The Internal Revenue Service (IRS), now allows investors to add gold 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, one must evaluate why you would choose to invest in gold ira.
Gold Investment through an IRA
In aerospace, technology, among other sectors, gold is a valuable metal. The market is limited in gold, and new gold deposits are likely to run out, so there will be a decrease in the supply. A lower market price means less gold for investors. Geopolitical instability as well as currency devaluation and the continuing threat of inflation are some other factors. While gold prices may fluctuate over time, they are an excellent investment for the wise investor. An IRA can include gold.
IRS Rules on Gold IRAs
First, an IRA may only contain certain types or gold according to the IRS. The gold must not be less than 99.9% pure or have been minted by a 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 within an IRA. The vault segregated service, which costs money, is what you need to store the gold in. The selected vault will receive the gold after you have paid for it. You cannot physically take possession of the precious material. This means that you will need a trustee to oversee your gold IRA investments.
You will also need an account manager. Not all IRA managers are capable of managing self-directed IRAs with the corresponding inclusions precious metals. Account administrators should be knowledgeable in all aspects of the IRS rules. They must also keep abreast of any changes to the precious-metals IRA.