Investing in a Precious Metals IRA: The 2025 CoinWeek Guide

This is an image of an American Gold Buffalo, American Platinum Eagle, and an American Palladium Eagle. — An American Gold Buffalo, an American Platinum Eagle, and an American Palladium Eagle. Image: United States Mint / CoinWeek.

A Precious Metals IRA is a valuable tool for diversifying your retirement savings with physical assets. This self-directed account allows you to hold tangible precious metals like gold, silver, platinum, and palladium, all while enjoying the tax benefits of a traditional IRA.

While the concept of a Precious Metals IRA has remained consistent, the rules and the market for these accounts have evolved. Here’s what you need to know in 2025 to make a sound investment.

The IRS Rules: What’s In and What’s Out

The Internal Revenue Service (IRS) has strict guidelines on which precious metals can be held in a retirement account. This is to ensure the investment is for its commodity value, not its collectibility.

Purity Standards: The most critical rule is the minimum purity, or “fineness,” requirement.
Gold: Must be at least 99.5% pure, with the notable exception of the American Gold Eagle coin, which is 91.67% pure but is specifically permitted.
Silver: Must be at least 99.9% pure.
Platinum and Palladium: Must be at least 99.95% pure.
Eligible Products: The IRS approves specific bullion coins and bars from national government mints and accredited refiners. Examples of popular, IRA-eligible gold coins include the American Gold Buffalo, Canadian Gold Maple Leaf, and Australian Gold Kangaroo.
Ineligible Products: You cannot hold items that are considered “collectibles” in an IRA. This includes most numismatic coins, which derive their value from their rarity and historical significance rather than their metal content. While some proof coins, such as the American Silver Eagle and American Platinum Eagle, are allowed, the general advice to buyers remains: avoid proof coins for a Precious Metals IRA. They carry a significant premium above their actual bullion value, and this premium typically does not appreciate with the spot price of the metal. For the most efficient investment, stick to standard, “Mint State” bullion.

The Process of Setting Up a Precious Metals IRA

This is an image of the reverse of an American Gold Eagle bullion coin. — Image: The Reverse of an American Gold Eagle. Adobe Stock.

You cannot simply buy gold and put it in a traditional IRA. The process requires a few key players to ensure all IRS regulations are met.

Select a Self-Directed IRA Administrator: The first step is to open a self-directed IRA account with a specialized administrator. Unlike a standard brokerage firm, these administrators are equipped to handle alternative assets, such as precious metals. They manage all the legal and transactional paperwork, ensuring your account remains compliant. While they don’t provide investment advice, they are essential for the proper functioning of your account.
Fund Your Account: Once your account is established, you can fund it. This can be done by making a new contribution or by performing a tax-free rollover or transfer from an existing retirement account, such as a 401(k), 403(b), or another IRA. The administrator handles the movement of these funds.
Purchase the Precious Metals: With your account funded, you can now instruct your administrator to purchase your desired precious metals from a reputable bullion dealer. The administrator will facilitate the transaction, sending the funds directly to the dealer.
Secure Storage at an Approved Depository: This is a non-negotiable step. Under no circumstances are you allowed to take personal possession of the physical metals in your IRA. The IRS considers this a taxable distribution, which can result in significant taxes and penalties. Instead, the metals must be shipped directly from the dealer to an IRS-approved depository.
Depository Options: Most administrators work with a variety of depositories, giving you the freedom to choose based on location, services, and fees.
Storage Types: Depositories typically offer two types of storage:
Fungible Storage: Your metals are stored with those of other investors, and you are credited with a specific amount of a given metal.
Segregated Storage: Your specific coins and bars are stored separately from all others, ensuring that the exact items you purchased are the ones held for your account. This option generally comes with slightly higher fees.

Making the Right Choices

This is an image of a 2021 American Silver Eagle Bullion Coin against an American flag backdrop. — An American Silver Eagle bullion coin. Image: Adobe Stock.

To make a Precious Metals IRA work for you, remember that you are in the driver’s seat.

Choose a reputable bullion dealer that has a proven track record of selling IRA-eligible products and is transparent with their pricing.
Verify the coins and bars you purchase are “qualified” under current IRS rules.
Select an administrator that offers transparent fees, good customer service, and allows you to choose your preferred depository.
Shop around for the best depository that suits your needs, considering the security, location, and storage fees they offer.

By understanding the rules and roles of each party involved, you can establish a robust and compliant Precious Metals IRA to diversify and protect your retirement savings for the long term.

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