Investing in Precious Metals with a Self-Directed IRA
Gold — the Egyptians coveted it and the Romans were the first to use it as the basis for their monetary system.
Today, many individuals invest in gold and other precious metals as a hedge against hyperinflation and, more importantly, because gold, silver, platinum and palladium are assets that maintain their value without ever depreciating to zero value. Savvy investors know that they can use IRA funds to invest in certain physical precious metals to meet their objectives of portfolio diversification.
Advantages of Investing in Precious Metals Through Your Self-Directed IRA
Investments are conducted swiftly. Precious metals are time-sensitive investments, so timing and pricing are everything. The buying and selling of precious metals can be implemented by us quickly so you can invest methodically.
Precious metal investments done through an IRA are afforded tax benefits. When you pay for precious metals with funds from an IRA, the tax benefits become applicable towards the investment.
Precious metal investments are hard assets. Their intrinsic value can be hedged against inflation. As often occurs, the value of precious metals increases as the value in stocks and bonds decline.
Taxes can be deferred. Precious metals can be purchased from an existing IRA without incurring penalties or taxes.
Types of Precious Metals You Can Purchase with a Self-Directed IRA
The following are examples of some of the types of metals that may be purchased using IRA funds.
- American Eagle gold or silver coins
- Australian Kangaroo gold or silver coins
- Australian Koala silver coins
- Austrian Philharmonic gold coins
- Canadian Maple Leaf gold or silver coins
- Mexican Libertad silver coins
- Isle of Man Noble silver coins
- Credit Suisse – 0.999 PAMP Suisse gold bars
- Various gold, silver, platinum or palladium bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements
After speaking with his advisor, Robert decides he is going to invest in precious metals using his IRA. He speaks with a representative at Forge Trust and explains that he’s ready to rebalance his portfolio. Robert wants to invest in something that acts as a good fit for his financial future.
He chooses to invest in precious metals because of their high liquidity and knows that he can easily buy and sell precious metals with his IRA. Robert chooses Forge Trust to act as his administrator because he needs a competent custodian who can act quickly on his behalf.
As with all IRA assets, Robert will not take physical possession of his holdings, and instead Forge Trust will arrange to have them stored in a secure repository.
Minimum Fineness Requirement
If you are considering adding precious metals to your IRA then be aware of the limitations that exist. The Internal Revenue Code specifically states that only metals meeting certain fineness may be held in IRAs.
Gold .9950 pure
Silver .9990 pure
Palladium .9995 pure
Platinum .9995 pure
Precious Metals Investing Guidelines
The IRA account owner is responsible for choosing the metals dealer and negotiating the purchase. Since the IRA account owner is prohibited from taking possession of the metals, a metals depository must be selected to hold the metals on behalf of Forge Trust as custodian.
click here to review Forge Trust’s Precious Metals Investing Guide.
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