Hi Everyone,

In these uncertain times, many of us have been thinking of investing in precious metals.  Several people have been asking me if that is also possible inside an IRA.  Here are some of the facts that hold true for any kind of IRA:

• Gold needs to be 0.995+ pure (24 carats is 0.999) to be in an IRA.  It can be bullions as well as coins, as long as these coins have that purity.  The Kruegerrand for example does not qualify, as it is only 0.9167 pure.

• Similar rules are for platinum and silver.

• There are only two approved depositary companies for IRA gold, so you can’t hold it in an IRA at a brokerage.  That is not true for precious metal ETF’s, as they are publicly traded.

• You also can not put bullions or coins that you currently own into an IRA as a contribution, it can only be done through the purchase from approved dealers, and you never actually see or touch the gold, as it is locked away in a vault.

So if you would like to hold gold or any precious metal in an IRA, the best way to go is to buy an ETF, as the other way is cumbersome and possibly costly due to fees.  I would hold the coins and bullions with taxable money.

Please feel free to contact me if you have any questions.

Cheers,

Patrick