INVESTMENT GUIDE
Precious Metals
Your self-directed account can purchase physical gold, silver, platinum, and palladium.
Here’s everything you need to know about investing in precious metals with NDTCO.
Table of Contents
AT A GLANCE
What should you know about investing in Precious Metals?
Any account offered by NDTCO can invest in Precious Metals. These assets retain the tax benefits associated with the account type in which they are held. Investing in gold, silver, platinum, or palladium in your self-directed IRA is one way to diversify your retirement portfolio.
Many people have had experience investing their personal funds in precious metals. They are now looking to capitalize on that experience by generating retirement wealth that is tax-deferred or tax-free.
We make sure that the entire investment process takes place within your IRA, so that you can maintain the right to any tax benefits associated with the account type.
Minimum Fineness Requirements
- GOLD (99.5% PURE)
- SILVER (99.9% PURE)
- PLATINUM (99.95% PURE)
- PALLADIUM (99.95% PURE)
Picking a Precious Metals Source/Dealer
Once your account is open and has been funded, you are ready to self-direct your IRA. Precious metals are most often purchased from a precious metals dealer or broker, as we do not provide the metals ourselves. New Direction Trust Company does not determine where you buy your metals. You may work with a dealer for your IRA’s purchase, aside from those on our Administratively Infeasible List. Not all dealers operate the same way. It is a good idea to talk to them about their process and pricing.
Depository Storage Options
Depositories play a large role in your self-directed precious metals investment. The Internal Revenue Code states that metals owned by an IRA must be physically held by a non-bank trustee or a depository that meets IRS regulations. Thus, they will need to be stored in a depository in the name of the IRA. Unlike many other IRA providers, New Direction Trust Company does not restrict you to one depository choice. The depositories available to choose from have a reputation for providing a high level of security and insurance. If you have questions regarding security, contact the depository prior to purchasing.
You can ask your dealer if you do not know which depository to use. Precious metals dealers often have established relationships with certain depositories and can assist you with the process. Some depositories offer commingled and/or segregated storage. Please review our Precious Metals Depository Page for more information.
Please note NDTCO establishes the account at the depository at the time of the metals purchase.
Due Diligence
As the IRA holder, you are responsible for performing due diligence on your IRA’s investments. Neither the IRS nor NDTCO researches or endorses the investments, precious metals dealers, or the depositories involved in your IRA’s transaction. A competent professional in the legal, financial advice or accounting fields can also be engaged if you need additional help deciding if the investment being considered is legitimate, meets your risk tolerance parameters, and is right for your investment goals.
Allowable Precious Metals
- Bars (any weight: Gold, Silver, Platinum, Palladium)
- American Eagle Coins (any weight: Gold, Silver, Platinum, Palladium)
- Canadian Maple Leaf Coins (1 ounce: Gold, Silver)
- American Buffalo Coins (1 ounce: Gold, Silver)
- Australian Kangaroo/Kookaburra Coins (1 ounce: Gold, Silver, Platinum)
- Austrian Philharmonic Coins (1 ounce: Gold, Silver)
- Britannia Coins (1 ounce: Gold, Silver, Platinum)
- South African Krugerrands (1 ounce: Silver)
- Buffalo Rounds (1 ounce: Silver)
- Specialty Series Coins
- Unrecognized Brand Coins
View full list of Allowable Precious Metals/Disallowed Coins here.
Fees
FEE UPDATE NOTICE
As we continue to build upon our legacy of top-level client service and user-centered technology advancement, including adding increased functionality to our online portal and offering even more educational content — we remain focused on empowering you to reach your financial goals. These changes will go into effect November 15, 2024.
You can view the new fee schedule here.
