Investing in Gold with a Roth IRA

A Roth IRA is a popular retirement savings investment option due to its tax advantages. It pays income taxes on contributions, not earnings or payouts. Some assets, like gold, can be kept in IRAs, but not all brokerages offer this option. This post discusses gold investment restrictions, benefits, and alternative options. Learn more about gold investments

Important Points

  • Except for gold assets, the IRS prohibits collectibles in IRAs.
  • The IRS allows Roth IRA gold possession; however, the custodian must physically possess it.
  • ETFs are funds that invest in gold futures and businesses.
  • Self-directed IRAs allow for direct gold purchases.

Purchasing Gold Directly Through a Roth IRA

IRS guidelines for investing gold via an IRA are confusing, as gold is considered a “collectible” and not eligible for Roth IRAs. Individually directed accounts tax $1,000 as a distribution.

The IRS defines a collection as follows:

  • Artistic creations
  • Antiques or rugs
  • Metals or gemstones
  • Coins or stamps
  • Alcoholic drinks
  • Other tangible personal property considered receivable by the IRS

However, the IRS makes a few exclusions. When gold, silver, platinum, and palladium bullion are held by an authorized non-bank trustee, it is exempt from the definition of “collectibles.”

Alternative Gold Investing Strategies Using a Roth IRA

While most Roth IRAs do not allow you to buy gold directly, you can invest in gold indirectly to profit from gold price patterns or larger industry trends.

“Investors can invest in gold companies, gold trading companies, and even gold markets,” Bank One’s David Frederick said in an email to The Balance. “The higher the price of gold, the higher the price of these products will be.”


ETFs offer an alternative to buying gold directly, but may not offer the same benefits as direct investment due to market effects and potential market drops.

Gold IRAs with Self-Direction

A self-directed IRA allows innovators to purchase stocks not available in a traditional Roth IRA, such as real estate, tax liens, and commodities like gold. Self-directed IRA custodians assist individuals in establishing precious metals IRAs or Roth IRAs, but their fees may be higher than brokerages’ fees due to physical storage and insurance. If you want to open a 401K to Gold Retirement Account contact here.

Should You Put Your Retirement Money in Gold?

Gold remains a popular investment choice due to its numerous benefits in a well-diversified portfolio. A 2021 Gallup study found it among the top three long-term investments for Americans, alongside real estate and stocks/mutual funds. Frederick advises investors to diversify their portfolios, as gold can protect against stock market volatility. The benefits of gold are most noticeable when acquired directly, rather than through ETFs or corporations.

Frederick explains that gold has downside stability but lacks the same upside as business investments. It lacks quarterly profits, dividend distribution, market expansion, and new distribution methods. Gold may be worth adding to retirement accounts if fully understood, but consult a financial professional for advice.

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