If you own a self-directed IRA, you are basically the master of your investments. This is the best type of IRA you can have for precious metals investing (gold, silver, platinum and palladium). Let's go over the basics of a self-directed IRA and how to invest in gold through it…
What is a self-directed IRA?
A self-directed IRA is an individual retirement account with its investments under the complete control of the investor. These types of accounts hold the same types of limitations when it comes to the amount of deposit per year and the withdrawl of funds: Investments in an IRA should be considered long term. Self-directed IRAs place the whole of the risk squarely on the individual to pick and manage investments. However, the freedom of choice gives the investor the potential to speculate as well as diversify without the limitations of other long term accounts such as a company driven 401k. Self-directed IRAs can also be held in tandem with other kinds of IRAs.
What are the investment limitations of a self-directed IRA?
The reason that many people choose to invest with self-directed IRAs is because of the nearly unlimited investment freedom. The only things that a self-directed IRA cannot hold are also true of other IRAs – investments in insurance, S corporation stock or collectibles. However, IRA custodians will usually limit any IRA that is not self-directed to easily tracked investments such as publicly traded stocks, bonds, certificates of deposit and mutual funds. There are also the federal limitations on the amount of money that can be deposited into an IRA per year. However, there is no limit on the amount of money that can be made inside of the vehicle, and self-directed IRAs have much more speculative power than nearly any other type of retirement account.
How does one invest in gold through a self-directed IRA?
Investors must be sure not to make investments that “benefit themselves” according to federal law. The transaction to purchase gold bullion must not be made through a personal check, and in some cases, must be made through a trustee to trustee transfer. IRA owners should have an IRS approved depository ready to receive the physical bullion before making any payments and consider the fees that this depository will charge. Once an invoice is sent from the gold seller, an IRA owner must authorize payment through the custodian. Delivery of the physical gold can take up to three weeks in some cases. Some rare firms, such as Regal Assets, promise delivery within 7 days for investors who wish to purchase physical gold bullion coins or bars through their IRA. Some IRA owners also choose to invest in gold mining stocks or exchange-traded-funds. Most IRA custodians allow their customers to take this route.
NOTE: Investing in gold through ETFs and gold mining stocks does NOT give you the same advantages as owning physical gold. If you want to take full advantage of gold investing and protect your overall IRA in case of another systemic collapse, it is a better idea to open a separate Precious Metals IRA and buy physical gold bullion coins and bars through it. Your precious metals can either be stored securely by an accredited custodian, or can be shipped to you (There are some pros and cons to each option). If you need to learn more about physical gold investing, contact a gold IRA company that specializes in Precious Metals IRAs. We recommend Regal Assets. You can request their free kit at the bottom of this page.
What type of gold coins is an investor allowed to hold in a self-directed IRA?
An investor can hold gold bullion, gold coins and bars as long as they meet two basic standards. The gold must be official currency of a recognized public entity and it must meet a certain purity standard. In the United States, the purity must be 0.995. This standard is different for different countries, so research is necessary to determine the exact purity level that is necessary. The types of gold you can hold in your self-directed American IRA include:
The American Gold Eagle coin
The Canadian Gold Maple Leaf coin
The Austrian Philharmonic gold coin
The American Gold Buffalo coin
Gold Kilo Bars
Certain Gold Bullion Bars
Credit Suisse Gold Bars
Swiss PAMP Gold Bars
Request Your Free Gold IRA Kit to Learn more
Investing in precious metals through a self-directed IRA can be a tricky process and has to be carried out the right way. Since we cannot possibly cover everything you need to know about this process on this page, we highly recommend that you request your free Gold IRA Investment from Regal Assets, one of America's leading firms specializing in Gold IRA investments.
Do NOT invest in precious metals...
...before requesting this free PDF guide. The information contained in this guide can help you save thousands of dollars in hidden fees and commissions. It's a must-have.
Your information will never be shared or sold to a 3rd party.