A Gold IRA is a type of retirement account by which physical gold or other precious metals are held in custody for the benefit of the IRA account owner. It works like a regular IRA but instead of using paper assets, The IRA holds bullions and coins. So basically, Gold IRA is a type of investment vehicle used to save for retirement by buying or holding gold bullions and other approved precious metals. with your traditional or Roth IRA, you stash your savings in the form of stocks, bonds or mutual funds. In a Gold IRA, you use precious metals. You can also own many other precious metals aside from gold, examples of which are silver, palladium, and platinum.

This also allows you to invest in other gold-related options like stock in gold mining companies, precious metals mutual funds, precious metals commodity futures or Exchange Traded Funds (ETF).

How to get Gold IRA

Not all precious metals and gold can qualify for an IRA. These metals will have to meet IRA standards. If you have metals that you wish to deposit but have not been checked or approved, you might get rejected. Some accepted forms are the gold and silver American Eagle and Canadian Maple Leaf coins, the Austrian Philharmonic coin, PAMP Suisse Gold bars, Sunshine Gold and Silver Bars and most platinum bars. To get a Gold IRA, you will need a custodian to hold and provide the account for you. This is because the gold will be deposited into an IRS-approved depository and not a regular savings account. So to find an approved custodian, you can go to your nearest bank, credit union, trust company or brokerage firm and acquire a custodian for your gold. Of course, you would want a qualified custodian you can trust with your asset and not just any company or person.

Weighing the costs: Pros and cons

One of the benefits of holding or owning physical gold or gold IRA is that it adds diversity to your retirement portfolio. Having this type of investment provides security for you and your money in the event of an economic meltdown or should stocks go south. Gold has already proven to be a considerable hedge against inflation, unlike stocks and bonds. One of the major cons could be the requirement to find a trustworthy custodian rather than just committing to the first person you meet. Another risk of having a gold IRA is the instability surrounding gold mines or companies. Other investors also dislike that gold IRAs don't pay dividends. One good thing is that your gold or precious metals are insured up to a certain amount when kept by the custodian which gives you a safer investment. Some advisors say that you would be better off with an account that pays dividends. Bottom line is to think everything through and spend more time understanding the economic decision you are making. This will not only ensure wise decision making but allow you to plan your investment portfolio properly.