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Investing in Metals for the Long-Term – The Self-Directed IRA

Bym Abdullah

Nov 27, 2020


Many investors of valuable minerals like gold, silver, platinum, or palladium buy specific coins or bars with that extra few bucks at the point of the period. While many do consider it a long-term investment, there are a large number of bullion customers who are simply seeing for a way to save money and have a bartering tool should the need arise.

While this is certainly important, your long-term financial success is equally important… even though retirement may be more than a few years off for you, it’s important you consider how you will have the funds to be able to quit working permanently.

An Individual Retirement Account, or IRA, is one way many Americans save for their retirement.

What makes an IRA a preferred method is its tax advantage – for each dollar contributed to the account (… up to a certain amount) can be reduced from your taxable income.

You may have heard about IRA accounts for stocks, mutual funds, and other financial instruments. As these accounts have grown in popularity though, so have the variety of IRA investment options. One of these special accounts is what’s referred to as a Self-Directed, or Precious Metals IRA.

Rather than being limited to standard stocks and mutual funds, a Self-Directed IRA allows the account holder to invest in real estate, private stock, LLCs, and yes, gold and silver bullion.

Other than that, the difference between a Self-Directed IRA and a Traditional IRA is relatively minor. Both require a custodian to manage the account, and both allow you to deduct at least as part of your investments from your taxable income.

For example, if you deposit $2000 and fall within the 25% tax bracket, your tax bill can decrease by $500.

Protection from bankruptcy is another advantage of any type of IRA account… up to $ 1 million in assets is protected by law. Many states also have prohibitions on using IRA retirement funds to satisfy a legal judgment.

As far as metals go, you can choose from a wide variety of gold coins and other forms of bullion from the U.S. and around the world to include in your IRA. Some of these metals include:

• American Gold, Silver, Platinum and Palladium Eagle

• Canadian Gold/Silver Maple Leaf

• Austrian Gold Philharmonic

• Pamp Suisse, Johnson Matthey, or NTR gold bars

•… and many more

To get started, you must set up a Self-Directed IRA account with the custodian of your choice. Funds must be on deposit with your custodian before placing an order with your preferred bullion dealer. Once your order is placed, it will be shipped to the custodian for storage.

is investing in metals a good idea

It’s important to remember that you do not take physical possession of your metals. They are stored on your behalf by the custodian of your choice.

The tax advantages, combined with the security of storing your investments in a secured vault, draw many to consider a Self-Directed IRA.

If you’ve built up a good supply of bullion to keep on-hand but wish to continue to invest in metals as part of achieving your long-term financial goals, a Self-Directed or Precious Metals IRA may be the answer.

Of course, it’s important you carefully consider all investments and do the proper research. If you want easy access to your metals, an account of this nature is not for you. But if you’re looking to save for the long-term, a Self-Directed IRA can offer many advantages over direct buying.


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