Gold IRA Investments in the Face of Economic Instability: Top Companies to Consider in 2023
As a hedge against inflation, gold is often popular. When the value of the dollar drops, it causes the price of gold to rise. High inflation is causing problems for businesses. And the stock market is causing investors concern. But, investing for the future is still valid.
Under half of Americans have a retirement fund. Some 55% of adults in the country have no pension plan as of yet. Yet, IRAs make good retirement plans, and many Americans are choosing these still.
Over 60 million taxpayers have an IRA according to the TPC. Diversification in a portfolio is a good idea. And IRA holders often buy into mutual funds as these offer an easy way to diversify their investments. However, precious metals are becoming a popular option for IRAs, especially gold.
How does a gold IRA work?
Traditional IRAs are usually funded with fiat currencies. However, IRAs can include stocks and other assets. An individual retirement account comes with benefits such as tax deductions. And IRAs allow diverse investments such as real estate when they are self-directed.
A gold IRA is a self-directed IRA. This means the account holder has more control and freedom with their investments. Self-directed IRAs allow unusual assets to be included. And gold IRAs are aimed at those who want to put money into precious metals.
The name gold IRA misleads somewhat. The best gold IRA companies sell other precious metals too. Popular choices are silver, palladium, and platinum. Some investors may prefer silver for instance as some indicators point to the metal hitting a decade-high in 2023.
How do gold IRAs get set up?
Precious metals typically grow in value over time. As long-term investments, precious metals are resistant to inflation, and gold in particular has traditionally been popular. While unusual assets such as crypto might be placed in a self-directed IRA, there are some steps to be taken before any investments can be made.
The gold you purchase will need to be stored securely. A custodian needs to be appointed for this purpose.
Before investing in a gold IRA, you must follow these steps:
- Select a precious metal vendor
- Select a custodian
- Select a repository
- Open an account
- Fund the account
- Purchase precious metals
Perhaps the most important part of the process is selecting the gold custodian. You may see custodians listed as gold IRA companies or gold IRA custodians. Choosing the right gold IRA company will make the whole process simpler by handling all the work involved in buying and selling gold and securing it.
A gold IRA custodian will help with the following:
- Buying and selling gold
- Advising on diversification
- Portfolio management
- Securing assets
- Help with tax filing
A custodian will give advice and assistance with your portfolio and help you to manage it. Selecting the right custodian is critical. And there are some other things to be aware of when picking a gold IRA company.
What should you be aware of when choosing a gold IRA company?
There are a few things to be aware of when choosing a gold IRA company. There are fees to take into account. And also what precious metals are IRA eligible and what aren’t.
Consider the following:
- Purity of gold
- Gold spread
- Buy-back fees
- Account minimum
- Initial purchase amount
- Customer services
- Educational resources
- Choice of depositories
Not all precious metals are allowed in an IRA. Gold must be 99.5% pure, and silver 99.9% pure. Other metals have minimum requirements also. Previously, there were limitations so that only American Eagle coins and bullion were eligible, but now it is only the purity that matters. For beginners to precious metals, it might be worth looking at the historical price of gold. This will give some indication of how an investment might go.
Fees and account minimums differ between gold IRA companies. As does customer service and what other resources are offered. Any beginner would be advised to look for a gold IRA company that has no minimum initial purchase and offers good educational resources.
Gold spread is another important consideration. Gold spread is the difference between your buying price and what is offered to you when you sell. It can vary quite widely between different gold IRA companies.
Five gold IRA companies to consider in 2023
Here are just five gold IRA companies from a list of many. The choice for gold IRA companies is vast, and it is worth taking the time to make your own comparisons. The companies here are listed due to a particular trait that might appeal to some investors.
The criteria used range from pricing and fees to what resources are offered. Transparency and ease of use have also been considered.
1 Best for gold spread
Not only does American Bullion have one of the lowest gold spreads, but it also has zero fees and no minimum purchase levels.
- Low gold spread
- No account minimum
- No initial purchase minimum
- No storage fees for the first year
- No custodian fees for the first year
Attractive pricing and zero fees make American Bullion a good choice for the small investor.
2 Best for newcomers
Oxford Gold Group
More than one financial website has recommended Oxford Gold Group as the best for beginner investors. The reasons why range from plentiful resources to customer service. Learning how to start investing can be tricky, but Oxford Gold offers assistance to beginners.
Newcomers can request a callback from a representative and receive advice on how to open a gold IRA account. Flat annual fees simplify things further. Plus real-time precious metal prices can be monitored on its website.
3 Best for transparency
Augusta Precious Metals
If family-owned and trustworthy is important to you, then Augusta Precious Metals may be the best choice. Augusta has an A+ rating on BBB with a 4.9 rating on Google. Augusta also has completely transparent pricing – making it simple for beginners and seasoned investors.
4 Best for diverse investment and storage options
Noble Gold Investments
Most precious metal IRA companies will sell gold and silver, but Noble Gold offers palladium and platinum, giving investors that little bit more choice. Deciding which commodity to invest in is tricky for anyone new to the game. There are stock market tips for beginners and low-risk ways to invest in other areas. But, precious metals are a different type of investment. Having a bigger choice might be attractive to those wanting a diverse set of investments.
They also have more options for storing precious metals than most other gold IRA companies. Brinks and Delaware Depository are both well-known secure storage facilities. But, Noble Gold also has its own independent depository in Texas giving investors a bigger choice.
5 Best for zero fees
Red Rock Secured
Red Rock states that up to 90% of its customers will receive zero fees for life. That is on top of free insurance, free shipping, $0 management fees, and a 7-day price protection policy.
However, Red Rock has an account minimum of $10,000 and a $1,500 minimum cash purchase spend. Good for experienced investors, but perhaps not so much for beginners.
How you choose your gold IRA company will depend on how you wish to invest, and your experience. Choosing a reputable IRA custodian is vital. But, other factors must be considered too such as gold spread, and buy-back fees.
Zero fees are attractive, but they often come attached with account minimums and higher initial purchase prices. Before investing in a gold IRA invest some time in comparing the different companies so you can make an informed decision.