ANNUAL ADMINISTRATION FEES
Precious Metals
| Precious Metals | $185 Flat Rate |
| If you purchase physical metals, your account may be subject to storage fees. Storage Fees are not included in this schedule. | |
| Online Trading | $185 Flat Rate |
PROCESSING FEES FOR PRECIOUS METALS
| Purchase, Sale, or Exchange of Precious Metals | $95 |
OUTGOING MOVEMENT OF FUNDS
Due when funds leave your account
| ACH | $0 |
| Check | $20 |
| Cashier or Official Bank Check | $35 |
| Wire | $35 |
| International Wire | $35 |
| Overnight Mail | $50 |
| Returned Item or Stop Payment Request | $50 |
TRANSFERS OUT AND DISTRIBUTIONS
| Partial (no minimum, maximum of $275) | .5% of value |
| Full ($100 minimum, maximum of $275) | .5% of value |
| In-Kind Asset Registration | $50 |
Transfers out and distributions carry the charges above plus applicable movement of funds fees. Required Minimum Distributions (RMDs) are only charged applicable movement of funds fees and in-kind asset re-registration fees.
- Annual Administration fees are charged based upon the custodial services provided and are not dependent upon an investment’s performance. Thus, Administration fees are non-refundable regardless of whether the client is unable to generate profits or returns.
PRECIOUS METALS
The Investment Process
Timeline
STEP 1
Fund Your Account
Prepare your self-directed account by financing via contribution, transfer, or rollover. Learn more here.
STEP 2
Select Precious Metals
Choose your dealer, depository, and consider what metals you want to purchase.
STEP 3
Make Your Investment
Complete Buy, Sell, Exchange From, place your order with your designated dealer. Our team will process in 1-3 business days.
STEP 4
Awaiting Delivery
Delivery time can be up to 3 weeks for your purchase to arrive at the depository.
STEP 5
Manage Your Account
Continue account management. You can contact our Client Services Team at 877-742-1270 ext. 191 or via Client Portal Message.
Online Buy, Sell, Exchange Form
The first step is always to fund your self-directed account so you have available funds to purchase the metals. When you’ve chosen your sponsor and depository, NDTCO will need a few simple documents to execute the transaction:
Precious Metals Buy, Sell, Exchange Form – Authorize the transaction by:
- Logging in to your online portal and selecting “Invest” on the left-hand side of the screen.
- Click the “Precious Metals” drop-down menu and then select “Invest Now.”
- Under Action Type, select “Buy.”
- Under Type of Metals, select ownership.
- Allocated ownership-Ownership of a portion of a larger bar of metal (often 400 or 1,000 ounces in total weight). This is also used for online precious metals trading platforms.
- Individual Ownership-Ownership of a specific individual coin, bar, or round metal product.
- Under Precious Metals Dealer, enter the name of your chosen precious metals dealer.
- Select your chosen depository from the drop down.
- Indicate whether you will allocate a specific dollar amount to the purchase or will authorize all available funds.
- Important Note – If you elect to allocate all available funds, this does not mean NDTCO will automatically send your full cash balance to fulfill a purchase. It simply means that we will fulfill whatever invoice price we receive, provided the balance is available in your account.
- Indicate how you would like to pay the applicable fees.
- Check the acknowledgment box and click “Continue.”
In order to submit your purchase request you will need to ensure you have sufficient cash in the account. If at the time of a purchase you don’t have sufficient cash in the account, consider a transfer-in, Rollover, Liquidation or contribution to fund the account before your purchase. If you are working with us already on a sale or funding request, check your account daily for incoming funds. As soon as funds clear in your account, you will be able to submit your purchase request.
Invoice
You will work out the terms of the purchase with your precious metals company just as you would if it were a personal purchase. To process your transaction, NDTCO needs an invoice that identifies your IRA account as the buyer and your chosen depository as the ship-to address. You should not submit personal payment information for your IRA order. You can upload a copy of your invoice to NDTCO while completing your Online Buy, Sell, Exchange Form, or through your client portal in the messaging center.
If funds are available and NDTCO has received your completed Buy, Sell, Exchange Form and invoice, NDTCO will process your transaction within 1-3 days.
Please note that precious metals’ prices fluctuate based upon market values and may not remain at the constant rate from your original invoice. Please contact your precious metals dealer for additional information and current market prices.
Shipping Details
Once your investment has been funded, you will be able to see a line item in the client portal account overview, that shows awaiting delivery in the amount of your investment.
If you have questions regarding the shipment or tracking information for your purchase, you should contact your dealer/broker to obtain additional information.
Once the metals have been received by the depository and the inventory has been communicated to NDTCO, the Precious Metals will be shown in the account and the location will reflect the depository selected. Changes will be shown on your account 1-2 weeks after the date of delivery.
