Gold is a valuable resource that has been used for centuries as a form of currency. In recent years, gold has also become an important investment option, as its value tends to remain stable even in times of economic instability. Because of its many benefits, many people are interested in buying gold for their individual retirement account (IRA). However, not all gold is allowed in an IRA. In order to be eligible for inclusion in an IRA, the gold must meet certain criteria set forth by the Internal Revenue Service (IRS).
The IRS has a few requirements for gold to be accepted by an IRA. Here are the standards in general:
One of the most popular choices for IRA-approved gold is gold coins. Gold coins are typically produced by governments and are considered legal tender. The American Eagle series of gold coins is a popular choice for many investors, as these coins are backed by the United States government. Other popular options include Canadian Maple Leaf coins and American Gold Buffalo.
Gold coins that are IRA approved must meet the following criteria:
- They must be at least 99.5% pure.
- Coins and bars must be produced by a refiner, assayer or manufacturer that is accredited/certified by NYMEX, COMEX, NYSE/Liffe, LME, LBMA, LPPM, TOCOM, ISO 9000, or national government mint meeting the minimum fineness requirements.
- Coins must be encapsulated, be in mint condition, and include a certificate of authenticity.
- Non-proof coins must be in excellent, uncirculated condition.
- Most collectible coins are excluded.
Gold bars are another popular option for IRA-approved gold. Gold bars come in a variety of sizes, from 1 oz to 400 oz sizes. One advantage of investing in gold bars is that they generally cost less than gold coins. Another advantage is that they can be easily stored and transported. Popular approved gold bars are produced by Johnson Matthey, Credit Suisse, Valcambi, and PAMP.
Gold bars must adhere to the same guidelines as gold coins.
It’s critical that you do your homework before making a decision. You should also seek advice from a financial advisor or an IRA-approved dealer to make sure that your portfolio is properly diversified and suited to your financial objectives.