If you hold an IRA account, whether it’s a SEP, Traditional, Spousal or Roth IRA, you can invest in gold bullion coins and bars. Is this news to you? Many Americans ignore this possibility when it comes to gold investing. The benefit of investing through your IRA is the tax-incentive component. In fact, your investment stays tax-free for as long as you do not hold the gold yourself. In fact, you will need to find an accredited custodian to hold your gold
How Do I Get Started?
The first thing you need to do is to determine whether your IRA allows you to hold precious metals such as gold, silver, palladium or platinum. Talk to your IRA custodian, or your employer if you have a 401k plan through them.
Don’t worry, if your IRA does not allow gold, you can always open a self-directed IRA for your gold investing. The IRS allows you to open a 2nd IRA account for precious metals. Once you open your self-directed IRA, you will have to find a custodian that specializes in gold IRA rollovers and transfers. There are many companies in America that can do this.
What Type of Gold Can I Buy in my IRA
According to the IRS rules, only gold that has a purity of .999 or higher is allowed in IRAs. This includes the American Gold Eagle, Canadian Gold Maple Leaf, Austrian Philharmonic, American Gold Buffalo, Credit Suisse Gold Bars, PAMP gold bars and several other silver, platinum and palladium bullion coins and bars.
See a more comprehensive article on IRA and gold investing here.
How Much Should I Invest?
This is something that you need to discuss with your financial analyst. APMEX recommends that 10-15% of one’s portfolio should be in gold. Other companies recommend up to 25%. Certain millionnaires, such as John Paulson, have invested over 40% of their assets in gold. If you are a beginner investor, it is good to start with a low bracket and see how comfortable you feel about your gains over time.