Precious Metals in IRAs

A precious metal IRA, also known as a gold IRA, is a retirement account that allows you to invest your tax-deferred dollars in physical gold, silver and platinum. These accounts can be set up as traditional pre-tax IRAs, Roth IRAs or simplified employee pension (SEP) IRAs. They follow many of the same rules as traditional IRAs, including contribution limits, penalties for early withdrawals and required minimum distributions at age 73.

There are a few things you should keep in mind before opening a precious metals IRA. One of the most important is that only IRS-approved precious metals can go into an IRA. You’ll also need to find an IRA custodian that works well with the specific types of bullion you want to purchase and store. Lastly, it’s always best to have your precious metals stored in an insured third-party depository that’s near you.

Precious Metals in IRAs

While there’s certainly plenty of appeal to owning physical precious metals, it’s important to understand that these investments are not without risk. These investments can lose value as a result of inflation and are not guaranteed to increase in value, even when prices rise. Additionally, while precious metals have often been perceived as a safe haven in times of economic turmoil, they have historically experienced the same volatility as stocks and bonds.

Because of this, it’s always wise to diversify your portfolio with a variety of different investments, including precious metals. While they can provide a solid source of inflation protection, they’re not suitable for all investors and should never be considered a core component of your overall investment strategy.

When choosing a precious metals IRA provider, you should look for a company that offers transparent pricing on purchases, competitive buy back terms, and unbiased customer education. You should also avoid any companies that try to charge ancillary fees or use high-pressure sales tactics. Additionally, it’s a good idea to research the specific dealers your provider works with. Check online reviews and look for complaints or lawsuits that may indicate the dealer isn’t operating ethically.

The process of setting up a precious metals IRA is fairly straightforward. You’ll need to find an IRA custodian and a depository that work with the type of bullion you plan to purchase and store in your IRA. Once you’ve done this, you can then buy the bullion from a reputable dealer and have it shipped to your custodian or depository.

A reputable self-directed precious metals IRA provider will handle the paperwork to establish, fund and complete transactions for your SDIRA. They’ll also be responsible for recordkeeping and filing all necessary reports with the IRS. In addition to these services, they should be able to offer you a wide selection of IRS-approved IRA-eligible metals, including gold, silver and platinum. They should also work with a number of nationwide depositories and have an established relationship with them. They should also be able to offer you the option of purchasing or leasing IRA-eligible bullion.