# How to Buy Gold in an IRA
Self-directed individual retirement accounts let you hold physical gold, silver, platinum, and palladium alongside traditional stocks and bonds. This option appeals to investors who want portfolio diversification and a hedge against inflation.
To buy gold in an IRA, you need to open a self-directed IRA through a custodian that permits precious metals. Companies like Equity Trust, Directed IRA, and Entrust each charge annual fees ranging from $200 to $400. After opening your account, you transfer or roll over funds from an existing IRA or 401k.
Next, you purchase IRS-approved bullion coins and bars through a metals dealer. The IRS requires gold purity of at least 99.5 percent. Common choices include American Gold Eagles, Canadian Gold Maple Leafs, and Vienna Philharmonic coins. Bars must meet similar purity standards. You cannot hold numismatic or collector coins in a precious metals IRA.
Your custodian arranges secure storage with an approved depository rather than letting you keep gold at home. Storage fees typically run 0.5 to 1 percent annually of your metals' value.
The tax treatment mirrors regular IRAs. Contributions to traditional precious metals IRAs reduce your taxable income, while Roth versions grow tax-free. You cannot withdraw metals before age 59.5 without facing a 10 percent penalty plus income taxes on gains. Required minimum distributions apply to traditional accounts starting at age 73.
Watch for hidden costs beyond annual custodian and storage fees. Some dealers mark up gold prices significantly above spot value. Compare prices across multiple dealers before buying.
Precious metals IRAs suit long-term investors with patience for volatility. Gold prices fluctuate daily, and you won't receive dividends or interest like you would from stocks