How Do I Put Precious Metals in an IRA?
Precious metals have long been recognized as a way to mitigate economic uncertainty and diversify investment portfolios.
To successfully invest in precious metals using an IRA, you’ll first need a reputable custodian with experience managing investments eligible for this account. Once selected, it’s time to select which precious metals you would like to acquire.
Self-Directed IRAs
Precious metals have long been seen as an attractive investment option to diversify a retirement portfolio, providing investors with a secure haven in times of economic instability and often used for inflation protection. Unfortunately, however, precious metals don’t pay dividends and can be highly volatile investments.
An Individual Retirement Account, or IRA, allows you to invest in physical gold, silver, platinum and palladium coins and bars. Your precious metals are stored at an IRS-approved depository; depending on your individual requirements the custodian may provide segregated or allocated storage solutions for you.
An Individual Retirement Account (IRA) allows investors to hold precious metals that meet specific fineness standards, with gold coins and bars meeting 24 karat purity or higher having been hallmarked by an approved refiner/assayer and being hallmarked with their fineness number, such as Proof American Eagle coins. Silver coins and bars must also meet this fineness standard (such as 1 oz Silver Eagle).
Traditional IRAs
Gold has proven itself invaluable during periods of economic instability and global conflict, serving as a store of value to protect investors during times of turmoil and strife. Gold can make an effective addition to an investment portfolio comprised of traditional stocks, bonds and cash assets.
Traditional IRAs often include precious metal investments stored at IRS-approved depository facilities that specialize in protecting physical precious metal investments and are usually secured to keep other holdings separate from each other.
If you plan on investing in gold, silver, or platinum with a traditional IRA, it’s essential that you understand that the IRS has specific rules regarding this form of account – specifically concerning storage conditions for precious metals. Also remember that taking physical possession before age 59.5 could result in taxes and penalties as this withdrawal would likely be considered taxable distributions by the IRS.
Roth IRAs
An Individual Retirement Account (IRA) dedicated to precious metals allows investors to store physical gold, silver and platinum as part of their retirement fund. Over time these metals have historically appreciated in value while acting as an insurance against economic instability.
Precious metals make an excellent addition to any portfolio thanks to their low correlation with stocks and bonds. Financial advisors recommend allocating 4-12% of your retirement account into precious metal investments.
Add precious metals to your Roth IRA is easy. Just work with a custodian who purchases and stores them securely at a depository facility; plus they oversee your IRA in accordance with IRS regulations.
Most investors choose gold, which is typically seen as a safe haven investment, to add to their IRA portfolios, but you could also select other precious metals like silver and palladium as investments. Your custodian will guide you in choosing which metals to buy.
Rollover IRAs
A precious metals IRA is an individual retirement account that enables investors to invest in physical gold, silver, platinum and palladium. Also referred to as “gold IRAs” or “precious metals IRAs”, you can open one via contributions, transfers or rollovers from existing retirement plans such as your 401k.
Gold and other precious metals offer investors looking to diversify their portfolio or hedge against inflation a much-needed hedge, not only as short-term investments but also long-term gains.
Start investing in precious metals with your IRA by first finding a trustworthy dealer offering eligible bullion products and belonging to industry trade groups such as the American Numismatic Association or Industry Council for Tangible Assets. Next, choose an IRS-approved depository to store your investment – it won’t allow home or other personal storage facilities!
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