April 7

Gold IRA vs. Physical Gold: What’s best in 2023?


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By investing in gold, it’s a great way to protect your wealth and guard against inflation. With the current economic uncertainty, many people are considering different investment strategies including investing in gold to protect their 401k against a market crash.

The two most popular ways of investing in gold are through a Gold IRA or physical gold investments.

In this article I’ll explore the differences between these two options by looking at what a Gold IRA entails, its advantages and tax rules as well as how it compares to physical gold investments to determine if you want to get into silver, gold or another precious metal.

Before we jump into the details, the quick and easy answer is to go with Augusta Precious Metals. You can read more about why in my top gold IRA article that breaks down the top five but if you just want the right go to – that’s it.

Augusta Precious Metals
  • Money magazine’s ‘Best Overall’ Gold IRA Company in 2022
  • Joe Montana’s financial team chose Augusta Precious Metals
  • Investopedia’s ‘Most Transparent’ Gold IRA Company in 2022

What is a Gold IRA?

A Gold IRA or Individual Retirement Account, is an investment vehicle that allows investors to hold physical gold, silver, platinum and palladium in their retirement portfolios. It provides investors with the ability to diversify their retirement savings and protect their wealth from inflation and recession.

The vast majority of companies that sell gold IRA options are there to help you with this.  Some of them are going to have ads on Fox News, Newsmax and all sorts of places for you to make that call and get locked in. It’s important that you understand that all of the gold IRA companies are not created equal.

When you’re thinking about owning gold and moving your funds from a roth IRA into one of the many options of self directed gold IRAs, it’s important that you do your research. You want to find the most trusted gold IRA company out there. This is your retirement portfolio we’re talking about and having gold bars or other gold investments in this SDIRA (Self Directed IRA), you will need to have done your research.

There are also going to be companies that tell you that home storage gold IRA options will work when that just means you’re taking a distribution and you’ll have capital gains tax associated to an event like this.

My point is – be really careful and do your research and get educated from Devlin Steele on the Augusta Precious Metals webconference where you’ll be able to learn more about gold bullion and my favorite is silver.

There are a lot of potential industrial uses coming because of Biden’s ‘Inflation Reduction Act’ which is going to require everyone to be in electric vehicles. There are approved precious metals that you can drop into a precious metal IRA that will be part of your retirement funds and you’ll be able to take advantage of what Biden is doing.

As we enter into 2023 and you get hit with ads and opportunities for investments of either a gold exchange traded funds or other precious metals that you’ll want to consider – just make sure you have gold bullion coins and silver coins in your investment portfolio as we embark on this adventure together.

Now, let’s get into the advantages of this now that I’ve gotten my point across about why you need to be careful out there for any gold investment that you’re making.

Advantages of Investing in a Gold IRA

Investing in a Gold IRA offers many advantages above and beyond what a traditional investment such as stocks and bonds can do. 

First, it can help hedge against market volatility since gold tends to remain stable during economic downturns.

Second, gold has historically been seen as a safe-haven asset which can provide stability for your portfolio when other assets are declining in value.

Thirdly, investing in precious metals like gold can be used as part of an overall strategy for long-term growth since its price often increases over time due to its limited supply relative to demand.

We’ll get into more detail later but this is a good overview for you. 

Should I Invest In A Gold IRA?

Whether you should invest in a Gold IRA depends on your individual financial goals and risk tolerance level but generally speaking it’s wise for most people looking for long-term security against inflationary risks associated with stock markets and currency fluctuations around the world today.

Investors who prefer tangible assets rather than paper money may find that investing some portion of their retirement savings into physical gold helps them achieve greater peace of mind knowing they have something tangible backing up their investments even if everything else fails economically speaking. I will talk about all the reasons why you should invest in a gold IRA in my breakdown of Augusta Precious Metals so go read that too.

Should I Invest In Physical Gold?

Physical gold can offer many benefits beyond those offered by paper investments such as stocks or mutual funds, as it is not subject to market fluctuations and does not require active management like other forms of investments do.

Take a look at this chart and you’ll see the value of how it’s changed over time (only available on desktop).

Furthermore, owning physical gold gives you more control over how much exposure you have towards potential losses compared with buying shares through ETFs or futures contracts where leverage could magnify losses significantly.

Before deciding whether this form of investment is right for you, make sure that you understand all applicable tax rules related to owning physical bullion so that you don’t end up paying unnecessary penalties down the road.

A gold IRA account will be your new self directed IRA retirement account that allows investors to purchase and store physical gold as an investment, providing potential protection from inflation and recession. Next, let’s look at how doing this will be a benefit to your retirement in the future.

More Advantages of Investing in a Gold IRA

Investing in a gold IRA offers several advantages over investing in physical gold. These include tax benefits, the ability to invest without having to store the metal physically, and the potential for higher returns due to the leverage provided by the account.


Tax Benefits

Investing in a Gold IRA allows investors to benefit from certain tax advantages that are not available when investing directly in physical gold. This includes deferring taxes on any profits made from investments until retirement age, as well as being able to deduct contributions up to $6,000 per year (or $7,000 if you’re 50 or older).


