By: Dana Udumulla

Key Points 

• A derivative of the classic Self-Directed IRA (SDIRA) is the Self-Directed Precious Metals IRA, centralizing the investment of IRA allowable precious metals like gold, silver, platinum, or palladium.
• Your chosen precious metal must meet specific criteria to integrate into an SDIRA, as well as observe certain practices.
• The ideal Self-Directed Precious Metals IRA custodian will likely possess knowledge of this particular asset class in conjunction with reliable customer support and educational resources.

If you’re magnetized by precious metals, you could very well be on the hunt for the best Self-Directed Precious Metals IRA custodian in the industry. There are a few highly regarded candidates out there, but perhaps you’re unsure of what attributes your custodian should possess. Furthermore, you may also want to consider brushing up on your precious metal curriculum. In this precious metals, self-directed tell-all, we’re going to uncover all the eccentricities, so you don’t have to look anywhere else.

 Before You Begin Searching for Your Self-Directed Precious Metals IRA Custodian

Although your first inclination might be to hire your Self-Directed IRA custodian to assist you with your endeavors, it’s considered best practice that you begin by self-educating.

Your future Self-Directed Precious Metals IRA custodian cannot offer any financial advice or provide any insight into the specificities of your chosen metal. Gaining an understanding of this alternative asset will likely grant you confidence in your decision-making. Performing thorough due diligence is considered critical to understanding your investment while self-educating can also expand your expertise on IRA regulations. This typically results in a seamless SDIRA investing experience. 

Aligning Your Investment with the Requirements

Your Self-Directed Precious Metals IRA can only hold four kinds of precious metals: gold, silver, platinum, and palladium. Congruently, these metals all have fineness requirements that must be met. 

• Gold – 99.5% pure 

• Silver – 99.9% pure 

• Platinum – 99.95% pure 

• Palladium – 99.95% pure 

Further Ensuring Validity

In addition, your Self-Directed Precious Metals IRA custodian can only hold metals that are coins, bars, and rounds constructed by a manufacturer, refiner, assayer, or have a national government mint. Bullion coins must be encapsulated in the original mint packaging, and a certificate must be present verifying its authenticity. Parallel, bullion bars have exact weight specifications, and non-proof bullion coins must be uncirculated and in excellent condition. Prior to purchasing your investment, it’s important that the precious metals meet said requirements. 

A full list of IRA allowable precious metals can be found below:

Determining How Your Savings Can Further Cultivate

Amiably, one of the most revered features Self-Directed IRAs offers is its tax-advantaged status. When you create your Self-Directed IRA, you have the freedom to decide just how your tax advantages will arrive. Choosing the classic Self-Directed Traditional IRA lets your revenue develop tax-deferred. Opting for a Self-Directed Roth IRA means any potential gains will grow tax-free. It’s considered best practice to construct a fiscal retirement plan prior to working with a financial advisor. 

The Key Qualities of a Self-Directed Precious Metals IRA Custodian

Once you’ve locked in a deep familiarity with precious metals, performed due diligence, decided on an account type, and possibly consulted your financial advisor, you’re ready for the missing piece: your Self-Directed Precious Metals IRA custodian. What characteristics should be in the forefront of your research? Here are some qualities to consider. 

Precious Metal IRA Expertise

One area to search for is an extensive array of educational resources. This can indicate that the employees at the trust company or bank had substantial training and compiled these materials together. They can most likely answer any questions that could surface when it comes to your account.

Top Tier Customer Support

You can also scour the internet and read reviews on your prospective Self-Directed Precious Metals IRA custodian. Common pain points many SDIRA owners have is that there’s too much lag time between their inquiry and their custodian’s response. You’ll also want to verify that your custodian has an in-house support staff so that you can reach a live person by phone. 

Affordable and Straightforward Fees

Self-Directed Precious Metals IRA custodians generally charge varying types of Self-Directed IRA fees and have differing fee schedules. Some companies charge extra depending on the amount of revenue your retirement savings accumulates. At Madison Trust, we believe you shouldn’t be charged more for increasing your retirement savings. That’s why we employ a flat-rate fee schedule. Consider acquiring a custodian that offers a flat-rate fee to avoid paying extra for being successful. 

The Perks of Investing with a Self-Directed Precious Metals IRA Custodian

Aside from tax advantaged development, your retirement savings will be immersed in an excess of benefits. Given that precious metals generally have a limited supply and are viewed as desirable components across the world, precious metals are typically highly sought. Moreover, this is a tangible asset. Since it holds physical space, it can be assumed that it will likely never lose the entirety of its worth. 

Historically, precious metals have proven to be a form of currency. A Self-Directed Precious Metals IRA custodian can help transform this historical treasure to a possibly prosperous retirement savings. Self-Directed IRAs aid in retirement portfolio diversification because they allow account holders the opportunity to invest in alternative assets that are generally uncorrelated with Wall Street products. Generally, when the stock market takes a dip, your precious metal’s value will likely increase. 

Investing in Precious Metals Because Your Retirement is Precious

If you’re looking for an investment that’s stood the test of time, none compares to the precious metal. Our Self-Directed IRA Specialists have received rigorous training and are readily available to assist you with your questions. Schedule a free discovery call to learn how you can go from self-education to self-empowerment. 

Interested in taking a deeper dive into the world of precious metals and self-direction?