Gold IRA Pros and Cons: What You Need to Know in 2025

If you’re considering investing in precious metals with your retirement portfolio, it’s imperative you know the pros and cons of gold IRAs.

With high inflation, economic turmoil, and a skyrocketing national debt in 2025, you’re not alone. Many investors are turning to a gold individual retirement account to secure their next eggs.

But is a gold IRA account right for you? Below we’re going to cover all of the gold IRA pros and cons so you can make an informed decision.

And last but not least, we’ll dive into how to avoid the common pitfalls first time gold investors need to watch for.

Let’s get started!

The Pros and Cons of Investing in a Gold IRA

A gold IRA is a self-directed IRA that permits you to invest in physical gold, silver, platinum, and palladium.

How Gold IRAs Work

Step by step instructions to open a gold IRA:

1. Choose a reputable broker: The most important step is to choose a trustworthy gold dealer like CGE to guide you through the process. We have a flawless reputation, with no client complaints in over 30 years. 
2. Opening an account: We’ll help you to open an account with a self directed IRA custodian. 
3. Fund your account: Next, you’ll fund your new account by transferring cash from existing retirement funds.
4. Buy gold: Once your IRA is funded, you can buy physical precious metals by completing an Investment Direction form. We’ll help you to create an investment portfolio based on your unique needs. 
5. Store your gold: Finally, we’ll ship your precious metal to your selected IRS approved depository for secure storage.

Do you have questions, would you like help getting started? Call us now at 800-300-0715.

Gold IRA Pros

Investing in a gold IRA offers quite a few advantages, which we will explore in detail below.

When you hold physical gold as part of your retirement there are advantages and disadvantages, which we will explore in detail below.

Gold is a Physical Asset

One of the biggest advantages of investing in gold IRAs is that you own real physical gold and silver . With paper or digital assets such as gold ETFs, gold certificates, futures, stocks or gold mutual funds, you don’t own real gold or silver. Many investors prefer to own the physical gold bullion outright which is why they choose a self-directed IRA which gives investors more control.

Storage is Easier

With gold investments in an IRA, you don’t have to worry about storing your metal yourself. Physical precious metals can be bulky, especially silver. And storing a significant amount at home can be risky.

With traditional gold IRAs, your metal is safely stored at a 3rd party, non-bank, privately owned depository and is fully insured by Lloyds of London.

Tax Benefits

Another big advantage of a self-directed gold IRA is the tax benefits. Your metals can grow tax-free. You only pay taxes when you take a distribution.

Gold and other precious metals held outside of retirement accounts are considered collectible by the IRS and can be taxed up to 28%.

Keep in mind that with traditional IRAs, you’ll have to pay taxes when you take a distribution from your account. 

With Roth gold IRAs however, you can always take tax free distributions. But if you’re under 59.5, you’ll have to pay a 10% early withdrawal penalty. Visit our gold IRA tax rules page for more information.

Portfolio Diversification

Adding assets like gold to your IRA can help diversify your retirement portfolio and minimize risk.

Gold has historically moved inverse to other assets like the stock market, mutual funds and bonds. This makes gold backed self-directed IRAs an excellent hedge against market volatility.

Inflation Hedge

Gold has an unparalleled track record as a hedge currency devaluation. As the the dollar drops in value, gold prices often go up. But not because it’s becoming more valuable. It’s just that the weaker dollar buys less of it.

Having physical gold investments in your IRA can help protect your retirement savings from the eroding effects of the dollar losing value.

More Investment Options

Self-directed IRAs are a type of IRA that allows investors you to invest in alternative asset classes. Such as precious metals, real estate, private placements, futures and more.

Potential to Take Physical Possession

With self-directed IRAs, you have the potential to take physical possession of some or all of your metals should you choose. Granted, it’s considered a distribution and you will have to pay taxes on the amount delivered, unless it’s a Roth IRA.

So God forbid, in the event of an emergency if you’d like to have some of your gold and silver coins shipped to you, you can.

Long Term Wealth Preservation

Over the last two decades, gold has outperformed many other asset classes, including stocks and bonds. In fact, from 2000 to 2025, gold increased by over 1,000%.

Take Delivery of Metals to Comply With Required Minimum Distributions

Another advantage of either a traditional or Roth IRA holding gold is in-kind distributions. If you’re 73 and have to take RMDs, you can take them in the form of metal.

This allows you to maintain your position and continue benefiting from their potential growth and stability.

If you have a Roth IRA you’re exempt from taking RMDs which is one of the big tax advantages.

Cons or Disadvantages of a Gold IRA

While gold IRAs offers many benefits, there are also some drawbacks to be aware of. Let’s look at each one in more detail as we cover the cons of gold IRA investments in detail.

Higher Fees Than a Traditional IRA

A self-directed IRA can have higher fees than traditional IRAs. This will typically include:

• Account setup fee of $50
• Custodian fees of $125
• Transaction fees of $75 when you buy or sell
• Storage fees of $100 

(See our Gold IRA Costs page for a complete fee breakdown.)

You Can’t Personally Store Your Metals

With gold IRAs, you are not allowed to store your metals yourself. They must be stored in an IRS-approved depository.

Receive No Interest or Dividends

Physical gold does not pay interest or dividends. Unlike a traditional IRA that typically invests in stocks or bonds where you can earn dividends or a yield. This means that your returns are limited to the appreciation of the value of your physical gold and other precious metals.

Gold IRAs Can Be Potentially Volatile

Gold can be volatile. Therefore it’s important to have a long term outlook, between 3-5 years, for your gold investments so you can ride out any fluctuations.

