Who owns a Gold IRA?

[goldgrasshopper]

Hello Mustachians!

This is my first post. Seeing as that I am only putting in $1,200 of the $5,500 yearly cap into my IRA, I was thinking about getting a Gold IRA. I am a firm believer of the staying power physical bullion and own some myself and thought why would anyone own a Gold IRA? Its only advantageous for people who actually report earnings on their physical bullion on their taxes, but who the hell does that?

Are there any Gold IRA owners out there who find it a good investment and why?

[Radagast]

I don't think you'll find any here with one, or possibly anywhere. My understanding is that they are complicated to set up, and gold is already perfectly tax efficient until sold. You should use that space for stocks and bonds.

A better place to ask is the Permanent Portfolio forum: http://gyroscopicinvesting.com/forum/index.php

Also from the Permanent Portfolio the IRA setup requires you to designate a 3rd party custodian, which per them is bad because that is another layer of delays between you and your gold. So doubtful any there do it either.

[minority_finance_mo]

I don't think you'll find any here with one, or possibly anywhere. My understanding is that they are complicated to set up, and gold is already perfectly tax efficient until sold. You should use that space for stocks and bonds.

This is probably the best answer. If you want to purchase gold, go ahead and do that. But no reason to waste tax-efficient investing space on an investment that is already tax-efficient.

[realityinabox]

Who owns a Gold IRA?

People who listen to Glenn Beck...?

[Financial.Velociraptor]

I own exactly one gold coin and hold it physically outside of any tax advantaged vehicle.  I think of it as part of my cash/currency holdings rather than an investment.

[maizefolk]

My guess is Gold IRAs are mostly employed by people who don't have or expect to have significant post-tax savings but have recently have come to share your belief in the staying power physical bullion. Since their IRA/401k is where most of their non-home equity net worth already resides, the gold IRA gives them a way to hold gold without incurring the tax penalty of pulling the money out of their accounts.

[zephyr911]

People who are motivated by fear, and easily swayed by paid advertising.

Here's my rule of thumb: if it needs paid advertising, it's a shitty investment. #1, good investments sell themselves. #2, who do you think pays for the ads? Yep... you as a customer, through the inordinately high expense ratios on these accounts.

If you really want to hold some precious metals, look at the ETFs that invest in them. GLD, CEF, etc. Much cheaper/easier to buy and sell, same effect.