What Types of Precious Metals are Allowed in an IRA?

For several years only gold and silver U.S. American Eagle coins were allowed as IRA investments under the federal guidelines.  However, legislation which became effective in 1998 expanded this to include gold, silver, platinum and palladium bullion which meets certain fineness standards. 

SDIRA Services has chosen Delaware Depository Service Company ("Delaware Depository") as its precious metals depository.  Through this relationship, Delaware Depository will accept the following coins and bullion products:

Gold

• American Eagle coins(1)	• Austrian Philharmonic coins
• American Buffalo coins(2)	• Canadian Maple Leaf coins
• Australian Kangaroo/Nugget coins	• Bars and rounds manufactured by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or a national government mint and meeting minimum fineness requirements(3)(4)

 

Silver

• American Eagle bullion and proof coins(1)	• Canadian Maple Leaf coins
• America the Beautiful bullion coins(2)	• Mexican Libertad coins
• Australian Kookaburra coins	• Bars and rounds manufactured by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or a national government mint and meeting minimum fineness requirements(3)(4)
• Austrian Philharmonic coins

Platinum

• American Eagle bullion and proof coins(1)	• Isle of Man Noble coins
• Australian Koala coins	• Bars and rounds manufactured by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or a national government mint and meeting minimum fineness requirements(3)(4)
• Canadian Maple Leaf coins

Palladium

• Bars and rounds manufactured by a refiner/assayer/manufacturer accredited by NYMEX/COMEX, NYSE/Liffe, LME, LBMA, ISO 9000, or a national government mint and meeting minimum fineness requirements(3)(4)

Examples of Precious Metals Not Permitted in an IRA

● Austrian Corona and Ducat	● German Mark
● Belgian Franc	● Hungarian Korona
● British Sovereign and Britannia	● Italian Lira
● Chilean Peso	● Mexican Peso and Ounza
● Columbian Peso	● South African Krugerrand
● Dutch Guilder	● Swiss Franc
● French Franc	● Rare or Collectible Coins(1)

 

⁽¹⁾ Numismatic and American Eagle coins that have undergone "certification" (also known as "slabbed" coins) are not acceptable in IRAs at this time.

⁽²⁾ Only bullion type American Buffalo and America the Beautiful are allowed (no proof/collectible coins allowed).

⁽³⁾ Minimum Fineness Required:

· Gold = .995+	· Platinum = .9995+
· Silver = .999+	· Palladium = .9995+

⁽⁴⁾ Small bullion bars (i.e., bars other than 400-ounce gold, 100-ounce gold, 1000-ounce silver, 50-ounce platinum and 100-ounce palladium bars) must be manufactured to exact weight specifications.

Last updated:  May 2011

Storage by Delaware Depository

SDIRA Services uses the precious metals storage services of Delaware Depository Service Company ("Delaware Depository") for our clients. Delaware Depository offers a secure safekeeping service and provides easy access for the physical delivery of precious metals.  Upon Delaware Depository's receipt of the precious metals, the shipment is opened and contents inspected.  After inspection, the IRA owner's metals are deposited and securely stored in an insured, subaccount in the manner shown below. 

Gold, Platinum, Palladium and Silver will be commingled (stored in bulk) within the designated storage area for SDIRA Services with Delaware Depository.  This means the IRA owner does not receive the same material as was initially deposited when the owner decides to sell, exchange, or take an in-kind distribution (personal possession of the metal). 

Gold, Platinum and Palladium (no Silver) may be segregated upon request by the IRA owner.  If segregated storage is requested, the precious metals are repackaged after verification and stored separately within the designated storage area for SDIRA Services with Delaware Depository.  This ensures that the client will receive the exact material as deposited when the time comes that the client decides to sell, exchange, or take an in-kind distribution (when the IRA owner takes personal possession of the metal).

 

Storage Fees 

Delaware Depository charges each SDIRA Services account an annual safekeeping fee based on the amount of metals held. 

• Commingled storage within the designated area for SDIRA Services will be the default manner in which precious metals are stored, unless the IRA owner specifies otherwise.
• Commingled storage will be billed annually at the rate of $0.80 per $1,000 (8 basis points); $100 minimum.   
• Segregated storage within the designated area for SDIRA Services is available upon the IRA owner's request.
• Segregated storage will be billed annually at the rate of $1.60 per $1,000 (16 basis points); $200 minimum. 
• Payment of the storage fee is required initially to open the depository account and will be billed each January for the calendar year.
• The annual depository fee will be invoiced by SDIRA Services each January and will not be prorated by Delaware Depository.

