Vanguard Gold IRA Review

Vanguard Gold IRA Review

Lear Capital Review

Scott R. Hillford

Author & Founder Gold Is Money 2

Disclaimer: Some or all of the companies reported here may provide compensation to us, at no cost to our readers. This is how we keep our reporting free for readers. Compensation and detailed analysis are what determines how companies appear on this website.

Making money is very difficult; keeping it and ensuring that it retains its value or grows over the years is even more challenging. It is easier to lose money than it is to make more of it.

Many financial advisors recommend that investors diversify their portfolios and, at the same time, secure their assets against inflation. One way to do so is through a Gold IRA – an individual retirement account (IRA) in which gold bullion can be held as an investment asset alongside other investments such as stocks and bonds.

Vanguard offers investors the option of investing in gold. However, it does this differently from other companies of its caliber.

Prior reading further, it is important to acknowledge that investing your savings is a not easy. When it comes to incorporating precious metals into your investment portfolio, how can you tell which companies are reliable?

After devoting extensive time and effort, we have conducted thorough research within the precious metals industry and compiled a selection of the most trustworthy companies.

Take a moment to read our list and determine if Vanguard has what it takes to make the list this year!

This lets you to quickly compare the leading companies in this field and select the one that aligns with your specific requirements and investment objectives.


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About Vanguard

Vanguard was started in 1975 as a seasoned investment management corporation that provides a range of investment services for various clients, from individuals to big financial institutions. It stands out with its organizational structure.

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Unlike other companies, it operates as an entirely investor-owned organization with no external shareholders. Because of this, it does not have conflicts of interest, and its fees are competitively lower than those charged by other financial advisors and asset managers.

Vanguard Gold IRA Review - Website

What Vanguard Group Offers

It's important to note that Vanguard Group doesn't offer gold IRA services to its investors; instead, it provides investors with a fund that invests in precious metals and mining companies. It is called Vanguard Precious Metals and Mining Fund (VGPMX).

Vanguard Gold IRA Review - Offers

VPGMX looks for opportunities arising from changing metal markets. Around 25% of the fund is invested directly into gold, silver, palladium, and platinum and companies that mine these metals. The remainder of the fund's assets are invested in stocks of companies that support and sell metals.

Why VPGMX Over Actual Gold IRA

There are many reasons why in over 48 years, Vanguard Group has not ventured into offering gold IRAs. One reason is that the firm's investor-owned structure means it does not get direct profits from fees, and such a setup would be too costly for them to maintain.

The second is that VPGMX offers a better chance of diversification and returns. The fund manager doesn't just stick to one precious metal as with gold IRAs; rather, they invest in almost everything to do with precious metals.

This means that if gold prices were to suddenly crash, the fund could rely on its investments in silver or palladium for returns. Additionally, even if gold does not increase substantially in value over a period of time, but mining companies do well, then VPGMX will still make money for investors.

Thirdly, VPGMX offers investors more liquidity. While it is true that gold IRAs offer additional tax benefits to investors, selling them can be a lengthy and expensive process. With VPGMX, however, the fund allows investors to sell their holdings without going through the long processes associated with gold investments.

Getting Started With Vanguard Group

To open an account with Vanguard Group, interested clients should head to their homepage and click the "Open an Account" button at the top right corner. The screen will transition to the sign-up page, where they'll get an overview of what they need to set up the account, the types available, and how to fund them.

Next, they will provide their personal information, financial goals, and current investment knowledge to customize their account. After that, they will be able to start investing in the markets and monitor their performance all from one place.

Opening a Gold IRA Account

Over the past few years, many people and entities, including banks and governments, have been investing their money in gold and other precious metals. Those with secure storage buy and keep them in their homes or vaults until they decide to sell. Others have opted for a Gold IRA, which is essentially the same thing but backed by an insurance company in case of losses or theft.

A precious metals IRA account is just like any other traditional savings account. They enjoy the same tax benefits, including deductions for contributions on income taxes and tax-deferred growth. The only difference is that instead of stocks or mutual funds, the investments are backed by actual physical gold and other metals.

1. Goldco

Goldco is a privately-help precious metal investing company that offers investors the chance to purchase gold and other metals for their IRAs.

It was founded in 2006 and has established the reputation of being one of the best, if not the best, gold IRA investment companies in the United States.

It was listed as one of Inc. 5000 Fastest growing private companies for six years, received the Company of the Year award in 2021 and 2022 from The American Business Awards, has an A+ BBB rating, a 5-Star Review on Trustpilot, and a AAA rating from Business Consumer Alliance.

Goldco offers free shipping, the highest price buyback guarantee, and free access to a library of retirement resources.

Some drawbacks, however, include a minimum investment of $25,000 and limited precious metals options. Investors can only buy or create IRA accounts with gold and silver. This can be limiting for those looking to grow their retirement money with palladium and platinum, which are projected to be in higher demand over the next few years.

2. Augusta Precious Metals

The award-winning Augusta Precious Metals is also a perfect option for those looking to start a Gold IRA.

It boasts of having some of the best customer service available in the industry, as well as great resources to help investors understand the various aspects of gold investment.

Like Goldco, Augusta Precious Metals only focuses on gold and silver products. They have a much higher required minimum investment amount of $50,000, account setup fees, and yearly custodian and storage fees.

However, they offer a wide range of services, including fast shipping, multiple storage options with different companies, rollovers, and transfers, and guidance throughout the investment journey. They also have one of the industry's lowest purchase spreads (the difference between the buy and sell prices quoted for an asset).

