These days it seems like it is all the rage to invest in precious metals and rare coins. Gold coins, rare silver coins such as Morgan dollars, and gold and silver bullion are all ways to diversify your portfolio. Unfortunately, you cannot directly invest your IRA in collectibles such as jewelry, stamps or coins. If the IRS finds out you are doing this, you will face stiff penalties. However, the government does make some exceptions. Here are some tips for doing this the correct way and staying on the good side of Uncle Sam:
The collectibles have to meet purity standards.
In order to invest part of your IRA into gold or silver, the items have to consist of 24 karats for gold, and silver must either be 99.9% pure or have a fineness of .999. One exception for gold would be if your IRA is backed by U.S. Gold Eagles; they only have to be 22 karats.
You must have a safe place to hold your gold.
Precious metals in your IRA account means that you should have a secure place to put them. The IRS rules state that you cannot have them in a home safe or under your bed, for example. For your precious metals in an IRA account, one of the first things you need to do is talk to your custodian about what type of depository you should place your gold or other precious metals in.
There are other ways to invest in gold.
Are you a bit hesitant to invest in precious metals? If so, rest assured there are still ways that you can do it. One way would be to direct your IRA to invest in gold mining companies.
If you are a collectibles enthusiast, then rest assured there are a number of ways you can accomplish investing in precious metals. Talk to an expert regarding having precious metals in your IRA today!