What is the main difference between a gold-backed stablecoin and a Physical Gold IRA?

The main difference lies in ownership and tax treatment. A Physical Gold IRA holds actual, IRS-approved gold bullion in a tax-advantaged retirement account, offering direct physical exposure and tax-deferred growth. A gold-backed stablecoin is a digital token representing a claim to physical gold held by an issuer, traded on a blockchain, and is not eligible for tax-advantaged IRA inclusion.

Are gold-backed stablecoins safer than other cryptocurrencies?

Gold-backed stablecoins are generally considered safer than highly volatile cryptocurrencies like Bitcoin or Ethereum because their value is pegged to gold, aiming for price stability. However, they still carry risks such as counterparty risk (the issuer's solvency), regulatory uncertainty, and cybersecurity vulnerabilities inherent to digital assets, which are not present in the same way with physical gold.

Can I hold gold-backed stablecoins in my IRA?

No, as of 2026, gold-backed stablecoins are not considered eligible investments for Individual Retirement Accounts (IRAs) by the IRS. IRAs are restricted to specific types of assets, and cryptocurrencies, including stablecoins, do not currently qualify. Only IRS-approved physical gold bullion and coins can be held in a Physical Gold IRA.

What are the fees associated with a Physical Gold IRA?

Fees for a Physical Gold IRA typically include a one-time setup fee (e.g., $50-$200), annual administrative fees paid to the custodian (e.g., $75-$250), and annual storage fees paid to the depository (e.g., $100-$300 or a percentage of asset value). There are also transaction fees or markups when buying or selling gold.

How does gold protect against inflation?

Gold protects against inflation because it is a tangible asset with a limited supply, unlike fiat currencies which can be devalued by government printing. When the purchasing power of currency declines due to inflation, gold's value tends to rise, helping to preserve wealth. Its historical performance shows it often acts as a safe haven during economic uncertainty and currency devaluation.

Is home storage allowed for a Physical Gold IRA?

No, home storage of physical gold held within an IRA is strictly prohibited by the IRS. All precious metals in a Gold IRA must be stored in an IRS-approved, third-party depository. Attempting to store IRA gold at home can lead to severe tax penalties, including the full value of the gold being considered a taxable distribution.

Which is better for an inflation hedge: gold-backed stablecoins or a Physical Gold IRA?

For long-term retirement planning and tax-advantaged wealth preservation against inflation, a Physical Gold IRA is generally considered superior due to its established regulatory framework, direct physical ownership, and tax benefits. For short-term, highly liquid exposure to gold's price movements outside of a retirement account, gold-backed stablecoins offer convenience but come with higher digital and counterparty risks and no tax advantages.

Gold-Backed Stablecoins vs. Gold IRA: Inflation Hedge | One…