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Last Updated on December 7, 2023
Individual Retirement Accounts (IRAs) are a popular investment choice for those looking to secure their financial future. While traditional IRAs allow for the investment in stocks, bonds, and mutual funds, a Gold IRA permits investments in precious metals like gold, silver, platinum, and palladium.
This diversification strategy provides investors with a hedge against inflation and economic uncertainty.
In this article, we will explore the different precious metals eligible for Gold IRAs, the laws governing their eligibility, purity requirements, and how to set up a Gold IRA with Augusta Precious Metals.
Which Precious Metals are Gold IRA Eligible?
There are four primary precious metals that are eligible for investment in a Gold IRA.
These metals are:
- Gold
- Silver
- Platinum
- Palladium
Each of these metals has unique properties and uses that make them valuable and desirable for investment. We will discuss these metals in detail later in the article.
Which Law Governs Their Eligibility?
The eligibility of precious metals for Gold IRAs is governed by the United States Internal Revenue Code (IRC) Section 408(m). This section outlines the specific types of precious metal coins and bullion that can be held within a Gold IRA. The law also provides guidelines on the minimum purity levels required for each metal to qualify for inclusion in a Gold IRA.
Types of Precious Metals That Are Allowed: Bullion and Coins
There are two primary forms of precious metals allowed in a Gold IRA: bullion and coins. Bullion refers to precious metals in the form of bars or ingots, while coins are minted pieces of metal with a specific face value. Both forms must meet the minimum purity requirements outlined by the IRC.
Eligible coins include American Gold Eagles, American Silver Eagles, and other coins from various countries that meet the necessary purity standards.
Purity Requirements
Each precious metal allowed in a Gold IRA must meet specific purity requirements:
- Gold: 99.5% purity or higher
- Silver: 99.9% purity or higher
- Platinum: 99.95% purity or higher
- Palladium: 99.95% purity or higher
These purity requirements ensure that investors hold high-quality precious metals in their Gold IRAs, which helps maintain the value and liquidity of their investments.
What is IRA Approved Gold?
Gold has been a store of value for centuries and is often considered a safe-haven investment during times of economic uncertainty. Its uses span various industries, including jewelry, electronics, and dentistry.
Gold is also valued for its rarity and resistance to corrosion. Adding gold to a Gold IRA can provide portfolio diversification, protection against inflation, and the potential for long-term growth.
Silver
Silver is another popular investment choice for its industrial applications, affordability, and relatively stable value. Silver is used in electronics, photography, and medical equipment, among other industries. Additionally, its antibacterial properties make it ideal for use in the water purification and food packaging sectors. Including silver in a Gold IRA can provide an affordable way to diversify investments and capitalize on its growing industrial demand.
Platinum
Platinum is a rare and valuable precious metal that is highly resistant to corrosion. It is used in a variety of industries, such as automotive, electronics, and jewelry. Platinum’s primary use is in the production of catalytic converters, which help reduce vehicle emissions. This metal’s rarity and diverse applications make it an attractive investment option for Gold IRAs.
Palladium
Palladium is a lustrous, silver-white metal that is primarily used in the automotive industry for catalytic converters. Its other applications include electronics, dentistry, and hydrogen purification. Palladium is rarer than gold and platinum, making it a valuable and sought-after investment. Its growing industrial demand and limited supply make it an attractive addition to a Gold IRA portfolio.
Setting up a Gold IRA with Augusta Precious Metals
Want to Purchase Gold with Your IRA or 401k?
Here's Why We Recommend Augusta Precious Metals:
- A+ Rating and Zero Complaints Registered with Better Business Bureau
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- Simple 3-Step Process to Get Started
"I diversified my retirement with precious metals from Augusta. You can count on them."
-Joe Montana, Hall of Fame Quarterback
Augusta Precious Metals is a reputable provider of Gold IRAs and can help investors set up a self-directed IRA that includes the eligible precious metals discussed in this article. To get started, follow these steps:
- Open a self-directed IRA: You will need to work with a custodian who specializes in self-directed IRAs. Augusta Precious Metals can help you identify a suitable custodian and guide you through the account setup process.
- Fund your IRA: Once your account is set up, you can transfer funds from an existing IRA or 401(k) or make a new contribution to your self-directed IRA.
- Choose your precious metals: Work with Augusta Precious Metals to select the eligible precious metals you wish to include in your Gold IRA. They offer a variety of gold, silver, platinum, and palladium bullion and coins that meet the purity requirements.
- Purchase and store your metals: After selecting the precious metals for your Gold IRA, Augusta Precious Metals will help you complete the purchase. The metals will then be securely stored in an approved depository on your behalf.
- Monitor and manage your investments: Regularly review your Gold IRA investments and work with Augusta Precious Metals to make any necessary adjustments or additions to your precious metals holdings.
Summary
Investing in a Gold IRA can provide a valuable hedge against inflation and economic uncertainty. The eligible precious metals—gold, silver, platinum, and palladium—each offer unique properties and uses that make them valuable and desirable for investment.
These metals must meet specific purity requirements outlined by the Internal Revenue Code to qualify for inclusion in a Gold IRA.
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By working with a reputable provider like Augusta Precious Metals, investors can set up a self-directed IRA and enjoy the benefits of diversifying their retirement savings with precious metals.
Ultimately, a well-rounded Gold IRA can help protect and grow your retirement savings, providing financial security for years to come.