Avoiding Scams and Fraud

Below is an explanation of the most common scams you will come across when researching a traditional gold IRA. If a company you’re considering uses one or more of these promotions you would be wise to call our staff at once at 800-300-0715.

1. Best Gold IRA Company Reviews – The search engines are flooded with “review sites” that supposedly evaluate the ‘Best Gold IRA Companies”. But beware, these seemingly “independent” sites are paid by the gold firms they recommend. That’s right, they’re paid a commission if you set up your account with the company they referred you to. And according to their own websites, that may range anywhere from 3-6% of the gross value of your retirement funds.
2. FREE Gold and Silver Promotions – If a company tries to entice you to use them by offering you “FREE” gold or silver, watch out. Because first off, it’s not free and second, you’re paying for it. That amount comes directly out of your retirement savings.
3. Celebrity Endorsements – Don’t choose a company just because they have a famous conservative spokesperson that you like. These endorsements are expensive. And again, who do you think is paying for that contract? You are.
4. Zero Fees Gold IRAs – There is no such thing as “Zero Fee” Gold IRAs. All custodians charge fees for their services. Make no mistake about it, you’re paying the fees. Either up front or by overpaying for your gold coins so your gold dealer can cover the costs but tell you they’re free.
5. “Exclusive” or “Premium” Coins – If you buy so-called “Exclusive” or “Premium” coins you’re going to overpay. These coins are not collectible and are normally worth very close to the spot price. But you can end up paying between a 33 – 66% spread. That’s a big deficit to have to overcome right out of the gate. Stay away from dealers that promote these coins.

Working With A Gold IRA Company In La La Land Is Usually A Con

Precious metals dealers in Los Angeles typically have big advertising budgets and generally charge a lot more for their products. This allows them to cover the cost of celebrity endorsements and tricky free giveaway promotions. The customer always ends up paying a lot more for the metals. To avoid being a victim always read the “Gold IRA Scams” report published by the Certified Gold Exchange. To get your free copy call 800-300-0715 now.

Is a Gold IRA Right for Me?

Deciding if a precious metal IRA is right for you ultimately depends on what you’re looking to accomplish. Your financial goals should be the primary factor in determining if it’s the right fit for you. Consider your retirement planning goals and how metals can help you reach them.

Personal Financial Goals

When determining whether to set up a gold IRA or not, think about your overall financial goals. Are you looking for portfolio diversification, how to protect against the dollar losing value, and to create long-term wealth? Or all of the above?

A gold IRA can help achieve these objectives by providing a stable, proven, asset within your retirement portfolio that historically performs very well in inflationary environments.

Risk Tolerance

How much risk you’re willing to take is important to consider when deciding if a gold IRA is right for you. Gold and other precious metals can help balance out riskier investments in your portfolio. Often providing stability and growth during stock market fluctuations and economic downturns.

Investment Time Horizon

Your investment time horizon is important in determining whether a physical gold IRA is right for you. Gold IRAs may be more appropriate for investors with a longer investment horizon.

If you have a shorter investment horizon, there are other ways to invest in gold that may be more appropriate for you. With an ETF for example, you can easily buy and sell in a traditional IRA brokerage account. Granted, you don’t own any physical gold but there are typically less fees and you’ll still have exposure to gold prices.

Once you’ve determined that a gold backed IRA account is a good fit for you, it’s crucial to choose the right provider. This single step will have the biggest impact on your success.

In the following sections, we’ll cover how to assess gold IRA companies and protect yourself from scams and fraud.

Evaluating a Gold IRA Company

When selecting a dealer to work with, it’s essential to choose a firm with a stellar reputation. But you’ll have to look a bit deeper than an A+ rating. It’s important to read the complaints a company has had lodged against them. This will give you an idea of what other peoples experience was working with that company. Ideally you want a company with a long term track record and zero complaints like the Certified Gold Exchange.

Additionally, you’ll want to read the dealers contract and confirm what they’re going to charge you. This is called the buy/sell spread. Many Southern California gold companies charge between 33% -66%. The last thing you want is to lose a huge chunk of the value of your individual retirement account because of hidden fees from an overpriced dealer. Be sure to read about our “Price Match Plus Guarantee Here”.

Why Should I Invest in a Gold IRA Right Now?

Searches for “How to Buy Gold” are at all time highs right now in 2025. The U.S. national debt is a staggering $36,000,000,000,000 and counting. Inflation is at 40 year highs. The “Everything Bubble” has to pop at some point. How much longer do we have? No one really knows.

Gold and silver have historically performed very well during inflationary times. In the 70s when the U.S. ditched the gold standard, gold increased by 2,400% and silver 3,500%. Since 2000 gold has increased by over 1,000%.

How high will precious metals IRAs go during this next crisis? God only knows. But right now is a great time to start a traditional gold IRA due to the current market conditions. By investing in a gold IRA, you can take advantage of the growth and stability offered by precious metals along with the tax benefits. All while protecting your retirement portfolio from rampant inflation and the coming economic turmoil.

Frequently Asked Gold IRA Pros and Cons Questions

We’ve covered a lot of ground so far, but you may still have questions about gold IRAs. Next we’ll address some gold IRA FAQs.

Summary

Bottom line, gold IRAs can be attractive if you’re looking to diversify your retirement accounts, protect against inflation, and create long-term wealth.

While there are some slight disadvantages to gold backed IRAs, the benefits outweigh these drawbacks for many investors. By carefully evaluating your financial goals, risk tolerance, and investment time horizon, you can determine if investing in gold is right for you.

Call the Certified Gold Exchange retirement team today at 800-300-0715 and determine if a gold IRA is right for you. We’ll help you make sense of all the gold IRA pros and cons.

Written by Gold IRA Experts Pat Collins and John Halloran