Precious Metals IRA: How to Invest IRA in Gold, Silver, Platinum

Author: Focus on the User | 7 min read | Updated
Precious Metals IRAs

A Precious Metals IRA allows for diversification in retirement savings with tangible assets like gold, silver, platinum, and palladium. This unique self-directed IRA can combine stability of precious metals with the tax advantages of IRAs.

Focus on the user's guide on precious metals in IRAs below makes it easy to know what you can expect once you decide to start diversifying. It may seem complex at first, but we make it easy to understand this retirement diversification strategy in a Self-Directed Precious Metals IRA.

Focus on Key Takeaways
  • Precious Metals IRAs allow you to include gold, silver, platinum, and palladium for long-term portfolio stability.
  • Metals must meet purity standards and be stored in approved depositories.
  • Traditional IRAs offer tax-deferred growth, while Roth IRAs allow tax-free withdrawals.
  • Eligible accounts like 401(k)s and traditional IRAs can be rolled over into a Precious Metals IRA without tax penalties.

What is a Precious Metals IRA?

A Precious Metals IRA is a specialized type of self-directed Individual Retirement Account (IRA) that allows you to hold physical precious metals like gold, silver, platinum, and palladium as part of your retirement portfolio. Unlike traditional IRAs, which are typically limited to paper assets such as stocks, bonds, and mutual funds, a Precious Metals IRA offers the unique advantage of diversifying your savings with tangible assets.

The biggest difference lies in flexibility: with a Precious Metals IRA, you gain control over your investments by choosing physical assets that can act as a hedge against inflation and market volatility. To comply with IRS regulations, these metals must meet specific purity standards and be stored in an approved depository under the management of an IRS-approved custodian.

Benefits of Precious Metals as Retirement Diversification

Diversifying your investments with precious metals can offer some unique benefits that benefit your entire portfolio. Just to name a few, below are four benefits of precious metals in retirement, but keep in mind there are many more pros to metals in IRAs.

  • Hedge Against Inflation: Precious metals like gold and silver have historically retained their value during periods of inflation, providing a safeguard against the erosion of purchasing power.
  • Protection Against Market Volatility: Unlike stocks and bonds, precious metals tend to perform independently of traditional markets, offering stability during economic downturns or market turbulence.
  • Tangible Asset: Precious metals are physical, tangible assets with intrinsic value, giving investors a sense of security that paper assets cannot provide.
  • Tax Benefits: Precious Metals IRAs offer tax-deferred or tax-free growth depending on the type of account (Traditional or Roth), enabling you to grow your retirement savings more efficiently.

Eligibility to Open a Precious Metals Self-Directed IRA

To invest in precious metals through a Self-Directed IRA (SDIRA), you need to meet specific criteria. Eligible retirement accounts are listed below to fund a Precious Metals SDIRA. Then you also need to consider searching for Precious Metal IRA companies, IRS-approved custodians, and adequate storage solutions. Metals must meet purity requirements of 99.5% for gold, 99.9% for silver, and 99.95% for platinum and palladium.

Eligible Accounts for Rollovers or Transfers:

If you own one of the retirement accounts below, you are eligible in rolling it over or transferring funds to invest in previous metals.

Accounts Eligible for Rollovers

Accounts Eligible for Transfers

Self-Directed IRA Setup

Precious Metals IRAs must be set up as SDIRAs to allow investments in alternative assets like gold, silver, platinum, and palladium. Traditional brokerage accounts do not support these types of investments, while SDIRAs allow for diversification in assets like precious metals.

Custodian Requirement

Your Precious Metals SDIRA must be managed by an IRS-approved custodian who handles compliance, buying/selling, and storage.

IRS Compliance

All contributions, transfers, and rollovers must follow strict IRS guidelines to avoid penalties. Direct rollovers are recommended to ensure compliance and preserve the tax-advantaged status of your funds.

Storage Requirements

IRS-approved depositories for secure storage is required, ensuring compliance and maintaining the account's tax-advantaged status. These facilities offer segregated or commingled storage options, with advanced security and full insurance. Home storage is not allowed, as taking possession of metals is considered a taxable distribution.

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Precious Metals to Hold in Your Self-Directed IRA

The types of precious metals you are allowed to have in a Precious Metals IRA include gold, silver, platinum, and palladium. Keep in mind that only certain types of these metals are allowed and also must meet the fineness standards. There are benefits to the individual metals but also diversifying between all four. Focus on the User has outlined each precious metal below that you can include in your retirement.