No Physical Storage Required

With a gold IRA investment account, investors don’t have to worry about storing their precious metals safely and securely. The custodian of your account will take care of all storage needs to make sure you have low stress and can allow you to focus on growing your wealth with minimal effort.


Leverage Potential

By leveraging an existing portfolio with a Gold IRA investment account, investors can potentially increase their return on investment significantly more than they would be able to do otherwise. This is because leveraged investments allow them access larger amounts of capital at lower risk levels than traditional investments alone would provide.


Risk Management Strategies

A gold IRA also provides investors with additional options for managing risk associated with market volatility and other economic factors such as inflation or recessionary periods. For example, some strategies involve buying gold coins or bars during times when prices are low and selling them during times when prices are high – this helps protect against losses while still allowing gains should markets turn around quickly enough before positions need liquidating again later down the line.

Overall, investing in a gold IRA provides many benefits compared to traditional forms of gold ownership. These include tax savings opportunities, no need for physical storage, increased leverage potential and various risk management strategies which help protect against losses while still allowing gains should markets turn around quickly enough before positions need liquidating again later down the line.

Investing in a gold IRA will give you (as an investor) potential for long-term growth, tax benefits and protection from inflation. However, it is important to consider other investment options such as physical gold when evaluating your overall wealth strategy. Once you understand the benefits here, it’s also important that you do your research on how it can impact you from a tax perspective.

Tax Rules for Gold IRAs

Gold IRAs are the best way to get into precious metals and protect your wealth from inflation and a recession.  However, it is important to understand the tax rules that apply to Gold IRAs before investing.

The IRS imposes certain rules on investing in precious metals through an IRA account including

  • Only certain types of bullion coins or bars may be held
  • There must be third party custodians involved
  • All transactions must take place within the account
  • No personal possession of the metal is allowed
  • All funds used must come from qualified sources (e.g., 401(k) accounts)

Let’s break down what this means in a bit more detail so you have a clearer picture of how this works.

The Internal Revenue Service (IRS) considers gold investments as “collectibles” therefore these are going to follow different tax rules than other types of investments.  The most important rule for investors is that any profits made on the sale of gold must be reported as capital gains income on their taxes. This includes both physical gold and gold IRA accounts.

When it comes to reporting these gains, there are some special considerations for gold IRAs. First, you will need to report any distributions from your account as ordinary income when filing your taxes each year. Additionally, if you make contributions or rollovers into your account during the year, you will need to report those amounts separately on Form 8606 when filing your taxes.

It is also important for investors who own physical gold or coins in an IRA account to know what information they must provide when filing their taxes each year. The IRS requires taxpayers who own collectibles such as gold coins or bullion bars in an IRA account to report all transactions related to their investment including purchases, sales and exchanges of coins within the same calendar year on Form 1099-B at tax time each year.

Finally, investors should keep in mind that while owning physical gold can be beneficial due its potential appreciation over time, it does come with additional costs associated with storage fees and insurance premiums which may reduce overall returns over time which may vary depending on market conditions when you purchase or sell the asset(s).

In conclusion, it is essential to understand how taxation works with regards to Gold IRAs prior to investing in order to maximize returns while minimizing taxable liability under current law governing such assets held within retirement accounts like traditional Individual Retirement Accounts (IRA), Roth IRA’s etc. If you’re looking for more info, I do break down the gold IRA tax rules where you can get into more of the details.

It is important to understand the tax rules associated with Gold IRAs because you will need to maximize your benefits of investing in gold. Next, we will look at the differences between a Gold IRA and physical gold investments.


In conclusion, when considering gold ira vs physical gold investments, you will need to understand the advantages and disadvantages of each option here. Investing in a Gold IRA can provide tax benefits and help protect your wealth from inflation or recession. However, investing in physical gold may also be an attractive option for those who prefer to have direct control over their investment. Your final decision should be based on your individual needs and preferences. Whichever route you choose, make sure you have done your research and have consulted with a financial advisor before making any financial decisions about investing in gold.

I am not a financial advisor, I’ve just done my own research and feel pretty confident in what I have written in this article. I would recommend you talk to your financial advisor to figure out what percentage of your 401k should roll into a self directed gold IRA where you can pick actual gold that can be stored in Equity Trust that is the most trusted storage facility that Augusta Precious metals works with. This is not a traditional IRA but you didn’t type that into Google so here we are talking about gold IRAs.

In terms of hedging against inflation and what we continue to see is the decline in what the dollar can purchase, this is also a great way to help your with the long term benefits to build your generational wealth.

By doing this, it will generate returns over time and by holding physical precious metals, you’ll be in good hands with Equity Trust and Augusta Precious Metals.

Whether you choose to invest in physical gold or a Gold IRA, it is important to understand all the positives and negatives of every option in order to make an informed decision about which strategy best suits your needs.  With the right research and advice, investing in either type of gold could provide long-term financial security for yourself and future generations. Take control of your finances today by learning more about how both types of investments work. The first step is going to the webconference that Devlin Steele can take you through.


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