We all know how much you can’t wait to retire. No more having to work that 9 to 5 job, coming home and going to sleep, then doing it all over again the next day. Instead, you can spend the rest of your days doing some much needed traveling or playing a few rounds of golf. Before being able to do all of these relaxing activities, you’re going to need a retirement account. Good thing you created that IRA account and started saving for retirement!
Now, with the gold craze going on, chances are fairly high that you’re wondering about it and how to go about doing it. Gold is a great asset to invest in; prices are getting higher by the year, meaning that you get more money when you decide to liquidate your assets. In addition, gold is less affected by inflation than traditional IRA assets (such as cash).
There are different types of gold that are acceptable to put into an IRA account, such as coins, bars, and yes, even bullions. For each of these types of gold, they have to be at least 99.5% pure (though having a purity of 99.99% is ideal), which means that they have to be weighed and graded by a certified professional prior to being allowed to be in the account.
For those of you who may not exactly know what bullion is, it is a refined and weighed piece of metal. In this case, the metal to which we are referring is gold. Gold bullion is often seen and thought of as gold bricks, which is often how they are sold. Rarely is gold sold in pieces or chunks. In fact, these gold bricks are how they are stored in financial institutions.
When gold bullion is in your IRA account, you don’t have the gold immediately available to you. Often, it is stored two places removed from you. Does this sound confusing? Well, when you open a gold-backed IRA account, you have to go through a custodian. This custodian is who you talk to in order to purchase gold on your behalf. Keep in mind that these custodians often charge you a fee, either per transaction or an annual fee. These custodian firms are not legally allowed to keep the gold in their possession, so the gold that they purchase with your money is stored in a financial institution for safekeeping until you decide to sell or liquidate your assets.
To answer the original question, yes, it is definitely possible to hold gold bullion in your IRA account. Keep in mind that you don’t have physical control over the account; you only have control over what goes in it. So be sure to pick a reliable custodian that you know will be responsible and trustworthy with your valuable investment.