A Gold Individual Retirement Account (Gold IRA) is a retirement investment vehicle that allows individuals to hold physical gold and other precious metals as part of their long-term retirement savings strategy. The primary goal of a Gold IRA is to diversify a retirement portfolio and hedge against economic uncertainties like inflation, currency devaluation, and market volatility.
In a Gold IRA, assets are held as gold bullion bars or coins instead of paper assets like stocks or bonds. The precious metals are stored in secure, IRS-approved depositories and must meet specific purity and weight standards.
Gold IRAs offer tax advantages similar to traditional IRAs, which may include tax-deductible contributions and tax-deferred earnings growth until withdrawal. However, they have unique rules, fees, and restrictions compared to traditional IRAs. It's essential to research and consult a financial advisor before considering this investment option.