Can You Invest in a Gold IRA with Schwab?

Charles Schwab is one of the most prominent investment firms and platforms in the United States. Established in 1971, the company has earned a reputation as a trusted name in finance over the past five decades. It boasts over 32,000 employees across 360 international branches, catering to millions of clients seeking to manage their assets.

Renowned for offering comprehensive financial and investment services, Charles Schwab provides brokerage solutions for purchasing and selling various assets. Moreover, financial experts are on hand to assist with retirement planning and personal wealth management, devising strategies to ensure a comfortable retirement and optimal allocation of funds.

Charles Schwab ranks as the world's third-largest asset management platform. Catering to individual and institutional clients, they extend financial planning services to businesses, nonprofits, other organizations and individual customers.

Is a Gold IRA Available at Charles Schwab?

Determining the answer to whether Charles Schwab offers a "gold IRA" depends on your interpretation of the term. If "gold IRA" means a self-directed IRA containing physical gold, the response is negative. Charles Schwab does not provide gold IRA services, nor can you purchase physical bullion through their platform or find precious metals in their standard portfolios.

However, several options enable you to invest in gold and the precious metals sector using more conventional methods. The suitability of these options relies on your requirements and priorities. You may prefer exploring alternative solutions if you seek physical gold without paperwork or complications.

If Charles Schwab manages your IRA entirely, it cannot hold precious metals. This is because all assets originate from the Charles Schwab trading network, which excludes gold and silver. By opting for another company to establish a self-directed IRA, you can use your funds to acquire your desired investments.

Charles Schwab's Offerings in the Precious Metals Sector

While you cannot acquire physical precious metals, numerous avenues exist for investing in the precious metals sector. Indeed, Charles Schwab boasts a broader range of precious metals-related investments compared to most rival financial establishments.

Mutual Funds

A mutual fund materializes when investors combine their resources to substantially invest in specific companies or industries. Your assets represent a minuscule portion of the overall fund. Typically managed by an investment manager, all details regarding their precise characteristics are publicly accessible.

Investing in a gold mutual fund means allocating funds to precious metals and the precious metals sector. This usually entails purchasing stocks in mining firms or refineries. Mining businesses often enjoy a consistent revenue stream, particularly large-scale operations with multiple concurrent projects.

By visiting Charles Schwab's Select List, you can collectively examine all available mutual funds. Investing in these funds incurs no extra fees, and the company's managers have assessed their stability to ensure clients acquire a relatively secure, stable asset.

Three mutual funds specifically focus on the gold industry: the US Gold and Precious Metals Fund, the First Eagle Gold Fund, and the Gabelli Gold Fund.

Each of these funds is devoted entirely to precious metals or businesses within the precious metals sector. In contrast, many other "gold mutual funds" allocate only a minor portion of their holdings to precious metals.

Exchange Traded Funds

You may be familiar with gold ETFs or exchange-traded funds. An ETF trades on the stock market much like corporate stocks. However, instead of representing a stake in a company, it signifies a share in a quantity of precious metals.

This resembles a mutual fund, as you only possess a small fraction of the total ETF value. Yet, it diverges from mutual funds, as you can buy and sell it like a stock share.

Purchasing shares of an ETF implies investing in a fund backed by physical gold. However, the stakes are traded, not the gold itself. Consequently, concerns about storing physical gold are alleviated, and there's increased potential for growth. However, this also entails considerably more risk.

Since you still need to possess the physical gold fully, the ETF could lose value if its gold backing diminishes. This risk level isn't present with a straightforward physical purchase. 

Additionally, ETF values are vulnerable to market fluctuations. Thus, they might decline if the economy falters, while physical precious metal prices usually rise in such situations.

Charles Schwab offers three gold ETFs: SPDR Gold Shares, SPDR Gold MiniShares, and iShares Gold Trust. In every case, the funds focus solely on physical gold instead of precious metal companies.

Stocks

Stocks present another alternative for investing in the precious metals sector. However, several aspects should be considered.

