Gold IRA Investing

Gold IRA

The IRA or the Individual Retirement Account is made by the IRS in order to give citizens a better plan for their retirement because it helps them save money before they give up their work.

If a person has an IRA, he doesn’t need to pay any kind of capital gains and as well as income taxes on the funds in his IRA. He will only pay taxes when he has already retired and he has withdrawn money.

There are many types of IRA. It can be the traditional IRA, Roth IRA or others. Each of them is different from each other, but they also have similarities. One of the most unique forms of IRA is the gold IRA.

What Is A Gold IRA?

Basically, a gold IRA is a type of IRA which uses gold or other precious metals as investments, instead of money. Why? It is because gold is very flexible. In the past years, it is already used in the trading industry, and since that day, its worth is still recognized.

The gold is like the universal money. Everywhere you go, you will notice that it is important for the people. Lots of industries are using it for their facilities and it is always in demand in the market.

Gold is a good kind of investment. It is because the demand is directly proportional to the price. When the demand increases, it is no doubt that its price will also increase.

When Is Gold Accepted In IRA?

Before 1997, gold or other kinds of precious metals are not yet accepted to be an investment in IRAs. But, after the Taxpayer Relief Act of 1997 was put into place, everyone can already use gold as their IRA investment.

gold bullion and coinsWhat Types Of Gold Are Accepted As Investments?

There are different types of gold. As an investment for IRA, not all types of gold are accepted to be used. The IRS only accepts two kinds of gold and these are gold coins and gold bullions.

Are Other Precious Metals Acceptable As IRA Investments?

Actually, gold IRA doesn’t literally mean that gold is used as an investment to the Individual Retirement Account. Other than gold, some precious metals are accepted such as platinum, silver and palladium. However, there are rules to be followed on their fineness before they are received as investments.

How Much Fineness Is Needed?

Not all gold, silver, palladium or platinum is accepted because there is a specific fineness that should be followed. For coins, the fineness that is needed is 0.9999%.

While for bullion they are:

  • Gold – 0.995+ percent
  • Silver – 0.999+ percent
  • Palladium – 0.9995+ percent
  • Platinum – 0.9995+ percent

What Are The Types Precious Metals Accepted According To Its Fineness?

Fineness of the precious metals is scrutinized before it is accepted as investments. Here are some of the types of precious metals that are accepted.

  1. For Gold, Silver and Platinum
    • American Eagle coins
    • Canadian Maple Leaf coins
    • Bars and Rounds that follow the fineness listed above
  2. For Gold Only
    • U.S. Buffalo Gold uncirculated coins
  3. For Silver Only
    • Mexican Libertad coins
  4. For Platinum Only
    • Isle of Man Noble coins
  5. For Palladium Only
    • Bars and Rounds that follow the fineness listed above