Investing in Precious Metals with a Self-Directed IRA
When the market for traditional investments is unfavorable, many turn to alternative investments such as precious metals to diversify their retirement portfolios.
Throughout history, precious metals have been a sought-after commodity. Their value and rarity has served as a treasured asset for centuries. If you are looking to invest in a non-exchange traded asset for yourself, a client, or your organization, IRA Services can assist you with all of your custodial needs.
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 IRS places restrictions on the type of precious metals that can be purchased through an IRA.
Gold
Silver
Palladium
Platinum
Precious Metals are purchased from a dealer through an individual retirement account. As per IRA guidelines, precious metals must be kept in an approved depository.
Each of these metals can be acquired in bullion bars and bullion coins following the requirements for a minimum fineness. Once the metals are purchased by your retirement account, the dealer will arrange to have them shipped to our depository for storage. The depository will confirm receipt of the metals by IRA Services.
After speaking with his advisor, Robert decides he is going to invest in precious metals using his IRA. He speaks with a representative at IRA Services 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 IRA Services 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 IRA Services will arrange to have them stored in a secure repository.
Minimum Fineness Requirement
Minimum fineness as required under futures contract law by the Internal Revenue Code:
Gold 99.5%
Silver 99.9%
Palladium 99.95%
Platinum 99.95%
If a precious metal does not meet a minimum fineness, then it is considered a collectible item and cannot be purchased by an IRA.
Precious Metals Investing Guidelines
Here is a complete list of precious metals allowed in an IRA, as well as a list of precious metals that are not allowed.
In an effort to help our clients adhere to the restrictions placed on precious metals investments by the IRS, please download the list and review at your convenience. Download the PDF
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