Gold & Silver IRA vs Physical Delivery

What’s so good (and bad) about a Precious Metals IRA?

Bullion.Directory precious metals guest post 24 December, 2015
By Nick Adamo
President at Bullion Shark LLC

It is not only a great way to diversify your retirement portfolio, but it also allows investors who want exposure to precious metals to own the physical metal.

Investors like investing in precious metals through their IRA because they don’t have to pay for the metals out of pocket, rather they can use their IRA funds to cover the purchase.

Additionally, since gold and silver are most commonly bought by investors with a longer investing time horizon, it is perfect for a retirement IRA, which is a long term plan. One of the only downfalls to purchasing gold and silver bullion this way is that the metals must be stored in an IRA approved depository until the IRA holder reaches 59 1/2.

After 59 1/2, the IRA holder is allowed to take distributions without incurring a penalty – Any time before the IRA holder is 59 1/2, there will be a penalty assessed and tax consequences to follow.

(see full details of Gold IRA rules and FAQ)

Furthermore, setting up the IRA and the storage of your metals at one of these approved depositories will not be free.

First, there is typically a nominal fee of around $50 to set up the account. Secondly, there may be a annual account fee of around $70 to a couple hundred dollars, depending on the IRA custodian.

Then the actual storage fee typically ranges from .5% to 1% of the value of your gold and silver IRA per year. Additionally, you must pay the premium for the actual precious metals that you place in the IRA.

These fees might seem like a lot at first, however there are also costs to taking physical delivery of your metals and storing them yourself.

For instance you might have to buy a safe to store your precious metals in or pay to store them safely in a bank.

Another alternative might be to buy GLD or SLV through your stock broker, but these funds also come with expenses.

A .4% annual net expense ratio for GLD and a commission to your broker to buy and sell the securities come along with this type of investment. Also, you will not actually have the physical gold or silver in your account using this option, rather you will have shares backed by gold and silver.

Therefore, every option comes with some sort of cost. These costs can vary considerably depending on what IRA custodian/depository is used or what stock broker is used if buying GLD or SLV.

Some of the products that are allowed in an IRA are silver eagles, gold eagles, silver maple leafs, gold maple leafs and even our own Bullion Shark 1 oz Silver Rounds & 10 oz Silver Bars

(See the full list of precious metals allowed in an IRA)

When purchasing the precious metals to put in your gold and silver IRA, it is important to diversify.

Buying a combination of gold and silver is never a bad idea. If you wish to set up a gold and silver IRA, the process is pretty simple. If you have any questions contact us at Bullion Shark where one of our knowledgeable representatives will help you every step of the way.

Call us at 516-739-5822 to speak with one of our specialists.

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