What is a Precious Metals IRA?

In this series we will discuss the most frequently asked questions we get on a regular basis from our clients regarding Precious Metals IRA’s. This is the first video in this series. Please make sure you watch the remaining videos in this series - they should help answer some of your questions about diversifying into the precious metals markets.

What is a Precious Metals IRA?

A Precious Metals IRA is simply a Traditional, ROTH, SEP, SIMPLE, Rollover, or Inherited IRA that owns precious metals and may include gold, silver, platinum, or palladium. IRA Holders have been allowed to use funds in their IRA account to purchase approved precious metals since 1998 after the passage of the Taxpayer Relief Act of 1997. This act expanded the investment options for IRAs beyond paper assets.

What kinds of precious metals can a Precious Metals IRA hold?

A Precious Metals IRA can own four types of precious metals: gold, silver, platinum, and palladium. IRA gold is limited to 1 ounce, ½ ounce, ¼ ounce, and 1/10 ounce Gold American Eagles (Uncirculated or Proof) or other gold products (coins or bars) with a minimum purity of .995%. To qualify for an IRA, silver must be at least .999% pure; and both platinum and palladium must be at least .9995% pure.

Is a Gold IRA the same as a gold certificate?

No. A gold certificate is simply a piece of paper that can be redeemed for physical gold. If you have a precious metals IRA, your IRA directly owns physical bullion bars or coins that you select and order directly.

Why do I need to transfer or rollover my IRA to buy gold?

Any IRA is legally allowed to purchase gold and precious metals. However, a majority of the major custodians such as Charles Schwab, Merrill Lynch, and JP Morgan Chase do not offer physical precious metals as an investment option. Most traditional custodians are structured to only hold paper assets and structured as managed funds. Physical precious metals is a self-directed investment and generally requires a custodian that offers self-directed IRA investments. If your custodian does not offer precious metals as an investment option, we can help you initiate a rollover or direct transfer to a custodian who does. A rollover or direct transfer is a non-taxable event.