Gold Bullion: Buy Gold Coins & Bars to Invest Retirement
Investing in gold bullion offers a tangible to diversify your portfolio, especially for retirement planning. We've covered below what you need to know before you consider gold in your portfolio. Focus on the User compares coins to bars, types of gold you can buy, eligiblity, and how to purchase gold for retirement.
- Gold coins offer liquidity and popularity, while bars are ideal for larger investments due to lower premiums. Combining both can enhance retirement diversification.
- Ensure gold bullion meets industry standards (99.5% for gold) and verify authenticity through trusted dealers or certifications.
- Safely store gold bullion in secure, insured facilities or private vaults to maintain its value and accessibility.
What is Gold Bullion?
Gold bullion refers to high-purity physical gold in the form of bars, coins, or ingots, produced by government or private mints and valued based on weight and purity rather than collectible or numismatic factors. To qualify as investment-grade, gold bullion must meet a minimum purity of 99.5% and is often traded in standardized sizes ranging from 1 gram to 400 ounces.
Gold Coins vs Gold Bars in Investment Portfolio
When you invest gold bullion in your portfolio, there are a few differences you need to consider between gold coins and bars. Both options in gold have different advantages based on liquidity, cost, and impact on your portfolio strategy.
Gold Coins
Gold coins are highly favored for their liquidity, divisibility, and historical recognition. These features make them an excellent choice for investors seeking flexibility in their retirement portfolios.
- Liquidity & Recognition: Coins like the American Gold Eagle and Canadian Gold Maple Leaf are globally recognized and easier to trade or sell.
- Divisibility: Coins come in smaller denominations, making them ideal for investors needing to sell a portion of their holdings while retaining the rest.
- Premium Costs: Coins typically carry higher premiums compared to bars due to their minting costs, design, and demand.
Gold Bars
Gold bars are better-suited for bulk investments due to their lower premiums and higher overall value per unit. They are best for those interested in maximizing gold hostings at the lowest cost.
- Cost Efficiency: Bars, such as those from PAMP Suisse and Credit Suisse, typically have lower premiums compared to coins, making them cost-effective for large investments.
- Storage Considerations: Bars require secure storage in an IRS-approved depository and may be less flexible to sell in smaller quantities.
- Purity Standards: Gold bars often exceed purity requirements, such as 99.99% purity, making them a reliable option for retirement accounts.
IRA-Eligible Gold Bullion: What Specifics Are There?
To include gold bullion in a Gold IRA, it must meet IRS guidelines for purity, origin, and type.
Gold must be at least 99.5% pure, with approved gold bullion like American Gold Eagles (unique exception), Canadian Maple Leafs, and bars from refiners such as PAMP Suisse or Credit Suisse. Coins must be minted by government institutions, while bars must come from accredited refiners or mints like the Perth Mint.
Prohibited items include collectible coins, jewelry, and non-accredited bars, as they fail to meet IRS standards for purity or certification. Choosing approved bullion ensures compliance and protects your retirement investment.
American Eagle Gold Coins
Mint:
U.S. Mint
Purity:
91.67% (22-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Iconic design, most popular Gold IRA coin, recognized worldwide.
Canadian Maple Leaf Gold Coins
Mint:
Royal Canadian Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz, 1/20 oz
Key Features:
Known for purity and security features, widely accepted.
American Buffalo Gold Coins
Mint:
U.S. Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz
Key Features:
First 24-karat gold coin by the U.S. Mint, high purity, IRA-approved.
Austrian Philharmonic Gold Coins
Mint:
Austrian Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Europe's best-selling gold coin, recognized worldwide.
Credit Suisse Gold Bars
Manufacturer:
Credit Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
Widely accepted, serial numbered, highly reputable.
PAMP Suisse Gold Bars
Manufacturer:
PAMP Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
"Lady Fortuna" design, high-quality, serial numbered.
Valcambi Gold Bars
Manufacturer:
Valcambi Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
Trusted brand, CombiBar option (breakable into smaller segments).
Royal Canadian Mint (RCM) Gold Bars
Manufacturer:
Royal Canadian Mint
Purity:
99.99% (.9999)
Sizes:
1 oz and larger
Key Features:
Anti-counterfeiting features, highly reputable.
Combining Gold Coins and Bars in Your Investment Portfolio
While both gold coins and bars have their differences, their is the benefit of combining gold coins and gold bars in your investment portfolio. Whether invested or added in your self-directed Gold IRA, combining both options allows you to diversify your portfolio effectively, balancing flexibility with value.
How to Buy Gold Bullion for an IRA
While it’s possible to purchase gold bullion independently, setting up a Gold IRA streamlines the process and offers significant tax advantages. With a Gold IRA, you’ll have professional guidance to ensure your purchases comply with IRS regulations, secure storage in approved depositories, and tax-deferred or tax-free growth depending on your account type.
The steps in buying gold bullion for your IRA aren't as complicated as they may seem, we've outlined the four steps you can expect below:
1. Partner With a Gold IRA Company
Choose a reputable Gold IRA company to handle the setup and management of your account. These companies ensure your gold purchases meet IRS regulations and guide you through the process, minimizing the risk of mistakes or penalties.