3. American Hartford Gold

Headquartered in Los Angeles, California, American Hartford Gols has won the hearts of many investors with its tireless efforts to provide quality services.

The company boasts over $1 billion in gold and silver delivered to satisfied clients. It holds an A+ rating from BBB, over a thousand positive reviews on Trustpilot, and awards from various institutions for its incredible service.

American Hartford Gold allows investors to buy gold and silver products and invest in precious metal IRAs.

They have some of the best offers in the industry, including up to $5,000 of free silver on qualifying purchases, IRA fee waivers for up to three years for purchases over $50,000, and free insured shipping.

They also cover storage fees for their new investors for their first year or sometime three, depending on the account size.

Among the three companies, American Hartford Gold has the lowest minimum investment requirement of $10,000 for gold IRAs and $5,000 for cash purchases.

They also have a buyback program that allows investors to sell back their metals during account liquidation, and they don't charge any fees for that.

Perhaps the only disadvantage of working with AHG is that they don't show prices for their coins and bars. Interested clients must call, email, or visit the company's office to get an accurate quote.

Things to Keep in Mind When Investing in Gold IRA

1) IRS Regulations

To open a gold IRA that the IRS approves, an investor must buy pure precious metals from certified and reliable dealers. For instance, the gold must be 24 Karats, silver must be at least 99.9% pure, and palladium and platinum must be at least 99.95% pure.

This purity requirement eliminates collectibles or numismatic coins from eligibility. They don't want anything that could rust or tarnish over time and result in a loss of value.

2) Fees and Storage

Gold IRAs will usually have a storage fee associated with them, which can vary depending on the size of your account and how many coins or bars you plan to buy.

There is also an entity known as a "custodian" who will handle your investments and maintain the account. This is typically a bank or financial institution, and they usually charge annual fees for this service.

Again the IRS must approve the depository where a client stores their precious metals. It must be secure and have an insurance policy in place to protect against theft or damage. One of the most popular depositories in the US is Delaware Depositories.

It does not pledge, lend, or encumber any bullion or coins held in its vaults; thus, its customers are recognized as sole owners and title owners of the precious metals.Enter your text here...

3) Timing

It's best to buy when the precious metal prices are low to get more for your investment dollar. That means keeping an eye on the stock market and watching for signs that it could be headed downward.

It's also important to time your purchases according to when you plan on using the funds. If you want the money sooner rather than later, it might not make sense to invest heavily in gold right now because they take longer to mature than stocks or bonds.

On the other hand, if you're looking at a long-term retirement plan, gold could be an excellent addition to your portfolio.

4) Buyback Program

It is wise to opt for a company that offers a buyback program just in case you decide to liquidate your account at some point in the future. Most companies will offer a buyback program at a discounted rate to the current market price. This way, you can recoup some of your losses if the price of gold doesn't rise as expected.

5) Taxes

As mentioned earlier, a gold IRA account is just like any other retirement account.

Therefore, there may be taxes to pay whenever you make a withdrawal, depending on the type of account you create. There are also tax penalties when you cash in earlier than the set retirement age.

While investing in precious metal IRAs offers numerous benefits, it is important to note that there are certain risks involved. For example, there is no guarantee that your investments will increase in value.

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Factors such as market conditions and the gold spot price can affect the value of your investments. Furthermore, additional costs related to storage, insurance, and taxes may reduce your overall returns.

Additionally, there may be scams and fraudulent activities related to gold investments. Taking the time to research and compare different providers is one way to ensure you make a safe and secure investment.

Lastly, you should consider your risk tolerance before investing in a gold IRA. The volatility associated with these investments may not be suitable for everyone.

Other Investment Options That Vanguard Group Offers

a. ETFs

Exchange Traded Funds are typically composed of bonds, commodities, stocks, and other assets (like gold) and can be bought and sold on public exchanges. For example, SPDR Gold Trust ETF is a gold ETF that tracks the price of gold.

Investors prefer this option for its low costs, transparency, and liquidity. ETFs can be bought and sold anytime during market hours without paying any commissions or fees.

b. Mutual Funds

Mutual Funds are professionally managed baskets of investments that pool the money of multiple investors to buy a selection of stocks, bonds, and other assets. Unlike ETFs, they are bought and sold through a broker or adviser.

For example, Vanguard Precious Metals and Mining Fund is a mutual fund that invests in precious metals like gold, silver, platinum, etc., as well as mining companies. It has a higher risk than an ETF but also offers the potential for greater returns.

c. Stocks

Investing in gold-related stocks, such as those of mining companies, is a way to gain exposure to gold without actually buying physical metal. These stocks are traded on the stock exchange and vary in type from large-cap blue chip stocks to small-cap penny stocks.

Take Barrick Gold Corporation, for example. It is one of the world's largest gold mining companies, with operations across four continents. Investing in their stocks can be a way to gain indirect exposure to gold prices.

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d. Bonds and Certificates of Deposits

Bonds and Certificates of Deposits (CDs) are debt instruments that are issued by governments, companies, or financial institutions. They offer fixed-income returns over a specific time.



Diversifying a retirement portfolio by investing in precious metals is an excellent strategy that can safeguard it from stock market volatility. Depending on a client's risk tolerance, they can choose from various investment tools such as ETFs, mutual funds, stocks, bonds, or CDs that Vanguard Group offers.

However, if it is a gold IRA they want, other great companies like Goldco, Augusta Precious Metals, and American Hartford Gold Group can provide them with a secure and cost-effective way to invest in gold.

Let our expertise and analysis help you before you invest your savings by reading our list of the best companies!

Or click the button below to visit Vanguard

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