# The Precious Metals IRA Guide

For centuries, precious metals have served as cultural, social, and economic building blocks.

Today, when owned in a self-directed individual retirement account (SDIRA), precious metals also can be a vehicle for saving for your future. This Precious Metals IRA Guide gives you the information you need to kick-start your retirement with gold, silver, and other precious metals.

## The Basics Of Precious Metals Investing

### What are Precious Metals?

In investment terms, precious metals are metals considered to be rare and/or that have a high economic value. You already know about at least two of them: gold and silver. Two other popular precious metals for investments include platinum and palladium.

What you may not know is that the IRS allows investors to buy and hold precious metals in their self-directed, tax-advantaged retirement accounts.

**Gold** is one of the rarest precious metals. [The United States Geological Survey (USGS)](https://www.usgs.gov/faqs/how-much-gold-has-been-found-world#:~:text=About%20244%2C000%20metric%20tons%20of,reserves%20of%2057%2C000%20metric%20tons) estimates that about 187,000 metric tons (over 6 million ounces) have been mined throughout history. Due to a diminishing supply and high demand, gold mining has slowed drastically. In 2019, [3,500 metric tons](https://www.bbc.com/news/business-54230737) were mined.

Of the gold being mined today, about half is used in jewelry, 10% is used by industry, and the remaining 40% is held as an investment. Much of that 40% is held by the world's central banks, which store their liquid reserves in gold.

**Silver** also has a long history as a valuable precious metal. Recently, the USGS estimated that over [1.7 million metric tons of silver](https://www.usgs.gov/faqs/how-much-silver-has-been-found-world) have been discovered to date, with nearly 4,000 tons stored as bullion in private hands. Today, silver's biggest use is industrial, in electronics, solar panels, and medical devices.

**Platinum** is one of the rarest elements on the periodic table; there are few pure deposits of the metal left in the world. Most platinum produced today is a byproduct of nickel and copper mining. While it is used in jewelry and fine watches, its resistance to corrosion makes it highly valued for industrial purposes.

**Palladium** is about 15 times rarer than platinum and 30 times rarer than gold. In fact, this metal briefly surpassed gold in price in 2022. Highly valued for its malleability and capabilities as a chemical catalyst, palladium is an integral component in reducing automobile emissions. It's also one of the most indispensable elements in modern technologies, such as fuel cells, aircraft spark plugs, and surgical instruments.

## A Closer Look at a Precious Metals IRA

An SDIRA puts you in control of the assets you invest in for your retirement. For many Entrust clients, precious metals are their investment of choice. Many choose to invest in physical gold, silver, platinum, and palladium. Others choose to purchase equity in firms that mine or refine those metals — this is another form of alternative asset investment.

The term "self-directed" simply means that you make all decisions regarding the investments in your individual retirement account. The self-directed IRA custodian or administrator performs recordkeeping services for your IRA and reviews the documentation to make your investment. In addition, when you hold precious metals in your IRA, you will need to work with a precious metals dealer and depository you can trust.

### How to Conduct Due Diligence for Your Precious Metals IRA

The old adage, "**All that glitters is not gold**," has been around for centuries, and for good reason: speculation and hoaxes play an unfortunate role in the history of many precious metals. This means that conducting thorough due diligence beforehand is **vital** to understanding the mechanics of investing in such a unique asset.

It is important to only buy approved metals from reputable dealers, and store the physical metals with a trusted, reliable depository that is familiar with IRS regulations on purity and accredited manufacturers/assayers/mints. The Federal Trade Commission offers [guidelines for due diligence](https://www.ftc.gov/legal-library/browse/rules/jewelry-precious-metals-pewter-industries) before investing in precious metals.

An indirect method of investing in precious metals is through mining stocks/equities or ETFs (Exchange-Traded Funds). This method of investing tends to be more volatile and subject to the current political and economic environment. Conducting due diligence on these companies is equally important.

And of course, you will want to do due diligence to find and select an IRA administrator that you can trust to process your transactions promptly, professionally, and securely. Look for a [provider](https://www.theentrustgroup.com/what-we-do) that has demonstrated accurate recordkeeping and reporting to the IRS.

