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One of the challenges when saving for retirement is making sure you have enough money to live comfortably, while knowing that financial markets could look very different 20, 30 or even 40 years from now.
Precious metals are one way to add stability, a store of value and diversification to a portfolio otherwise tilted toward assets such as stocks and bonds that can fluctuate more with unpredictable market cycles.
Here are a few steps to take if you’re looking to capitalize on precious metals by transferring your individual retirement account (IRA) to a gold or silver IRA.
What is a silver or gold IRA?
Silver and gold IRAs are types of self-directed IRAs that can act as an additional tool for adding physical gold and other precious metals to your retirement strategy.
Investors generally can’t hold precious metals in standard individual retirement accounts because they are defined as collectibles. Because of this, the Internal Revenue Service (IRS) classifies IRA money that’s invested in collectibles as an immediate distribution, meaning you may have to pay taxes and a 10 percent penalty for holding these metals without the proper structure.
You will need a special broker or custodian to open a silver or gold IRA, which tends to come with higher fees, since you also need a bank or other institution that can store the physical metals you buy.
Gold and silver IRAs have the same contribution limits as standard IRAs, which is $7,000 for 2025 or $8,000 if you’re 50 and older. You can have as many IRAs as you want, but the contribution limit is static. That is, you can contribute up to $7,000 across any of your IRAs but not $7,000 to each.
3 steps to convert your IRA into gold or silver
If you already have an IRA and are looking to transfer your funds into a silver or gold IRA, here are three simple steps to follow.
1. Find a custodian and open a self-directed IRA
Start by researching companies that offer precious metals IRAs. You need a self-directed IRA to hold precious metals and get a tax break, and you need a custodian that offers precious metals IRAs.
Many top IRA brokers don’t offer access to the array of alternate investments you can hold in a self-directed IRA. These investments can have conditions that make management a challenge, such as storing physical assets.
Although self-directed IRAs can hold many types of assets, you can only hold precious metals in a SDIRA set up for metals. So you need a custodian that offers self-directed IRAs and precious metals that meet the IRS’ standards for purity and storage if you want the custodian to manage that aspect.
Take a look at the fees, too. Gold and silver IRAs typically have higher fees than standard IRAs since the physical asset has to be stored in an IRS-approved depository. You can’t just buy a gold bar as part of your IRA and keep it in your sock drawer.
Once you find the right silver or gold IRA company for you, open a self-directed IRA there.
2. Transfer funds or fund the account
With your account set up, you’re ready to transfer funds from your existing IRA into a silver or gold IRA. Depending on the types of accounts you have, the process can be pretty straightforward. A Roth IRA can only be rolled over to another Roth, but a traditional IRA can be converted to a Roth.
Your custodian should be able to help you facilitate a direct rollover or you can manage an indirect rollover on your own. If you go the indirect route, you must re-invest the funds yourself within 60 days to avoid a penalty.
3. Buy gold or silver and confirm storage
After your account has been funded, decide which types of precious metals are right for you and make your purchase. You can hold gold, silver, platinum and palladium in an IRA.
Keep in mind you have to secure storage for the metals. Your custodian may provide storage or work with a partner who does. Either way, a company that can handle the sale and storage helps you avoid headaches.
Other ways to invest in precious metals
If rolling over an IRA to hold precious metals isn’t for you, you can still make investing in precious metals part of your retirement strategy.
Mutual funds and ETFs focused on gold or other precious metals are a cheaper, easier way to add gold or silver to your existing retirement portfolio. You don’t need a special IRA because mutual funds and ETFs are standard assets for IRAs and widely available.
You could also add metal-related stocks to your portfolio, such as stocks of companies that mine precious metals.
Bottom line
To transfer funds from an existing IRA to a silver or gold IRA, you need to find the right custodian, open an account, initiate a rollover and purchase silver or gold. If you want an alternative route that doesn’t involve rolling over an IRA, consider adding gold-focused ETFs, mutual funds or stocks to your current retirement strategy.
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