Holding Precious Metals Other than Gold in an IRA

It’s not been widely known that the IRS allows retirement accounts such as IRAs to hold gold and other precious metals. That’s because most retirement accounts are administered by bank and brokerage companies, who have no incentive to allow client to diversify into asset classes that are not within their expertise.

If you’re considering a Gold IRA, keep in mind a few considerations about Gold IRAs:

Your Gold IRA doesn’t have to be limited to gold, or to any gold at all, but can acquire silver (not to mention platinum and palladium as well). Silver will often perform out of sync with gold since its price seems more subject to investor sentiment on the prospects of inflation or deflation. And platinum and palladium have their niches too (platinum with a combination of luxury and industrial demand uses, and palladium being vital to certain industrial applications)

Your metals don’t have to be limited to government-issue bullion coins. It’s true that government-minted Silver and Gold coins such as the American Eagle, Canadian Maple Leaf, Austrian Philharmonic, Australian Kookaburra and Mexican Libertad are all acceptable for IRAs and other retirement plans). But did you know that many private mints also offer bullion products of sufficient fineness to meet IRS stipulations? Most bullion dealers can assist with identifying these products, which will always be minted to show their bullion content (typically Gold and Silver bullion state .999 fineness, and Platinum and Palladium .9995, all of which meet or exceed IRS requirements). By choosing these private-minted bullion products (sometimes called ‘generic rounds’ since they are typically offered in tubes of 20 one-ounce coins), an investor may benefit from purchasing at a lower premium than the more popular government-minted coins.

You don’t have to worry about the safekeeping of your metals. If you are holding a significant amount of gold or silver coins personally, you will probably keep them in a safe, or somewhere else that is secure, but easily accessible to you, should you need them.

However, in the case of a retirement account such as an IRA, you cannot hold the metals yourself in any case, so the proximity of your metals to your residence is not so pertinent. Just as you have chosen an IRA custodian to house your IRA assets, you choose a depository to keep your IRA’s holdings secure. Here is something that is often overlooked: at retirement, you will have the option to distribute the coins from your IRA to yourself. You get to decide whether it is better to sell the metals while they are still in the IRA (and take a cash distribution) or after you distribute them to yourself.

Download our investing guide for more information about a precious metals IRA. To consult with a live New Direction Trust Company representative, give us a call at 877-742-1270 or send us an e-mail at info@ndtco.com.