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Precious Metals Investing
Planning for retirement can be challenging, particularly in times of unstable economic conditions and a volatile stock market. Traditional retirement portfolios consist of stocks, bonds, and mutual funds.
Many people choose to diversify their retirement portfolios with investments in gold and other precious metals, which may help guard against high inflation and economic uncertainty.
Gold may be used to hedge against inflation. For the 20 years through June 30, 2019, gold outperformed the S&P 500, bonds, and oil, according to J.P. Morgan Asset Management.
Gold and other metals can also offer liquidity within your account, meaning they can readily be converted into cash should the need arise.
Individual Retirement Accounts (IRAs) offer tax-deferred or tax-free growth, which means that investments made using an IRA may grow to be larger than similar investments made outside an IRA.
To invest with a “gold IRA” or invest in other precious metals in an IRA, certain requirements must be met. Here are the answers to frequently asked questions about gold and other precious metals in an IRA.
Providing diversification and liquidity with no credit risk, gold can be especially attractive during periods of increased market volatility. Many investors choose to diversify retirement portfolios with alternative assets that are not correlated to the stock market.
You can buy gold coins and gold bullion bars, silver, palladium, and other precious metals that meet certain fineness requirements with your IRA.
Metals must be produced by manufacturers accredited by NYMEX/COMEX, LME, BMA, NYSE/LIFFE/
CBOT, and ISO-9000, or a national mint to be held in a retirement account.
The minimum fineness requirement for bullion is:
Video: Precious Metals in an IRA
Home storage is not permitted when your metals are held in an IRA. Your physical assets owned by an IRA must be held by a qualified custodian and stored in a secure, IRS-approved depository. Many depositories offer segregated or non-segregated storage. Segregated storage means that your personal metals are identified and stored under your name.
It’s easier than ever to locate a potential investment opportunity that suits you. Visit Investment District, our online marketplace, to browse investment options from precious metals, cryptocurrency, lending, private equity, and real estate asset providers.
The IRS requires that any IRA be administered by a qualified custodian. Self-directed account custodians do not provide investment advice, but they do provide administrative and reporting services, and will purchase precious metals on your behalf per your direction through your IRA account.
For the 20 years through June 30, 2019, gold outperformed the S&P 500, bonds, and oil.
J.P. Morgan Asset Management
The first step is to open and fund your Self-Directed IRA account. This can be completed through a traditional paper application, but many people choose to use our simple application process that can be completed entirely online. Equity Trust can initiate the transfer of funds if you’re rolling over from an existing account. The timing of this process is dictated by the custodian currently holding the funds.
After your account has been funded, you are ready to purchase precious metals within your IRA. After you choose a precious metals dealer or platform, instruct your custodian to purchase your desired coin or bullion products.
You can at any time choose to retrieve your precious metals from the depository storage facility as a full or partial distribution. As with any early IRA distribution, taking physical possession with a full or partial distribution of your precious metals may result in taxes and penalties unless rolled over to another qualified custodian.
You may also choose to sell your metals back to an authorized dealer and the cash received would return to your IRA.
Generally, you may purchase coins minted by the U.S. government as legal tender, such as American Gold Eagles and American Silver Eagles (1 oz, ½ oz, ¼ oz and ⅒ oz). It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion, per IRS Publication 590.
Yes. An investor may have multiple IRAs, but no matter how many you have, your total annual contribution limits remain the same.
Yes. If you have an existing IRA or 401(k), you may fund an IRA by transferring either the full or a partial amount. Because the funds are being directed into another tax-advantaged account there will be no tax penalties. Equity Trust will facilitate this process at your direction.
The current law allows for both transfers from IRAs as well as rollovers from qualified retirement plans, such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP), and annuities.
If you have earned income, you’re eligible for an IRA, including one that holds precious metals.
No. An IRA rollover is a tax-free process with no fees or penalties, if done according to IRS guidelines. Funds received from an IRA are not subject to penalty or taxation as long as they are deposited into your new IRA account within 60 days.
You may receive distributions from your IRA in the form of physical gold, silver, platinum or palladium, depending on what metals are in your account. You may also convert your metals into cash.
At the age of 59½, the beneficiary of an IRA may begin receiving penalty-free distributions from their account.
Call us today to discuss investing in precious metals in an IRA: 888-382-4727.
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