Why is it Good to Hold Gold Bars in an IRA?

If you're already thinking about adding gold bars to an IRA, you might already be familiar with the benefits of investing in gold in your retirement account. One of the biggest reasons to consider setting up a Gold IRA is that doing so allows you to diversify your portfolio. If all of your money is invested in one place, typically the stock market, you are putting yourself at a greater risk.

Imagine what might happen to your financial outlook if the stock market were to crash shortly before you were ready to retire. Do you think you'd still be in a position to retire as planned? Would you need to continue working for longer than you had planned?

When you have some of your money invested in gold, you are able to protect yourself against this scenario. Should the market crash, you won't be as adversely affected if your investments are spread out. And, since the price of gold tends to increase as the market decreases, it is likely that your gold bars will be worth even more.

Another reason you'll want to consider adding gold bars to your IRA is to hedge against inflation. The value of gold is not tied to the US dollar, so even if the value of the US dollar decreases with inflation, it won't negatively impact your investment in gold.

Gold is a rare precious metal. It also is highly sought-after across the globe. The lower supply coupled with the higher demand means that the price of gold is consistently high and continues to rise. This also means that finding a buyer and liquidating your bars when you're ready to retire should be very simple.

Investing in gold bar in your IRA account can help you take advantage of this benefit, and you'll likely watch the value of your portfolio increase over the years.

Adding gold bars to a Gold IRA, as opposed to simply purchasing some as a personal investment allows you to take advantage of the tax benefits that IRA holders receive. This can help you make the most of your investment and really set yourself up for a fruitful future.

Investing in Gold Bars vs Gold Coins

Now, you may be wondering whether gold bars are a better investment than gold coins. There are pros and cons to each option for you to consider, but luckily you don't have to choose just one. Gold investment companies will offer IRA approved bars as well as IRA approved coins, and you can add some of both to your new Gold IRA.

Gold bars are available in a range of sizes, meaning they come in values to meet the investing needs of different individuals. You can find them in sizes as small as 1 ounce up to as large as 1 kilogram.

When you buy gold bars, you typically receive a larger quantity of gold for less money that you'd pay for the same weight of gold in coins. This is because gold coins often cost more due to the designs and rarity, so you can't purchase the same quantity for the same amount of money. Gold coins are also more expensive to produce, so their prices are more marked up than that of gold bars.

Adding gold bars to a Gold IRA is a very simple and straightforward process. They are readily available through all gold investment companies. It won't take long to get the bars purchased and added to your account.

On the flip side, there are also some advantages associated with buying gold coins. You'll enjoy a greater variety of sizes, designs, origins, and face values with gold coins.

Gold coins may also grow in value more compared with gold bars. This is because they have the potential to appraise for more than the value of the gold due to factors such as rarity, historical importance, of general aesthetics.

Regardless of whether you add gold bars, gold coins, or some combination of both to your Gold IRA, you can feel confident knowing that you are making a wise investment that is likely to grow and set you up for a comfortable future.

What are the Requirements for IRA Approved Gold Bars?

Not too long ago, IRAs could only hold stocks and bonds. However, a revision to the IRS regulations in 1975 paved the way for Gold IRAs. The IRS began allowing Self-Directed IRAs, which is a special type of IRA that lets individuals hold alternatives assets in an IRA account.

Gold and other precious metals are among the most common assets to be held in a Self-Directed IRA, often referred to as a Gold IRA. However, the IRS regulations set specific criteria that must be met in order for gold bars to be held in an IRA.

The first criterion is that a gold bar must be at least 99.5% pure gold. If gold bars have a lower purity level than this, they cannot be held in an IRA.

The next criterion is that the gold bars must be stored in an IRS-approved depository. The IRS has a list of approved depositories located across the country, and individuals must arrange for their gold bars for an IRA to be stored in one of these locations.

When setting up a Gold IRA and adding gold bars to it, you will also need to appoint a custodian to be the trustee for the account. The gold investment company you work with to set up your new IRA will facilitate this process.

Due to these criteria, this means that you cannot hold the gold bars for your IRA account in your own home, or even a safe deposit box at a local bank. You also cannot add gold bars that you may already happen to own to the account. The IRA only allows investments that are publicly traded; bars in your own possession may be seen as collectibles.

IRA Approved Gold Bars

There are numerous gold bars that meet these criteria set forward by the IRA. Gold bars come in a wide variety of sizes and weights to satisfy the investment needs of a variety of individuals.

