Throughout the years, investors have often felt that they have had the freedom to choose a well diversified mix of investment offerings that are placed inside of their Individual Retirement Accounts. They have typically done so with financial vehicles such as equities and bonds. Unfortunately, this leaves out a myriad of other asset classes – assets that could be invested in through a self directed IRA account.
What is a Self Directed IRA?
Self directed IRA accounts are similar in structure to regular IRAs. Where they differ is in the element of control that is provided to the account owner in terms of investments that can be placed inside of the account.
Unlike regular IRA accounts, self directed IRAs allow investment in tangible assets such as real estate and commodities, as well as options, futures, and precious metals such as gold, silver, platinum, and palladium. These investments are typically made with the assistance of a self directed IRA custodian.
What is a Self Directed Gold IRA Account?
Within a self directed IRA, gold and other precious metals can be held. Because of this, IRA accounts that focus on these particular types of investments are oftentimes referred to as self directed gold or self directed precious metals IRA accounts.
Many self directed IRA companies today have focused on self directed gold IRA accounts due in large part to the vast opportunities that investing in gold and other precious metals can provide. These benefits include growth, diversification, a hedge against inflation, and principal protection – while at the same time taking advantage of either tax deferred or tax free growth.
Within a self directed IRA, precious metals must meet minimum fineness standards, as well as other IRS (Internal Revenue Service) guidelines. These include:
- Gold – .995% or higher
- Silver – .999% or higher
- Platinum – .9995% or higher
- Palladium – .9995% or higher
Purchasing Precious Metals in a Self Directed IRA Account
In order to purchase gold and other precious metals in a self directed IRA, investors must first open a precious metals IRA account. In doing so, it is important to find a gold IRA company that has a good reputation in the industry, as well as high ratings from the ratings agencies such as the Better Business Bureau.
Most of the best self directed IRA companies will also have customer service representatives that will walk investors through the account opening process, as well as help investors with choosing the best gold and other metals products for their specific investment related goals.