The Benefits of Precious Metal IRA's

The ability to hold precious metals as an asset in an Individual Retirement Account (IRA) is outlined in IRC Section 408 (m). Here are some key points:
  • IRAs may hold physical gold, silver, platinum, and palladium. The market value of the metal is reported based on the market’s melt value of the particular metal.
  • The following coins and metals are not included in the definition of “collectible” under IRC Section 408 (m):
    • Certain gold, silver, or platinum coins described in 31 USC Section 5112.
    • Any coin issued under the laws of any state.
    • Any gold, silver, platinum, or palladium bullion of a certain fineness if a bank or approved non-bank trustee keeps physical possession of it.

The Taxpayer Relief Act of 1997 expanded the types of precious metal holdings allowed in Individual Retirement Accounts (IRAs). This Act made it possible for Americans to own and maximize the benefits of physical precious metals in a self-directed IRA.

The Act allows for the rolling over of amounts from qualified accounts into this plan without any taxes taken or penalties. This includes gold, silver, platinum, and palladium coins and bullion which meet the specified criteria to be physically owned in an IRS approved tax-deferred program.

It’s important to note that to invest your IRA in precious metals, you’ll need a self-directed IRA.

The custodian you choose for your IRA will determine your options when it comes time to choose your investments.

How Your IRA Is Administered With A Specialized Custodian

There are several approved custodians for self-directed precious metals IRAs. These custodians are responsible for holding the physical precious metals in a secure storage facility. Please note that the IRS specifically approves certain banks, trusts, and other similar entities to serve as custodians for retirement accounts. Precious metals invested in a self-directed IRA must be stored in an approved depository, such as A-M Global Logistics. Your IRA custodian can recommend a depository, but you can select one on your own that meets the Internal Revenue Code’s requirements It’s important to do thorough research and consider factors such as fees, storage options, and customer service when choosing a custodian for your self-directed precious metals IRA. The law requires that every IRA be administered by a custodian. Two highly rated IRA custodians who specialize in self-directed IRAs, which are the only type of retirement account that lets you hold precious metals are Preferred Trust and Goldstar Trust as custodians. Working with any of these custodians will give you absolute peace of mind because they administer your IRA correctly to comply 100% with the law. Your custodian is a valuable resource, who is happy to answer your questions related to the administration of your Precious Metals IRA account.

Preferred Trust

Formed in 2007, Preferred Trust’s top priority is providing quick processing times, few transaction fees, personalized customer service, and the highest standard of compliance. The company serves all 50 states and administers hundreds of millions in retirement assets.

Goldstar Trust

Goldstar Trust’s parent company, Happy State Bank, was founded in 1908. Today, Goldstar Trust is the custodian of more than 37,500 self-directed IRAs, and the company has an A+ rating with the BBB.

Investing in precious metals through an Individual Retirement Account (IRA) offers several benefits:

  • Diversification

    Precious metals, such as gold, silver, platinum, and palladium, can provide diversification in an investment portfolio1. This allows investors to spread their risk across multiple assets and potentially lower the overall risk of their portfolio.

  • Hedge Against Inflation

    Precious metals are often viewed as a hedge against inflation. When the stock market gets rough, some investors seek out safe-haven investments like precious metals. While gold, silver, and palladium are subject to their own forms of volatility, many believe them to be superior long-term investment choices for retaining and growing value.

  • Potential for Higher Returns

    Precious metals have the potential for higher returns. For example, gold prices have ranged from $255 per ounce in September 1999 to an all-time high of $2,450 per ounce in May of 2024.

  • Tax Efficiency

    Contributions to Precious Metals IRAs are tax-deductible just like traditional IRAs. Adding gold or precious metals to your retirement account may help protect your wealth in several ways, including reducing your potential investment volatility and risk, serving as a hedge in the event of an economic downturn, and providing a tax-efficient shelter for potential gains.

  • Security

    The physical precious metals in a Precious Metal IRA are held in a secure depository, ensuring their safety and eliminating the need for storage. Please note that investing in precious metals also involves certain risks and it's important to do thorough research or consult with a financial advisor before making such investment decisions.

No State shall coin money, emit bills of credit, or make any thing but gold and silver coin a tender in payment of debts.

Article I, Section 10, Clause 1 of the United States Constitution.

The statements made on this website are opinions only. Past results are no guarantee of future performance or returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same depending on a variety of factors. US Gold and Silver Mints, L.L.C. cannot guarantee, and makes no representation, that any metals purchased will appreciate at all or appreciate sufficiently to make customers a profit. US Gold and Silver Mints, L.L.C. is a dealer of precious metals and its buyback (or bid) prices are lower than its sell (or ask) prices. Metals must appreciate enough to account for this difference in order for customer to make a profit when liquidating the metals. US Gold and Silver Mints, L.L.C. does not provide financial advice or retirement planning services. The decision to purchase or sell precious metals, and which precious metals to purchase or sell, are the customer’s decision alone, and purchases and sales should be made subject to the customer’s own research, prudence and judgment.