Investing in Gold with a Self-Directed IRA

A self-directed IRA will provide you with significantly more investment options than what’s available to most IRA account holders. The IRA retirement savings vehicle is very flexible, and permits a wide range of investment types. Any limitations that are not required by law have been imposed by the IRA custodian. The custodian is the trusted entity that holds the account assets and makes whatever permitted investments are selected by the account holder.

The vast majority of the bank and investment broker custodians will only allow you to invest in a subset of the legally permitted investment types. This subset usually includes stocks, bonds, mutual funds and certificates of deposit.

But with a self-directed IRA, including accounts offered by Quest Trust Company, you can invest in the full range of legally permitted investments. With the ever-increasing instability around the world (both in economic and political terms), a popular investment is gold. Once you’re free from the restrictive rules of a traditional custodian, there are a number of different ways you can invest in gold with your IRA.

Gold Bullion. The most obvious way to invest in gold is simply to buy gold itself. The IRA rules prohibit you from holding physical gold yourself, so you’ll need to work with a self-directed IRA custodian such as quest IRA in order to work out the arrangements for purchasing and securely storing any gold. Quest Trust Company, for example, will work with a trusted entity to make sure this happens properly. Note that any physical gold you purchase must be of sufficient purity (99.5%) in order to be purchased by your IRA, but finding physical bullion with this purity won’t be difficult.

Gold Coins. The same basic process for using yourself directed IRA to invest in gold bullion is used for investing in gold coins. Note, however, that the legally permitted investments don’t include collectible type coins. Only certain investment grade gold coins are eligible, including those issued by the U.S. government (which contain one, one-half, one-quarter, or one-tenth ounce of gold), or by a state government.

Gold Futures. Gold futures can provide IRA account holders with the desired exposure to gold investments, but without the expense of having to deal with physical custody of gold bullion on or gold coins. Of course, investing in gold futures has the downside of whatever time constraints are built in to a given futures contract.

Gold ETFs. Exchange traded funds that are focused on gold investments are a popular option for investors looking to diversify into gold. This type of exchange traded fund often has some built in diversification (by virtue of its underlying investments in different companies), and this can be a plus for many investors.

Gold Mutual Funds. Of course, even self-directed IRAs can be used to purchase more traditional gold focused investments such as mutual funds. There are many options within this investment type, including gold mining and exploration companies.

Regardless of what type of gold investment you are most interested in for your IRA, make sure your custodian permits it. If not, then consider opening a self-directed IRA with Quest Trust Company. Quest Trust Company even offers self-directed IRA accounts (both traditional and Roth) that are focused specifically on investing in gold and other precious metals.

Investing in Gold with a Self-Directed IRA