Instead of buying gold, silver would be the better road to take. Although gold is definatly better then a 401K. Silver has a higher ROI then gold for the last 10 years. And as technology keeps needing more and more silver, with such a low supply, it only makes sense for it to sky rocket. Supply and demand. There is a higher supply of gold then silver. And a higher demand for silver then gold, at least when it comes to industry.

Well, I think there are other options.

You should know that if he takes the money out of the IRA to buy anything and he is less than 59.5 years old he will pay a 10% excise tax when he files his next federal tax return. That may make this transaction an expensive one.

There are advantages to an IRA that you can't get outside of one as easily. The biggest is that the income is tax deferred until distribution. That means zero tax liability to you. Investing in gold in a brokerage account or in some other manner which can carry with it a taxable situation every year depending on your transactions in the account. This really adds up over several years, so a tax deferred return in one account is not equal to a taxable return in another.

There is another option that I'd like you to consider. That is to invest in gold within the IRA. Check to see what investment options are available to him in the IRA and do that instead. There are some mutual fund and even better exchange traded funds that invest in gold and/or gold producing industries that may be just what you are looking for. If his IRA won't allow those investments, consider shopping for a new IRA provider that allows you the investment freedom that you want for your retirement. They are out there and not hard to find. Then, you can invest in gold within the IRA and keep your taxes deferred, also paying no excise tax.

I hope investing in gold within your IRA works for you. I think it's the better option.

Good luck.