While most IRAs invest in conventional assets like stocks or mutual funds, the tax code also permits special “self-directed” or “alternative-asset” IRAs that can hold physical silver or gold. But not all precious metals are allowed. In fact, the law names specific gold, silver and platinum coins that qualify — like the American Gold Eagle — and defines purity standards for gold, silver, platinum or palladium bars in such accounts. Other coins and jewelry are forbidden.
A. Because of the annual fees for storage, insurance and management fees (approx. $225/year), precious metals IRAs are most economical when their value is higher, and that is where a rollover makes a great deal of sense. Someone just starting an IRA, even with maximum yearly contributions, would need a few years to accumulate a large enough account to make a self-directed plan cost effective.
There are several reasons to buy silver. The precious metal is used as an investment, as a hedge against inflation, and survival purposes in extremely dire situations. Junk silver has long been considered the optimal barter currency when our society breaks down but silver rounds should also be included in a portfolio for bartering. An advantage the rounds have over junk silver is that they have their weight and purity stamped on the actual coins. Silver has a much lower price than gold and is a more attainable investment and hedge against inflation for most people. There are many industrial and medical applications for silver because it is electronically conducive, thermally, conductive, and reflective. Products like cellphones, cameras, and laptops all contain silver creating a strong demand for silver.
If you currently have an IRA, you can move some (or all) of it to your new self-directed Gold IRA using a process known as a direct transfer. Once you’ve made your decision to complete the transfer, one of our Precious Metals Specialists will expertly guide you through the process step-by-step, to make the transfer quick, easy, and ensure that your retirement account is fully compliant with federal regulations.
The IRS laid out strict rules when it comes to the types of gold bullion coins and bars that you can invest in as part of your IRA. The coins need to be minted at a minimum purity level of 99.9% or better. This includes the American gold & silver eagle, Canadian Gold Maple Leaf, Austrian Philharmonic, American gold & silver buffalo and other similar coins. It also includes certain gold bars such as the Credit Suisse gold bar.