Precious Metals Valuations

The valuations shown on your statement are estimated bid values and should be used as an indication only.  Estimated bid values should not be construed as a firm bid price to buy by any broker or dealer.  Estimated bid values are generally for small quantities; the actual quantity of a transaction may affect the price you may receive for any given bullion item.  Estimated bid values do not include any dealer mark-ups, mark-downs or commissions. 

Proof coins must be encapsulated in complete, original mint packaging, including certificate of authenticity, and in excellent condition.  Non-proof coins must be in Brilliant Uncirculated condition and free from damage.  Price indications for specific bullion products may be obtained from various sources including your precious metals broker or dealer or on the internet at sites such as www.BullionValues.org.

It’s easy to invest in Gold and Precious Metals in an IRA.  

Just follow these 4 easy steps:

   

 Step 1:  Open your Precious Metals IRA account.

• To open an IRA, download the IRA kit for the type of IRA you wish to open (Traditional, Roth, SEP or SIMPLE IRA).   
• Complete the forms.
• Include a check for $200 for payment of the IRA Fees and Precious Metals Storage Fee:

» IRA First Year Account Fee of $60,

» Precious Metals Processing/Purchase Fee of $40, and

» Delaware Depository’s Precious Metals Storage Fee of $100.

If payment is not included, the fees will be deducted from the transfer, rollover or contribution funds prior to SDIRA processing the purchase. 

Note:  The Delaware Depository precious metals storage fee is an annual fee due at the time the storage account is opened, and annually in January.  Delaware Depository does not prorate storage fees.  However, storage accounts opened during the months of November and December will receive full credit of the annual storage fee for the following calendar year. SDIRA will bill the IRA for this fee, or if funds are unavailable in the money market account within the IRA, an invoice will be sent to the accountholder.   

• Mail the IRA forms and $200 payment to SDIRA Services. 

 Step 2:  Fund your IRA with a rollover, transfer or contribution.

IRA Transfer

• The IRA can be funded through an IRA to IRA transfer.  Simply complete the Transfer Request form included in the IRA Kit.
• Mail the completed and signed IRA Transfer Request form to SDIRA Services.

401(k) Rollover

• A direct rollover from a 401(k) or other qualified retirement plan is another way to fund a self directed IRA.  Contact the plan administrator of the plan to obtain the form(s) needed to request or authorize a direct rollover.

IRA Contribution

• If eligible, you can make an annual IRA contribution to fund your Precious Metals IRA.  See our IRA Annual Limits chart.

Learn more about rollovers, transfers and contributions.

 Step 3:  Once funds are available in your IRA, choose a precious metals dealer and place your trade.

• You determine the precious metals dealer you wish to use, and you will negotiate the precious metals to be purchased, and place your precious metals buy order directly with the dealer.

Step 4:  Authorize SDIRA Services to remit payment for your purchase.

• To authorize, simply sign and date the precious metals order ticket.  The order ticket must be itemized to show the type, quantity and price of the precious metals purchased.
• Fax it to SDIRA Services at 512.495.9554.
• Upon receipt, SDIRA Services will remit payment to the precious metals dealer and provide the dealer with instructions for delivery of the precious metals to Delaware Depository.

Payment and Confirmation of Your Precious Metals Purchase

• SDIRA Services will issue payment to the precious metals broker/dealer and notify Delaware Depository to expect delivery.
• Delaware Depository will send a confirmation to SDIRA Services when it receives the precious metals.   
• Once SDIRA Services receives confirmation, the precious metals will be posted and reflected in the Precious Metals IRA.
• The IRA accountholder will receive quarterly statements from SDIRA Services which reflect the account activity and value of the precious metals holdings. 
• Delaware Depository will provide the periodic valuation of your precious metals to SDIRA Services.  To learn more about this, see Valuation of Precious Metals in an IRA.

Need Help?

We hope this information shows you how to establish and purchase gold and precious metals in an IRA with SDIRA Services.  However, if you have questions or need additional help, let us know.  We're here to help!