When it comes to making smart financial investments, it is generally agreed that diversifying your assets across a wide range of products is critical. Individual Retirement Arrangements (IRAs) offer great tax benefits for investors, but unfortunately many IRAs offer very little control over how or where your money is placed. For investors who prefer more control over how their money is invested, self-directed IRAs are a viable option, and are very popular by those who would like part of their portfolio to include precious metals.
Most investors understand why precious metals are considered a desirable asset to hold. Gold and silver have been valued for thousands of years, and their relative scarcity almost ensures that they will remain valuable. For investment, you also have to option of adding gold and silver, as well as other metals such as platinum and palladium to a self-directed IRA. Valued as a buffer against financial instability and inflation, adding precious metals to an IRA is a considered by many to be a smart investment option.
There are certain laws and regulations that pertain to adding precious metals to your self-directed IRA. Only metals that are manufactured by a recognized national mint can be used. Generally speaking, universally known products minted by governments like American Eagle, Canadian Maple Leaf, and Austrian Philharmonic coins meet these requirements as well as a variety of bars minted by a COMEX or NYMEX approved refiner. Bullion must meet a standard level of fineness to be permissible for investment in IRAs.
Starting the process of rolling over investments from a traditional IRA into a self-directed IRA for the purpose of adding precious metals does require the use of an established trust company. Specific information and regulations pertaining to precious metal IRAs can be found in Section 408(m)(3) of the Internal Revenue Service code.
All types of investment have risk, and it is important to seek out professional advice before making any financial decision. This article is intended for informational purposes only.