Charles Schwab Gold & Precious Metals IRA

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The Charles Schwab Corporation or the SCHW, through its subsidiaries, deals with asset and wealth management, banking, custodial, consulting, and stockbroking services since 1971.

Providing investment analysis, monitoring, and management services on its client's behalf, it receives brokerage commission as a broker of clients.

Charles Schwab offers IRAs to investors (with zero-dollar deposits) but can't directly hold precious metals such as gold.

Before we get started with this review:

With so many gold companies out there, how do you know which is the best to invest with?

At Exim Bank India we've spent years researching nearly every gold and precious metals company in the business and report to our readers on the very few that worth investing with.

Our goal is to give you the best information you need to make an informed decision.

That is why we created a list of the best gold investment companies from our extensive research, and you can use this list to help you make the best choice.

>> CLICK HERE to read our list of the Best Gold IRA Companies <<

Find out if Charles Schwab made it on our "highest recommendation" list this year!

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Can I Purchase Physical Bars or Coins from Schwab?

schwab homepage

Investors in Schwab are not able to buy physical gold bars or coins through this company. Investors are permitted to sell and buy Trade stocks, bonds, options, ETFs, mutual funds, and other types of financial products using a trading account and through the brokerage.

Investors in Schwab can access gold and precious metals, which includes bars and coins, through brokerage accounts under "paper gold". 

Is it Possible to Rollover a Schwab 401k into a Precious Metals IRA?

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401k retirement saving schemes allow investors to access their funds from their employers.

It is possible to roll over a Schwab 401k into a gold or precious metals IRA, which allows access to these precious metals because it is not possible to gain access to them through Schwab. 

However, with the assistance of an IRA company that specializes in gold, a 401k has to be changed into a self-directed IRA, before the investor will be able to hold gold or any other IRA-approved precious metals in their retirement account. 

What is a Gold IRA?

Gold IRAs, also known as a precious metals IRAs are retirement accounts that allow investors to invest in different commodities like silver and gold by holding the physical metals in a tax differed retirement account. 

This protects savings against currency depreciation, inflation, and other types of investment fluctuations. Palladium, platinum, silver, and gold are IRS-recognized metals that must be in coins or bars with the required specifications.  

Gold is regarded as the "most valuable" and also offers several applications. Other popular metals used in precious metal IRAs include palladium, platinum, and silver.

What Are the Benefits of Diversifying?

It is a wise decision to protect your retirement savings by purchasing valuable metals. A few of the benefits linked to investing in precious metals include:

  • Inflation Shielding

Inflation diminishes the market power and value of any type of single currency when it occurs. Gold is a precious metal that is not susceptible to similar changes in price as currencies since markets for metals operate independently. 

  • Safe Haven

Commodities that provide a safe haven retain and protect their value and profits even during stages of economic hardships.

Precious metals like gold and silver, have an extensive history when it comes to enduring as well as increasing in value when currencies like the dollar, start to falter. This is why they have earned the reputation as a haven. 

  • Retain Value

Precious metals maintain value over the years since they have what is known as inherent value and they can also be used directly in various applications.

Since currencies are made of paper, these are dramatically more vulnerable to panic and value volatility during economic hardships. 

  • Consistent and Reliable Performance

When the US dollar value drops, the precious metal ratings for palladium and silver rise. This can assist with stabilizing retirement investments. 

Reasons to Invest in Physical Gold Rather than Paper Gold

There are many reasons to choose physical gold rather than paper gold:

• You'll Physically Own the Gold 

With physical assets, you possess the actual precious metal, meaning you can claim it when you need it, even when it is stored at an IRS-approved depository, which is more than many of the paper-gold ownership allows.

• Potential Profits Thanks to a Fixed Supply 

One ton of silver or gold will remain one ton ten to thirty years into the future. Due to the unavailability of gold due to a consistent demand in various areas, anyone that owns gold is offered the potential to gain profits in future years.