Some of the most popular options you'll find through various gold investment companies include:

Adding Gold Bars to an IRA

Once you've determined which gold bars you'd like to hold in your IRA, you should look for a trusted gold investment company to work with. Keep in mind that each company may offer a different selection of brands and sizes of gold bars, so if there is one particular bar you are looking to hold, you may need to be selective in your search. After you've picked the best gold investment company to work with, they can help you with getting a Gold IRA set up.

You may either set up a new Gold IRA, or you may be able to roll over an existing retirement account into an IRA. There are some strict rules regarding rollovers, and only some account types are eligible, so you'll want to consult with the gold investment company to determine if your current account is indeed eligible for a rollover.

If you choose to roll over an eligible account, you'll work with a custodian to transfer the fund from your current account to the gold investment company you're working with. If you're opening a new account, you'll just need to complete a wire transfer from your bank account.

Either way, once the funds for your new Gold IRA arrive, you can work with the representative to finish setting up your account and adding the various gold bars that you'd like to invest in. The representative you work with will take care of arranging for the bars to be securely shipped to one of the IRA-approved depositories where they will be held until you reach the age of retirement.

Each year you have your account, you can add additional gold bars to it. Keep in mind that IRS regulations limit an individual's yearly contributions to an IRA account. Those under the age of 50 can only contribute $6,000 each year without facing penalties or taxes, and those over the age of 50 can contribute up to $7,000.

You may also have a traditional IRA, so remember that these amounts represent the maximum yearly contributions. So, you'll need to split the $6,000 (or $7,000) between your IRA accounts each year.

Holding Gold Bars in Your IRA

If you're ready to start preparing now for your retirement and want to make sure you're where you want to be financially, opening a Gold IRA is a great way to do so. Funding your account with valuable gold bars that will retain their value and be easy to liquidate when you're ready to access the funds in your account will set you up for future success.

Which gold bars are you ready to invest in? Why wait any longer? Contact a gold investment company today to get your new Gold IRA set up and add those bars to your new account!

Frequently Asked Questions

How much does a gold bar weigh?

Gold bars are available in many different weights. The smallest gold bars weigh about 1 ounce, while the largest may weight 1 kilogram or more. A variety of weights between these two sizes are also available.

How much does a gold bar cost?

The cost of a gold bar will depend on a few different factors. First, is the weight of the bar. Since gold bars come in a wide range of sizes, clearly a lighter bar will not be as valuable as a heavier bar.

The other important factor that determines the value of a gold bar is the current price of gold. Since the price of gold can fluctuate from day to day, the price of a gold bar can also go up and down from day to day, or even more across a longer period of time.

How can I invest in gold bars?

If you would like to invest in gold bars, there are a few different options available. The first is to purchase gold bars to hold for a personal investment. You can do this through a local gold dealer or a gold investment company online.

Holding gold bars as a personal investment can help you diversify your portfolio, prepare for unexpected emergencies, or save for other large expenses.

The other investment option you have is to purchase gold bars for a Gold IRA. A Gold IRA is a type of Self-Directed IRA where you can hold assets other than the traditional stocks and bonds in your retirement account. Investing in gold bars in your retirement account can allow you to enjoy the tax benefits that IRA holders receive while also capitalizing on the value and growth potential of gold.

How do you sell gold bars?

When you retire and you're ready to remove the gold bars from your IRA and receive cash from them, doing so should be pretty easy. In many cases, you can request for the gold bar to be liquidated before being sent to you. This will mean that you just receive cash for your disbursement, and you won't need to try to sell the bar yourself.

If you'd prefer to sell the bar, or you've already had it sent to you, don't worry, selling it yourself should also be easy. Start by finding a reputable gold dealer in your area, and bring the bar there to be sold. Even with a reputable gold dealer, be sure to do your research, so you 'll know the current price of gold to make sure you're getting a good deal.

What is the best time to sell gold?

The best time to sell gold, like any other investment, is when the value is the highest. Since this isn't always easy to predict and the value can fluctuate, quite a bit, there are a few indicators you can look at.

Final Verdict

The first is when the United States' economy isn't performing very strongly. When the economy is weaker, gold tends to perform better, since people choose to invest in stocks more than gold during a strong economy.

The bottom line about selling your gold is to choose the time that feels right for you. If you need the money right away to pay for a large expense, then find a dealer, so you can get the money you need. If you're not in a rush, you can watch the price of gold and the overall performance of the economy and pick a time that feels best.