Gold & Silver IRA Investing is Easy!
Financial professionals everywhere agree that asset diversification is the key to success. A self-directed IRA can buy gold and silver as long as the purchased assets meet the IRS requirements. IRAs cannot invest in collectibles (including collectible coins). Precious metals add diversity to retirement portfolios. They hedge against market cycles and inflation.
Midland works with depositories to arrange for account set up. We also facilitate valuations for IRS reporting and provide account administration.
Investors must understand the benefits of investing in precious metals with an IRA. They must have a firm grasp of the rules, guidelines, and types of precious metals that qualify. This is imperative to maintain a tax-advantaged status.
A dedicated client service specialist will assist you throughout the entire process. For more information, call a Midland Rep today at 239-333-1032.
Learn More About Investing in Gold & Silver IRAs by Watching This Short Video:
Gold and Silver IRA FAQs
There are four types of metals that qualify in an IRA. These metals 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 states that the gold and silver must be in a trustee/depository’s physical possession. You cannot hold onto the gold and silver personally or keep them in a local bank’s safety deposit box.
Midland has established relationships with two reputable depositories. The first is Delaware Depository which offers both segregated accounts and non-segregated accounts. The second is First State Depository which only offers segregated accounts.
The exact metal you purchased is what you receive if you sell or do an in-kind distribution.
Non-segregated means the purchased metal is mixed with similar metals. If you sell the metals or do an in-kind distribution, you might receive different metals. Instead, you may receive a “like” metal. For example, you buy one ounce of 2015 American Gold Eagle coins with a non-segregated account. You sell or do an in-kind distribution. You might receive different 2015 American Gold Eagle coins than the ones purchased. Or, you might receive an American Gold Eagle coin of a different year. For example, one ounce of 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 work with the third-party metals dealer of your choice. Always do your due diligence to ensure you are working with a reputable dealer. Dealers must be knowledgeable on the IRS requirements for IRA owned metals.
To verify insurance coverage, contact the dealer to determine if your metals qualify.
The process can take 1-3 weeks. Paid invoices and the shipment of metals to/from the depository affect this time. Most transactions are bound to a written price agreed on between you and the metals dealer. Therefore, you do not have to worry about gold or silver price fluctuation during the process.
Midland charges an annual administrative fee of $125.00 per depository account. We also charge a flat $50 transaction fee for the purchase (wire included) or sale of metals. In addition, you can expect to incur Depository account fees. These fees cover the storage and movement of the metals. Keep in mind your Midland account should pay all depository fees.
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.
The tax laws in the alternative asset class are not only complicated but fluid. There is absolutely no way to run my global metals operation and keep track of all the tax code changes. This is why I refer my clients to the qualified staff at Midland.