## Precious Metals Allowed In a Self-Directed IRA

### Gold

**Coins Allowed:**
- American Eagle issued by the US Mint
- American Buffalo (not proof coins) issued by the US Mint
- Australian Kangaroo/Nugget
- Austrian Philharmonic
- Canadian Maple Leaf
- Other coins that meet purity standards for bullion

**Bars & Rounds Allowed — Requirements:**
- Produced by a refiner, assayer, or manufacturer that is accredited by NYMEX/COMEX, NYSE/Liffe, LBMA, ISO9000, or a national government mint
- Meets minimum fineness and purity standards: .995+

### Silver

**Coins Allowed:**
- American Eagle issued by the US Mint
- Australian Kookaburra
- Austrian Philharmonic
- Mexican Libertad
- Canadian Maple Leaf
- Other coins that meet purity standards for bullion

**Bars & Rounds Allowed — Requirements:**
- Produced by a refiner, assayer, or manufacturer that is accredited by NYMEX/COMEX, NYSE/Liffe, LBMA, ISO9000, or a national government mint
- Meets minimum fineness and purity standards: .999+

### Platinum

**Coins Allowed:**
- American Eagle issued by the US Mint
- Australian Koala
- Canadian Maple Leaf
- Isle of Man Noble
- Other coins that meet purity standards for bullion

**Bars & Rounds Allowed — Requirements:**
- Produced by a refiner, assayer, or manufacturer that is accredited by NYMEX/COMEX, NYSE/Liffe, LBMA, ISO9000, or a national government mint
- Meets minimum fineness and purity standards: .9995+

### Palladium

**Coins Allowed:**
- American Eagle issued by the US Mint
- Canadian Maple Leaf
- Other coins that meet purity standards for bullion

**Bars & Rounds Allowed — Requirements:**
- Produced by a refiner, assayer, or manufacturer that is accredited by NYMEX/COMEX, NYSE/Liffe, LBMA, ISO9000, or a national government mint
- Meets minimum fineness and purity standards: .9995+

## Three Important Roles: Custodian, Dealer, & Depository

Once you have decided to invest in precious metals with your SDIRA, you have three important choices to make. You will need to select a:

- **Custodian** — to administrate and facilitate transactions in your SDIRA
- **Precious Metals Dealer** — to purchase your chosen precious metals investments
- **Precious Metals Depository** — to store your precious metals that meet IRS purity requirements

### Self-Directed IRA Custodian

Also called an administrator, this is the entity that handles all of the documents needed to establish, fund, and complete transactions in your Precious Metals IRA. The administrator is responsible for recordkeeping and for making sure that all necessary reports are submitted to the IRS, accurately and on time. The Entrust Group administers over $5 billion in total assets, and all cash deposited by account owners is fully insured by the Federal Deposit Insurance Corporation (FDIC). At Entrust, your account is updated regularly and is always available to you through our online [Entrust Client Portal](https://login.theentrustgroup.com/login).

A reputable administrator will not try to sell you on any particular investment product. That decision rests entirely with you. Instead, a good administrator will help you become a more knowledgeable investor by giving you educational resources and materials to deepen your understanding of the precious metals space, as well as other alternative investment options. For over 40 years, Entrust has dedicated resources to creating and sharing a vast storehouse of educational materials, ranging from workshops and articles to webinars and videos in our [Learning Center](https://www.theentrustgroup.com/learning-center).

And while we don't offer investment advice, our staff is fully trained and up-to-date on the rules and regulations that govern self-directed accounts. When you work with Entrust as your self-directed IRA administrator, you can rest assured that you are working with [an industry leader](https://www.theentrustgroup.com/what-we-do).

### Precious Metals Dealer

As the name says, these are firms or individuals who make deals for the sale or purchase of precious metals. In the most traditional sense, it is someone who stands ready to make a bid and offer a price on gold. Today, the name is also used to describe firms that accumulate an inventory of, say gold, and sell it to coin dealers, jewelers, or investment companies.

