If Im planning on buying precious metals not as an investment but as a hedge against inflation and to start diversifying a portfolio, is it better to buy bullion thats approved by an IRA or does it not matter that much? Also, is every companys IRA going to have different guidelines as to what is considered approved bullion?
First off, I applaud you for having the foresight to invest in silver, sir This said, I strongly recommend that you revise your investment strategy. I implore you to seek other options outside of IRA backed silver (to answer your question, the IRA only accepts ASEs) and instead look to a cheaper alternative such as “junk” silver U.S. coins (pre-65, 90% silver) or physical silver bullion (.9999 purity). DON’T go through the IRA to invest in silver as you can not take physical possession of your silver until age 65. Always remember, if it’s not in your hand, you don’t truly own it. -C.J.
I'm not quite sure by your post if you're interested in using your IRA funds to invest in silver, or if you're asking if there's a difference between IRA approved silver and silver that isn't approved for investing in an IRA. I think CopperJacket indirectly answered that question, but basically, no. When they say it's approved for investing in an IRA, I think they mean they're willing to jump through the hoops necessary for you to buy those for your IRA. It's a somewhat complex procedure from what I understand. You buy the silver, they send it off to a custodian like Brinks to store the silver until you reach retirement age, then the custodian sends it to someone that will buy it and then you get cash monies. In this scenario, you never take physical possession of your silver. I have recently heard of a different way of buying precious metals for your IRA. You create a self directed IRA LLC, make your IRA contributions to the LLC, then use the LLC's funds to buy silver, or virtually any other investment you want. What I don't know is how much of an administrative burden there is to doing this and if you still need to buy IRA approved silver bullion. Do a search on the web for "self directed ira llc" and you'll find lots of information.
Actually my understanding is Maples/Philharmonics/Libertads/Kooks and other .999 bars/rounds are all eligible for Silver IRA's. I do agree though that it might be better to invest IRA money in other types of securities/investments and take physical possession of Silver and diversify with junk silver etc.
Clearly I didnt understand how an IRA worked. I thought I was buying the bullion and having it in hand, but could only use IRA approved bullion pieces in any portfolio. Still very naive on the subject and right now Im just gathering information, rather than buying any bullion product.
No investment inside a qualified retirement account can be held by the owner; it must always be held with a custodian. Personally I think PM's are better suited outside IRA's and held in-hand.
Totally agree. And thanks for letting me know about which types of bullion are acceptable. I guess I was under the impression that the IRA only accepted AMERICAN .9999 bullion. Best, C.J.
I didn't even know you had to have silver ounces but now that I know there's a custodian involved I'll continue using my wife instead.
