The Internal Revenue Service allows gold investors to add it to their Individual Retirement Accounts. For those who would like to own gold and have it included in their IRA, there are certain requirements. First, however, you need to consider why gold is something that you are interested in gold IRA investments.
Gold Investments Through an IRA
In aerospace, technology, among other sectors, gold, as a precious mineral, is in high demand. However, the current market supply of gold and the fact the new gold deposits will soon run dry will mean that there will be a slow decrease in the gold available. A lower market price means less gold for investors. Other factors include geopolitical instabilities, currency devaluation and the continuing threat of inflation. 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 for Gold IRAs
First, an IRA may only contain certain types or gold according to the IRS. The 99.9% or better purity of the metal must be met and must have come from the United States Mint. American Gold Eagle and Canadian Gold Maple Leaf gold coins are acceptable. Hungarian Coronas, British Britannia or British Sovereign Coins and South African Kugerrands will not be accepted into a gold IRA.
The IRS also has rules regarding the safe storage of your gold in an IRA. You will need to pay for vault storage. The selected vault will receive the gold after you have paid for it. 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. Many IRA administrators can’t handle self-directed IRAs. An account administrator must not only know the IRS rules and regulations, but be able keep track of any changes to your precious metals IRA.