• Physical Precious Metals have Intrinsic Value  

Unlike paper currencies, that pledge shares of a fixed or form amount of a currency, gold hold value and are in high demand for several reasons other than investment potential. These applications range from jewelry to electronics. This means that it maintains inherent wealth.

Paper gold carries several risks that include:

• The Zero Liability Tag Linked to Paper Gold 

For example, ETFs, include clauses in their documents that will exclude them from any accountability for many things that may go wrong when it comes to shares.

Counterparty risk means that one of the parties might default on the obligation that it has in the contract. It can become even worse since there are usually multiple parties when it comes to paper gold contracts.

While the IRS requires that precious metals that come in the form of coins or bars must have the required specifications, "paper gold" provides no choices when it comes to the type of gold one might buy.

This limited choice is dramatic and could result in a loss in profits or returns.

What Is a Self-Directed IRA?

Self-directed IRAs are retirement plans that allow an investor to have more control over their finances. The self-directed IRA, similar to a normal IRA or 401k, provides tax advantage benefits.

It provides the same features you can expect from a savings account for retirement, along with two added key features. These include extra investment alternatives along with added control over the retirement plan. 

It is also possible to add more diversification to your retirement funds when you choose a self-directed IRA when you move beyond paper-based assets and diversify with alternative assets such as IRS-approved physical precious metals like gold.

Most Popular Types of Precious Metals

  • Gold

For hundreds of years, gold has remained a coveted symbol when it comes to riches and wealth. The world has also used this metal for currencies, art, jewelry, and several other purposes.

Gold is also commonly used in many other industries since it's corrosion-resistant, electrically conductive, and malleable.

With increasing risks of the collapse of the dollar and the overall global economy, a long-term commitment to something like gold, whether it involves personal possession or an IRA, can offer a range of benefits.

  • Silver

Similar to gold, silver is also used in coinage, dinnerware, jewelry, and several other types of products.

Due to its malleability, high electrical and thermal conductivity, and its unusual shine, this metal is also used widely for a range of manufacturing, electrical, and industrial applications. 

  • Palladium and Platinum

Palladium and platinum are both known for their exceptional catalytic characteristics, which is why they are employed widely in several industrial operations, along with jewelry and various other product types.

They also have very similar applications when compared to gold and silver. 

What is the Difference Between Numismatic and Bullion Coins?

The bullion coins are attractive to investors that are interested in liquidity since these assets are valued according to the weight and content of their precious metals.

Investors are also able to use precious metals IRAs to hold certain types of bullion coins, while:

The numismatic coins hold value according to the precious metal that it contains and due to their condition and scarcity. This can make this asset appealing to any investors looking for extra growth opportunities that can arise from these circumstances.

The numismatic coins are also called collectible or Rare coins and seem to be more popular among enthusiasts and speculators rather than the more serious investors.

Bullion coins such as the Gold American Eagles, seem to be a popular choice for many traders. This is a sovereign currency that is easier to identify and easier to exchange or sell at higher premiums when compared to bars.

What Precious Metals Types are Eligible for Gold IRAs?

Gold IRAs are self-directed traditional or Roth IRAs that can hold precious metals like gold in bars, bullion, or coins, unlike the standard IRAs, which will only hold and reserve savings in stocks, mutual funds, and bonds, along with a few other types of securities. 

Any precious metal that is regarded as eligible for a gold IRA has to meet the specifications and standards set by the IRS.

  • Gold

The gold held in a gold IRA has to be .9950 pure. This includes certain bullions and bars minted by refiners (authorized by the government) or the federal government mint.

These include PAMP Suisse bars, Australian Kangaroo/Nugget currencies, Austrian Philharmonic coins, Uncirculated Gold Buffalo coins, American Eagle coins, and Canadian Maple Leaf coins. 

  • Silver

Silver has to be .9990 pure to meet the IRS standards. This includes specific bullions and bars minted by government-authorized refiners or the national government mint.

