Traditional, Roth, SEP, Simple, & Self-Directed IRAs:
Precious metals bullion were approved for IRAs in 1997. Previously, the only forms of physical gold or silver approved for IRAs were Gold American Eagle and Silver American Eagle Coins.
This change was especially beneficial to IRA investors who prefer silver because they now can select silver rounds and bars, which carry much smaller premiums than Silver American Eagle coins.
Gold Eagles specifically approved for IRAs:
The American Gold Eagle coins are the only gold coins specifically approved for IRAs.
However, other gold coins are eligible as IRA investments, if they meet the following criteria: must be at least .995 fine (99.5% pure) and be legal-tender coins. Although the American Buffalo Gold Coins, first minted in June, 2006, were not specifically approved for IRAs, they definitely meet the IRA eligibility criteria: 24-karat, .9999 fine, $50 legal-tender gold coins. The following are also IRA eligible gold coins: Canadian Maple Leafs, Kangaroo Nuggets, Vienna Philharmonics, and the Perth Mint's Lunar Series.
Gold Bullion Bars Ideal for IRAs:
Because gold bullion bars sell at smaller premiums than gold coins, they are ideal for IRAs. The most common gold bullion bars are the 1-oz bars, the 10-oz bars and kilo bars (32.15 ounces) Although the regulations that govern IRAs call for a minimum purity of only 99.5%, most gold bullion bars are 99.99% pure, what the industry calls "four 9's gold."
Investors with large IRAs should consider the 100-ounce, the ten-ounce and the kilo bars (32.15 ounces) because the larger bars carry smaller markups over spot. As a rule, the larger the bar, the smaller the markup.
Silver Eagles approved for IRAs:
One-ounce American Silver Eagles are the only silver coins specifically approved for IRAs. Silver Maple Leafs meet the purity requirements. Unfortunately, both silver coins carry high premiums that may shrink, even disappear, in a rising market.
However, other silver coins are eligible as IRA investments, if they meet the following criteria: must be at least .995 fine (99.5% pure) and be legal-tender coins: Silver Australian Koalas and Kookaburras, Canadian Maple Leafs, Vienna Philharmonics, and Mexican Libertads.
For investors who prefer silver in their IRAs, other alternatives exist with private-label silver bullion rounds and bars. Silver rounds and bars offer more metal for the money because of their low premiums.
Backdated Silver Eagles for IRAs:
Sometimes backdated Silver Eagles are available at prices considerably less than new Silver Eagles. Investors who prefer Silver Eagles should ask about backdated ones before putting current year Silver Eagles in their IRAs.
Silver Bullion Bars for Self-Directed IRAs:
Because of the high premiums on American Eagle Silver Coins, Silver Trading Company recommends private-labeled silver bullion rounds and bars. The best value for your silver investment are 100-oz silver bars because of their low premiums.
Gold and Silver Coins Ineligible for IRA:
The pre-1965 U.S. 90% silver coins (dimes, quarters, and half-dollars) are not eligible for IRAs.
Krugerrands (91.67% pure), Mexican 50 Pesos coins (90% pure), and old U.S. gold coins (90% pure), are not legal investments for IRAs. Check with your investment advisor for more information.
The following coins are not eligible to be IRA investments: Austrian 100, 20 & 10 Corona; Belgian 20 Franc; Chilean 100 Peso; British Britannia; Mexican 50, 20, 10, 5, 21/2, and 2 Peso; Hungarian 100 Korona; Rare/Collectable Coins; Columbian 5 Peso; British Sovereign; French 20 Franc; Dutch 10 Guilder; Italian 20 Lira; South African Krugerrand; and Swiss 20 Franc.
Platinum and Palladium for IRAs:
Another significant change in 1997 was the inclusion of platinum and palladium, two precious metals which have become popular investments over the last few years. The American Eagle Platinum Coin is an eligible IRA investment. Other platinum and palladium must be .995 fine (99.5% pure).
Although this change offers IRA investors the opportunity to diversify their investments into other precious metals, IRA account holders should do serious research before choosing platinum or palladium for IRA investments. Gold and silver are monetary metals, while platinum and palladium are industrial metals.
The following platinum coins and bullion are IRA eligible: Platinum American Eagles, Canadian Maple Leafs, Australian Koalas, Isle of Man Nobles, and bullion bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements.
Palladium bullion bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements.
How To Get Started:
Only three simple steps are needed to invest in precious metals in your IRA:
1) Establish (or already have) an IRA account with a custodian who will hold your precious metal investments.
2) Fund the account with regular contributions, transfers and rollovers.
3) Invest in precious metals for your IRA.
You will need to tell us your purchase is for an IRA account, because your IRA company will be invoiced for your IRA bullion purchase, and the precious metals will be shipped to the approved depository of your IRA custodian.
Disbursements:
When you determine to take disbursements from your IRA, you may choose to convert your precious metals to cash through your dealer, or take a distribution of the actual bullion. This flexibility allows you to take advantage of market conditions before you sell.
Custodian Recommendations:
Silver Trading Company recommends American Church Trust (ACT) - www.churchtrust.com, which was acquired by GoldStar Trust Company www.goldstartrust.com in 2007 - for investors who want IRAs that will accept precious metals. GoldStar's toll free number is 1-800-486-6888 and fax is 1-806-655-2490.