Gold

A Gold IRA is the number one metal you will hear about in precious metals investing, valued for its stability and historical role as a hedge against inflation. Gold is a sought-after asset for preserving wealth and mitigating economic risks. Through a tax-free Gold IRA rollover, you can move funds from existing retirement accounts to invest in IRS-approved gold products, including bullion coins and bars. Eligible gold must meet a 99.5% purity standard, ensuring only high-quality metals are held in your account.

American Eagle Gold Coins

American Eagle Gold Coin

Mint:
U.S. Mint
Purity:
91.67% (22-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Iconic design, most popular Gold IRA coin, recognized worldwide.

Canadian Maple Leaf Gold Coins

Canadian Maple Leaf Gold Coin

Mint:
Royal Canadian Mint
Purity:
99.99% (24-karat)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz, 1/20 oz
Key Features:
Known for purity and security features, widely accepted.

Credit Suisse Gold Bars

Credit Suisse Gold Bar

Manufacturer:
Credit Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
Widely accepted, serial numbered, highly reputable.

PAMP Suisse Gold Bars

PAMP Suisse Gold Bar

Manufacturer:
PAMP Suisse
Purity:
99.99% (.9999)
Sizes:
1 gram to 1 kg
Key Features:
"Lady Fortuna" design, high-quality, serial numbered.

Silver

A Silver IRA is slightly different than gold offering affordability with strong growth potential, making it an ideal choice for diversifying a retirement portfolio. Silver offers industrial demand alongside its value as a monetary metal, providing unique dual benefits. A rollover to Silver IRA allows you to allocate funds from other retirement accounts into approved silver assets. To qualify, silver must meet a purity of 99.9%, ensuring compliance with IRS standards for tax-advantaged investments.

American Eagle Silver Coins

American Eagle Silver Coin

Mint:
U.S. Mint
Purity:
99.9% (.999)
Denominations:
1 oz
Key Features:
Most popular IRA-approved silver coin, globally recognized.

Canadian Maple Leaf Silver Coins

Canadian Maple Leaf Silver Coin

Mint:
Royal Canadian Mint
Purity:
99.99% (.9999)
Denominations:
1 oz
Key Features:
High purity, advanced security features, widely accepted.

Royal Canadian Mint (RCM) Silver Bars

Royal Canadian Mint (RCM) Silver Bar

Manufacturer:
Royal Canadian Mint
Purity:
99.99% (.9999)
Sizes:
10 oz, 100 oz
Key Features:
High purity, anti-counterfeiting features, globally recognized.

Sunshine Mint Silver Bars

Sunshine Mint Silver Bar

Manufacturer:
Sunshine Minting
Purity:
99.9% (.999)
Sizes:
1 oz, 10 oz, 100 oz
Key Features:
Anti-counterfeiting security feature (MintMark SI), widely accepted.

Platinum

A Platinum IRA is an another excellent diversification tool, offering exposure to a less known rare and valuable metal with strong industrial applications. Platinum is less volatile than some other assets, making it an attractive addition to long-term investment strategies. By using a rollover to a Platinum IRA, investors can move existing retirement funds into IRS-approved platinum bullion. Eligible products must meet a 99.95% purity standard, ensuring high-quality holdings.

American Eagle Platinum Coins

American Eagle Platinum Coin

Mint:
U.S. Mint
Purity:
99.95% (.9995)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Only platinum coin issued by the U.S. Mint, iconic "Liberty" design.

Canadian Maple Leaf Platinum Coins

Canadian Maple Leaf Platinum Coin

Mint:
Royal Canadian Mint
Purity:
99.95% (.9995)
Denominations:
1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Key Features:
Renowned for purity and quality, widely recognized worldwide.

Credit Suisse Platinum Bars

Credit Suisse Platinum Bar

Manufacturer:
Credit Suisse
Purity:
99.95% (.9995)
Sizes:
1 oz, 10 oz
Key Features:
Trusted brand, serial numbered, LBMA-accredited.

PAMP Suisse Platinum Bars

Asahi Silver Bar

Manufacturer:
PAMP Suisse
Purity:
99.95% (.9995)
Sizes:
1 oz, 10 oz
Key Features:
"Lady Fortuna" design, high-quality Swiss production, serial numbered.

Palladium

A Palladium IRA introduces an up-and-coming innovative way to diversify retirement savings with a metal experiencing increasing demand in industries such as automotive manufacturing. Palladium's limited supply and high value make it an intriguing option for savvy investors. A Palladium IRA rollover enables the allocation of retirement funds into IRS-approved palladium products. To comply with regulations, palladium must meet a 99.95% purity requirement.

