A gold IRA is a great way to add diversity to your investment portfolio. It diversifies your risk, giving you more options in times of uncertainty. But you must choose wisely to ensure that your investments are appropriate for your risk tolerance and financial objectives. There are several types of gold that you can invest in as part of a gold IRA: physical gold, gold bullion coins (e.g., American Eagle or Canadian Maple Leaf), gold exchange-traded funds (ETFs), and gold mining stocks. These options are listed below. Keep in mind that the IRS allows you to have a maximum of 10% of your total IRA assets in one type of gold. If you want to invest in more than one type of gold, you can split them so that you stay below that 10% threshold. For example, you could invest 10% of your IRA in gold bullion coins and another 10% in gold mining stocks, or 10% in each one separately.

Physical gold

One of the most common and most popular types of gold you can invest in as part of a gold IRA is physical gold. You can purchase physical gold either directly from a dealer or from an online brokerage. You can then store the gold in a self-directed IRA brokerage account. You can also choose to keep the gold at home and then have a jeweler make a gift-wrapped package of it.If you purchase gold as part of a gold IRA, you can then sell it for a gain at any time. However, you cannot liquidate the gold in your IRA account. If you want to sell the gold, you must do so from your personal account, outside of your retirement account.

Bullion coins

There are two types of bullion coins that you can invest in as part of a gold IRA: American Eagle and Canadian Maple Leaf. Both coins are minted by the U.S. Mint and the Royal Canadian Mint, respectively. Each coin has a face value of $50 or $25. If you purchase $50 worth of American Eagles or $25 worth of Canadian Maple Leafs, you’ll receive one coin of that value. If you purchase $50 worth of American Eagles or $25 worth of Canadian Maple Leafs, you’ll receive two coins of that value. The American Eagle coin is minted in five different karat qualities: .5, 1, 1.5, 2, and 2.5. The Canadian Maple Leaf coin is minted in the purity of .9995. Both types of coins are considered to be “certified” or “qualified” gold, which means that they are worth their face value. This makes them excellent options for a gold IRA. If you want to invest in gold bullion coins, the cost will vary based on the purity of each coin. The U.S. Mint offers American Eagle coins in the following costs: $100 per coin for one-gram purity, $175 per coin for one-half-gram purity, and $250 per coin for one-tenth-gram purity. The Royal Canadian Mint offers Canadian Maple Leaf coins in the following costs: $100 per coin for one-gram purity, $175 per coin for one-tenth-gram purity, and $250 per coin for one-tenth-gram purity. Both mints also offer a $50 coin for $100 worth of gold: For American Eagles, this would be one-gram purity and for Canadian Maple Leafs, this would be one-tenth-gram purity.

Exchange-traded funds (ETFs)

You can also invest in gold exchange-traded funds (ETFs). There are a few gold ETFs available, including the iShares Physical Gold ETF (NYSE: PHOC) and the SPDR Gold Shares (NYSE: SGOL). Both are good options for a gold IRA. If you invest in an ETF, it will be managed by a third party. You may want to consider investing in an ETF over bullion coins if you want the convenience of being able to buy and sell it throughout the day.

Mining stocks

Finally, you can also choose to invest in mining stocks that are related to gold. There are a number of gold mining companies that you can invest in as part of a gold IRA, including Newmont Mining (NYSE: NEM), Barrick Gold (NYSE: BG), and Goldcorp (NYSE: GG). There are also gold mining ETFs that you can add to your portfolio. The iShares Silver Exploration Corp. ETF (NYSE: SIL) is a good option for a gold mining ETF.

Summing up

There are many ways to invest in gold as part of a gold IRA. You can purchase physical gold, gold bullion coins, or gold exchange-traded funds. Or you can invest in mining stocks. The type of gold that you choose will depend on your financial goals, risk tolerance, and the amount of time and effort that you want to put into managing your investment. For example, if you want a simple investment with little risk but you also want to earn a decent gain, you might consider investing in gold bullion coins. On the other hand, if you want a complex investment with a high degree of risk, but you also want to earn a very high return, you might consider investing in mining stocks.