How To Invest In Gold And Silver Bullion Currency And Other Precious Metals

Retirees have many options for investing their wealth for a successful retirement future. Many carry holdings heavy in stocks, bonds, mutual funds, and other paper assets that correlate with the financial and stock markets.

The problem with that correlation is when these markets suffer downturns; the asset classes experience significant losses. That’s making investors look to other options to create a bit more stability among their holdings.

In this way, when there’s a downslide in the markets, there’s somewhat of a buffer to balance when loss is experienced. One of the alternative investment options is precious metals.

 It’s also one many investors are taking a second look at, more specifically gold individual retirement accounts (IRA), a self-directed account that holds either gold, palladium, silver, or platinum as its asset of choice. Let’s look more closely at the option.

The Fundamentals Of A Gold IRA

In order to invest in a gold individual retirement account, an investor needs to open a self-directed IRA. These special retirement accounts allow alternative investments in physical commodities like precious metals that can be purchased and placed in the IRA. Look here for details on gold IRAs.

A gold IRA also references as a precious metal IRA because the account has the capacity to hold metals aside from gold, including either silver, palladium, or platinum. You can set up this SDIRA as either traditional (pre-tax) contributions or Roth (post tax) funds.

In doing this, your IRA will then carry physical precious metal bullion or coins instead of the conventional stocks, bonds, mutual funds, or other paper assets that correlate with the markets.

The rules on the SDIRA are comparable with a conventional account as far as tax incentives and contribution limits; however, the accompanying fees are quite a bit more extensive.

How To Invest In Gold And Silver Bullion Currency And Other Precious Metals

When asking how does a precious metals gold IRA work? an investor would first need to find representation with a custodial service specializing in precious metals and self-directed individual retirement accounts.

The custodian can either be a credit union, a bank, a brokerage firm, or another financial entity approved by the Internal Revenue Service (IRS).

You will further need a broker or precious metals dealer to assist with purchasing the gold or other metal. At the same time, the custodian manages the account and ensures the product is placed in an insured storage facility for safe keeping until retirement.

●    Eligible metals for SDIRA accounts

1.    Gold

For those who want to purchase gold bars or coins in their IRA, the fineness needs to reach a level of no less than 99.5 percent. If the bullion or coins don’t meet the standards as set by the IRS, the product cannot be included for deposit into an SDIRA backed by gold.

For those items that meet approval, the products must be deposited into an insured, approved depository. This secure facility houses precious metals using the custodial service as the trustee for the IRA. The following are among the favored approved bars and coins:

  • Credit Suisse gold bars
  • American Gold Eagle coins
  • Canadian Gold Maple Leaf coins
  • American Gold Buffalo coins
  • ValcambiGold CombiBar
  • Australian Gold Kangaroo/Nugget coins
  • Johnson Matthey Gold bar
  • Austrian Gold Philharmonic coins

2.    Silver

Silver coins need to reach a fineness of no less than 99.9 percent. The following is a list of approved bars and coins in the silver category:

  • Royal Canadian Mint Silver bar
  • American Silver Eagle coins
  • Johnson Matthey Silver bar
  • Australian Kookaburra Silver Coins
  • Mexican Silver Libertad coins
  • Austrian Philharmonic Silver coins
  • Canadian Silver Maple Leaf coins

3.    Platinum

Platinum bars and coins need to reach a fineness standard of no less than 99.95 percent. The following list is those that have been approved for inclusion in SDIRAs:

  • Isle of Man Noble coins
  • American Eagle Platinum coins
  • Canadian Maple Leaf Platinum coins
  • Australian Koala Platinum coins

4.    Palladium

Palladium has a fineness standard that must reach no less than 99.95 percent. The list of those bars and coins that are approved for SDIRA inclusion include:

  • Credit Suisse Palladium bars
  • Canadian Palladium Maple Leaf coins
  • Baird Palladium bars
  • Russian Ballerina Palladium coins
  • Baird Palladium bars

Many bars and coins are popular among investors in the collectible sense, but these are not acceptable, nor are they approved for inclusion in SDIRAs or precious metal IRAs.

Before making investments, it’s vital to start working with a well-established, qualified precious metal firm, especially if you’re unsure about approval. Find a gold IRA investment guide at

While the specialized custodial service, the gold dealer, and even the IRS cannot advise regarding funds and investments directly, these entities can provide information to guide in your transaction process. They can answer any questions you have on whether these products are compliant with SDIRA stipulations.

When opening the self-directed individual retirement account with the custodial service, you’ll find additional expenses with these accounts that don’t apply to conventional IRAs making Gold IRAs a more costly venture. Some of these fees include:

  1. Mark-up fee: This fee will be based on the vendor you choose but will be a one-time cost paid upfront when buying precious metals. It varies between vendors.
  2. Set-up fee:  Another one-time charge for establishing an account. It will, again, vary from brokers, but it can be costly since there are only a select few firms that deal with precious metals.
  3. Custodian: Custodial services charge an annual fee for account management.
  4. Storage:  Storing in a secure, insured, and approved depository is a requirement but also comes with an annual fee.

Final Thought

Investing in gold or other precious metals is becoming a popular choice for those looking to their retirement future. Click here for information on rollovers into gold IRAs. Securing a portfolio with a more diverse foundation instead of relying solely on assets that correlate with the market keeps wealth stable and the holdings balanced.

It’s merely a matter of understanding the ins and outs of self-directed individual retirement accounts or Gold IRAs and how they work to remain compliant with the stipulations set forth by the IRS and other regulating bodies.

If you have an eye for collectible coins and bars, SDIRAs are not the right retirement product for you. Collectibles are not approved for use with IRAs.

If you hope to keep your products at home, IRAs are not the way to go since stipulations require gold from an IRA to be secured in an insured and approved depository until retirement is reached.

The best way to ensure that you follow the guidelines, remain compliant, and benefit from a precious metal IRA is to research plus find the most well-established, qualified custodial service and precious metal dealer to collaborate with.

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