American Eagle Palladium Coins

American Eagle Palladium Coin

Mint:
U.S. Mint
Purity:
99.95% (.9995)
Denominations:
1 oz
Key Features:
First U.S. palladium coin, features Lady Liberty on the obverse and a bald eagle on the reverse.

Canadian Maple Leaf Palladium Coins

Canadian Maple Leaf Palladium Coin

Mint:
Royal Canadian Mint
Purity:
99.95% (.9995)
Denominations:
1 oz
Key Features:
Highly recognized, features the iconic maple leaf design, backed by the Canadian government.

Credit Suisse Palladium Bars

Credit Suisse Palladium Bar

Manufacturer:
Credit Suisse
Purity:
99.95% (.9995)
Sizes:
1 oz, 10 oz
Key Features:
Trusted brand, serial numbered, LBMA-accredited.

PAMP Suisse Palladium Bars

PAMP Suisse Palladium Bar

Manufacturer:
PAMP Suisse
Purity:
99.95% (.9995)
Sizes:
1 oz, 10 oz
Key Features:
"Lady Fortuna" design, high-quality Swiss production, serial numbered.

Are Coins or Bars Better in a Precious Metals IRA?

When you initially decide between coins or bars for a Precious Metals IRA, the choice often depends on the type of metal and your specific investment goals.

Gold and silver coins, such as American Gold Eagles and Canadian Silver Maple Leafs, are popular for their liquidity and recognition, making them ideal for investors seeking flexibility.

Bars, like those from PAMP Suisse or Credit Suisse, are typically favored for platinum and palladium due to their lower premiums and suitability for bulk purchases.

It's best to diversify and work with your chosen company to choose eligible bullion and what coins and bars they allow.

Costs to Open a Precious Metals IRA

Like any investment there are different types of cost that go into that investment. Since you are investing in precious metals there are some additional fees to store the physical metals, among others. Below are some of the costs you can expect, we've also listed the top fees on our costs page.

Fee TypeRangeDetails
Setup Fees$50 to $300Covers account creation and initial paperwork.
Annual Maintenance Fees$80 to $300 per yearCharged for managing your IRA account.
Storage Fees$100 to $500+ per yearCosts for storing metals in an IRS-approved depository.
Transfer/Rollover Fees$25 to $260For moving funds from another retirement account.
Minimum Investment$10,000 to $50,000Required initial investment to open the account.

The costs of opening your Gold IRA can very much vary depending on the Precious Metals company you choose. Our Precious Metals IRA fees calculator makes it easier to get an idea of the upcoming costs you will have to pay.

Best Precious Metals IRA Companies to Work With

With so many companies available to open a SDIRA in precious metals, we've list some of the leading Precious Metal IRA companies with the most 5-star review and experience. Most have their own unique benefits that tailor to certain types of investors so it is important to compare them to find what fits best for you.

Patriot Gold Group

Patriot Gold Group

4.9/5 Rating
Advantage Gold

Advantage Gold

4.8/5 Rating
Goldco

Goldco

4.8/5 Rating
Birch Gold Group

Birch Gold Group

4.5/5 Rating

You can also compare each company's free precious metal investment kits to get an indepth understanding of their offerings. Not every company is the same when opening a Precious Metals IRA.

FAQ

Yes, multiple metals such as gold, silver, platinum, and palladium can be held in the same Precious Metals IRA, provided they meet IRS purity standards and are eligible.

There are no restrictions on the total amount of precious metals you can purchase for your IRA, but annual contribution limits apply: $6,500 if under 50, and $7,500 for those 50 and older.

If the market value of metals decreases, the total value of your Precious Metals IRA will reflect this decline, but no immediate tax consequences occur unless you sell or withdraw.

You can switch custodians for your Precious Metals IRA at any time by initiating a custodian-to-custodian transfer, ensuring no tax or penalty consequences.

No, physical precious metals you already own cannot be added to a Precious Metals IRA; only metals purchased through an approved dealer and stored in an IRS-approved depository are eligible.

Diversifying into all four metals provides broader risk mitigation, as each metal has unique market drivers, but focusing on one can simplify portfolio management depending on your investment strategy.

Focus on the User Makes it Easy to Understand Precious Metals in IRAs

Why complicate things about Precious Metal SDIRAs? That's why Focus on the User makes it easy to understand what you need to know about precious metals in your IRA. This unique diversification option can stand as a way to secure your overall investment portfolio.


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