2. Buy From Approved Dealers
Only purchase gold bullion from accredited dealers to ensure it meets the IRS purity standards (minimum 99.5%). Unaccredited sources or non-approved metals like collectibles can jeopardize the tax advantages of your IRAs so make sure to avoid scams in gold purchases.
3. Evaluate Pricing and Fees
Compare costs such as premiums on gold, annual storage fees, and transaction fees. Gold IRA companies often have partnerships with dealers and depositories to offer competitive rates and transparent pricing.
4. Use an IRS-Approved Depository for Storage
Store your gold in an IRS-approved depository, as personal storage or at-home safekeeping is prohibited and treated as a taxable distribution. Depositories offer secure, insured storage options for Gold IRAs to protect your investment.
Why a Gold IRA is the Better Choice Than Physical Gold
While some may consider purchasing physical gold instead of a Gold IRA, a Gold IRA offers tax advantages, professional compliance with IRS rules, and secure storage, making it easy to invest in gold and diversify your retirement for years to come.
Gold Bullion FAQ
Consider purity (minimum 99.5% for gold), weight, premiums, storage options, and the reputation of the dealer. Additionally, assess the liquidity of the specific bullion, as some coins may sell faster due to demand, and check if the bullion is eligible for IRA investment if applicable.
Coins often have higher resale value due to their liquidity, government backing, and collector demand. Bars typically sell closer to spot price but may take longer to liquidate, especially larger bars, due to fewer buyers.
The spot price of gold is the current market value for immediate delivery. It reflects real-time trading on global markets and is influenced by factors like supply and demand, economic data, and geopolitical events. The spot price is used to determine the baseline cost of eligible gold bullion you may include in your Gold IRA.
Gold is more stable and widely recognized than other metals like silver or platinum. It is considered a safer haven due to its historical use as currency and a store of value. Other metals, while offering diversification, are more volatile and industrial-demand driven.
Risks include price fluctuations, storage costs, insurance costs, and the risk of theft. Additionally, purchasing from unverified dealers may lead to counterfeit products. Gold does not generate income like stocks or bonds, so its value relies solely on price appreciation.
Physical gold offers tangible ownership and no counterparty risk, while ETFs provide liquidity and ease of trading but lack physical possession.
Investments can start as low as the cost of fractional coins or small bars, often around $100 to $200, depending on the market. Minimum investments in Gold IRAs can start from $10,000 and up.
Verify authenticity using certification, weight and dimension checks, and dealer reputation. Professional assays and serial numbers provide additional assurance.
Gold bullion is highly liquid, but selling can take longer than stocks or ETFs due to physical handling and verification.
A premium is the additional cost added to the spot price when purchasing physical gold. It accounts for manufacturing, distribution, and dealer margins. Premiums can vary depending on the type of gold, its rarity, and market demand. If you are a gold investor, understanding premiums can help you make an accurate valuation when adding gold to your portfolio.
Premiums are generally higher for coins due to their government backing, design, and demand. Bars, especially larger ones, offer lower premiums per ounce, making them cost-effective for bulk investments.
Coins require smaller, flexible storage and are often easier to transport. Bars, especially larger ones, may need specialized secure storage due to their size and value. Both require IRS-approved depositories for IRA storage.
Fractional pieces allow for easier liquidity and smaller investments but often come with higher premiums per ounce.
Trusted brands and mints include PAMP Suisse, Credit Suisse, Perth Mint, U.S. Mint (American Gold Eagles), Royal Canadian Mint (Maple Leafs), and Austrian Mint (Philharmonics).
Gold bullion provides stability, a hedge against inflation, and reduces overall portfolio risk by balancing volatile assets. Allocating 5–20% of a portfolio to gold is common practice for diversification.
Yes, as long as the coins and bars meet IRS requirements for purity (99.5% or higher for gold) and are stored in an IRS-approved depository.
Gold held in an IRA grows tax-deferred or tax-free (Roth IRA), but distributions are taxed as ordinary income for Traditional IRAs.
Gold must meet purity standards (99.5% for gold), be stored in IRS-approved depositories, and cannot be personally held. Collectible coins or other non-eligible metals are prohibited.
Central banks influence gold prices through interest rates, currency strength, and gold reserves. Higher rates reduce gold demand, while lower rates or quantitative easing boost it. Gold buying increases prices, while selling adds supply, lowering them. Weak currencies often drive gold prices higher globally.
Banks don't usually allow clients to buy gold, which makes central banks some of the biggest buyers of precious metals. It is rare for a regular bank to offer precious metals as a service to their clients. Instead consider IRS-approved dealers, or well known companies.
The term "oz" refers to the standard ounce used in everyday measurements, equivalent to 28.35 grams. "Ozt" stands for the troy ounce, a unit specifically used for weighing precious metals, equivalent to 31.1035 grams. A troy ounce is heavier than an ounce. For Gold IRA investments, gold is always measured in troy ounces (ozt), as this is the industry standard for bullion and coins.
Gold Investment Resources
Focus on the User's Solutions on Gold Bullion
Gold is just one way you can diversify into precious metals if you want to secure your portfolio in retirement. There are other precious metals including silver, platinum, and palladium bullion. Our guide on Focus on the User gives you a reliable overview of what you need to know about gold bullion before you start investing in your retirement.
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