Which Precious Metals are IRA Approved?

By Tim Schmidt - UPDATED: October 9, 2024

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If you want to boost your investment portfolio and save for retirement, what better way than with a Precious Metals IRA? These assets have held their value historically and will likely continue to do so in the future, making them a great option for portfolio diversification.

However, it's important to remember that the Internal Revenue Service (IRS) has strict rules in place governing the types of precious metals that may be held in these investment accounts. In this article, we will walk you through the requirements for precious metals to help you make an informed investment.

Understanding Precious Metals IRAs

Before you make an investment, it's important to have a good idea of what you're getting yourself into. The good news is that when you invest in gold, silver, and other precious metals, you are dabbling in assets that have a long history of good performance.

Gold is undoubtedly one of the assets that many investors turn to as a store of value. While it has held its value over time, other precious metals tend to be more volatile. Don't let that fool you, though, because they have the potential to provide great returns.

You'll also need to take note that these IRAs do not pay dividends. To cash in on your investment, you'll likely have to wait until you reach retirement age. Your precious metals holdings will also not increase or decrease (unless, of course, you purchase more coins or bars), but their value will go up over time.

In general, a Gold IRA should be considered as part of a strategic and diversified investment portfolio. We recommend seeking advice from a reliable financial expert before setting up your account.

How It Works

Physical precious metals, such as gold, silver, platinum, or palladium, can be held as part of your retirement portfolio in a Precious Metals IRA.

When compared to a traditional IRA, which usually involves stocks, bonds, or mutual funds, these investments provide a physical asset that can serve as a hedge against inflation and unstable economic conditions.

The first step in the process is opening a self-directed IRA with a precious metals custodian. You would first create an account and purchase your metals, which will then be transferred to and held in an IRS-approved depository. When you reach retirement age, you can sell your assets to enjoy a good return.

The Benefits a Precious Metals IRA Offers

Gold IRAs offer a number of benefits, such as:

Diversification

When you add precious metals to your portfolio, you can lower the overall risk through diversification. This ensures that even when one investment type performs poorly, you have others to fall back on. Gold and other precious metals tend to perform very differently from other assets, offering less volatility, which is why they are generally recommended to diversify your portfolio.

A Hedge Against Inflation

Inflation and the value of precious metals tend to have an inverse relationship. This means that when inflation is high, the price of gold, silver, platinum, and palladium tends to go up. That's because these assets are seen as a store of value, and many investors turn to them when market conditions are unfavorable.

Tax Advantages

A Gold IRA allows you to benefit from tax-deferred growth. This means that you can allow your wealth to grow in value without the detrimental effects of tax deductions, providing you with more growth.

A Guide to IRA-approved Precious Metals

Without further ado, let's get into the requirements for IRA-eligible gold, silver, and other precious metals.

Firstly, Which Metals Can Be Held in an IRA?

The first thing you need to understand is that there are only four types of metals that may be included as part of a Precious Metals IRA. They are as follows:

• Gold
• Silver
• Platinum
• Palladium

Purity Requirements for Precious Metals Held in Gold IRAs

In the past, only American Eagle silver and gold coins could be held in a Precious Metals IRA. Today, numerous other products may be used, such as bars and rounds.

However, they must satisfy IRS standards. Only bullion that meets high purity requirements may be included in these investments. Here is an overview of the purity standards for each type of metal:

Gold

IRA-approved gold bars, rounds, and coins may be held in a Precious Metals IRA. However, in order to qualify, the bullion has to be 99.5% pure. Moreover, IRA-approved gold coins must have a certificate of authenticity.

Small bullion bars will have to be created according to exact weight specifications in order to qualify. Furthermore, all coins, bars, and rounds produced for an IRA should be done so by a company that is certified or accredited by organizations such as COMEX. Non-proof coins should be uncirculated.

Silver

IRA-approved silver coins, bars, and rounds should also meet the standards mentioned above, except they are required to have a purity of at least 99.9%.

Platinum and Palladium

Platinum and palladium products should also meet these standards and have a minimum purity of 99.95% in order to qualify for inclusion in a Precious Metals IRA.

Where to Find IRA-approved Precious Metals

Are you looking for assets to add to your Gold IRA? In that case, you can go to a reputable dealer or IRA company. Make sure that the products they offer meet the high standards mentioned above. All coins, bars, or rounds you invest in must have been produced in reputable refineries.

Final Thoughts

If you want to enjoy the many benefits that precious metals offer, you should set up a Gold IRA. However, the reality is that there are scammers out there, so be sure to check that your IRA is backed by gold, silver, platinum, and/or palladium products that meet the Internal Revenue Service's stringent requirements mentioned in this article.

It's also important to work with a trusted precious metals IRA company to ensure the best possible experience.

Suppose you enjoyed this article and would like to learn more about setting up a Gold IRA. In that case, please browse our website or download our FREE GUIDE today!