How to Invest in a Precious Metals IRA

Do you want an IRA in precious metals? An individual retirement account primarily focuses on stocks, bonds, and other options. However, the IRS does permit you to hold gold, silver, platinum, and palladium.

Though a gold IRA isn’t as well-known, it’s becoming more popular as people want to own physical metals and keep them in a retirement account for future use/need. In fact, I’ve devoted many decades to learning as much as I can about them to inform others.

Typically, I work with a precious metals dealer to help me set up the gold IRA and purchase IRS-approved products. These people often partner with custodians to ensure that everything is done correctly.

Most people are confused about the types of precious metals they can hold in their gold IRAs (I was). Therefore, I wanted to focus on what they are and which products have been approved by the Internal Revenue Service. Let’s dive in.

What Is a Precious Metal IRA?

A gold IRA refers to a special type of individual retirement account that lets you hold precious metals as a qualified investment. Usually, you will focus on coins and bullion, but related securities can also be kept in the portfolio.

Generally, a gold IRA is held separately from a traditional retirement account. In most cases, the rules involving distributions and contribution limits are the same.

Primarily, you will use a specialty company to open the account through a custodian. Then, a dealer will help you select the gold bars and rounds you want.

Understanding Gold IRAs

An individual retirement account is tax-advantaged to help you save for your golden years. There are many options, including a traditional IRA, Roth IRA, and precious metals IRA.

Overall, a precious metals IRA allows you to stash your cash in gold, silver, and other products. These are separate from other individual retirement accounts.

You’ll find many options for precious metals investments. Some people will purchase physical gold bars to store in their home safes. However, those items cannot be considered part of the IRA.

It’s possible to set up a gold IRA with pre- or post-tax money, depending on your needs. Unlike others, these accounts allow you to buy the physical gold and have it stored in an IRS-approved depository.

During times of economic uncertainty (which, in my opinion, is almost always), it’s wise to diversify your portfolio to protect against inflation. Gold is one way to do that. Therefore, the Internal Revenue Service allows people to set up self-directed IRAs to purchase coins and bars minted from approved precious metals like silver, palladium, and platinum.

Be aware that gold IRAs often have higher fees because the custodian is storing the precious metals for you. Likewise, you have to work with another company or dealer to buy the items.

Setting Up Your Gold IRA

You cannot set up a precious metals IRA through a conventional broker because they don’t offer specialty accounts. Instead, you must find a custodian to handle the reporting and documentation required.

While the assets are often different than a traditional retirement account, the rules are generally the same. Therefore, you’ll have annual contribution limits and must determine distributions when making withdrawals.

Contributions and Distributions

Overall, the Internal Revenue Service has set contribution limits for a precious metals IRA at $7,000 for 2025. However, you can add $1,000 more if you’re over 50.

Likewise, you’re allowed to take distributions without penalty after turning 59.5 years old. If you make withdrawals before that age, you’ll be charged an extra 10 percent.

Storage is also something to consider for a precious metals IRA. You must keep your physical gold bars at an IRS-approved facility (depository or bank).

In a sense, all gold, silver, platinum, and palladium products you buy for your IRA cannot be stored at home.

What Is IRA-Eligible Gold?

Gold IRA companies must ensure that they are following the rules set by the IRS.

Ultimately, the IRS rules for precious metals in an IRA are quite extensive. Only a few products are suitable for these accounts.

At one time, IRAs were limited to only holding American Eagle coins, but now there are many options for IRA-approved gold, silver, platinum, and palladium products.

The Taxpayer Relief Act of 1997 expanded the items allowed in a precious metals IRA to include:

• US gold coins of 1, 1/2, 1/3, and 1/10-ounce

• US silver coins minted by the Treasury Department of 1 ounce

• Certain platinum coins

• Certain foreign coins

Unfortunately, numismatic coins aren’t included because only silver and gold bullion are approved by the IRS.

Minimum Fineness Requirements

Precious metals allowed in an IRA must meet these minimum fineness requirements, according to the IRS:

• Non-proof coins to be free from damage and in brilliant uncirculated condition

• Must have exact weight specifications listed on bullion bars

• Coins, bars, and rounds produced by a manufacturer, assayer, or refiner accredited or certified by the national government mint, ISO 9000, TOCOM, LPPM, LBMA, LME, NYSE/Liffe, COMEX or NYMEX

• 99.5 percent pure for gold bars/coins

• 99.9 percent pure for one-ounce silver coins

• 99.95 percent pure for palladium and platinum coins

Examples of Gold Coins and Bars

• US Buffalo

• Credit Suisse bars

• Chinese Panda

• Canadian Maple Leaf

• Many others

Examples of Silver Coins and Bars

• Mexican Libertad

• Chinese Panda

• Canadian Maple Leaf

• Many others

Examples of Platinum Bullion and Coins

• Isle of Man Noble

• Canadian Maple Leaf

• Australian Koala

• American Eagle

Examples of Palladium Products

• Canadian Maple Leaf

• Others that meet the minimum fineness requirements set by the IRS

Examples of Unacceptable Precious Metals Products

You can’t hold these precious metals in an IRA:

• Swiss Franc

• South African Krugerrand

• Mexican Peso

• LBMA Germania Mint

• Italian Lira

• Many others

>> Learn How to Convert Your IRA to a Gold IRA

Final Thoughts

Setting up a precious metals IRA is one of the best things you can do. Throughout my research, I’ve learned that gold bullion is the most popular choice.

According to the Commodity Futures Trading Commission, you should only keep a small portion of your retirement savings in gold, silver, and other precious metals through an IRA. Still, it makes sense to diversify as much as you can. Consider talking to financial professionals to help you decide what’s right for you.