Is it better to buy physical gold or a Gold IRA?

For most investors in the 22%+ tax bracket who are 5+ years from retirement, a Gold IRA is better due to its tax advantages: it shelters gains from the IRS's 28% collectibles capital gains rate that applies to physical gold. Physical gold is better for investors prioritizing immediate access, zero custodian fees, and direct ownership outside the retirement system.

What is the downside of a Gold IRA?

The main downsides are: annual fees of $75-$300/year; Required Minimum Distributions (RMDs) starting at age 73 forcing liquidation on a fixed schedule; 10% early withdrawal penalty before age 59.5; 3-7 business day liquidity via custodian; and IRS compliance complexity with strict fineness and storage requirements.

Do you pay taxes on a Gold IRA?

Traditional Gold IRA: distributions taxed as ordinary income (10%-37%). Roth Gold IRA: qualified withdrawals after age 59.5 are completely tax-free. Physical gold held outside an IRA: taxed as a collectible at up to 28% capital gains rate, significantly higher than the 15% rate on most long-term equity gains.

What if I invested $10,000 in gold 20 years ago?

Gold traded near $430/oz in 2005. At $3,100/oz in 2025, a $10,000 investment would be worth approximately $72,000-$94,000 - a 7-9x return equivalent to roughly 10-12% annualized. Source: Federal Reserve Economic Data (FRED). Note: gains in a taxable account are subject to the 28% collectibles tax rate; gains in a Roth Gold IRA are tax-free.

Gold IRA Rollovers: Your Complete Guide 2026

Item: Gold IRA Services
Rating: 4.8
Author: Our Editorial Team

How We Rate Gold IRA Companies

We evaluate companies across 7 criteria: annual fee transparency, BBB/BCA rating, IRS-approved depository partnerships, buyback program terms, minimum investment, customer complaint resolution rate (CFPB data), and storage options (segregated vs.commingled). We do not accept payment for placement in our ratings. Full methodology →

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Sources & Citations

IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) — irs.gov
Internal Revenue Code §408(m)(3) — Precious metals IRA eligibility standards
IRS Revenue Ruling 2002-74 — Gold coin IRA eligibility (American Gold Eagle exception)
World Gold Council, “Gold Demand Trends Q4 2025” — gold.org
SECURE 2.0 Act (P.L. 117-328) — RMD age change to 73, effective 2023
McNulty v. Commissioner, T.C. Memo 2017-24 — Home storage Gold IRA non-compliance ruling

Augusta Precious Metals Review

How We Rate Gold IRA Companies

Sources & Citations

Before You Choose a Gold IRA Company...