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How to Buy Gold with Your 401(K)

When various financial investments are on the rise, people are looking for safe investments that are not volatile, like crypto, stocks, and others. For many people in this category, gold is a favorite option. Investing in gold has its challenges, but it is more reliable. It has been a long-term fixed investment for many decades.

Investing in gold requires substantial capital, but it has high returns too. But a question that has been lingering among people interested in gold investments is how do you buy gold with your 401(k)?

A 401(k) is a kind of pension plan. It is a retirement savings plan that employers offer their employees. Employees who sign up for a 401(k) will determine an amount they want their employer to automatically contribute directly from their paycheck to an investment of their choice. Monies invested in a 401(k) usually qualify for tax breaks. Still, there are several conditions surrounding it, including an annual limit of $20,500 and $27,000 for employees that are 50 and above.

Now that we have established what a 401(k) is, the real question that we have to answer is, “Can you buy gold with your 401(k)?”

Can you buy gold with your 401(k)?

Gold is one of the best investment commodities. You can always buy gold with your money, but because 401(k) benefits from tax breaks, the type of investments that you can make with a 401(k) are limited. You are typically restricted from investing in art pieces, rare collectibles, and precious metals with your 401(k). However, these restrictions do not apply to some precious metals, including gold, platinum, and silver. Still, they must conform to a predetermined amount, purity percentage, and quality standards. The source of the gold that you can purchase with your 401(k) account is also restricted to a government-owned mint or government-approved refiner.

In addition, you cannot buy these precious metals on a commodity market with your 401(k); you must engage the services of a trustee who will offer you a 401(k) plan that will grant you access to buying and selling these predetermined standards of gold and precious metals. These trustees should be metal or commodity traders who can offer 401(k) plans and IRAs. They must have their gold safely deposited with an insured outfit.

Unfortunately, most employers will not sign up your 401(k) account with a metal or commodity trader.


Investing in Gold with your 401(k) account is possible, but you must be ready to stick to the rules and do things by the book to steer clear of fraudulent entities.