Investing in Precious Metals IRA (2023) Wealth Protection: Retirement Security with Silver & Gold

precious metals are seen as a premium choice to provide safety to retirees investment portfolio.

The advent of individual retirement accounts (IRAs) has eliminated the need to worry about post-retirement woes. Not only does this method provide valuable tax exemptions, but it also aids in planning a financially secure retirement.

Contrary to popular belief, IRA investments are not limited to money. In fact, you can target a variety of unconventional assets like precious metals. How about holding precious metals in an IRA? This option allows you to prepare for retirement by investing in metals like gold, silver, platinum, and palladium.

Curious about how the process works? Read on to learn everything about precious metal IRAs.

What is a Precious Metal IRA?

Usually, IRAs are available in two categories – regular and self-directed. The primary difference between these two forms lies in the types of investment they allow. For example, the custodians open and manage regular IRAs and disallow additional investment methods.

On the other hand, self-directed IRAs are opened by custodians but directly managed by the account holder. Thanks to this difference, these IRAs have no limitations on the type of investment. This means precious metals in your self directed IRA is an option.

A precious metal IRA allows you to buy physical metal and use it for retirement by storing it in a depository. But is it worth choosing over a regular IRA?

Why Invest in a Precious Metal IRA?

According to Macro trends, the average closing price for gold is at a whopping USD 1,877.53 for the year 2022. This figure has considerably increased from the turn of the millennium, with gold prices averaging only USD 279.29 in 2000. Those who chose to invest in gold in 2000 are sleeping more soundly in todays turbulent times.

Hence, investing in a precious metal IRA, such as those offered by Augusta Precious Metals, will help you gain increased earnings due to the fluctuating prices of these metals. In addition, precious metal IRAs are also associated with a host of other benefits, such as:

⦁ It is safe since the value of precious metals can never drop to zero. Plus, the market activity may further boost the price and generate a hefty amount till you retire.

⦁ An unparalleled level of control since you have complete control of your IRA. You can also gain significant tax advantages.

⦁ These are fairly liquid investments since you can sell precious metals quickly and convert them to cash if required.

Reading through these benefits begs a standard question: Do all precious metals promise the same returns?

The Best Precious Metals to Invest in IRA

The most renowned precious metals in the market include gold, silver, platinum, and palladium. Each metal caters to different industries and possesses different factors that add to its price. Let’s look at how each of these metals fare:

Gold: Perhaps the most renowned and trusted metal, gold has especially been used during times of turbulence, like political crises, or as a hedge against rising inflation.

Silver: Although silver is priced less than gold, it has high volatility due to its industrial applications. In some cases, silver may outperform gold.

Platinum: Primarily an industrial metal, platinum is also used for making jewelry. It possesses significant investment value primarily due to its rarity, making it a reliable option in the long run.

Palladium: This metal has a variety of applications, from electronics to medicine. Due to its rare occurrence, it can be thought of as a suitable investment method.

In addition, the IRS demands that the gold coins and bullions must be at least 99.5% or higher in terms of purity.

Setting up and Funding a Precious Metal IRA

As we saw above, a precious metal IRA requires you to choose a self-directed IRA. For this, you must choose a custodian, a bank or any organization approved by the Internal Revenue Service (IRS). After choosing a custodian and opening a self-directed IRA, follow the steps listed below:

⦁ Finalize a dealer for purchasing the metal(s). You can ask your custodian to redirect your funds to buy the metal you want.

⦁ Choose the type of product you want, taking help from the dealer if possible. For instance, American Eagle Bullion Coins are a popular option among investors.

⦁ Select a depository approved by the Internal Revenue Code to store your precious metals since you cannot store them yourself.

⦁ Finish the transaction. Now you can purchase the required metal from your chosen supplier, which will be shipped to the depository.

For buying these metals, you can use funds from a previous IRA account or your 401(k).

Standard Regulations Involved in Precious Metal IRAs

Some standard rules are associated with setting up and operating a precious metal IRA. To better understand the entire process, these rules are important.

Contribution Limit

The contribution levels for a precious metal IRA are capped at USD 6,000. You can deposit an additional USD 1,000 if you’re 50 or older.

Withdrawal Rules

You can withdraw your assets from this IRA in two ways:

⦁ In-kind, where the precious metal is shipped from the depository to your address

⦁ Depository purchase, where you can avail the monetary value of the metal

Most importantly, you can withdraw your assets without any taxation when you turn 59 and a half. If you decide to remove these metals before the specified age, you’ll incur a penalty of 10% by the IRS.

Similarly, you can choose not to withdraw these assets until the age of 70 and a half, allowing them to grow more in value. However, you must still take the minimum withdrawal each year.

Tax Implications

When you open a precious metal IRA, your contributions and gains will not be taxed in terms of collectibles. In fact, contributions are deductible in most cases as well. So, the IRS will subject you to the marginal tax rate.

Risks Associated with Precious Metals IRA

Choosing a self-directed IRA like precious metals can be a double-edged sword. While it comes with multiple benefits, it is also associated with certain risks, such as:

⦁ The volatility of the market, with prices fluctuating in response to the value of the metal

⦁ Higher costs, including the annual cost associated with the depositories as well as a higher management fee to the custodians

⦁ Funding restrictions, since your custodian must buy the precious metals and store them in the depository. You cannot use any prior-owned precious metals for the purpose.

Given these risks, it might be natural to wonder: Are these investments safe?

Are Bitcoin IRAs and Gold IRAs Safe Investments for Retirement?

Diversification is always instrumental in maximizing your gains. As a result, you can dedicate a small amount to bitcoins and gold in IRAs to ensure that you can solve your post-retirement financial woes.

Granted, these options may appear unstable due to the market’s volatility, but you can average out their value. A rule of thumb is to dedicate maybe 5 to 10 percent of your assets to gold and bitcoin. By doing this, you ensure that you aren’t succumbing to the swings of the market since a majority of your IRA is in dollars.

If you are worried about securing your retirement portfolio to withstand recessions, gold and silver investments have a long impressive track record for protecting investors.

Summing Up

If you are looking for a completely risk-free investment option, you would not prefer precious metal IRAs, but the risk is minimal compared to stocks. However, you can start small to gauge the performance of these metals and experience the tax breaks and asset protection related to them.

Since metals like gold will always occupy a value greater than zero, your gold IRA will remain relatively secure. Who knows, it might even provide you with unexpected gains!


Q) How does investing in precious metals through an IRA work?

A) The procedure for a precious metals IRA is simple. Start with opening a self-directed IRA, and choose a custodian, like a bank and a precious metal supplier. Next, you can choose a depository where you want to store your metals, and you’re done!

Q) Who manages Precious Metal IRAs?

A) Your precious metal IRAs are usually handled by custodians, like a bank or any institution authorized by the IRS. You can choose the supplier and the depository, but the purchases have to be made by the custodian only.

Q) What types of precious metals can be used for investing in an IRA?

A) The precious metals have to be approved by the IRS, which has some standards for each metal. For instance, gold has to be 99.5 pure. On the other hand, platinum and palladium must be at least 99.95% pure.

Q) Where can I open a Precious Metal IRA?

A) You can open a precious metal IRA with any institution regulated by the IRS. We recommend Augusta Precious Metals as our #1 Gold IRA company.

<<Sign Up for a Silver IRA FREE Web Conference Today!>>

Risk Disclosure: Any investments, such as precious metals, come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.

Disclaimer:  The website's owners of may be compensated for suggesting certain businesses, goods, and services. While we do everything possible to verify that all of our content is accurate, the information we provide may not be impartial or unbiased, and it does not constitute financial advice.