Using Self-Directed Gold IRAs




Self-Directed Gold IRAs

If you plan to invest in a Gold IRA, the first thing you need to do is set up a self-directed retirement account that allows you to invest in physical precious metals or other forms of non-physical metal investments. This kind of self-directed account is also called a precious metals Individual Retirement Account. It typically allows an individual to invest in stock, real estate, and also physical and non-physical precious metals in the form of; gold bars, gold coins and rounds, gold stocks, gold exchange-traded funds (ETFs) and investment in mining companies.

The fragility of “paper assets” and the continuing devaluation of the U.S. Dollar have made gold investment a widely popular choice for many retirement plans. Many are opting for gold-backed investment accounts to diversify their retirement portfolios and minimize the risk.

When you plan to invest in self-directed Gold IRAs, you will have to start with setting up a retirement account with a reliable trustee or trust company. The advantage of a self-directed account is that you get to decide which investments to make. Once you have finalized your investment options, you communicate the same to a trust company who then executes the transactions for you. In the case of a gold-backed account, you do not need to buy the metals yourself. You simply fund your account with contributions or a rollover and instruct the company on who to buy the metal from. The company makes the purchase on your behalf and deposits the gold into your account. The physical metals are stored inside the vaults of a reputable depositary.

However, all kinds of physical metals are not allowed into a gold retirement accounts. The purity standards of the metal products varies. For gold, it must have .999 purity. Silver must have .995 purity. Palladium and platinum require .9995 purity. One exception to these standards are the U.S. Eagle Gold coins which are .916 fine – or 91.6 percent pure.

The gold bullion coins which are approved for IRA investments include the U.S. Eagle, Canadian Maple Leaf, U.S. Buffalo, Austrian Philharmonic and the Australian Kangaroo/Nugget. Approved silver coins include the U.S. Eagle, Mexican Libertad and the Austrian Philharmonic. Approved platinum coins are the Canadian Maple Leaf, U.S. Eagle, and also the Australian Platypus and Koala. Coins such as the South African Krugerrand are numismatic coins are not permissible for an Individual Retirement Account.

You can transfer funds from either a traditional or Roth IRA to a gold-backed investment account. In such situations, the transaction takes place between the existing custodian and the new custodian. Or, you can rollover your assets from existing 401k plans to self-directed Gold IRAs that allows many gold investment options.

Opting for precious metal investment is often regarded as a wise idea. But you also need to make certain that you are working with a gold firm that has a solid reputation and is highly experienced in the field. Do keep in mind that whether you are investing in gold retirement accounts or in gold separately as a private investment, you should observe all of the safety guidelines. Always be sure to conduct business with a reliable and reputable company.



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