The Internal Revenue Service (IRS), now allows investors to add gold to their gold investment account. Individuals who want to invest in precious metals such as gold must follow certain guidelines. It is important to first evaluate your reasons for wanting to invest in gold.
Gold Investments through an IRA
Precious metal gold is highly sought after in aerospace, technology and other industries. However, due to the limited supply of gold on the market as well as the fact there are no new gold deposits, there will be a gradual decline in the availability of the metal. An investor will see a lower market price if there is less gold. Geopolitical instability and currency devaluation are other factors. Inflation is a constant threat. Even though gold prices fluctuate, gold is a great investment for the smart investor. An IRA should include gold.
IRS Rules on Gold IRAs
First, the IRS states that an IRA can only include certain types of gold. The 99.9% purity or higher of the gold must meet the requirements and it must have been produced by United States Mint. These gold coins include American Gold Eagle coins as well as Canadian Gold Maple Leaf coins, Austrian Philharminc and Australian Kangaroo coin. Hungarian Corona and British Britannia and British Sovereign coin are exempted from a IRA in gold.
Second, the IRS established guidelines for gold storage in an IRA. This is called vault segregated storage. You will be required to pay for it. After you make your purchase of gold, the gold will automatically be transferred to the chosen vault. You cannot take physical possession. Therefore, you need to find a trustee in order to invest in gold IRAs.
Third, an account administrator is required. Self-directed IRAs can be complicated and not all IRA administrators are capable of handling it. A good account administrator should not only be knowledgeable about the IRS rules and regulations but also be able to keep up-to-date on all changes to the precious metals IRA.