You will need to use a precious metals dealer—or more than one if you choose—to buy and sell the physical metals owned by your self-directed IRA. The Federal Trade Commission offers [insights](https://www.ftc.gov/legal-library/browse/rules/jewelry-precious-metals-pewter-industries) into what to look for in a precious metals dealer.

At Entrust you are never limited to a single dealer or a select group of dealers with whom to conduct business with.

### Precious Metals Depository

The third party you will work with is a depository, where your precious metals will be stored. The IRS does not allow you to take physical possession of the metals – no burying it in the backyard. This requirement is intended to preserve the tax-advantaged nature of the metals you own.

Entrust works with four depository companies in the United States:

- Delaware Depository Services Company (Wilmington, DE)
- Dakota Depository Company (Fargo, ND)
- Idaho Armored Vaults, LLC (Nampa, ID)
- A-M Global Logistics, LLC (Las Vegas, NV or Irving, TX)

## Top 3 Due Diligence Questions To Ask a Precious Metals Dealer

1. **Can you point me to quality references?** Check the dealer's ratings and credentials. What professional associations does the dealer belong to? The [Better Business Bureau](https://www.bbb.org/us/category/precious-metal-dealers) and [Industry Council for Tangible Assets](https://www.ncbassoc.org/) can be good places to start.
2. **Do your offerings satisfy IRS rules?** Verify that the dealer sells coins of the exact quality or fineness that the [IRS allows](https://www.irs.gov/retirement-plans/investments-in-collectibles-in-individually-directed-qualified-plan-accounts) to be owned by a self-directed, tax-advantaged account.
3. **Can you provide a clear and transparent pricing structure for your services?** Make sure there are no hidden fees or unexpected charges. Clarify whether you will have to pay transaction fees, shipping and handling fees, purchase premiums, or any other additional charges.

## How to Invest in a Precious Metals IRA at Entrust in 7 Steps

### Step 1: Open a self-directed IRA

At Entrust, you can [open your account](https://www.theentrustgroup.com/open-a-self-directed-ira) in under 10 minutes.

### Step 2: Fund your account

Via a [transfer, rollover, or contribution](https://www.theentrustgroup.com/hubfs/Self-Directed-IRA-Funding-Guide.pdf).

### Step 3: Research and select your precious metals dealer and depository

We work with four nationally recognized depositories, listed above.

*Note: we are not affiliated with any precious metals dealers.*

### Step 4: Purchase the metals

Complete a [Precious Metals Buy Direction Letter](https://www.theentrustgroup.com/hubfs/PM-Buy-Direction-Letter-07-2017.pdf). Sign the dealer invoice "READ and APPROVED". Sign the Depository Holdings Election Form.

Submit all forms to the Precious Metals Department at Entrust.

### Step 5: Entrust processes the transaction

We will wire the funds to your precious metals dealer and provide the dealer with the depository information, including where the metals will be shipped.

### Step 6: Depository notifies Entrust of receipt

Upon receipt of the metals, the depository audits the delivery and notifies Entrust of the quantity, type, weight, and hallmarks of all metals received.

### Step 7: Metals are added to your account

Entrust reviews the information received from the depository and compares the delivery to the original purchase invoice. Then, we will enter the metals into your account.

**Finish:** Your SDIRA now holds the precious metals!

## Invest in Precious Metals with Your Retirement Funds Today

Entrust strives to provide professional services and education that empower clients to control their investment choices. You can rely on [The Entrust Group](https://www.theentrustgroup.com/what-we-do) for up-to-date training and continuing education about self-directed alternative investments. Our [blog posts](https://www.theentrustgroup.com/blog), guides, and [webinars](https://www.theentrustgroup.com/learning-center/webinars) can help you keep up with the increasing demand to diversify portfolios.

**Have Questions?**

**[Talk To An SDIRA Expert](https://www.theentrustgroup.com/self-directed-ira-services-decision-lp)**

**Ready to Get Started?**

**[Open An Account](https://www.theentrustgroup.com/open-a-self-directed-ira)**

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