If you’re like most Americans, you’re contributing to an IRA or employer-sponsored retirement plan that doesn’t allow investments in physical precious metals. If you want to diversify your holdings into “alternative assets” like gold and silver, you can either go at it yourself, or turn to a company that specializes in these gold IRA accounts.
Key to a secure and happy retirement is diversification. Putting all your eggs in one proverbial basket will leave them exposed to whims of the stock market.
Generally, the rules concerning IRA transactions for gold IRAs are the same for other kinds of IRAs. There are some rules that apply specifically to gold and other precious metals in IRAs that are not applicable to other IRAs, such as purity and storage requirements. However, this post will focus on the tax rules that apply to the most common IRA transactions.
First introduced in 1989 as a 1 troy ounce gold coin named for the renowned Vienna Philharmonic Orchestra, the official Austrian state gold coin is made to a 999.9 fineness level – a 24 karat, ‘pure gold’ product, making it acceptable for IRA accounts in the U.S.
As investments, gold and silver have a lot in common: They are historically effective hedges against recession and times of economic collapse. They can help protect your portfolio against inflation and hyperinflation. And they are both physical, hard, tangible assets which – unlike paper securities such as stocks and bonds – can never be reduced to zero.