Individual Retirement Accounts (IRAs) have long been an efficient means for saving for one's golden years, though most people associate IRAs with traditional investments like stocks and bonds. Yet alternative assets, like precious metals IRAs can be an excellent way to diversify a retirement portfolio and hedge against economic instability - although not all precious metals qualify. We will explore which precious metals qualify and discuss any considerations involved when including them in an IRA plan in this article.
Before deciding which precious metals qualify as investments under an IRA, it's crucial to understand what a Precious Metals IRA (also referred to as Gold IRA) entails. Also commonly referred to as an individual Retirement Account or IRA, a Precious Metals IRA allows investors to acquire physical precious metals through self-directed accounts; unlike traditional IRAs which limit investments only to stocks and bonds, self-directed IRAs provide more options; traditional IRAs do not!
To become eligible for inclusion in an Individual Retirement Account (IRA), precious metals must meet certain criteria set by the Internal Revenue Service (IRS). At present, several precious metals have been approved. They include:
Gold is one of the most beloved precious metals among investors, making IRA-eligible options including gold bars or coins with fineness (purity) of at least 0.995 or above the most favored options are. Examples of popular options for inclusion are as follows.
American Gold Eagle Bullion Coins and Canadian Maple Leaf Coins. Australia Kangaroo/Nugget Coins as well as Austrian Philharmonic Coins can also be found.
To be included in an IRA, silver must come in bar or coin form and meet Comex/Nymex accreditation; options that meet this criterion include bars produced by accredited manufacturers that come from various producers accredited by Comex/Nymex.
American Silver Eagle Bullion Coins and Canadian Silver Maple Leaf Coins as well as Austrian Philharmonic Coins have been accredited for trading by Comex/Nymex, respectively. Silver bars and rounds produced by various manufacturers also meet these criteria.
Platinum can also be included in an Individual Retirement Account, provided its fineness exceeds 0.9995. Examples of approved platinum options for investment accounts:
American Platinum Eagle Coins, Canadian Maple Leaf Coins and Australian Koala Coins as well as various platinum bars can all be purchased here.
Although less popular than gold, silver, or platinum investments, palladium can still qualify for inclusion in individual retirement accounts (IRA). Palladium must possess an exact fineness rating of 0.9995 to be approved as eligible; available options in an IRA are:
American Palladium Eagle Coins and Canadian Palladium Maple Leaf Coins as well as various Palladium bars can all be purchased.
When investing in precious metals with an IRA, the metals won't physically belong to you; rather, they must be stored safely at an approved depository. The IRS has stringent requirements regarding storage requirements in an IRA to guarantee safe keeping.
Investing in precious metals can be an ideal way to diversify an IRA portfolio and mitigate against economic uncertainty, but it's crucial that investors be informed about IRS requirements regarding which precious metals may be included and stored securely within an IRA account. Armed with such information, informed decisions can be made regarding whether including precious metals is suitable for their retirement savings strategy.