Steps and Advantages of Investing in Self-Directed Precious Metal IRAs

Although many people invest in stock and bond-based retirement accounts, you have options with strategic advantages. Setting up a self-directed IRA gives you the freedom to choose types of investments and make transaction calls. These accounts may be traditional or Roth IRAs depending on your goals and financial situation. One possibility is a precious metals account.

Precious metal IRA accounts come with requirements. First, investors must purchase IRA-eligible products. Second, investors may not take physical possession of assets. When you become a precious metals investor, you will need to choose a custodian or trust company to conduct transactions on your behalf. The custodian’s fiduciary responsibilities include setting up accounts, generating account statements and handling contributions. You will also need to select a federally approved depository, such as the one in Delaware.

You may buy assets from a dealer of your choice, selecting from available prices and products. Your custodian will handle the transaction and the product’s delivery to the depository.

Gold is an established investment market and quite suitable for precious metal IRA accounts. The metal must be at least .995 percent pure to be eligible, but investors may choose coins, bullion or bars. If you are interested in precious metals for your accounts, this guide will help you. Examples of approved coins are:

  • American Gold Eagle
  • Austrian Gold Philharmonic
  • Canadian Gold Maple Leaf

We offer a wide selection of these types of products.

One primary reason for you to consider a precious metal IRA is the tax advantage. The revenue service does not tax IRA holdings or capital gains until you sell. Because your tax rate will depend on your income as you cash in your retirement holdings, you can increase returns by minimizing your tax rate. This is not possible with investments held in brokerage accounts, making precious metal IRA accounts wise alternatives.