As far as a precious metals IRA is concerned, it’s frowned upon and unacceptable to use this account to invest in collectibles or certain unapproved coins and bars. The IRS has strict rules that they have shared regarding buying precious metals for a gold IRA.
As a matter of fact, there are a number of incredibly popular bars and coins made of bullion that aren’t even eligible for an IRA investment account because they failed to reach the required purity levels set forth by the IRS. For gold, the level of purity needs to remain 0.995 or greater. For silver, the purity level must be 0.999 or greater, and the purity levels of platinum and palladium must be 0.9995 or greater.
In 2020, the acceptable bars and coins made of palladium, platinum, silver, and gold that are acceptable in a precious metals IRA strategy include:
Bars and Coins Made of Gold with IRA Approval (Gold Purity Level = .995%)
- Gold American Eagles
- Gold American Buffaloes
- Gold Australian Kangaroos/Nuggets
- Gold Credit Suisse Bars
- Gold Austrian Philharmonics
- Gold Valcambi CombiBar
- Gold Canadian Maple Leafs
- Gold Johnson Matthey Bars
Bars and Coins Made of Silver with IRA Approval (Silver Purity Level = .999%)
- Silver American Eagles
- Silver Royal Canadian Mint Bars
- Silver Canadian Maple Leafs
- Silver Johnson Matthey Bars
- Silver Austrian Philharmonics
- Silver Australian Kookaburras
- Silver Mexican Libertads
–> Learn more about IRA Approved Silver.
Bars and Coins Made of Platinum with IRA Approval (Platinum Purity Level = .9995%)
- Platinum Isle Of Man Nobles
- Platinum Australian Koalas
- Platinum Canadian Maple Leafs
- Platinum American Eagles
Bars and Coins Made of Palladium with IRA Approval (Palladium Purity Level = .9995%)
- Palladium Russian Ballerinas
- Palladium Credit Suisse Bars
- Palladium Canadian Maple Leafs
- Palladium Baird Bars
Precious Metals IRA Accounts Aren’t Approved for Collectibles
It’s absolutely necessary to understand that many of the scammers, also known as dealers out there, will tell you that you can purchase collectibles as part of your precious metals IRA. These unscrupulous vendors are wrong and they aren’t allowed in the wide majority of situations.
But there’s nothing wrong with investing in collectibles if that’s something you’re interested in doing. You’ll just need to purchase them on your own because they cannot be part of your individual retirement account. After you make this purchase, you’ll have to safely store your collectible coins using your own best judgment. These collectibles have not received IRS approval because the purity levels of these coins are usually too low.
And if you do use funds within your precious metals IRA account to purchase collectible coins, the IRS will look at this as a withdrawal. You’ll have to pay income tax and if you make the purchase below 59 ½ years old, you’ll also have to pay a 10% penalty. This is a huge mistake that people make so avoid it at all costs or deal with the consequences.
Ineligible Bullion Bars and Coins for Precious Metals IRAs
The following bullion bars and coins are quite popular in the investing and collecting world, yet they do not meet the eligibility requirements for precious metals IRA investments. Take heed when talking to your IRA broker, especially if they recommend buying any of these, because they do not know the correct requirements for individual retirement account precious metals investing.
The coins in question include:
- UK Sovereigns
- French 20 Francs
- Swiss 20 Francs
- Austrian Coronas
- Chilean 100 Pesos
- US Liberty Coins
- Chinese Pandas
- Swiss Vrenelis
- Mexican 50 Pesos
- US Buffalo Proofs
- South African Krugerrands
- Tower of Coins from Israel
- 10 Guilder (Dutch)
- USSR Chevronets
- Gold Mexican Pesos
- George the Victorious Russian Coins
- Somalia Elephants
- Italian Liras
- French Napoleons
- British Britannias
Do you have a particular coin or bar made of precious metals that you want to invest in? Ask your IRA company if it’s eligible according to the IRS rules. This way you can buy it comfortably knowing that it’s an acceptable purchase.