PRECIOUS METALS
After the Purchase
Selling Your IRA Owned Precious Metals
If you would like to sell your IRA-owned precious metals, we will need you to complete our online Precious Metals Buy, Sell, Exchange Form. Consult with a precious metals source of your choice to discuss which metals you would like to sell and negotiate the sale price.
Once you have chosen a precious metals source, New Direction Trust Company will need the following items to process a sale.
- Precious Metals Buy, Sell, Exchange Form: This form can be completed online through your client portal, from the Invest tab on the left-hand side. Under Public Market Assets, select the Precious Metals drop down and click Invest Now. Select Yes, I have a source. Change the action type to Sell and complete the form.
- A Purchase Order: This is provided from your Precious Metals source after you have negotiated the sale price. You can upload a copy of your purchase order to NDTCO while completing your Online Buy, Sell, Exchange Form or through your client portal in the messaging center.
The fees associated with a Precious Metals sale include a transaction fee, and a shipping/handling fee to send the metals from the depository to the dealer purchasing them. Once the sale request and purchase order are received, NDTCO will work with your depository to determine the shipping/handling fees. If your shipping fees are over $200, we will contact you for authorization before processing the sale. Authorization is not required if the shipping fees are less than $200.
Once your Precious Metals have been shipped from the depository, those Precious Metals will be removed from your Private Market Assets on the client portal account Overview page and replaced with an Asset named Pending Sale. The value of the Pending Sale Asset will match the sale price listed on your Purchase Order. The day after your sale proceeds have been received, the Pending Sale will be removed, and the available cash will reflect the deposit.
Precious Metals Exchange
If you would like to exchange your IRA owned precious metals, we will need you to complete our online Precious Metals Buy, Sell, Exchange Form. Consult with a precious metals source of your choice to negotiate the sale price and exchange details.
To process an exchange of precious metals, New Direction Trust Company will need the following items:
- Online Precious Metals Buy, Sell, Exchange Form– This form can be completed online through your client portal, from the Invest tab on the left-hand side. Under Public Market Assets, select the Precious Metals drop down and click Invest Now. Select Yes, I have a source. Change the action type to Exchange and complete the form.
- A Purchase Order-Provided from your Precious Metals Dealer after you have negotiated the price for the metals you are exchanging out.
- Invoice– You will work out the terms of the exchange with your precious metals dealer. To process your transaction, NDTCO needs an invoice that identifies your IRA account as the buyer and your chosen depository as the ship-to address.
You can upload a copy of your purchase order and invoice to NDTCO while completing your Online Precious Metals Exchange Form or through your client portal, under messages.
Some dealers may include the details for the purchase order and in the invoice on the same document.
The fees associated with a Precious Metals exchange include a transaction fee and shipping cost to send the metals from the depository to the dealer purchasing them. Once the exchange request and purchase order are received, NDTCO will work with your depository to determine the shipping fees. If funds are owed to your Precious Metals Source for exchange, a wire fee would be charged.
If your shipping fees are over $200, we will contact you for authorization before processing the sale. Authorization is not required if the shipping fees are less than $200.
Buying More Metals
If you would like to purchase additional Precious Metals, please complete a new online Precious Metals Buy, Sell, Exchange Form. Consult with a precious metals source of your choice to negotiate the price and the metals you wish to purchase.
You will work out the terms of the purchase with your precious metals company. To process your transaction, NDTCO needs an invoice that identifies your IRA account as the buyer and your chosen depository as the ship-to address. You can upload a copy of your invoice to NDTCO while completing your Online Precious Metals Buy, Sell, Exchange Form.
The fees associated with an additional precious metal transaction include a transaction fee and an outgoing wire fee.
If you wish to use a different depository for your new precious metals purchase, an additional annual storage fee will apply. If you wish to use the same depository, annual storage fees may increase based on the value.
In-Kind Distribution
Clients may take an in-kind distribution to receive possession of their precious metals. This will ship precious metals from the depository to a client’s home. The value of the precious metals on the day the form is signed is the value that will be used for tax reporting on form 1099-R. Please note, in-kind distributions of precious metals can take several weeks to complete.
