Many people don’t realize they can hold bullion coins in their IRA. This gives you a great opportunity to diversify your IRA portfolio. You will need to have a custodian hold your gold bullion for you. If you choose to physically hold the gold bullion yourself you will need to take an IRA distribution.
How to Purchase Gold Bullion in Your IRA
Your first step is to choose a custodian for your IRA. Many gold dealers have a list of recommended custodians and can give you basic information about their services and rates. Although services and rates may be similar there are some differentiating factors and you will want to choose the custodian that fits your needs.
Once you select a custodian to hold the gold in your IRA you will need to fill out the paperwork. After the custodian gets that paperwork and the funds are transferred from your IRA then it is time to decide which bullion coins you want to purchase in your IRA.
Work with reputable gold dealer to get assistance and guidance through the process. Most reputable gold dealers have account consultants who understand the process, have information about the various custodians and can help you locate the forms and work through the steps.
If you later decide you want to take a distribution from your IRA for your gold bullion you can either convert it into cash or arrange to have the bullion coins delivered to you.
Selecting Bullion to Hold in Your IRA
The U.S. Government makes specific rules regarding the gold bullion you can hold in your IRA. They currently permit bullion currency and proof coins such as the Gold and Silver American Eagles to be purchased in your IRA.
The proof coins are simply uncirculated collector’s versions of the legal tender coins. Proof coins are subjected to a more extensive minting process which delivers a more detailed, sharper and more visibly perfect coin. Proof coins are minted with select dies and the coin blanks are manually fed into the minting presses where they are struck several times to provide the sharpness and clarity of the design. A proof coin will have a soft detail image and the background will have a mirror finish. Proof coins are inspected before they are approved as a proof coin. Once approved each coin is placed in a plastic case to protect it from any degradation of the design due to handling and the elements.
Proof coins are considered rare because there are only a certain number of proof coins that are minted each year. The value of a proof coin is affected by several factors in addition to the spot price of gold, including the quality of mintage, the coin’s condition, the age of the coin and how many proof coins were minted in that particular year. Depending on the year and demand for that minting, proof coins can sell out very quickly. Expect to pay a bit more over the spot price of gold for proof coins, than you would for currency bullion coins, due to their collector and numismatic value.
Contact your favorite gold dealer to get more information about purchasing gold in your IRA and get more diversification in your IRA investments.