These include American Eagle, Mexican Libertad, Australian Kookaburra, and the Canadian Maple Leaf. 

  • Platinum

The IRS also includes platinum provided it has a purity of .9950, including Canadian Maple Leaf coins, American Eagle coins, Isle of Man Noble coins, Australian Koala coins, and certain bullions and bars either manufactured by a government-approved refiner or the national government mint. 

  • Palladium

Certain bullions and bars produced by approved refiners the national government mint include Canadian Maple Leaf coins that have a purity of .9950 purity. 

What are the Storage Options for Gold IRAs?

Delaware Depository 

In addition to the all-inclusive $1 billion asset insurance (under their custody), the Delaware depository also provides a $100,000 transit insurance for each package, which ensures that your assets are safeguarded during transit.

The comprehensive insurance policy stands above the rest. 

Brink's Global Services 

This is one of the world leaders when it comes to secure logistics, and they have many locations across the globe. They are also well-known for their armored trucks. 

Brink's storage facilities for precious metals are among its strongest suits.

They have a customer base that includes banks, jewelers, and governments, which displays the level of expertise and trust that people have when it comes to their services. Brinks undertakes complete responsibility for every package that they transport.

How Do I Move a Retirement Account into a Gold IRA?

Moving a retirement account into a Gold IRA includes five easy steps:

  • Choosing your source of funding to start the account

You can fund a precious metal IRA by either rolling over your 401(k) or transferring an IRA into a new self-directed IRA, which you can then use to buy precious metals.

You won't have to worry about any penalties when you move your retirement funds into a Precious Metal IRA. You also have the option of transferring a portion of your existing retirement account into a new one.

This step also involves choosing how much of your money you want to place into your self-directed IRA.

Roth IRAs, Traditional IRAs, SIMPLE IRAs, SEP IRAs, Eligible 457, 403(b), or 401(k), and any other retirement plan are some of the funds that you can use to roll over into a Precious Metals IRA.

  • Choosing Your Precious Metals

This step will involve deciding on what type of precious metal you want to invest in and the quantity. The precious metals that you choose must match the IRS specifications.

The custodian will sign all the paperwork, while the depository will transport your precious metal for storage. 

  • Purchase Metals

The precious metal company that you are dealing with will review and confirm your order details. 

  • Storage of Your Precious Metals at an Insured Depository

Delaware Depository and Brink's Global Service, both provide $1 billion in insurance and happen to be the more popular storage depositories on offer. 

  • Watch how Your IRA Performs

It is advisable to stay in contact with the precious metal specialist you have chosen for monitoring, any questions, or changes that are made to your IRA. 

IRA Withdrawal Rules

If you withdraw funds from an IRA before reaching the age of 59 1/2. you will be liable for a 10% penalty. 

Once you have reached 59 1/2, you are not required to make withdrawals until turning 70 1/2 years old. From here you will be required to withdraw the minimum every year.

RMDs have to commence, or you could face penalties, in the same year you turn 70 1/2 years, and must be completed before the end of each year, except for initial RMDs, which might continue to April. Owners of Roth IRAS are not required to collect RMDs.

Conclusion

Since Charles Schwab doesn't offer gold IRAs to investors, it should not disqualify them automatically for your other types of investments. 

Well-advised investment choices are well worth the risks, and Gold IRAs are not any lesser.

Charles Schwab is an ok company for investors that want to buy stocks and make short term trades, but we do not recommend them.  

They are not the best option for individual purchases of gold and silver and certainly not the best option for investors that are looking to protect their wealth from inflation with a precious metals IRA.

There are much better options that we recommend on this website.

You can get a Free Gold Investors Guide from our top gold and precious metals company recommendation by clicking the link above or you can read our article of the top companies we reviewed this year:

Click Here for Our List of the Best Gold IRA Companies to Invest With

Or, if you like what you have read about Charles Schwab, you can go to their website below: