As the price of gold rises, interest in acquiring it also grows.  Large institutional buyers have been acquiring the metal for years; it is only recently that the general public has begun to buy into gold, which by the way is still at extremely low levels.  There are many options to choose from when investing in gold whether it be paper gold or physical gold.  What many investors do not know is that physical gold can be purchased and held in an Individual Retirement Account (IRA).

Buying gold through an IRA can be a very appealing option because it can be done so without taxation or penalty as long as you have an already existing IRA or 401k that can be rolled over.  This cannot be done with any IRA, it has to be an IRA that is set up with a designated precious metals IRA custodian.  Once the account is set up then funds can be transferred from an existing retirement account or new funds can be applied to it.  This can be done as a Roth or as a Traditional IRA.

The IRA custodians do not buy or sell precious metals, therefore a precious metals dealer needs to be included in the process, and that dealer will typically have a custodian that they prefer to work with.  Once your precious metals IRA is funded then the metals can be acquired for it, this is where the dealer comes in.  The dealer will provide the gold and advise you as to what gold qualifies for the IRA.  Only certain types of gold and silver qualify for the IRA which include certain bullion coins and bars, and proof bullion coins.  Once the product is purchased it is shipped to the custodian and stored on your behalf.  The custodian charges a yearly storage fee as well as an administration fee depending on the size of the account.

Distributions can be taken in the form of cash or the physical gold itself, which is your choice.  The same taxation laws and penalties apply to a precious metals IRA that apply to a regular IRA no matter how you take distributions.

Owning gold is a popular option these days, and will continue to be so as global money printing continues.  Acquiring it through an IRA is one option to consider, as always I recommend that you speak to a precious metals consultant to make sure you are getting the right tool for the job.