IRA Approved Precious Metals

Introduction

As individuals plan for their retirement, it becomes increasingly important to explore diverse investment options. One avenue that has gained significant attention is investing in IRA-approved precious metals.

An Individual Retirement Account (IRA) is a tax-advantaged retirement savings allowing individuals to set aside funds for retirement. While traditional investment options such as stocks and bonds are commonly associated with IRAs, including precious metals as an investment option has opened up new opportunities for diversification and wealth preservation.

This article will provide an overview of IRA-approved precious metals, their significance as investment options, and the potential benefits they offer to individuals looking to enhance their retirement portfolios. By exploring the world of IRA-approved precious metals, investors can broaden their horizons and make informed decisions about securing their financial future.

What Makes Precious Metals IRA-Approved?

The Internal Revenue Service (IRS) has established guidelines to determine which precious metals are eligible for inclusion in Individual Retirement Accounts (IRAs). The approved metals are known for their intrinsic value, stability, and historical recognition as a store of wealth. Gold, silver, platinum, and palladium have met the IRS criteria and can be held within an IRA, offering investors an alternative asset class.

IRS Regulations and Requirements

When considering investing in IRA-approved precious metals, it is essential to understand the regulations and requirements set forth by the Internal Revenue Service (IRS). These guidelines ensure compliance and eligibility for including precious metals within an IRA.

The IRS provides an overview of the guidelines that determine which precious metals are approved for IRA investments. This includes gold, silver, platinum, and palladium. However, it is important to note that not all forms of these metals are eligible, and specific criteria must be met to qualify.

Eligibility criteria and restrictions exist to maintain the tax-advantaged status of IRAs. For example, when investing in precious metals, the IRS requires that they meet certain purity standards. This ensures that the metals are genuine and of sufficient quality.

In addition to meeting purity requirements, proper documentation and reporting are crucial for IRS compliance. Investors must maintain accurate records of their precious metal investments within their IRAs. This includes details such as the type, quantity, and value of the metals held.

To navigate the intricacies of IRS regulations and ensure compliance, it is advisable to work with reputable custodians or trustees specializing in precious metal IRA investments. These professionals have the expertise and experience to guide investors through the necessary steps and documentation required by the IRS.

By adhering to IRS regulations and working with reputable custodians or trustees, investors can confidently include precious metals in their IRAs while maintaining compliance with the tax code. These measures not only protect the tax-advantaged status of the IRA but also provide peace of mind knowing that their investments align with the established guidelines.

Benefits of Investing in IRA-Approved Precious Metals

Diversification

Precious metals offer diversification benefits by adding an asset class with a low correlation to traditional stocks and bonds. During times of economic uncertainty, precious metals often exhibit a negative correlation to other asset classes, acting as a potential hedge against market volatility.

Wealth Preservation

Precious metals have maintained value throughout history, making them a reliable store of wealth. They can serve as a safeguard against inflation and currency fluctuations, helping to preserve purchasing power over the long term.

Potential for Growth

While precious metals are considered a conservative investment, they can still appreciate. The scarcity of these metals, combined with global demand, can contribute to price appreciation over time, potentially offering growth opportunities.

Tangible Assets

Unlike stocks or bonds, which are intangible, precious metals provide a physical and tangible form of wealth. This inherent value can provide a sense of security and peace of mind, knowing that your investments are held in a physical asset.

Considerations for IRA-Approved Precious Metals

Volatility

Like any investment, precious metals can experience price volatility. The market for precious metals is influenced by various factors, including supply and demand dynamics, geopolitical events, and economic indicators. It’s important to be aware of potential short-term price fluctuations while focusing on the long-term advantages of holding precious metals.

Storage and Security

Physical possession of precious metals requires appropriate storage and security measures. Many investors choose to store their metals in secure depositories or work with custodians who offer storage solutions. Proper insurance and secure storage facilities are crucial to protect your investment.

IRS Compliance

To ensure compliance with IRS regulations, it’s essential to work with a reputable custodian experienced in handling precious metals within IRAs. They can assist in navigating the reporting and documentation requirements to maintain the tax-advantaged status of your IRA.

List of IRA-Approved Precious Metals

Gold

Gold is a widely recognized and highly sought-after precious metal for IRA investments. It has a long history of being used as a store of value and a hedge against inflation. The IRS allows investment in certain types of gold, such as gold coins minted by the United States Treasury, including American Gold Eagles and American Gold Buffalos. Gold bars and bullion meeting specific purity requirements are also eligible for IRAs.

Silver

Silver is another popular precious metal approved for IRAs. Like gold, silver has a history of being used as a currency and a valuable commodity. The IRS permits investment in silver coins, including American Silver Eagles, and silver bars and bullion that meet the necessary purity standards.

Platinum

Platinum is a rare and valuable precious metal that has gained recognition as an eligible investment for IRAs. It is known for its industrial applications, particularly in the automotive and jewelry industries. The IRS allows investment in certain platinum coins, such as American Platinum Eagles, and platinum bars and bullion that meet the required purity criteria.

Palladium

Palladium is a lesser-known precious metal that has seen increasing interest among investors. It has various industrial uses, particularly in the automotive and electronics sectors. The IRS permits investment in certain palladium coins, such as the American Palladium Eagle, as well as palladium bars and bullion that meet the necessary purity standards.

Conclusion

Including IRA-approved precious metals in your retirement portfolio can provide diversification, wealth preservation, and potential growth opportunities. Gold, silver, platinum, and palladium have proven their value over time, offering a tangible and alternative asset class. By carefully considering the benefits and considerations, investors can strategically allocate a portion of their retirement savings to precious metals. It is advisable to consult with financial professionals and experts in precious metal IRA investments to ensure proper compliance, storage, and overall portfolio suitability. With careful planning, investing in IRA-approved precious metals can play a valuable role in securing a prosperous retirement future.

So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

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Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

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Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying. If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

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We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well