Buying gold and silver for your IRA is a lot more easier than you think it would be. In fact, thousands of people have done it and its probably one of the best decisions you can make to help solidify your long term investment retirement account.
PremierGoldIRA has a special relationship with one of the leading gold investment companies in the United States (Regal Assets) – where we actually assist you and will take care of all your questions about investing in gold and silver. However, only certain types of precious metals can be invested in that qualify for your IRA, and you have to follow the proper steps. We will walk you through the entire process, step by step so you get it done right.
Gold and silver bullion for IRAs were approved in 1997. Previously, the only accepted forms of physical gold or silver for IRAs were American Gold Eagle coins and Silver Eagle coins. When the rules were expanded to include bullion – this was especially beneficial to all types of investors, particularly those who prefer silver as they could own silver bars which carry much smaller premiums than Silver Eagle coins. The types of precious metal was also expanded to include Platinum and Palladium for IRAs.
One of the biggest factors in qualifying precious metals and buying gold for IRAs is their quality, or purity level. Purity levels of 99% or more are required, particularly when it comes to gold and silver coins. For those that prefer gold, typically can purchase Golden Eagle coins, although there are many other options. The same goes for silver – the purity level needs to be high, 99% or better, an must be at least .995 fine (99.5% pure), and be considered legal tender coins.Silver Eagle coins are very popular for investing in IRAs.
Kruggerands Not Approved For IRAs
Believe it or not – Kruggerands are not approved for investment in IRAs. They are only 91.67% pure, while other popular gold coins such as the Mexica 50 Pesos coin (90% pure) and older US gold coins are only 90% pure, and not acceptable investments for IRA accounts. Buying Gold Eagles or bullion is certainly the better choice.
Buying Gold and Silver Bars for IRAs
Bullion bars sell at much smaller premiums as compared to the counterpart in coins, which make them ideal for investing in your IRA. Gold and silver bullion bars are typically found in 1-oz, 10-oz, kilo (32.15 ounces), 100 oz, and 1,000 oz (for silver). While the regulations call for a minimum quality level, or purity, of 99.5%, most gold and silver bullion bars are 99.99% pure. Buying gold or silver bullion bars will give you more out of your money as bullion has less premium than coins, and the larger the denomination, the lower the premium typically is.
Silver Eagles are Approved for IRAs
One ounce American Silver Eagle coins are one of the only silver coins specially approved and accepted for IRAs. Although coins typically have higher premiums than bullion, buying coins is a great alternative as they can be utilized easier in transactions, may have some numismatic value, and is easily transported. In addition, holding coins with smaller denomination of “one dollar” or “one ounce” are more easily transferred in financial exchange than if you were to have a 10 ounce bullion bar. Another quick thought to consider is that older Silver Eagle coins may come with less of a premium and be a good alternative for investment, however, coins older than 1965 only have a 90% purity level and are not approved for IRAs.
Another big change mentioned earlier is that platinum and palladium were added to the precious metals accepted list for IRAs in 1997. While these two metals have become popular over the years and are good alternatives to gold and silver for the sake of diversification within precious metals themselves, we strongly suggest that you get familiarized with investing in gold or silver first before thinking of other metals.
While it really does not make a big difference in the grand scheme of things, one also has to take into account that gold and silver are considered monetary metals, while platinum and palladium are considered industrial metals. We believe monetary metals offer a better level of liquidity and pricing transparency than industrial metals and suggest that gold and/or silver be the best starting point.