Investing In Gold And Silver Coins in an IRA
Many individuals are unaware of the fact that they can invest in physical silver or gold through an IRA. To accomplish this, all one must do is open a self-directed IRA, which a custodian will manage. The latter allows the individual to invest directly in certain types of silver coins and gold coins.
Precious metals such as these can also be added to all types of existing IRAs, including SEPs, traditional, and Roth IRAs. A rollover IRA is also a good option for such an investment, and with this type of account one can ask for delivery at any time. However, the owner of the IRA must beware of the fact that if delivery is requested before he or she is 59 1/2 years of age, a 10% penalty may be implemented.
IRA Options for Gold and Silver
There are only certain types of silver and gold coins that can be placed in an IRA. These include the following one ounce coins: American Eagle, Australian Kangaroo, Canadian Maple Leaf, Austrian Philharmonic, and the United States Buffalo. Those who decide to invest in silver can choose from Silver Eagles, Proof Eagles, and both 1,000 and 10,000 ounce bars.
Additionally, all gold must be .995% pure, legal tender coins and silver coins must be 99.9% pure for inclusion. The choice one makes when selecting coins will largely depend upon his or her age and specific redemption options. Storage fees almost always apply with silver coins, gold coins and bars.
You can read more about the precious metals allowed in this type of account here.
The Importance of Purchasing Gold and Silver From a Reputable Dealer
All coins should be purchased through reputable dealers, as such individuals guarantee the quality of their precious metals. Therefore, care must be taken to properly research any dealer with whom one is considering doing business. Such dealers can also help individuals to make the best choices when adding to or starting their IRAs.
The best way to verify the legitimacy of coin dealers is through agencies such as the Better Business Bureau. In most cases, such agencies keep lists of legitimate gold and silver merchants.
Creating a Gold or Silver IRA
Once an individual has identified the gold and silver coins or bars that are allowed to be invested in IRAs, such assets can be purchased. If one has existing gold or silver bars or coins that qualify for an IRA, they can be converted to the latter without much difficulty.
As previously mentioned, the investor can opt for a precious metals IRA plan that is administered by a custodian. The latter should have extensive experience with silver and gold. Those who will be availing themselves of the services of a custodian should expect to receive quarterly or monthly account statements. This way the account owner is able to monitor his or her holdings.
It is a good idea to check for annual changes in the precious metals IRA regulations. This is because such rules are frequently amended by the government to allow new types of precious metals for such investments. Reviewing the maximum annual contribution limits for similar changes is also important.
One may wish to consider diversification of his or her IRA portfolio. This is because investing in a single type of asset is not usually recommended by financial experts and advisers.
To create a more balanced IRA portfolio one should consider other types of assets such as money markets, mutual funds, stocks and bonds. The investor may also wish to research other metals in addition to gold and silver for further diversification. Current IRA regulations allow account holders to invest in a mixture of various precious metals.
Millions of investors throughout the world have turned to precious metals as their investment of choice over the past several decades. These types of investments are appealing for a variety of reasons.
Each investor has his or her own reasons for choosing gold coins or silver coins for their IRA. Regardless of a person’s individual objectives, when the aforementioned steps are followed and care is taken to locate a reputable precious metals dealer, he or she will find that gold and silver are worthwhile investments.