How Do You Buy Gold with Your 401(k)?

Many people want to know how to buy gold, and it’s actually a very simple process. We’ve narrowed it down to three steps.

Gold has long been one of the most sought-after investment opportunities available. Its benefits include protection against inflation and stock market volatility, and it can deliver significant returns in the long-term. That’s why many Americans choose to buy gold with their 401(k) or other retirement accounts.

There are avenues you can take to start investing in precious metals now. The most common and secure way to invest in physical gold is to open a Gold IRA. If you have a 401(k), you can roll a portion of that retirement savings account into a self-directed IRA, which lets you invest in physical precious metals. 

Why roll a portion of your 401(k) over into a Gold IRA?

There are a multitude of benefits to rolling a portion of your 401(k) into a Gold IRA. When you consider what assets your 401(k) holds now, you’ll realize that your financial future depends almost entirely on the health of the stock market. 

Here are some of the benefits of rolling a portion of your 401(k) over into a Gold IRA.

1. Diversifying your portfolio outside of the stock market

If you’ve been paying attention to the current stock market, you know that something is up. You can tell that the stock market is forming a massive bubble that could burst any minute. And if your entire life savings are in that market, your retirement could be in danger.  

It’s never a safe bet to put all of your eggs in one basket, and having your entire portfolio in the stock and bond markets is putting your financial future at risk. 

When you open a Gold IRA, you’re taking a portion of your portfolio out of the stock market and putting it into physical gold. That’s another benefit of opening a Gold IRA — you actually own the gold you’re investing in.

2. Owning tangible assets is key

Unlike gold ETFs or gold stocks, a Gold IRA allows you to own physical gold. This is a tangible asset that you can cash in at any time. 

Think about it. When you invest in stocks, you’re not given anything you can hold on to (physically) that has value. You never actually own anything you can put your hands on. Owning physical gold gives you the added peace of mind that your gold cannot be hacked or compromised. 

3. Hedging against inflation

Over the last decade, the Fed’s money printing has gotten out of control. The Covid crisis only made things worse. And now, Biden is ordering more money printing than we’ve ever seen before so that he can fund his stimulus packages and infrastructure plans. 

This all leads to one thing: inflation. As the government prints more money, it dilutes the value of the dollar, and you can watch rising prices on necessities like fuel and groceries. 

Gold has long been a hedge against inflation because it cannot be debased. Governments can’t print gold, and there is no way to replicate it. Gold must be discovered and mined. Many Americans are now turning to gold because they know that inflation is already here and it’s about to get even worse.

4. Hedging against other market crises

When the stock market is at an all-time high, you can expect one thing: a correction. It is anyone’s guess when the next crash will happen or how severe it’ll be, but gold has a history of hedging against any market crises.

Take a look at this chart showing how gold performs compared to the last six major market corrections. 

Image Alt Text: Gold isn’t just a hedge against inflation. It’s also a major insurance policy against major market corrections. When the stock market is down, the price of gold tends to go up.

Gold tends to work in opposition to the stock market. That means the portion of your 401(k) in the stock market might go down, but the portion that you have in your Gold IRA will most likely go up, based on the history of gold compared to the stock market. In other words, gold protects your entire retirement portfolio and may even grow its value.

So, if gold is such a great investment, how can you buy gold with your 401(k)?

How to buy physical gold with your 401(k)

We’ve created an easy way for you to roll a portion of your 401(k) over into a Gold IRA. 

Here are the three simple steps:

1. Open a self-directed IRA

Your current 401(k) only allows you to invest in publicly traded stocks and bonds. When you open a self-directed IRA, you decide where to invest the funds you put into it. That’s where the experts at Gold Alliance come in. We take the time to show you how a Precious metals IRA works as well as provide you with Gold IRA–approved metals that you can choose from.

2. Fund your account

After your self-directed IRA is open, your dedicated Gold Alliance account executive will help you transfer a portion of your funds from your 401(k) to the self-directed IRA’s custodian account. This account will be in your name, giving you full ownership. 

Our experts will ensure that the whole transaction process goes smoothly.

3. Select gold and silver approved for IRA investment

Once your self-directed IRA is open and funded, the only thing left to do is to now add the Gold IRA with precious metals. We will help you choose the gold and silver coins or bars that best meet your needs and financial goals. We can then help connect you with a licensed and insured depository to store your precious metals. 

Investing in physical gold protects your financial future

The time to buy gold with your 401(k) is now. Give your portfolio an insurance policy against inflation and market crises. It’s one of the best ways you can diversify outside of the stock market.

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