Physical Gold & Silver Precious Metals IRA's
Open a Self-Directed IRA Account
The first step to getting precious metals in your IRA is to set up a self-directed IRA with a trusted custodian. This is a simple process. Click here to get the process started with our preferred custodian: New Directions IRA.
Fund the Self-Directed IRA Account
After your self-directed IRA is setup, the next step is to fund your account. Funding the account is different for a new IRA account versus rolling over an existing IRA account. Your custodian will be able to walk you through this part of the process.
Purchase IRA Approved Precious Metals
Once your account is funded, you can then place precious metals "inside" your self-directed IRA by calling us at 1-800-294-8732 to lock a trade of gold, silver or platinum metals. Your custodian will then settle the payment for this trade and SD Bullion will then ship the physical metals to your IRA account!
A Premium Selection Of IRA Approved Precious Metals Products
Whether you are wanting to move gold, silver or platinum bullion into your self-directed IRA, SD Bullion offers a great selection of high quality, IRA approved bullion products at the lowest prices in the industry...guaranteed! Take a look below to shop our most popular IRA approved bullion items.
Popular Silver IRA Products
Popular Gold IRA Products
Popular Platinum IRA Products
Securing Your Financial Future with a Precious Metals IRA
Looking for a way to safeguard your financial future and ensure that your golden years are actually the best years of your life? An IRA (individual retirement account) can be an excellent option, allowing you to invest pre-tax dollars (or post-tax dollars in the case of a Roth IRA) toward your retirement. IRAs have been used for a very long time for just this purpose. However, they’re not without their pitfalls. A precious metals IRA might be a better solution. Of course, you’ll need to know a few things prior to making this decision.
Problems with Conventional IRAs
Before we touch on the benefits of a precious metals IRA, it’s important to understand the potential problems you might experience with a conventional IRA. Really, it’s all about the investments within the account. These issues are also present with Roth IRAs. In most individual retirement accounts, the bulk of your assets includes the following:
- Mutual funds
Those should all be familiar asset classes to you, as should their potential issues. They’re all paper assets – they’re tied directly to the economy and its performance. When the economy is up, your assets perform well. When the economy takes a nosedive, well, they don’t perform so well. In fact, a severe economic downturn could spell financial ruin, as many learned to their chagrin during the Great Recession, as their retirement accounts were devalued to nothing.
Another problem with conventional IRAs, and one that is not discussed as frequently, is that you are not in control of your financial future. You’re putting all your trust in the hands of the management company. You’re trusting them to make the right decisions with your money, to choose the right assets, and to make savvy decisions based not on sentiment, but on hard evidence. That doesn’t always happen, though.
In short, you’re essentially still at the mercy of managers, who may or may not have your best interests at heart.
Why Precious Metals, Though?
Now, you might be wondering why precious metals are a better safeguard against financial ruin than conventional investment assets like stocks, bonds and the like. There’s a simple reason – precious metals are wealth. Paper assets only represent the concept of wealth.
An ounce of gold is an ounce of gold no matter what the market does, and while the price will vary throughout the economic cycle, it cannot be devalued completely the way a stock can if a business were to fold or the decision makers at the helm were to make poor choices.
However, the importance of precious metals goes deeper than merely allowing you to invest in something with intrinsic value. There are also other advantages here, including the following:
- Diversification: Diversification is the mantra of today’s investor. However, it’s all too often not carried far enough. Yes, you might diversify by adding stocks, bonds, CDs and other common financial instruments to your IRA, but these are all paper assets and can be devalued in the blink of an eye. It’s far better to diversify with precious metals in the mix. We’re not suggesting that gold, silver and other precious metals should make up your entire IRA, but they should be part of it.
- Offset Inflation: Inflation is inescapable, and it will eat into your retirement fund no matter what paper assets you add to it. However, precious metals generally increase in value as the value of the dollar drops. While your assets lose value, the gains from precious metals included in your IRA can offset that loss, allowing you to safeguard your financial future.
- Potential for Growth: As mentioned, when the economy slows, precious metals tend to rise in value. However, there are other forces at work that affect the value of precious metals, including increasing scarcity, industry use and demand and several others. This tends to increase the value of precious metals even if the economy is performing well overall.
- Defense against Volatility: When you think about the stock market, you imagine big potential gains, but also big potential losses. This is due to volatility, and every paper asset can be affected by volatility.
What Is a Self-Directed IRA?
In order to put precious metals to work on your behalf, you’ll need to open a self-directed IRA, rather than a conventional individual retirement account or Roth IRA. If you’re not familiar with this particular type of account, a brief explanation is in order.
