Best Gold IRA Companies 2020

There are numerous ways to invest in gold, but the most popular methods are through a mutual fund or an ETF. Some people prefer these methods over physical gold bullion because it is easier to transfer the investments to cash, but they are quite risky during economic swings. Mutual funds and exchange-traded funds that track gold can easily be added to both Roth and  traditional IRA, and they have fewer transaction fees and insurance requirements than physical gold. To further diversify your gold portfolio, you can branch out to stocks of mining companies and other firms related to the precious metal industry. This can be a great way to bolster your IRA with gold investments that offer dividends. You should keep in mind that gold IRAs can only contain actual gold, so gold-based stocks must go into a normal IRA. These options also do not offer adequate protection against inflation and volatility during recessions.

• Bullion and Gold Coins – This is the most simple and “direct” method of buying gold where the investor purchases physical gold. Usually in the form of bullion or gold coins. Precious metals can either be self-stored (deposit safe box) or purchased inside a self-directed IRA also known as a “gold IRA” or precious metals IRA. If bought inside a self-directed IRA the purchase is funded with a “rollover” from retirement accounts, such as a 401(k)s, TSPs or other IRAs. Due to IRS regulations, the investor is the owner of the metals, however can not physically hold the purchase. The purchase is done through a custodian and dealer and then stored with the custodian. The minimum purity of the precious metals purchase must be at least 99.5% (24 karats). By purchasing from reputable companies, your investment will be safe and the metals of high quality.
• Gold Exchange Traded Notes (“ETNs”) – ETNs are considered a somewhat complex investment. Unlike ETFs, ETNs don’t own any physical gold. It is issued by institutions and the base of its return is a market index. Although they are a type of bond, they do not pay interest like a bond. Once the ETN matures, fees are the deducted and the investor is paid based on the performance of the underlying index. ETNs are traded on major exchanges just like stocks, so in theory an investor can buy and sell them and make money with the difference in price, minus possible fees. It is worth noting that since there is no physical metals involved in the process, you might risk being exposed to the counterparty risk of the ETN issuer.
  
• Exchange Traded Funds (“ETFs”) – When purchasing gold through a ETF it is owned by the ETF and not the investor. Instead, shares of the fund are purchased and are traded in accordance to the price of gold on the markets. Usually 1 share is the equivalent of 1/10 of an ounce of gold. The shares can be purchased either directly from the ETF or through a IRA. Some of the well-known ETFs include: iShares Gold Trust and SPDR Gold Trust.
• Gold Miner Stocks – With gold miner stocks, you are investing in the equity issuances of gold miners. When investing, comprehensive due diligence is advised on each mining company. Future planned projects, production costs and levels should all be considered. Compared to physical precious metals, gold miner stocks are more volatile and represent a leveraged investment.