If you are looking to diversify your retirement portfolio, then you may want to look into something like a gold IRA. These are individual retirement accounts that are set up by using gold as the physical investment. The IRA is a bit different than a traditional IRA. Keep reading to learn about a few expenses that you may incur due to the investment.
Gold Storage Fees
There are a few different types of gold that you can purchase when establishing the IRA. The metal must meet the standards of the IRS and fall under one of several categories involving investments and materials. The gold may be considered a collectible if it is in coin form or if it is in some type of mold form other than bullion. High-quality and refined gold bullion is in its own category in regard to the IRS. So, you need to understand if your IRA will be a collectible variety or a precious metal or gold IRA.
If you do have the refined gold bullion, then the IRS mandates that you store the gold properly. Specifically, it must be stored in a depository approved by the IRS. You can choose a specialized depository or one of the banks that are allowed to function as gold storage facilities. You will need to pay a fee once you choose your storage facility, and the fee is typically an annual one.
Keep in mind that you cannot forego this fee by storing gold in your own home. This is not allowed according to the IRS.
Gold Buying Fees
Before you can set up the IRA, you will need to physically purchase the gold and arrange for its storage. A trustee can be hired to take care of the logistics of the purchase, but you will still need to pay a special fee in regard to gold acquisition. This is called the seller's fee. Basically, the individual selling the gold gets a fee above and beyond the standard price of the gold.
Seller fees are one-time fees that are paid at the time you purchase the gold. Depending on where the gold is purchased, you may also need to have it delivered. You do have the option of storing the gold close to where you purchase it though, so this can eliminate transport fess.
Once the gold is purchased, you will also need to pay a small fee to have the IRA set up.
If you want to know more about gold IRAs, speak with an investment professional or retirement expert.