Although IRAs used to be limited to holding American Eagle gold and silver coins, IRAs can now invest in IRS-approved gold, silver, palladium, and platinum bars and coins. Not all gold investments can belong to an IRA. The basic rule is that an IRA cannot own a collectible and precious metals are defined as collectibles, regardless of whether it is an investment in gold bars or coins. Luckily, there are exceptions to the general rule for gold, silver, platinum, and palladium, which are held in specific forms. To use an IRA to invest in gold, you must follow two IRS guidelines
.
First, you can only invest in IRS-approved gold. Although the list of approved options is changing, the IRS says it must be “highly refined precious metal.” Investors can hold various types of physical precious metals in their precious metal IRA. However, the IRS has a few limitations.
The only types of physical precious metals eligible for an IRA are gold, silver, platinum, and palladium. There are further restrictions on the type, weight, and purity of assets. It works in a similar way to a traditional IRA and offers the same tax benefits — but with the added ability to hold precious metals, which is often used as a hedge against inflation and economic uncertainty. A self-directed IRA allows you to hold physical metals, giving you tangible control over your assets
.
But if history is any guide, gold will have to travel a long way to reach the returns of the overall economy as measured by the broad markets. Learn more about your IRA options for gold by requesting a free information pack now, or use the table below to compare some of the best gold investment companies on the market. If you’re interested in owning gold or investing in its future value, a self-managed Gold IRA account could be a good way to do so. Whether you’re planning to start a Gold IRA from scratch or extend your current retirement account, the process starts with creating a self-directed
IRA.
With these individual retirement accounts, you can invest in gold, precious metals, and other assets (including real estate) to grow your wealth and diversify your portfolio. A self-directed IRA is often referred to as a gold IRA or gold-backed IRA when it is specifically set up to store physical metals in the form of gold bars, coins, or polished coins. It may be better to invest your IRA in a precious metals ETF or own precious metals in a taxable account. A self-directed IRA, often called a gold IRA, is a type of individual retirement account that allows you to invest in specific precious metals, real estate, and other alternative assets
.
The Internal Revenue Service (IRS) allows holders of standalone IRA accounts to buy bars and coins minted from gold or other approved precious metals such as silver, platinum, or palladium. To own gold, whether in coins or gold bars, in an IRA, you need a genuine, self-directed IRA offered by a few custodian managers. Therefore, gold IRAs require the involvement of a custodian bank, usually a bank or brokerage firm, to manage the account. Gold bars and round gold and silver bars are also allowed in an IRA if they have a fineness
of 99.9%.
The term gold IRA is primarily used to describe a self-directed IRA whose funds are invested in hard metals.
