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What Precious Metals Are Allowed In IRA Account?

Opening a precious metals IRA account is one of the best ways to secure retirement investments. Metals, unlike paper investments such as stocks, bonds, mutual funds and ETFs, are not subject to political and economic maneuvering. Metals such as silver, gold, platinum and palladium are also limited in quantity and thus have inherent value that is not found in paper investments.Stacks of gold bars

Even so, opening an IRA is only the first step. Next, an investor will need to decide which metals to invest in and what form of metal (i.e. bars, rounds or bullion coins) to purchase. Following is an overview of the options as well as advice on how to pick precious metal investments for an IRA account.

Knowing What is Allowed

The IRS has certain rules and regulations in place regarding the purchase and storage of valuable metals in an IRA. To start with, only four types of metal are allowed. These are gold, silver, palladium and platinum. Bars, rounds and certain bullion coins for these four metals are permitted according to the guidelines below.

Gold bars: purity level of .995+

Silver bars: purity level of .999+

Palladium & platinum bars: purity level of .9995+.

Rounds must be made by Nymex/Comex, ISE-9000, LBMA, LME,NYSE/Liffe/CBOT or a national mint.

Following is a short list of permitted bullion coins:

– American Eagle2012-Australian-Kookaburra-Silver-Coin
– U.S. Buffalo Gold Uncirculated coins
– Australian Kookaburra
– Austrian Philharmonic
– Canadian Maple Leaf
– Australian Koala (platinum)
– Isle of Man Noble (platinum)
– Mexican Libertad (silver)

It is important to note that any gold, platinum, silver and palladium investments that were purchased prior to opening an IRA cannot be stored in said account. In fact, an investor is not actually permitted to make his or her own purchases for an account even after it has been opened. Instead, the account owner would need to give clear instructions to the custodian of the account regarding what to purchase and which dealer to work with. The custodian will then buy the coins, rounds and/or bars of one’s choice and have them shipped to the IRA storage account.

Knowing What to Buy

Those who want to turn a high profit on their retirement investments should carefully watch precious metal spot prices. These vary depending on various factors and may change at a moment’s notice; even so, it is possible to spot trends that will make it possible to buy metals when the cost is low.

The amount of money a person has available to invest in retirement will also play a large role in determining which metals to invest in. Silver is typically the best option for those who have a limited budget, as it is affordable yet still has the potential to turn a fairly high profit. Even so, diversifying one’s investment account is always a wise idea; this can be done by buying low cost gold and/or platinum coins rather than large, expensive bars.

Investors will also want to note the fact that platinum and palladium, unlike gold and silver, are commonly used for manufacturing purposes. As such, their value is determined by a wide variety of factors, making these metals a challenging investment option for those who are new to this type of investing.

Knowing rules regardingsaving precious metals types in IRA, along with keeping up with relevant news and making wise investment decisions, will enable an investor to save a good sum of money for his or her retirement years. While gold, platinum, palladium and silver have risen and fallen in value over the years, they remain some of the most stable and most profitable investment options for people from all walks of life and have intrinsic value that is not found in other investment options.