What Types of Precious Metals are Allowed in an IRA?

When considering diversifying your retirement portfolio with precious metals through a Self-Directed IRA (SDIRA), it’s essential to understand the specific requirements for which metals qualify. The IRS has stringent guidelines on the purity and authenticity of metals to be eligible for inclusion in an IRA. Below is a breakdown of the approved metals and their requirements:

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Gold Bars‍

Gold bars must meet a minimum purity standard of 24 karat (0.995+ fineness) to qualify. Approved sizes typically include:

• 1 oz.
• 10 oz.
• 1 kilo (32.15 oz.)
• 100 oz.
• 400 oz.

These bars are often sourced from reputable refineries or manufacturers with established hallmarks that ensure authenticity and quality.

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Gold Coins‍

Gold coins included in an IRA must have a purity of 24 karat (0.9999 fineness), with one notable exception—the 22 karat U.S. Gold Eagle, which is IRS-approved despite its slightly lower purity. Other popular options include coins produced by reputable mints like the U.S. Mint, Canadian Mint, and other globally recognized institutions.

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Silver Coins and Bars‍

Silver is another popular choice for IRA investments. Approved silver products must meet a purity standard of 0.999+ fineness. Examples include:

• 1 oz. U.S. Silver Eagles
• 100 oz. silver bars
• 1000 oz. silver bars

It’s important to note that pre-1965 U.S. silver coins, such as dimes, quarters, half dollars, and silver dollars, are not eligible. This is because their alloy contains only 90% silver, which does not meet the minimum fineness requirement.

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Platinum and Palladium Bars & Coins‍

Platinum and palladium are also permitted in IRAs, provided they meet a fineness standard of 0.9995+. Examples include:

• Bars ranging from 1 oz. to 100 oz. from reputable private manufacturers.
• Coins produced by mints such as the U.S. Mint and Canadian Mint.

Other countries, including Great Britain and Australia, also produce 1 oz. platinum coins that meet the fineness standard and are eligible for IRA inclusion.

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Currency‍

While traditional precious metals dominate IRA investments, some currencies can also be included if purchased from a reputable dealer. These include:

• Iraqi Dinar
• Vietnamese Dong
• Zimbabwe Dollar

Currency investments through an IRA must adhere to strict acquisition and documentation standards, ensuring compliance with IRS regulations.

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Final Thoughts‍

Investing in precious metals through an IRA can be a strategy to hedge against market volatility and inflation. However, it’s vital to ensure that the metals or currencies meet the IRS’s strict standards for purity and provenance. Working with a knowledgeable custodian or dealer specializing in SDIRAs will help ensure compliance.

By understanding the specific requirements for eligible metals and their forms, you can make informed decisions that align with your financial goals and IRA investment strategy.