Firstly, individuals often purchase physical gold when stock markets plummet. There needs to be an assurance that your chosen company will thrive during such volatility.

Secondly, stocks are exposed to more external factors and risks than physical precious metals. Real-time trading on the open market determines gold prices are relatively stable. Conversely, stock prices are influenced by factors like company revenue, growth, ongoing projects, size, public relations, and numerous other elements.

Thus, investing in the wrong precious metals company could lead to trouble. For instance, investing in a mining company with only one active project might result in losses if the project faces delays or cancellation due to unforeseen issues. Stocks are considerably more speculative than physical assets in terms of value.

Mining companies are the most common stocks within the precious metals sector. When investing in a mining company's stock, choosing one with multiple active global projects and several in development is wise. This approach helps mitigate risks if a project fails, as others can compensate for lost revenue. Moreover, as mines reach their operational limits, projects in development can be initiated.

Charles Schwab functions as a comprehensive trade broker, granting clients access to any publicly traded stock on the New York Stock Exchange. Numerous mining companies have publicly traded stocks, including Barrick Gold, Kirkland Lake Gold, Agnico Eagle Mines, Freeport-McMoRan, and Newmont Goldcorp.

Gold Futures

Another investment option available through Charles Schwab is a gold futures contract. This is a unique go-to asset. When purchasing a gold futures contract, you commit to buying a specified amount of gold at a predetermined price on a future date.

Gold companies primarily use gold futures to hedge against price fluctuations. If you're an investor anticipating a rise in gold prices soon, you might invest in gold futures to capitalize on the current lower price.

This differs from acquiring precious physical metals, as you never possess gold. Your contract merely promises to buy the gold on a specific future date.

Gold futures with Charles Schwab trade on the NYMEX and ICE exchanges for national and global coverage. Three contract sizes are available: 32, 50, or 100 ounces of gold. Futures trading continues even when traditional markets are closed, with transactions occurring 23 hours daily.

When it's time to claim your gold futures contract, you must visit the COMEX warehouse, where you'll receive the package containing your purchase. In contrast, if you buy physical gold for an IRA, you can have the parcel delivered to your chosen depository, eliminating the need for a personal warehouse visit – a significant inconvenience.

Charles Schwab Gold Trading Fees

A significant advantage of Charles Schwab is the absence of account fees for standard accounts and no minimum balance requirement to open one. While some mutual funds may have minimums, maintaining and managing a portfolio comes at no cost.

When considering trading fees, assume whether you're trading independently or using a broker on the platform. Self-directed online trading incurs lower expenses. Moreover, trading ETFs and stocks can be cost-free since they're openly sold on the market.

For stocks, ETFs, and Charles Schwab mutual funds, online trading costs $0, while using a broker incurs a $25 service fee. Options trading online costs $0.65 per contract, with an additional $25 service fee if using a broker.

Non-Schwab mutual funds have varying costs, depending on the specific fund, but they cap at $49.95 online. Broker-assisted trading costs the same as online pricing plus the $25 service fee.

Futures trading is the sole option with a consistent fee, regardless of trading online or using a broker, at $2.25 per futures contract.

As previously noted, purchasing physical metals is not possible. Therefore, you can only have your acquisitions shipped to a depository and must consider depository fees. To avail of such services, you'll need to explore alternative companies.

Other Options for Acquiring Physical Gold

Our top choice for purchasing physical gold is Goldco. If you're investing personally with your savings, they can assist you in identifying the ideal products to diversify your portfolio. Moreover, they'll handle all the required paperwork and regulations if you use your retirement funds.

We also appreciate Augusta Precious Metals. This company features a distinctive structure. Instead of having every staff member focus on all aspects, there are five separate departments. Each department is dedicated to a specific niche aspect of the buying process, ensuring there's always someone available to answer even the most complex and technical questions.

For those with limited cash available but still want to invest in gold or silver, we suggest American Hartford Gold. They offer highly competitive pricing and will even match lower product offers. When it's time to liquidate your assets, they'll repurchase your items without hesitation. Their reputation is solid, and their policies are consistent.