We work with third-party precious metals IRA custodians to provide IRA custodial services for our clients. We select our preferred providers based on their proven track record in the precious metals industry, and accessible customer service for client accounts.
Your IRA-eligible precious metals will be securely stored at your depository of choice. To promote client security and satisfaction, we work with the following precious metals depositories for your IRA storage needs.
IRS Approved Gold and Silver
The Taxpayer Relief Act of 1997 allows individuals to hold precious metals within their retirement accounts.
The Act sets some restrictions:
- Only a select few precious metals – gold, silver, platinum, and palladium – are allowed.
- The IRS approved only bullion, coins, bars, and rounds with additional requirements around the purity of those metals. You cannot hold collectables. We have a large selection of IRA-eligible coins and bars for you to choose from.
- Precious metals must be managed by an IRS-approved custodian and stored with an approved depository, not the IRA owner. Preserve partners only with vetted custodians and depositories to make it simple and secure for you.
Distributions of Precious Metals IRAs work the same as any other IRA:
- You must take minimum distributions after you turn 72, and there may be penalties if you take distributions before age 59.5
- You can liquidate your IRA metals for cash or take physical possession of them; however, this is counted as an IRA distribution.
- Risk Differentiation
- You must diversify both the kinds of risks you take on and the kinds of assets you invest in if you want to genuinely diversify your portfolio. There are five predominant forms of risk that investors must be aware of:
- Equity Risk (Equity Beta): A stock’s volatility relative to the market.
- Interest Rate Risk (Duration): The risk of a change in the federal funds rate changing the value of a bond or variable-rate instrument, such as an annuity.
- Credit Risk (Spread Duration): Potential losses incurred by defaulting or failure to repay one’s debt obligations.
- Inflation/Currency Risk: The risk of taking a loss on a currency exchange rate.
- Momentum: Intra-day acceleration of a security’s value due to derivatives trading.
- For instance, a bond-heavy portfolio is highly exposed to interest rate risk. Gold bullion, on the other hand, does not carry any interest rate risk. Therefore, a bond-heavy portfolio could be insulated from risk by allocating some of its value in gold.
- The same goes for stocks, which are exposed to credit risk. Gold bullion is free from credit risk and, therefore, makes for a suitable complement to a stock-heavy investment account.
