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The Different Types Of Precious Metals That Are Approved For A Gold IRA Investment
Since 1997, investors in the US have been allowed to buy gold and silver coins and bullion for their IRA investment. This has helped these investors to diversify their portfolio and to ensure that they have a profitable retirement. However, there are a lot of people who are misinformed on how to invest in gold as well as which precious metals to buy. The general rule is that the gold must have a seal of approval from a certified refiner, and it must have a fineness of at least 0.995. The following are some of the different types of gold and other precious metals, as well as an explanation on whether they are allowed in an IRA investment or not.
An investor who would like to buy gold in order to diversify their IRA portfolio can consider the American Gold Eagles. These are actually the only gold coins that are approved for investment in an IRA. This is despite the fact that they are actually 22 karats, as opposed to the recommended 24 karats. These legal tender coins are one of the best choices for individuals who want a gold-backed IRA.
Gold Bullion Bars
These gold bars usually sell at lower premiums than gold coins. The investor can purchase the 1 ounce bullion bar, the 10 ounce bullion bar, or the kilo bar which is approximately 32.15 ounces. Most bullion bars are usually very pure, and they have a fineness of about 99.99%. They are therefore referred to as the ‘four 9s gold’. Individuals who have large IRAs are advised to invest in the 10 ounce or the kilo gold bar. This is because a large bar usually has a smaller markup over spot.
Krugerrands and Other Gold Coins That Are Not Approved
The main reason why Krugerrands from South Africa and the Mexican Peso gold coins are not approved is because they do not have the recommended fineness. The Krugerrands are only 91.67% pure, while the Mexican Peso gold coins are 90% pure. Even old US gold coins are not acceptable because they are only 90% pure. Therefore, the investor who prefers gold should stick to the American Gold Eagles.
Though the IRA plan is referred to as a gold IRA, the investor can include other precious metals in their IRA account. 1 ounce silver eagles are approved for investment in an IRA. However, these coins usually have very high premiums, and this can be disadvantageous. Therefore, people who prefer silver to gold are usually advised to invest in silver bars as they have lower premiums.
Backdated Silver Eagles
An investor has the option of buying backdated silver eagles for their IRA account. These coins are usually cheaper than current silver eagles. Therefore, investors who want to invest in silver should ask about these backdated coins so that they can save some money.
Financial consultants usually advise their clients to invest in silver bars for their IRAs. This is because these bars usually have lower premiums. It is usually better to invest in 100 ounce or 1000 ounce bars in the IRA.
Palladium and Platinum Bars
The investor can also invest in other precious metals such as platinum and palladium in their IRA. These two metals have become quite popular, and they are a great way for investors to diversify their IRA portfolio.
Before the investors buy gold or any other precious metal for their retirement investment, they should conduct thorough research. There are quite a number of factors that will affect the returns that they get. They should partner with a reputable company in order to ensure that they buy gold that is of high quality. They should also consider the setup and annual fees that the company charges to keep the gold and precious metals.
When buying gold, the investor should ask as many questions as possible about their IRA as well as the company that they are working with. They should consider factors such as premiums, markups and returns. Financial experts usually advise investors to invest at least 5% of their IRA in gold in order to provide a hedge against any economic or political upheaval. This will ensure that they always have something to fall back on in case their other investments suffer losses. By working with the right company, the investor will be able to buy gold and other precious metals and experience profitable returns during their retirement years.