What is IRA-eligible gold?

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As the smoke clears from 2022, a clearer picture of the financial turmoil emerges. The outgoing year wasn’t kind to stock market investors, with the average stock fund price down about 17%, according to Morningstar. Inflation peaked in June at a 40-year record high and remained stubbornly high despite a slight dip in the year’s later months. And some economists are predicting a recession in 2023 to one degree or another.

If you want to add a gold IRA to your retirement portfolio, it must include IRA-eligible gold. / Credit: Getty Images

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If you want to add a gold IRA to your retirement portfolio, it must include IRA-eligible gold. / Credit: Getty Images

Amid this backdrop and with a new year upon us, it may be an ideal time to reassess your investments and fine-tune your financial goals for 2023. Many investors are looking to invest in gold, which is often seen as a safe haven for your holdings.


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One gold investment to consider is a gold IRA, which works like a standard IRA but allows you to hold gold in your retirement account. Before you begin the process, it’s essential to understand what IRA-eligible gold is and how you can invest in it.

You can start by requesting a free wealth protection kit here now to learn more about this unique investment opportunity.

What is IRA-eligible gold?

The Internal Revenue Service (IRS) mandates that gold meet specific purity and other standards if you want to include it in your individual retirement account (IRA). One reason is that IRAs aren’t permitted to hold collectibles, and precious metals like gold and silver are considered collectibles. However, there are exceptions to this rule. Since gold is also considered tender, some forms of gold are eligible to be included in self-directed IRAs:

  • Gold bars and rounds: These types of gold must be produced by an approved mint and be 99.5% pure. Small bars must meet exact weight specifications.
  • Gold coins: Gold coins must be 99.5% pure, with the only exception being the popular American Gold Eagle coin. Coins must also be encapsulated in their original packaging, in mint condition and come with a certificate of authenticity.

Many gold companies sell IRA-eligible gold, so finding the right gold for your IRA shouldn’t be difficult. Also, gold IRA companies can help set up your IRA and ensure everything meets the correct specifications. Goldco can help you get started here now or use the table below to compare some top gold companies. 

How can you invest in IRA-eligible gold?

When you invest in a gold IRA, you must meet specific IRS regulations. For starters, you must purchase IRA-eligible gold and choose an IRS-approved custodian who is tasked with making sure your gold meets the regulations. Additionally, all gold in a gold IRA must be stored in an IRS-approved depository.

Gold IRA companies can assist you with the process, from selecting the custodian to arranging for the storage of your precious metals. You can search for “gold IRAs” or “self-directed IRAs.” Be aware, you may have to meet a minimum investment requirement and pay fees for account setup, shipping, storage and maintenance.

It’s easy to get started here now.

What are the benefits of investing in IRA-eligible gold?

Adding some IRA-eligible gold shine to your IRA may deliver many benefits, such as:

  • Tax-deferred growth: Like a traditional IRA, gold IRAs provide tax-deferred growth on your earnings, and contributions are tax-deductible. Similarly, you can make tax-free distributions from your Roth account.
  • Long-term asset: Gold is often held as a long-term investment, making it an appropriate fit for a retirement account you’ll grow for many decades.
  • Provides a hedge: Gold is said to have an inverse relationship with the dollar’s value. When the dollar value decreases, gold value tends to rise and vice-versa. As such, adding a gold IRA slice to your retirement portfolio could act as a hedge against inflation.

How much should you invest in IRA-eligible gold?

Gold IRAs come with contributions, much like their traditional counterparts. If you’re below 50, the most you can contribute is $6,000 per year. The limit rises to $7,000 annually for those 50 and older.

As a general rule, many investment experts recommend allocating no more than 5% to 10% of your portfolio to gold. While gold can diversify your portfolio and may provide insurance against inflation, it can also experience periods of volatility. As with any investment, always weigh the pros and cons and consult your investment advisor before proceeding.

The bottom line

Adding a slice of IRA-eligible gold is a unique way to add an inflationary hedge to your retirement portfolio. Gold isn’t risk-free, and it’s not ideal for everyone. But given the economic uncertainty of the times, it’s certainly an asset worth investigating as you assess your investments for the coming year.

Learn more by requesting a free wealth protection kit for 2023

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