How to Hold Precious Metals in an IRA
Physical bullion investment offers the ideal way to secure gold and other precious metals within an IRA, providing protection from inflation while simultaneously increasing wealth.
Purchase of shares of an ETF that tracks precious metal prices can also provide tax protection upon withdrawal, however this form of investment will not provide this advantage.
Taxes
Investing in precious metals provides several key advantages, with tax relief being chief among them. This makes precious metal investments an ideal way to diversify your retirement portfolio.
As there are only minimal restrictions on the types of metals you can hold in an IRA, the options you have for investing are relatively limitless. Gold, silver, platinum or palladium may all be held within it as well as coins meeting IRS minimum fineness requirements; American Eagles, Canadian Maple Leaves and Australian Kangaroo coins among them can all be held as well as proof American Buffalo coins and uncirculated South African Krugerrands as possibilities.
Your precious metals IRA custodian, often referred to as the “dealer” or “broker,” is often known by their preferred term: IRA custodian. Dealers or brokers could include banks or financial institutions, numismatic specialists or even standalone organizations specializing in managing gold IRAs. Working together, dealers will acquire your metals before transporting them securely into a vault for storage.
Investments
Gold-backed IRAs provide you with an opportunity to diversify your retirement assets by including precious metals in addition to stocks, bonds and mutual funds. Similar to traditional IRAs, precious metals IRAs also provide tax advantages.
Gold has long been used as an inflation hedge, helping your portfolio reduce risks associated with rising interest rates by offsetting their effect on other investments. Furthermore, its tangible nature offers comfort in times of economic turmoil as it stands as an assurance.
Note, however, that investing in physical precious metals carries its own set of risks, and should only be seen as an additional form of diversification within existing retirement accounts. Furthermore, you should select a reputable dealer and be wary of fees such as setup, transaction, custodial and storage charges that may incur. These could all add up and reduce the return on your investment return significantly.
Storage
Precious metals-backed IRAs require specific storage procedures, and only certain coins and bullion can be included in an IRA; this list includes American Eagle bullion coins as well as gold, silver, platinum, and palladium bullion that meet minimum fineness standards.
Many individuals who opt to invest in gold-backed IRAs do so as a defense against inflation and the decline of the U.S. dollar; such investments have historically proven their ability to preserve purchasing power during times of inflation while traditional investments like stocks or bonds may decline in value over time.
Physical precious metal investing differs significantly from investing in stocks, bonds and mutual funds; therefore it’s recommended to work with an experienced precious metals representative from Rosland Capital to address your investment questions and deliver exceptional customer service. Your representative can also help select an IRA custodian tailored specifically to your individual requirements.
Security
Precious metals provide a useful diversification to any retirement portfolio. Many financial advisors recommend holding precious metals at 5% to 10% of your nest egg as part of this investment plan.
IRS rules dictate that IRAs may only invest in coins and bullion made of gold, silver, platinum or palladium that meet certain purity standards. This typically means you will invest in products produced by either the U.S. government or private gold dealers who have been approved as custodians by the IRS for your IRA account.
Physical gold and silver investments offer more security than paper-based IRA investments due to the tangible control you have over your assets, which reduces counter-party risk and protects against government overreach. Furthermore, gold’s historical protection against inflation provides you with added peace of mind; just consider this example of inflation: just 50 cents used to buy you an ample candy bar that now costs at least one dollar!
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