Investing in Gold can prove to be a very prudent decision during an unexpected economic crisis. Gold has a good track record of withstanding the high inflation and deflation rates, economic crises, and political tensions. It is unaffected by these changes in our environment, as it keeps adding value with time.
Gold can be acquired in several ways, but purchasing Gold through Individual Retirement Accounts (IRA) is one of the most profitable methods otherwise called gold IRA.
Are you confused about the IRA-approved Gold to invest in? Stay with me in this article as I enlighten you about approved Gold commodities you can invest in to make your retirement worthwhile.
Individual Retirement Accounts (IRA) Approved Gold is gold that satisfies the International Revenue Service (IRS) laws. These precious commodities can be held and managed in different types of IRA accounts.
Nevertheless, not all gold commodities are approved to be purchased as valuable investments. The IRS has a set of regulations that needs to be met before the approval of a coin as a Gold IRA.
IRS Gold Requirements
The following are the necessary standards that need to be met before a Gold IRA can be approved:
- The purity of the Gold commodity mustn’t be lower than 0.995% before it can be qualified as an IRA.
- The deposited gold must be stored in a storage facility approved by the IRS to hold IRA gold.
- The IRA must have an assigned custodian. The custodian will serve as a trustee for the IRA.
List of IRA-approved Gold Commodities
The following is a list of common gold coins that have been approved for investment by the IRS:
American Gold Eagles: This coin is 91.67 pure, and it weighs about 1.09 troy ounce in gold.
American Gold Buffaloes: This coin is the first coin released by the United States mint to weigh about 1.99 ounces. It had rapid growth and in no time became a competitive equivalent to other relevant coins.
Canadian Gold Maple Leafs: This is one of the coins with absolute purity released by the Royal Canadian Mint.
Tips to Consider when Purchasing IRA Approved Gold
You have to be very careful when purchasing a gold IRA, as it might not be right for everybody. You must put the following into consideration before investing:
Check the Contribution limit: Make sure you familiarize yourself with the Contribution limits of the IRA in question, as certain IRAs have a yearly maximum cap for investors.
Evaluate the cost: IRA Approved gold has a yearly fee charged for storage and maintenance of your account. You should be fully aware of these fees before opening an account. You should also take note of the minimum and maximum investment fees before investing.
How to Purchase an IRA Approved Gold
To purchase gold for the sake of investment in an IRA, you need to follow the process listed below:
Open a Personal IRA.
Send funds to the IRA and choose the approved gold commodities you’d like to invest in.
Store the gold in a metal storage facility approved by the IRS.