If you have been paying attention to the news in the last few months, then you, like millions of other investors out there, must be extremely worried about the state of the economy. Gold IRA companies are becoming major conversation points in many circles as people look for ways to protect themselves from what could be a difficult period.
However, as the economy sinks deeper into what will very likely be a serious economic depression, more and more gold IRA companies are coming out of the woodwork! It is no longer a simple task to choose the right company to invest in.
If you want to narrow down your options to make the choice easier for you, we have two great IRA custodians for you to consider. With a wealth of experience and awesome track records between them, Red Rock Secured and Goldco are two of the top rated firms to invest in!
The top way to safeguard your retirement is to open a precious metals IRA. Check out the below providers and request a free kit.
Best Overall Rating (Where I Invested)
#2 American Hartford Gold
Best Buyback Program
#3 Augusta Precious Metals
Most Educational ($50,000 Minimum)
#4 Noble Gold
Best Metals Selection
What Will I Learn?
What Is a Gold IRA Company?
A gold IRA company, or simply an IRA custodian, is a company that is licensed by the IRS to hold precious metal investments on behalf of investors. The company can be any IRS-approved body, such as banks, brokers, financial institutions, or in this case, independent custodians, such as Goldco and Red Rock Secured.
Why Choose These Reputable Companies?
Choosing a gold IRA company is not something that you should do without giving the matter a lot of thought. When it comes to gold, there are a lot of scams out there and you could blindly fall victim to one of these if you are not careful.
Therefore, before deciding to invest in a particular company, always consider the following:
- The experience of the company
- User reviews
- Transparency of its dealings
- Selection of precious metals
- Minimum deposit required
- Any hidden costs
When judged according to these parameters, Goldco and Red Rock Secure both passed with flying colors. These two companies have proven to be worthy contenders for the best gold IRA company in 2023.
If you want the peace of mind that comes from knowing that your gold investment is in good hands, go for either of these reputable companies. Here are some quick facts about these two companies:
It is regarded as one of the best options if you are looking for excellent customer service. As of 2023, the company has been operating for an impressive 16 years! During that time, its reputation has grown, and today it is regarded as one of the best custodians to handle your gold IRA investment.
Red Rock Secured
Thanks to its panel of experts Red Rock Secured is now firmly established as the go-to custodian for investors looking for depth in knowledge and high levels of client care.
It offers numerous investment opportunities for those wanting to diversify their portfolios. At Red Rock Secured, safety is a very important aspect of the way the company does business, so you will rest assured that your money is in safe hands.
Red Rock Secured vs. Goldco – Key Differences
Goldco and Red Rock Secured have a lot in common in terms of handling gold IRA investments. Both companies have many years of experience between them, making them great choices for beginner and experienced investors.
However, there are a few important differences that you can use to help you choose between the two. Look at your financial goals and use the following to make your final choice:
Red Rock Secured charges around $250 to $300 for the privilege of investing your funds with the company. This fee will include the three main services that the company provides, which are account setup, maintenance, and storage fees.
In comparison, at Goldco you will pay around $50 for account setup, $80 for maintenance, and between $100 and $150 for storage. This brings your total fees to about $230 to $280 depending on the type of storage you choose.
Looking at these fees, Goldco seems like the more attractive option, especially if you go for the cheaper non-segregated storage option which will cost just $100 and bring your total fee contribution to $230.
However, Red Rock Secured has an ace up its sleeve! According to the company’s website, around 90% of its clients will qualify for its “zero fees for life” promotion. This means you could potentially open and run your gold IRA account at no extra cost!
If you meet the requirements for this Red Rock Secured deal, it would make this the obvious choice over Goldco.
- Minimum Purchase Order
Another area where these two companies differ greatly is regarding the minimum purchase requirement for opening a gold IRA account.
Red Rock Secured is the cheaper option, only requiring investors to come up with $1,500 to open an account and start buying precious metals. Goldco on the other hand requires a massive $25,000 minimum deposit.
This high investment required by Goldco is enough to price out many potential investors who do not have the funds to make such a massive once-off investment. In that regard, many people would be quick to rush to Red Rock Secured and open their account at the more reasonable deposit requirement.
However, before you denounce the high deposit requirement from Goldco, consider the nature of the investment you are making and ask yourself whether $1,500 is enough to make any meaningful precious metal purchases.
In all likelihood, you will end up having to invest more money into your Red Rock Secured IRA account for it to become worth your while. That might be why Goldco sees no point in asking for less than $25,000 from investors.
In the end, it will be your budget that determines whether you go for the much cheaper Red Rock Secured account or you choose the more practical Goldco alternative.
- Selection of Precious Metals
The most interesting part about investing in a gold IRA account is getting to choose from a list of awesome precious metal choices. In this regard, both Red Rock Secured and Goldco boast impressive precious metal collections that would be the envy of any gold IRA company.