To complete the Distribution Form on our client portal, please follow these instructions:
- Login to the Client Portal.
- In the lefthand navigation, select ‘Distributions’.
- Complete the embedded Docusign form.
If you would like to take a cash distribution, please see our directions on selling precious metals. Once the precious metals have been sold and cash has been returned to the account, you can complete our Distribution and Notice of Withholding Form, requesting a cash distribution.
Currently there is a 6–8-week processing timeframe for all precious metals distribution requests. We will reach out to you through a message to confirm all information and fees pertaining to your request when it has been fully reviewed.
For further information on required distributions, please view this link Required Minimum Distributions.
Managing Your Account
Our online client portal combines human power and digital innovation, making it simple to view all your account information in one centralized location. Within your client portal, you have the ability to directly message our support team, review recent transactions, download account documents, and review a vast library of educational content easily and securely.
Simply log into our Client Portal to access and manage all of your account information.
Valuation of Precious Metals
Precious metals’ prices fluctuate based upon market values and may not remain at the constant rate from your original invoice. Please contact your precious metals dealer for additional information and current market prices.
Some precious metals dealers or brokers may include a commission or markup in their sale price of precious metals. For additional resources on spot prices for precious metals values, bullionvalues.org may provide you some insight.
FAQ
How do I sell or exchange metals?
To liquidate precious metals, we will need you to complete our online Precious Metals buy, sell, exchange form. Consult with a precious metals source of your choice to negotiate the sale price and have the dealer send us a copy of the purchase order.
The fees associated with a Precious Metals sale include a transaction fee and shipping cost to send the metals from the depository to the dealer purchasing them. Once the sale request and purchase order are received, NDTCO will work with your depository to determine the shipping fees.
See above section for more information on selling or exchanging your IRA owned precious metals.
Do I have to use a depository? I would rather keep my precious metals at home.
Unfortunately, the IRS requires that all self-directed precious metal investments be stored in a third-party depository for safe-keeping.
At the time you are eligible to take a distribution, you are able to choose whether you would like to take an in-kind distribution (taking possession of your physical precious metals) or cash distribution.
For further information on required distribution, please view this link Required Minimum Distributions.
Are you owned or affiliated with any specific precious metals dealers or sponsors?
No! New Direction Trust Company is an independent self-directed custodian. We do not sponsor or endorse any specific investment or investment sponsor.
Is there a discount for using a dealer or sponsor who referred me to you?
As a non-fiduciary custodian, NDTCO is unable to recommend, endorse, or promote a dealer or asset provider. NDTCO does not offer any discounts for using a dealer or sponsor who referred them to NDTCO.
Why have the prices for my precious metals changed?
Precious metals’ prices fluctuate based upon market values and may not remain at the constant rate from your original invoice. Please contact your precious metals dealer for additional information and current market prices.
Some precious metals dealers or brokers may include a commission or markup in their sale price of precious metals. For additional resources on spot prices for precious metals values, bullionvalues.org may provide you some insight.
What is a ‘gold IRA’ or ‘precious metals IRA’?
“Gold IRA” and “precious metals IRA” are simply descriptions of self-directed retirement plans that hold physical gold, silver, platinum, and/or palladium. From a tax advantage standpoint, the IRS does not distinguish precious metals IRAs from accounts that hold other asset types.
Which accounts are eligible?
Any account offered at NDTCO can invest in precious metals. You can learn more about each account type here.
Which precious metals are allowed in IRAs?
Self-directed IRAs can hold gold, silver, platinum, and palladium. Common items like American Eagle coins, Canadian Maple Leaf coins, and bullion bars in gram or ounce denominations are permissible in retirement plans provided they meet minimum purity requirements.
What fees are needed to open an account?
A one-time account opening fee is due at the time the account is established. You will then work directly with the dealer to determine the precious metal purchase and cost. You can view our full fee schedule here.
OTHER INVESTMENTS
The world is your portfolio
Why stop at precious metals? With a self-directed account, you have the freedom to invest your tax-advantaged retirement or savings funds in the assets you’re most passionate about.
From start-ups to small businesses, if you can find it, we will help you fund it.
EDUCATION CENTER
Want to learn more about Precious Metals investments?
Precious Metals Guide
