Selecting the Best Precious Metals IRA




Best Precious Metals IRA

Since 1997 when the Taxpayer Relief Act started allowing investors to hold certain types of rare metals, the precious metals IRA has become an increasingly popular type of retirement account. Since these accounts are basically self-directed IRAs, they allow you different investment options. With these accounts, you can invest in gold exchange-traded funds (ETFs), mining company bonds, physical gold and silver as well as platinum and palladium. Importantly, selecting the best precious metals IRA will let you diversify your retirement portfolio.

However, before you decide on a custodian, there are some things you need to be aware of. The first thing to consider is that although you are investing in real gold, silver or other metals, IRA rules do not allow you to take physical possession of the products. The purchase is made on your behalf by the account custodian or the trustee service. The metals are then stored inside a depository. Therefore, you become twice removed from the metal products. One thing to bear in mind is that certain custodians may allow you to choose your own depository service for storing the metals. Although most individuals prefer to go with the depository recommended by the company, you may want to consider having your metals vaulted in a particular depository of your choosing.

Keep in mind that there are imposed restrictions to the nature of rare metals you can hold in an IRA. To be eligible for account possession, gold products must have a fineness of .95 and silver products need to be .995, while both palladium and platinum are required to be .9995 for eligibility. If you prefer to invest in bullion coins, gold coins like the U.S. Buffalo, U.S. Gold Eagles and Australian Kangaroo/Nuggets are widely popular and acceptable choices.

You will need to find a reputable company to manage your investment account, as regular brokerage firms do not provide this type of service. Therefore, you only have a few options to choose from. According to customer testimonials, GoldStar and Sterling Trust seem to be two of the best options available for gold or silver IRAs. However, it is advisable to conduct your own research, carefully examining the terms and conditions before deciding on a particular custodian. You must also compare the fee structures of different companies. The custodian will typically charge you a one-time setup fee in addition to annual fees that cover insurance and storage, as well as management of your account.

Conventional investment opportunities such as bonds, stocks, mutual funds, annuities, and certificates of deposit are fast losing popularity. One reason being investors are not getting favorable returns from these kinds of investments that they once did. Moreover, such paper assets have also become very fragile and are no longer a safe option for long-term investment. This being so, investments in fine metals have risen in popularity in recent times. However, if you are considering such investments, please make sure that you have researched your options well and only use a trust company that has a reputable standing and is able to provide you with maximum benefits.