Investors are now allowed to include gold in their individual retirement accounts (IRAs) by the Internal Revenue Service. For those who would like to own gold or have it included in their IRA gold, there are certain requirements. First, however, one must evaluate why you would choose to invest.
An IRA can be used to invest gold
In aerospace, technology and many other areas, gold is a valuable metal. However, there will be a decrease in the gold available due to the current market supply and the fact new gold deposits will eventually run low. A lower market price means less gold for investors. Geopolitical instability as well as currency devaluation and the continuing threat of inflation are some other factors. While gold prices may fluctuate over time, they are an excellent investment for the wise investor. It makes sense to add gold to an IRA.
IRS Rules on Gold IRAs
First, an IRA may only contain certain types or gold according to the IRS. The purity of the gold must not be less than 99.9%, and must have been issued by the United States Mint. Gold coins must meet this requirement, including American Gold Eagle coins as well as Austrian Philharminc or Australian Kangaroo coins. Hungarian Coronas, British Britannia or British Sovereigns coins, as well as South African Kugerrands, are not allowed to be included in a IRA.
The IRS also has rules regarding the safekeeping of gold in your IRA. You will need to pay for vault storage. When you make your purchase of gold, the gold can be transferred to the chosen vault. You are not permitted to take physical ownership of the precious metal. This means that you will need a trustee to oversee your gold IRA investments.
You will also need an administrator to manage your account. Self-directed IRAs are not always possible for all IRA administrators. Account administrators should be familiar with all aspects of the IRS rules and regulations. They must also be able keep informed about any changes to the precious-metals IRA.