesting that you could not even think about having a gold IRA account until 1997 when Bill Clinton made this possible. These accounts have only started to become popular relatively recently though, because of everything that is going on worldwide.

Americans have started to wake up to the fact that they need to protect their retirement funds from the ravages of inflation and the ever decreasing value of the US dollar, and that gold and other precious metals can do that for them from within their IRAs. This is precisely why gold IRAs are so popular now.

Is a Gold IRA Safe?

I consider that having the option of backing up all of your investments with the stability of gold is a significant benefit. Your overall investment portfolio will be protected if you include gold. This is because gold, being a safe-haven asset acts as a hedge and historically has always risen in value during times when the economy is in trouble.

Typically, in times of economic turmoil stocks, bonds, real estate and the value of the dollar all fall and inflation increases. This combination can have a devastating effect on your retirement fund if it is not protected. I have learnt through many years of experience in the precious metals field that gold can offer you exactly the protection that you need.

Having a Gold backed IRA in place also means you can take advantage of fluctuations in the price of gold and rapidly add gold to your retirement fund whenever the price dips. This means over the length of the time you hold those assets the relative price is lowered no matter if you bought gold at a higher price later on. Many people use this strategy frequently when buying and trading stocks and shares so it makes perfect sense to use it when buying gold bars and gold coins to include in your retirement account.

Also, having a gold backed IRA means you will be able to have professionals on your side who fully understand what to do to maximize your return on investment. This is vital in order to secure your future and to make sure you have enough to take care of yourself in your retirement.

Is a Gold IRA Account a Good Investment?

An important benefit of a gold backed retirement plan is that it offers you the opportunity to invest in gold in a very tax effective way.

It can be argued that a gold backed pension fund is right for anyone right now who has existing non precious metals related investments. At the moment these are exposed and need to be protected. Making gold part of your retirement investment portfolio is also perfect for anyone without an existing retirement fund who wants to set one up.

How Do Gold IRA Plans Work?

Let me explain a bit about how Gold IRAs work here…

A lot of people think that the only investments you can include are physical precious metals. That is not so. Any type of investment can be included, such as your existing stocks and shares. It’s just that if you want physical gold and other precious metals to be included then you have to have a specific type of IRA account set up.

It is also a misconception that you can only have one IRA. You can legitimately have as many as you want! So if you have an existing IRA or 401k that does not permit you to include gold then you can either transfer or roll it over into a gold IRA or if you prefer you can set up a gold IRA account in addition to your existing retirement funds.

Click here to access a list of Frequently Asked Questions about Gold IRAs that I have compiled elsewhere on this site.

Is It Better to Own Gold Stocks or Physical Gold in a Gold IRA Account?

Buying gold stocks is one way of hedging your portfolio but is not as effective as including gold in its physical form. This is because the value of gold stocks is not linked solely to the price of gold. Instead you are relying on other factors such as the management structure and performance of the Companies you invest in, political factors prevailing in the countries in which the mines are located and also the cost of production.

There is a case for including gold stocks as well as physical gold but it is generally recommended that you do not include these instead of the commodity in its physical form.

How To Buy Gold With An IRA

Because securing your retirement is so vitally important it is equally important that you set your gold IRA account up in the most tax effective way, with the best possible chance of maximizing your return on investment (ROI) and in compliance with the rules and regulations stipulated and governed by the IRS.

For that reason, it’s my recommendation that you work with a company which specializes in both precious metals and retirement accounts.

Read Analysis

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About the Author: Doug Young
Doug YoungDoug is a highly experienced professional and widely trusted authority in financial investing, commodity trading, and precious metals. With over 20 years of expertise, he helps others make informed decisions by sharing a combination of personal experience, extensive knowledge and meticulously researched information on gold IRAs, precious metals investing and retirement planning. He regularly writes news items on these topics. He has considerable experience of evaluating Gold IRA and Precious Metals Companies, gained over a period spanning more than a decade.

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