How Does a Gold IRA Differ From a Regular IRA?
The primary difference between a Gold IRA and a regular (traditional or Roth) IRA lies in the type of assets you can hold within the account.
A traditional IRA or Roth IRA is generally limited to paper-based assets, such as:
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Stocks
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Bonds
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Mutual funds
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Exchange-traded funds (ETFs)
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Certificates of deposit (CDs)
These investments are managed through mainstream brokerage firms and custodians and are tied to the performance of financial markets. While they offer growth potential, they can also be highly volatile and subject to market crashes or economic downturns.
A Gold IRA, on the other hand, is a type of self-directed IRA that allows you to invest in physical precious metals—specifically gold, silver, platinum, and palladium. These metals must meet strict IRS purity and quality standards to be eligible for inclusion in a Gold IRA. For example, gold must be at least 99.5% pure, and only certain approved coins and bullion are allowed.
Here are a few key differences at a glance:
| Feature | Regular IRA | Gold IRA |
|---|---|---|
| Asset Type | Paper assets (stocks, bonds, etc.) | Physical metals (gold, silver, etc.) |
| Custodian Type | Traditional brokerage firms | Specialized self-directed IRA custodians |
| Storage | No physical assets to store | Precious metals must be stored in IRS-approved depositories |
| Control | Limited to traditional investment options | Greater flexibility, but more hands-on management required |
Another notable difference is that a Gold IRA typically requires more involvement from the account holder, since you’re dealing with multiple parties—such as a custodian, a precious metals dealer, and a depository. It may also come with unique fees, including storage costs and insurance.
Despite the added complexity, many investors are drawn to Gold IRAs because they offer a tangible, inflation-resistant asset that can act as a hedge against market volatility and geopolitical risk—something traditional IRAs can’t offer.