Is Gold a Good 401k Investment?

Disclaimer: We are reader supported. We may be compensated from the links in this post, if you use products or services based on our expert recommendations.

When you are investing in to your retirement, one of the options that you may consider is adding gold or precious metals to your 401k account. Adding precious metals to your account is a great way to diversify your investments. No one should rely only on the stock market to build their nest egg for the future.

If you are thinking about investing in gold for your retirement, there are a few things that you should know about before making your final decision. A look at gold and why it is a good investment, how you can invest in it, and where to begin this investment process can help you make your final decision.

Is Gold a Good 401k Investment?

A Look At Gold As An Investment

The Demand For Gold

Throughout history, gold has been associated with wealth. It was so valuable because it was so limited in quantity. This fact remains the same today. There is only so much gold available on the planet, period. Gold that we use today contains gold that was used in Ancient Egypt and Rome. Gold is continually recycled because it is in limited supply.

Other factors also affect the supply of gold. Uses for gold have increased to include more than coins and jewelry. Many high-end electronics use gold circuits or wires, which has increased gold demand. Mining and refining conditions can also impact supply, driving prices higher.

Gold Offers Stability In A Volatile Market

Investing is always risky. That is just how it works. Some investments carry higher risks than others. Stocks and bonds can be very volatile. Everything can affect the stock market. Government actions worldwide, natural disasters, political turmoil, wars, retail performance, and even groups of people wanting to sway the market with their purchases can impact how the market performs.

Gold, while it does have market fluctuations, is usually seen as a safe haven for investors because demand for gold is not affected by problems like the stock market.

When investors look for ways to protect their money when the stock market is doing poorly, or the dollar is losing value, they turn to gold and precious metals.

Protect Your Wealth & Get Huge Tax Saving!

Investment Grade Gold Is The Highest Purity Available

When the laws changed to allow investors to hold gold and precious metals as part of their self-directed IRAs, the IRS set purity standards for these metals. By implementing these purity standards, investors never have to worry about the quality of the gold or precious metals they own.

To qualify to be held in a gold IRA, the precious metal must come from an approved mint and must meet the following purity standards:

  • Gold 99.5 pure. Except for the American Gold Eagle
  • Silver 99.9 pure
  • Platinum or Palladium 99.95 pure

All coins and bars must meet these purity standards. This is very beneficial to the investor. When your gold or other precious metals are at the highest purity level, you never have to worry when you go to sell your investments, you know that you will get the highest prices.

As an additional bonus, some coins you can purchase that meet these purity standards are also highly valuable collector items. Low-run coins can carry a collector's value to them in addition to the value of the gold. This is just a bonus for the investor.

Is Gold a Good 401k Investment?

Diversification Is The Safest Way To Save For Your Retirement

The largest benefit of investing in gold and precious metals is that they give you a way to diversify your investments. Spreading out your investments across different assets is what gives you the most protection from fluctuations in the market.

If you have a standard IRA or an employer-sponsored retirement account, it will not allow you to invest in or other precious metals. Personal IRAs give you more freedom on which stocks or bonds you want to pick to invest in over your employer-sponsored account, but they still limit your diversification to the stock market.

If you want to invest in precious metals, you will need to roll over your account into a gold IRA or a self-directed IRA. These accounts are the only accounts that will allow you to hold gold, silver, platinum, and palladium as part of your retirement account.

Is Gold a Good 401k Investment?

Starting A Gold IRA

If you are ready to invest in gold as part of your retirement savings, you will need to start by establishing a gold IRA. These accounts are also called self-directed IRAs. These accounts are available through many different firms. These firms will manage your IRA account just like your current brokerage manages your regular IRA.

You can start a gold IRA as a new account, or you can roll over the money from your current IRA, 401k, 403b, or TSP into the account so that you can establish the account. Once you establish your gold IRA, you select the gold or other precious metals you want to invest in as part of your retirement savings.

When you purchase the gold coins or bars for your account, your account manager will send the assets to an IRS-approved storage facility to keep as part of your retirement investments. The Internal Revenue Service requires that all precious metals used for retirement savings be held in an approved facility.

When you reach 59.5, you can begin making withdrawals from your IRA. At that time, you can take possession of your precious metals if you desire and store them at your own home or chosen facility. You can also sell these assets as part of your withdrawal.

You cannot physically hold any precious metals as part of your gold IRA. The IRS enforces this rule with very high penalties. Always work with a gold IRA company that gives you options on where you can store your gold in an IRS-approved facility.

Is Gold a Good 401k Investment?

Best Options For Investing In Gold

If you are an experienced investor or new to investing, it will always be beneficial to work with a gold IRA company when establishing your account and purchasing your gold coins or bars. These companies have the knowledge and experience to help you make a smooth transition to investing with a self-directed IRA.

When selecting a gold investment company, you will want to work with one that offers you the following benefits:

  • Superior customer service. You want a company that you feel comfortable working with. Working with a customer service rep that can answer questions and provide assistance is beneficial to the entire investment experience.
  • Easy account creation. Your choice of companies should be able to make the transition into a gold IRA a smooth process. Look for companies that provide 100 percent assistance with changing your account to a gold IRA so that you do not incur any penalties from the IRS.
  • Check the types of coins and bars they offer. Are you looking to invest in standard gold coins and bars? Do you want collectors coins? Are you looking for a mix of gold, silver, platinum, and palladium? Make sure that your company provides you with everything you need.
  • Do they work with an IRS-approved storage facility?
  • Do they have free educational information available? Gold investment firms should want you to make informed decisions about your investments.
  • Do they have a track record of success?

If you are looking for a premium gold investment company to work with, we encourage you to look at the following three companies. We have found that they meet or exceed all of the standards listed above.


Augusta Precious Metals is a Casper, Wyoming-based business that has been providing gold IRA services for over a decade. The company was founded on the belief that you should have the ability to protect your retirement assets through proper diversification.

Agusta Precious Metals can help you establish a gold or silver IRA. They offer a large variety of coins and bars and work with several storage facilities across the United States. They have an amazing customer service rating with five stars from Trust Pilot, Google my Business, and the Better Business Bureau. Money Magazine has ranked them as the Best Gold Management Company of 2022.

Goldco is a California-based gold and silver IRA company that has been providing gold IRA services for over ten years. The company has continually ranked as one of the best gold IRA companies in the US and has many famous spokespersons who promote its product.

Goldco has excellent customer service and ranks at five stars or higher on all review sites. The company offers a wider range of gold coins than most other companies. These gold coins meet the purity standards required by the IRS but also have collectors' value. Additionally, GoldCo sells gold and silver coins for personal collections.

Based in Los Angeles, American Hartford Gold has been helping individuals since 2012 establish gold IRAs. American Hartford offers gold, silver, and platinum coins and bars for their IRAs.

The company has continued to rank as a leading gold IRA provider and scores incredibly high on review sites. Many investment magazines have ranked them as one of the best in the business. American Hartford has excellent customer service and educational material available to its clients.

One More Thought

If you are looking for a way to diversify your retirement account, investing in gold is always a good option. Take the time to find the right company to work with, and you will be able to make an informed decision about your investments.