ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Tips for Saving Money on Gold IRA

Updated on January 3, 2011

open a gold IRA

If you plan to open an IRA account with gold, many financial advisors would applaud your decision. Physical gold has never been worthless, unlike “paper commodities.” When paper currencies and the stock market decline, gold retains its value or increases in value. Because of this, financial gurus suggest adding gold or other precious metals to your portfolio.

Before you open an IRA account with gold, look for ways to save as much money as you can on administrative overhead. There’s no reason to pay high fees if you don’t have to. Also, consider the type of gold you’ll buy – some forms are better than others because they sell at smaller premiums. Consider the following tips for saving money on a gold IRA before you open an IRA account.

Tips for Saving Money on a Gold IRA

Work with trusted IRA companies

Gold is a hot commodity, especially with the economy’s down spiral. More and more people are opening gold IRA accounts or adding gold or gold stock to existing IRA accounts. Unfortunately, as a result, there are a few unscrupulous IRA companies. Some charge hidden fees, some lack adequate customer service, and others simply lack experience and/or expertise.

Any and all of these shortcomings could end up costing you extra money. When you open an IRA account, your financial future is at stake. It’s imperative to take the time and do your homework when comparing and contrasting different IRA companies and custodians.

Request a first-year waiver of fees

IRA companies charge fees for opening and maintaining your gold IRA account, of course. Fees vary from company to company. The initial setup fee to open an IRA account might be $40-$50. The annual fee for maintaining the account is usually a percentage of the fair market value of the assets within the account. A fee of from 1/8 of 1% up to .08% of the value of the assets is charged, with a minimum fee of $35-$50. Most IRA companies have a maximum fee, regardless of the value of the assets in the account. This is usually between $150 and $250. As you can see, just shopping around for the best rates for setting up and maintaining your account could result in savings for you.

If you use physical gold commodity to back a gold IRA, you cannot personally hold the gold. It must be stored in an approved depository. Of course, a fee is charged for this, also. A typical fee for the first year’s storage usually averages between $50 and $100.

IRA companies also charge transaction fees every time you buy or sell. If you do so frequently, these charges can really add up. They generally range between $25 and $50, depending on the individual company.

Several IRA companies are willing to waive one or more of the fees associated with your IRA for the first year, especially if you open other types of accounts. When you’re shopping for and comparing IRA companies, be sure to ask about the fee waiver for the first year.

Type of gold to buy

As far as purchasing gold coins for a gold IRA, the only ones mentioned specifically by name are the American gold eagles. Other gold coins, however, are eligible. They must be legal tender and at least 99.5% pure gold. Actually, gold bars are generally a better choice for a gold IRA because the markup is less on bullion bars.

For IRA investing, the gold bars have to be at least 99.5% pure, but that isn’t usually a problem, as most gold bars are 99.99% pure gold. Gold bullion bars are available in different weights, and you should use the larger bars for funding an IRA, if possible. For example, you’d pay less of a markup on one ten-ounce gold bar than you would on 10 one-ounce gold bars. The same generally holds true for other precious metals, too. You’ll get more value for your money that way.

Ask for expedited processing

If you believe, like most people, that time is money, you want funding an IRA to be a quick and easy process. IRA companies that have experience and expertise dealing with gold-backed IRAs have streamlined the process to a trustworthy art. Be sure to ask for expedited processing.

Open an IRA account with gold bars.
Open an IRA account with gold bars.

Comments

    0 of 8192 characters used
    Post Comment

    • Certified Gold profile image

      Certified Gold 6 years ago

      Thats so true Habee! Great Info! Thank you very much!

    • habee profile image
      Author

      Holle Abee 7 years ago from Georgia

      Some investors are convinced the price of gold is going to increase for at least another year or so, HH.

    • Hello, hello, profile image

      Hello, hello, 7 years ago from London, UK

      Brilliant hub, Holle, but confuses me is that now when the gold price is at its highest people buy. It is just theoretically becauseI wouldn't have a penny to spare.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)