April 15, 2024

Plating Your Gold IRA: IRA Allowable Precious Metals

Written By: Daniel Gleich

Key Points 

  • Self-Directed IRAs (SDIRAs) also known as Self-Directed Gold IRAs, permit only four kinds of precious metals: gold, silver, platinum, and pallidum.
  • Precious Metals are primarily accepted in the form of bullion coins, bars, and rounds. These must meet their respective minimum fineness requirements, and in certain circumstances, be produced by a refiner, assayer, or accredited manufacturer, or possess a national government mint.
  • As precious metals tend to have a limited supply and are a material asset, it is likely that they will maintain value with potential to further appreciate.
A woman in Egypt wearing a gold mask and gold rings showcases how precious metals have transcended cultures and timelines.

Precious metals have symbolized wealth and divinity throughout many cultures and over centuries. From gold usage in Greek and Ancient Egypt mythology, to the mystical properties of silver represented in Chinese and Celtic folklore, precious metals have retained an allure and mystique, still standing as an esteemed asset in modern day. Likewise, Self-Directed IRAs or (SDIRAs) have proven to be a groundbreaking investment vehicle for those seeking to expand their retirement portfolio by investing in alternative assets like real estate, private businesses, and precious metals. Its counterpart - the Gold IRA - equally shadows its merit. 

If you’re hoping to invest in a precious metal, the versatile Self-Directed Gold IRA may be the ideal route. As with every journey, a Gold IRA comes with its own set of rules. The precious metals you can choose to invest in must meet specific provisions. Before you attempt to embark on your own mining expedition, let’s take a gander to distinguish which precious metals are IRA allowable. 

Individualize Your Gold IRA with A Rare Earth Metal

Though the world is abundant with incredible elements and minerals, only four have the pedigree to make the Gold IRA’s cut. These metals are predictably gold, alongside silver, platinum, and palladium. These are the only metals permitted in an IRA, as per IRS regulations. Furthermore, these metals need to meet certain fineness requirements to be allowable in a Gold IRA. The parameters are as follows:

  • Gold – 99.5% pure 
  • Silver – 99.9% pure 
  • Platinum – 99.95% pure 
  • Palladium – 99.95% pure 

Formerly, IRAs were limited to only holding American Eagle gold and silver coins. More precious metal investments opportunities were rendered available due to the Taxpayer Relief Act of 1997. This enlarged the list of allowable precious metals within an IRA, introducing palladium and platinum to the mix. Additionally, it resulted in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins and one-ounce silver coins minted by the U.S. Treasury Department (along with a few notable foreign coins) to be accepted. 

A periodic table of elements lists the IRA allowable precious metals, including gold, silver, platinum, and palladium.

Don’t Step Out of Precious Metal Perimeters

Gold, silver, and platinum bars lie, indicating they can be invested in with a Gold IRA.

Fineness requirements aren’t the only precious metal attributes to consider. These factors will also classify your precious metal as qualified: 

  • Coins, bars, and rounds must be constructed by a refiner, assayer, or manufacturer that is accredited or certified by COMEX, NYMEX, TOCOM, LBMA, NYSE/Liffe, LPPM, ISO 9000, or national government mint. 
  • Proof coins must be encapsulated in original mint packaging with an accompanying certificate of authenticity. 
  • Bullion bars (sans gold weighing 400-ounce or 100-ounce, or silver weighing 1000-ounce; 50-ounce platinum and 100-ounce palladium bars) must be produced to exact weight specifications. 
  • Non-proof (bullion) coins must be at their most prestige, uncirculated, and in excellent condition. 

Gold IRA’s Allowable Precious Metals

Precious metals make an excellent contribution to your investment trove, letting you build a formidable treasure chest without diving into the bottom of the ocean. Here is a detailed list of Gold IRA’s allowable precious metals. 

Gold IRA Allowable Precious Metals infographic, listing the varying types of bullion coins and bars that are eligible for use in a Gold IRA.

You Want the IRA Doorman to Open the Red Velvet Rope Stanchion

There are some kinds of precious metals and coins that will be denied entry into the Gold IRA club. These origins of precious metals are currently not IRA approved. It’s considered good practice to familiarize yourself with what precious metals are IRA allowable and what will lead to you getting turned away by the IRA bouncer.

Here’s a partial list of unacceptable metals at Madison Trust:

Austrian Corona & Ducat • Belgian Franc • British Sovereign • Chilean Peso • Columbian Peso • Dutch Guilder • French Franc • German Mark • Hungarian Korona • Italian Lira • Mexican Peso & Onza • South African Krugerrand • Swiss Franc • Rare/collectible coins 

A doorman opens a red velvet rope, allowing gold, silver, platinum, and palladium to enter the Gold IRA club.

Let These Luminous Metals Illuminate Your Gold IRA and Retirement

Precious metals lie side by side for a visual comparison.

Precious metals exist as a form of currency separate from the dollar. As it’s an alternative asset that typically performs inversely to the stock market, it is generally not at the mercy of its volatility. This indicates that when the stock market takes a dip, the worth of precious metals, such as gold and silver, likely will only continue to flourish. This can aid in diversifying your retirement portfolio, as you will have a tangible asset that will likely continue to hold value.  

Aside from this, there is a limited supply of precious metals available to obtain. Since they are widely accepted across the globe, they make for a desirable alternative asset that tends to be easily tradeable. Having your precious metal develop in a Gold IRA will let it grow within a tax-advantaged account, depending on the type of account you choose. If you choose a Self-Directed Traditional IRA, your funds can grow tax-deferred. If you choose to set up a Self-Directed Roth IRA, your funds can grow tax-free. 

Conclusion: Though the Rules are Set in Stone, They’re Still Ironclad

Despite the present limitations, as a precious metal investor, there’s no curtailing exciting opportunities. Precious metals can potentially hedge against inflation due to being a physical asset, and because of their general uncorrelation to the performance of Wall Street products. With awareness of fineness requirements and the specificities of the coins and bars allowed in a Gold IRA, you could possibly secure a stream of supplemental income for your retirement. 

If you have any questions, Madison Trust as your Self-Directed IRA custodian is here to help! Schedule a call with one of our Gold IRA Specialists today to discover the riches that may be awaiting you. 

The financial industry’s mascot – the piggy bank – waits for its savings contribution that is potentially arriving from the appreciation of IRA allowable precious metals.

Disclaimer: All of the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

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