Often times when people are starting to invest in retirement funds, they forget that money isn’t the only thing that you are able to invest. One way to diversify your retirement fund is to invest precious metals. By investing precious metals, you’re ensuring that you maintain and store wealth, and that the wealth is easier to transfer. In order to invest precious metals, you’re going to want to start a self-directed IRA. Precious metal IRAs require a custodian that will help you through the process, but they are also required to hold your assets for you because you are not able to physically keep them while they are in an IRA. With precious metal investments, it is not as simple as trading your metals for money. There is a lot of paperwork and other factors involved with the process.
One thing to be aware of is where, or more specifically who, you buy your precious metals from. Depending on who you are investing with, the policy on where you buy from may change. However, the IRS does set a purity requirement that is the same everywhere. Although most common items meet the requirements, it is important to be aware of what is not included. There are also different types of precious metals that have different values, and some retain wealth more than others. It is important to research these so you know what kind of investment you are making.
Another thing that is important to research when investing in a precious metal IRA is where you will have to store them. Most likely, any precious metals owned by an IRA will need to be held in a depository or storage facility. As an investor, you are not able to physically keep them with you as touched on briefly above. There are different facilities that coincide with the method of storage, which is another factor to be aware of.
Something to remember when investing in physical assets is that the value must be in the item or metal itself. Collectibles are not an acceptable asset to invest in. This includes things like collectible coins. If they are to be invested, their value must come from the metal content. Although briefly touched on above, it is good to remember that gold isn’t the only metal that you can invest with. There are other precious metals such as silver, platinum, and even palladium. Each of these offer different investments which allows for a more personalized, diversified way to invest. Click here to learn more about how you can start investing in precious metals.
Although investing in a precious metal self-directed IRA isn’t common knowledge, it is starting to rise in popularity. Many experienced investors are choosing to pursue this route, as it has many benefits. If you are considering following this route, the best way to make an informed decision is to get in contact with an IRA custodian who can help walk you through the process. From there you can do your own research and decide what’s best for whatever it is you are looking for.