How to Invest in Precious Metals with an IRA

1. Open a Self-Directed IRA

Not all custodians offer precious metals as an investment option, so open an account with a custodian like Directed IRA, which specializes in SDIRAs for alternative assets and who allows your account to own physical precious metals

2. Fund Your Account

After setting up your SDIRA, you’ll need to fund it. This can be done through contributions, rollovers from existing retirement accounts, or account transfers.

3. Select and Purchase IRS-Approved Metals:

Work with a trusted precious metals dealer to select your investments. Ensure the dealer offers IRS-approved products, such as gold bullion that meets the 99.5% purity standard or other eligible coins and bars. Once you’ve found the metals you want to purchase you will coordinate with your precious metals dealer and will Log in to authorize your investment.

4. Arrange for Storage:

Once you’ve purchased your metals, you and your dealer must arrange for them to be stored at an approved depository. Directed IRA has an approved provider who meets the legal storage requirements.

Gold

Gold offers options like bullion, coins (e.g. American Eagle coins), and bars, provided they meet the IRS’s 99.5% purity standard. These investments are typically obtained through approved dealers and must be stored in IRS-approved facilities.

Bullion: Investment-grade gold that is valued by weight and certified by refiners to meet specific purity standards, typically 99.5% or higher. Bullion is a popular choice for investors seeking to preserve wealth or hedge against inflation due to its intrinsic value. It is available in various forms, including coins and bars, and is traded worldwide.

Coins: Gold coins minted by government authorities, such as the U.S. Mint or the Royal Canadian Mint, that meet IRS standards for purity, typically 99.9% or higher. Examples include the American Gold Eagle and the Canadian Gold Maple Leaf.

Bars: High-quality gold bars, crafted by reputable refineries, that are popular in larger investments due to their lower premiums compared to coins. Gold bars are typically stamped with details such as weight, purity, and refinery certification, ensuring their authenticity. They are often a preferred option for investors who prioritize maximizing the amount of gold they own per dollar spent.

All accounts offered at Directed IRA can be invested into real estate—making self-directed IRAs (SDIRAs) a highly underutilized tool in real estate investing. Many investors don’t realize that their retirement accounts can be leveraged to enter the real estate market, unlocking new opportunities for growth and diversification.

Silver

Silver is a popular choice for investors looking to diversify their portfolios or for those who believe the value will increase. To qualify for IRA ownership, silver must meet a minimum purity of 99.9%.

Bullion: Silver bullion refers to investment-grade silver that is stamped with its weight and purity by a trusted mint. It is a straightforward way to own physical silver and is available in coins, bars, or rounds. Bullion is liquid and widely recognized, making it easy to buy, sell, or trade on the market.

Coins: Government-issued silver coins, such as the American Silver Eagle or the Canadian Silver Maple Leaf, are approved by the IRS for investment in Self-Directed IRAs. These coins not only meet high purity standards but also carry the added assurance of being backed by the issuing government.

Bars: Silver bars are refined silver products available in a wide range of sizes, from as small as 1 ounce to as large as 100 ounces or more. They are a common choice for investors who want to purchase silver in bulk for lower premiums compared to coins. Silver bars are versatile and cater to both small-scale investors and those seeking high-value investments.

Platinum & Palladium

Platinum and palladium track industrial demand, particularly in automotive manufacturing (catalytic converters) and electronics. Their dual role as investments and industrial commodities sets them apart in the market. To qualify for IRAs, platinum and palladium must meet the IRS’s 99.95% purity standard, ensuring high-quality assets.

Bullion and Bars: Ideal for those who value precision and transparency. Bullion bars are priced by weight and purity, offering a clear cost structure and high value for storage. They are a preferred choice for investors looking to make substantial investments with ease of liquidity.

Coins: Government-issued coins are another popular choice, combining the appeal of collectible design with investment value. These coins meet IRS eligibility standards for precious metal investments, making them an accessible and recognized form of investment for those interested in platinum and palladium.

Platinum and palladium markets have been more volatile than gold and silver, with prices influenced by industrial demand, economic trends, and limited mining regions like Russia and South Africa. For investors willing to navigate these complexities, they can be valuable additions to a balanced portfolio.

Ready to Open a Self-Directed IRA?

If you’re ready to begin investing in precious metals with your IRA, you can set up an account online or schedule a call with one of our Self-Directed IRA Specialists to discuss your account options.

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Our entire Directed IRA team is friendly, knowledgeable, and genuinely excited to help you. Reach out to any of our specialists today and take the first step toward self-directing your IRA or Solo 401(k)!