Unlocking the Recession-Hedging Potential of Precious Metal IRAs

Beginners Guide: Precious Metals Investing with Self-Directed IRAs

Gold, silver, platinum, palladium and other precious metals have long been considered safe-haven assets. Mainly because they offer a hedge against inflation, economic uncertainty, and geopolitical risks. Given how unstable the financial headlines were in 2023—between bank failures and geopolitical issues—this may be a good time to reflect on an asset class like precious metals. Many investors believe that precious metals should be a part of their investment portfolio. And the good news is that you can invest in precious metals through your Self-Directed IRA. In this blog post, we’ll explore how you can invest in precious metals with Self-Directed IRAs.

The Basics of Investing in Precious Metals with Self-Directed IRAs

A Self-Directed IRA is an IRA that allows you to invest in alternative assets. These assets include real estate, private equity, private notes, precious metals, and more. Investing in precious metals with Self-Directed IRAs can provide investors with a diversification strategy. It will also afford you the opportunity to add a tangible asset to their investment portfolio. Since precious metals have been around as an investment for thousands of years, they tend to give investors a lot of confidence. And what’s more, you’ll be able to choose the percentage of your portfolio you dedicate to precious metals. There’s no need to make gold and silver 100% of your assets if that’s not what you want to do. As a Self-Directed IRA administration firm, in fact, American IRA won’t give you specific financial advice. We’ll simply handle the administration of your IRA.

To invest in precious metals with a Self-Directed IRA, you must first open an account with a custodian like American IRA. Once you’ve established the account, you can direct your custodian to purchase precious metals on your behalf. Your custodian will be responsible for holding the assets and managing the paperwork associated with the investment.

Types of Precious Metals You Can Invest in with Self-Directed IRAs

You can invest in several types of precious metals with Self-Directed IRAs, including gold, silver, platinum, and palladium. The Internal Revenue Service has strict rules regarding the purity and form of the precious metals you can invest in with your Self-Directed IRA. Precious metals must meet certain criteria to be considered IRA-approved. For example, gold coins and silver coins alike must have a certain amount of purity to be considered valid precious metals investments within a Self-Directed IRA. That’s why investors can’t keep sterling silver as a retirement investment—it’s too difficult to valuate.

Storage and Insurance of Precious Metals

To be valid retirement investments, your precious metals will need to be stored by a third-party depository approved by the IRS. The depository you choose must be insured and provide segregated storage for your metals. Your custodian will help you find an approved depository and manage the logistics of storing your metals. The storage fees associated with storing your precious metals can vary depending on the depository you choose.

As stated earlier, investing in precious metals with Self-Directed IRAs can provide a diversification strategy and a hedge against inflation, economic uncertainty, and geopolitical risks that seem all too prevalent these days. Remember, before investing in precious metals, it’s important to do your research. You will need to understand the risks, and consult with a financial advisor to determine if it’s the right investment strategy for you. Interested in learning more?

Learn more about Self-Directed IRAs, including Self- Directed Roth IRAs, and when they can be used to invest in precious metals and other alternative assets.  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guide or visit us online at www.AmericanIRA.com.