Investing in Precious Metals

A self-directed IRA can buy precious metals 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.

Most financial professionals across the globe agree that asset diversification can be a key to success. As a premier self-directed plan administrator, Midland IRA is equipped to handle all the unique requirements involved with holding precious metals in your retirement plan. We arrange for storage in a depository, 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.

Watch this short video to learn about Precious Metals in a Self-Directed IRA

The Benefits of Precious Metals in an IRA

  • Precious metals are tangible assets.
  • Precious metals allow for a truly diversified portfolio.
  • Precious metals provide a hedge against equity fluctuations.
  • Asset growth/profits are tax-deferred.

Precious Metals FAQs

Why do I need a depository?

The IRS specifically states that the metals must be in the physical possession of a trustee (a bank, credit union, state-chartered trust company, or a nonbank custodian approved by the IRS).

What qualifies a metal to be held in an IRA?

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%

Does Midland recommend any dealers or depositories?

We currently work with Delaware Depository and First State Depository. We are unable to make any recommendations as a third party administrator. Once you identify the depository that you would like to work with, please contact Midland with the details.

How do I find a metals dealer?

You are able to search online to find a metal’s dealer. You will want to research the dealer to ensure you are working with a trusted company. Some depositories will also offer a list of trusted metal’s dealers.

Are my metals insured when being shipped from the dealer to the depository?

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

How do I pay the depository fees?

Any depository fees must be paid from IRA funds. Expense requests can be easily submitted through your Midland360 portal as a Bill Payment.

Do I need to provide an annual valuation of my metals to Midland?

Metals are unique in that the client does not have to supply the value update to Midland. The depository will confirm the value of each metal held for Midland to update accordingly.

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.