Although IRAs used to be limited to owning American Eagle gold and silver coins, IRAs can now invest in IRS-approved gold, silver, palladium, and platinum bars and coins. You can store coins or gold bars in a precious metal IRA. Despite the colloquial term “Gold IRA,” you can hold silver, platinum, and palladium in this account. To invest in gold with an IRA, you must follow two IRS guidelines.
First, you can only invest in IRS-approved gold. While the list of approved options is changing, the IRS says it must be “highly refined precious metal.”. Adding precious metals to an IRA account may provide investors with additional diversification and growth opportunities. However, there are very strict rules and regulations for precious metals investments with an IRA account.
In fact, there are only certain gold, silver, platinum, and palladium products that are eligible for inclusion in an IRA account. Here we will outline the available products. They sell gold coins, gold bars, and the like, but they don’t offer IRA investment advice (regardless of what their websites or other marketing materials might suggest). In practical terms, this means that the minimum account accounts with many gold IRA companies would require to invest much more than the 5% or less that financial advisors generally recommend investing in precious metals, which could put your nest egg at too high risk.
If you have any questions about the eligibility of specific products for inclusion in your IRA account, contact your auditor or tax advisor. Or, if you have a traditional retirement savings account and want to increase your exposure to gold, read here how you can buy a gold ETF, an exchange-traded fund that tracks the performance of gold. Unfortunately, most Gold IRA companies don’t have a good record of fee transparency on their websites, so finding out the details may take a phone call or two. Many Gold IRA companies have preferred custodian banks that they either recommend or require their customers to use, or you can search for a custodian on the RITA website.
Once you reach that age, you can either withdraw and take possession of your gold investments, or liquidate those assets and withdraw their value in cash instead. If you’re not sure whether a gold IRA or a silver IRA is right for you, contact a paid financial planner who isn’t affiliated with a gold IRA company to determine whether it would be a good addition to your portfolio. To avoid the prospect of missing out on the rollover cutoff, many people choose to have their Gold IRA company coordinate the rollover through a direct transfer from institution to institution. Gold and other precious metals are considered an inflation hedge and can increase in value in times of volatile stock markets.
Even with a long time horizon, gold investors have no guarantee that they’ll make money from their investment, especially if you’re planning to rely on a gold IRA company’s repurchase program to sell your gold when you need to accept distributions from that IRA. A gold IRA can give you the tax benefits of a traditional retirement account, but you must comply with IRS regulations or risk fines and penalties. Gold bars and round gold and silver coins are also allowed in an IRA if they have a fineness of 99.9%. Most IRA companies may buy back gold, but be aware that the price at which they buy gold is lower than the price at which they sell gold.
If you’re interested in owning gold or investing in its future value, a self-directed gold IRA account could be a good way to do so. If that doesn’t matter to you, there are other ways to add exposure to precious metals to your retirement portfolio, such as. B. the purchase of shares in gold mining companies.