Looking at the websites of both custodians you will see a wide section of coins and bullion bars, such as:
- Gold American Eagle gold coins
- Gold Maple Leaf coins
- Gold Freedom and Hope coins
- 1-oz Silver American Eagle
- 1-oz Gold American Buffalo
- 1-oz Gold American Eagle
- 1-oz Silver South African Krugerrand
- Platinum American Eagle 1-oz
- 1-oz Silver Canadian Maple Leaf
- Silver Lucky Dragon coins
- Different sizes of gold, silver, and platinum bullion bars
This is far from being the comprehensive list of all the bullion products offered by these companies and you will not be disappointed with either selection.
A word of caution, though. When investing in a gold IRA, only IRS-approved coins and bars are eligible, so you have to make sure you are buying legitimate precious metals.
Another important area where there is not much to separate Goldco from Red Rock Secured is when it comes to the online reviews and reputations of both companies. This is one of the easiest parameters you can use to judge a company you are considering investing in.
Looking at popular review platforms, such as Better Business Bureau, Business Consumer Alliance, Consumer Affairs, and Trustpilot, it is clear that both custodians have worked hard to become trusted names in the gold IRA industry.
Over the years, there have been hardly any negative reviews or complaints between the two and any issues raised by customers have been quickly resolved. That means in terms of trusting either Red Rock Secured or Goldco based on their reviews and reputation, both are highly recommended custodians.
Red Rock Secured Pros and Cons
The following is a quick look at the advantages and disadvantages of opening an account with Red Rock Secured:
- Safe storage
- Wide selection of precious metals
- Lower minimum deposit than most gold IRA companies
- Many investment options
- Chance for opening a zero-fee account
- Options for using Thrift Saving Plans (TSPs)
- Solid reputation and a reliable panel of experts
- Limited information on fee structures
- Higher fees for those not eligible for the zero-fee account
Goldco Pros and Cons
If you are leaning towards Goldco as your chosen gold IRA custodian, consider these pros and cons first:
- Low account fees
- Awesome selection of products
- Great customer reviews on BBB and BCA
- Plenty of knowledge and expertise
- Easy account setup and 401 K rollover process
- High minimum deposit of $25,000
How Does a Gold IRA Work?
Unlike other ways of investing in gold, whereby you buy physical gold and keep it, when you invest in a gold IRA it is the custodian that holds the metals for you. This means you will have to pay for your gold to be stored by an IRS-approved custodian.
A gold IRA can best be described as a type of self-directed IRA because the two share a lot of similarities in terms of tax benefits. However, your gold IRA investment will not pay you dividends nor gain any interest.
To open a gold IRA account, you have to follow these steps:
- Find a reputable gold IRA custodian, such as Red Rock Secured or Goldco
- Fund your precious metal purchases using a variety of ways, such as a direct transfer or conducting a 401K rollover
- Select your precious metals from a variety of gold, silver, platinum, and palladium coins and bars
- Choose an IRS-approved depository for storage
Not being able to keep your precious metals is one of the biggest points of contention regarding investing in a gold IRA. This is why you have to be very careful when considering the type of storage.
Usually, you have a choice between the more affordable non-segregated storage option or the more exclusive but pricey segregated storage. Transport may or may not be provided but both options need to be IRS-approved and will likely require an annual fee to be paid.
Three Reasons To Invest in a Gold IRA
Why invest in a gold IRA when there are so many other traditional investment opportunities to consider, such as buying stock? Well, a gold IRA has three distinct advantages over other asset classes as a form of investment, and these are:
- Hedge Against Inflation
The main reason to invest in a gold IRA, or any other type of gold investment, is that precious metals provide a hedge against inflation. This means that if you have gold, you do not have to worry about how currencies are performing on the global market.
Historically, whenever inflation rates go up, so too does the price of gold, meaning the value of your investment is always protected. A good indication of how well gold protects investors in times of economic turmoil is looking at how many of the world’s major central banks are buying gold as a priority in the face of the predicted economic meltdown.
- Portfolio Diversification
The best way to minimize risk when investing for the future is to diversify your portfolio. If you already have sizeable investments in stocks, ETFs, bonds, futures, CDs, and other forms of paper assets, it makes sense for you to start looking at precious metals as the next logical step.
Besides the obvious choice of opening a gold IRA, you can also buy shares in gold mining companies or trade gold on the commodities market. Whichever option you choose, your investment portfolio will be a lot safer with a diversified portfolio.
Related Reading: McAlvany ICA Review
- Gold Has Real Intrinsic Value
Unlike other metals that may only be valued for their aesthetics, gold has a lot of industrial, medical, and technological applications that will ensure that the demand for yellow metal will always be high.
This means, when you have gold, you hold a very valuable asset that is in high demand regardless of the economy and is, therefore, easy to liquidate in times of emergency.
With so many advantages of investing in a gold IRA, the only question is which gold IRA company are you going to put your faith in. Having looked at the features of both Red Rock Secured and Goldco, we can wholeheartedly recommend either option.
Look at your financial goals, budget, and what each company has to offer before choosing either of these great companies.