How to Buy Gold & Silver in an IRA

Investing in Gold & Silver is Easy!

Most financial professionals across the globe agree that asset diversification can be a key to success. A self-directed IRA can buy gold and silver as long as the purchased assets meet the IRS requirements. Collectibles are prohibited in IRAs, and some coins are considered as such. Allowable precious metals add diversity to retirement portfolios while hedging against market cycles and inflation.

 

 

As a premier self-directed IRA custodian, Midland Trust is equipped to handle all the unique requirements involved with holding precious metals in your retirement plan. We work with reputable depositories to arrange depository account set up, facilitate valuations for IRS reporting, and provide account administration.

In order to maintain a tax-advantaged status, it is important for investors to understand the benefits of investing in precious metals, the rules and guidelines, and the type of precious metals that qualify.

A dedicated client service specialist will assist you throughout the entire process, from funding the account to confirming the deposit of the metals into your Depository account. For more information visit www.midlandtrust.com/goldira or call a Midland Rep today at 239-333-1032.

 

You may also click here to read our step-by-step blog on how to invest in gold and silver in your self-directed IRA.

Learn More About Investing in Gold & Silver IRAs by Watching This Short Video:

Precious Metals FAQs

There are four types of metals that can be held in an IRA that must meet certain fineness requirements:

  • Gold – 99.5%
  • Silver – 99.9%
  • Platinum – 99.95%
  • Palladium – 99.95%

The most common gold and silver coins bought are American Eagle and Canadian Maples. Bars and rounds manufactured by a NYMEX or COMEX approved refiner/assayer or national government mint and meeting minimum fineness requirements are also common.

The IRS specifically states that the gold and silver must be in the physical possession of a trustee/depository. You cannot hold onto the gold and silver personally or in a safety deposit box at your local bank.

Midland has established relationships with two reputable depositories: Delaware Depository and First State Depository. Delaware offers both segregated accounts and non-segregated accounts, while First State only offers segregated accounts.

Segregated means the gold and silver you buy and put in the depository is exactly what you will receive if you were to sell or do an in-kind distribution and take ownership of the gold or silver personally.

Non-segregated means the gold and silver you put in are mixed with other similar metals. If you were to sell the metals or do an in-kind distribution you may not receive the same metals you originally purchased but a “like” metal similar to it. For example, if you bought 1 oz 2015 American Gold Eagle coins with a non-segregated account and were looking to sell or do an in-kind distribution you may receive another 1 oz 2015 American Gold Eagle coins (different than the ones originally purchased) or you could even receive an American Gold Eagle coin but from a different year for example 1 oz 2018 American Gold Eagle coins.

Depositories often have onsite dealers. If you are looking to work with Delaware, you may want to reach out to Fidelitrade, (800) 223-1080. If you decide to work with First State, you may want to contact The Argent Group, (302) 765-3352.

You may also work with the third-party metals dealer of your choice. Always do your due diligence to make sure that you are working with a reputable dealer who is knowledgeable on the IRS requirements for IRA owned metals.

To verify any insurance coverage, contact the dealer directly to determine if your metals are covered.

The process can take 1-3 weeks as invoices need to be paid and metals may need to be shipped to/from the depository. Most transactions are bound to a written price agreement between you and the metals dealer, so you do not have to worry about the price fluctuation of gold or silver during the process.

Midland charges an annual administrative fee of $125.00 per depository account and a flat $50 transaction fee for the purchase (wire included) or sale of metals. In addition to Midland fees, you can expect to incur Depository account fees for the storage and movement of the metals. Keep in mind all depository fees should be paid by your Midland account.

Storage Fees (as of December 2019):

Delaware Non-Segregated Account – $0.80 per $1,000 ($95.00 minimum)
Delaware Segregated Account – $1.60 per $1,000 ($190.00 minimum)
First State Segregated Account – $1.00 per $1,000 ($125.00 minimum)

Distribution and shipping fees may also apply.

Peter T
The tax laws in the alternative asset class are not only complicated but they are fluid as well. There is absolutely no way that I could run my global metals operation and keep track of all the on-going changes in the tax code. This is why I refer my clients to the qualified staff at Midland.