With a traditional IRA, the account manager is responsible for choosing the specific investments for the money you entrust them with. This is a very hands-off approach to investing, and more and more people are having second thoughts about it. In a self-directed IRA, you get to control your own financial destiny.
There are two types of self-directed IRAs out there. One is a self-managed account, and the other is a true self-directed account. In the first example, you’ll work with a brokerage or financial firm, and you’ll have control over the choices made for your investments.
You’ll be able to pick the stocks, bonds or funds added to the account. A true self-directed IRA is a little different. You still work with an account manager (custodian, in this case), but all they do is hold your money. You will be able to choose from a wide range of asset classes to add to the account, including the following:
- Precious metals like gold, silver and platinum
- Real estate
- Private placements
When you’ve decided what you want to purchase, you direct the custodian to do so. They add the investment to your IRA and build your wealth. It’s completely based on your decisions, allowing you complete control. With that being said, this also means that you need to understand the rules that govern a particular asset class, as well as the tax implications of using that asset. For example, the IRS has pretty stringent requirements on what types of precious metals can be added to your IRA.
What Precious Metals Can Be Added to a Self-Directed IRA?
If you were paying attention in the section above, you noticed the mention of IRS rules when it comes to the types of precious metals that can be added to your IRA. In general, the IRS rules for retirement accounts prohibit investing in “collectibles”, including metals, stamps and the like. However, there is an important exemption here. As stated in US Code 408 (m):
(3) EXCEPTION FOR CERTAIN COINS AND BULLION For purposes of this subsection, the term “collectible” shall not include—
(A) any coin which is—
a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code,
a silver coin described in section 5112(e) of title 31, United States Code,
a platinum coin described in section 5112(k) of title 31, United States Code, or
a coin issued under the laws of any State, or
any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 7 of the Commodity Exchange Act, 7 U.S.C. 7)  requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a) of this section.
From this information, it can be determined that not only are you able to add precious metals to your IRA, but there are several potential options available to you. These can include the following:
- Silver American Eagle Coins
- Silver Canadian Maple Leaf Coins
- Many Types of Silver Bars
- Gold American Eagle Coins
- Gold Canadian Maple Leaf Coins
- Many Types of Gold Bars
- Many Types of Platinum Bars
You’ll notice that graded, collectible coins are not mentioned here. These are not allowed in a self-directed IRA.
What About Precious Metals ETFs?
ETFs, or exchange traded funds, are popular options for many investors. However, they are not ideal for the typical investor hoping to build a nest egg for retirement. ETFs are highly volatile, and are usually traded very quickly. For this reason, they’re generally used by traders and financial firms, rather than individual investors.
These assets are also plagued by many other problems, including high fees, significant volatility and market fluctuations, and limited liquidity in thinly traded ETFs. All of those are things that you want to avoid in your investing.
Of course, there’s also the fact that with precious metal ETFs, you don’t actually own any physical precious metals. So, you couldn’t cash out and hold the gold or silver if you so desired. Ideally, you’ll leave ETFs alone and invest in actual coins and bars of precious metal within your IRA.
How to Get Started
Getting started with a self-directed IRA with a focus on precious metals is actually relatively easy. However, your first step should not be to set up a new account (not necessarily, anyway), but to determine if you want to create a new account, or convert your existing conventional, Roth or other IRA into a self-directed IRA. All types of IRAs can be converted, but there are instances when this might not be the wisest move for your particular needs.
There is also no real drawback to owning multiple IRA accounts. You can own as many as you like, although your annual contribution limits remain the same whether you have one IRA or 10 accounts. If you do choose to rollover an existing IRA, this money will fund your account.
The next step would be to open an account. You’ll need a trusted custodian for this. There are quite a few options out there, but they’re not all the same, and you’ll need to do some legwork to ensure that you’re making an informed decision. In particular, consider the fees associated with the account.
Once you’ve found a custodian and created your account, you’ll need to fund it. This is the money that the custodian will use to execute your investing directives (purchasing precious metals, for instance). If you rolled over an existing IRA, you’re already funded and ready to go.
Now that your account is ready, you need to choose a precious metals dealer. This is where SD Bullion come in. There are many dealers, and, like custodians, they’re far from being the same. At SD Bullion, we offer the lowest prices on gold bullion, silver bullion and platinum bullion, period. We offer a large array of products that can be safely invested in your self-directed IRA.
When you are ready to make your first purchase of precious metals into your IRA, simply give one of our traders a call and they can walk you through our simple IRA order process.
In the End
While there are risks associated with any type of investment vehicle, a self-directed precious metals IRA can be an excellent option for those who want to diversify their assets and gain the protection offered by gold, silver and platinum. You can protect your wealth, ensure your financial future, and enjoy the offsets offered by precious metals.