Gold, when combined with other asset classes, can be a valuable component of a diversified retirement portfolio.
By allocating a share of your retirement savings to physical metals, you can enhance financial resilience and better safeguard your purchasing power as you move toward retirement.
But, before opening an account or buying IRA-eligible bullion, you need to start by asking questions that clarify the strategy, costs, rules, storage arrangements, and service you can expect.
Here's a simple checklist to prepare you for this step in your retirement strategy...
1. What role do precious metals play in my overall portfolio?
Are you looking for a diversifier, a potential hedge against inflation, or a way to reduce reliance on purely paper holdings? Defining the purpose of the allocation can help you decide whether a precious metals IRA is appropriate and how it may fit within your broader retirement plan.
In general, we recommend adding precious metals to a self-directed IRA after you have met your allocation of core holdings in gold, so that your core holdings are easily accessible in case of an emergency. A precious metals IRA is part of your longer-term strategy.
2. How much of my retirement portfolio should I consider allocating?
There is no universal allocation that fits every investor. Your time horizon, risk tolerance, existing holdings, income needs, and retirement objectives should all be considered. But don't put all your nest eggs in one basket!
A diverse retirement portfolio is essential, and this is precisely why gold and other precious metals can be so useful when held in combination with other asset classes. Gold and silver prices tend to move independently (low correlation) of stocks and bonds, which helps balance risk and can stabilize a portfolio during economic downturns.
3. Should I consider gold, silver, platinum, palladium, or a combination?
Each metal has different supply, demand, market, and industrial-use characteristics. Ask how the proposed metal mix supports your objectives and whether it aligns with your overall portfolio strategy. Most investors start with an allocation to gold, and add other precious metals to increase the diversification.
4. What risks should I understand before investing?
Ask specifically about price volatility, premiums, bid-ask spreads, storage fees, liquidity, counterparty risk, and potential delivery costs. A trustworthy provider should explain both the potential benefits and the limitations of precious metals ownership.
5. What type of IRA is appropriate for my situation?
Ask whether a traditional IRA, Roth IRA, or another structure is relevant to your circumstances. Contribution rules, tax treatment, and distribution requirements can differ by account type. A qualified tax or financial professional can help you evaluate the implications.
6. Who will serve as the IRA custodian?
Since the financial crisis of 2008, gold IRAs have become more common. At the time, faith in traditional retirement plans was shaken. Rather than putting all of their eggs in one basket, more American investors wanted to find ways to diversify their holdings so a stock market crash or real estate bubble bursting won't decimate their savings.
Gold's shining performance in the last bull market resulted in a boom of brokerage firms more willing to specialize in helping investors utilize alternative assets to meet their retirement savings goals.
With so many great options from which to choose for the management of your precious metals IRA, there’s nothing standing in the way of getting exactly what you want from your IRA custodian. The custodian typically administers the account, processes transactions, maintains records, handles reporting, and coordinates distributions. Ask whether the custodian meets applicable requirements and supports precious metals.
7. What responsibilities belong to the custodian, and what responsibilities belong to the dealer?
The custodian, metals provider, and depository may each have different roles. Ask who is responsible for account administration, product selection, pricing, transaction processing, storage, insurance, documentation, and delivery.
8. What fees will I pay, and when will they be charged?
Request a complete written fee schedule.
Ask about: account setup and annual administration fees, transaction and wire fees, dealer premiums and spreads, storage and insurance fees, delivery or liquidation fees, minimum purchase requirements, and any other recurring or one-time charges.
Compare the total cost of ownership rather than focusing only on the quoted product price.
9. How will the transactions be processed and reported?
Ask whether the movement of assets will be handled directly between trustees or through another rollover process. Confirm who prepares required paperwork, what deadlines apply, and how the transaction will appear on account statements and tax documents.
10. Which specific products are eligible for my IRA?
To qualify to be included in an IRA, precious metals products must meet minimum fineness requirements and must be produced by a refiner, assayer or manufacturer that is accredited/certified by recognized institutions. While bullion coins and bars that meet those requirements may qualify, numismatic coins (which are considered collectibles) do not.
11. What is the difference between bullion and numismatic coins?
Bullion is typically valued primarily for its metal content, while numismatic or rare coins may also reflect scarcity, condition, history, and collector demand. Ask how the product is priced, what drives its value, and whether it is appropriate for your IRA objectives.
12. How are product authenticity and purity verified?
Ask about the mint, refiner, weight, purity, documentation, and verification procedures. Government-minted coins and recognized refiners may offer characteristics such as certified purity and broad market recognition, but you should still understand the specific product being considered.
13. Where will my IRA-owned metals be stored?
Ask which approved depository will hold the metals, where it is located, and what controls protect the assets. Confirm how ownership records, insurance, audits, reporting, and delivery requests are handled.
14. What storage options are available?
IRS regulations stipulate that IRA-owned precious metals must be held by an authorized administrator and depository; personal possession is not eligible. Ask how the depository handles recordkeeping, ownership, insurance, fees, and potential delivery. Proper storage is a core part of risk management—not an administrative detail to address later.
15. How will I take a distribution or sell metals when needed?
Ask about the process, expected timing, valuation, fees, paperwork, and available delivery or liquidation options. Also ask how required minimum distributions may be handled when the account holds physical metals.
16. How long has the custodial company been assisting investors?
Experience does not eliminate risk, but it can provide useful context. Ask about the company’s history, service model, product knowledge, and approach to helping clients make informed decisions.
17. Can I review the details in writing before proceeding?
Request written information about the custodian, depository, products, pricing, fees, storage, and distribution procedures. Documentation helps you compare alternatives and maintain clear records.
Starting a Precious Metals IRA
Precious metals are perfect for an IRA because they are best for long term investing goals. Since 2000, gold has actually outperformed standard "paper" investment assets like stocks!
Still, a precious metals IRA should be built around clear objectives, transparent costs, eligible products, secure storage, and a disciplined long-term strategy. Asking the right questions at the beginning can help you avoid preventable problems and make decisions with greater confidence.
Asset Strategies International has helped investors explore precious metals and storage options since 1982. And we've been helping investors add precious metals to IRAs since 1986, when the IRS first allowed it. Our experienced team can help you understand the process, evaluate your choices, and consider how physical gold and other precious metals may support your financial goals.
Make gold, silver, and other precious metals in your IRA a reality. Contact Asset Strategies International to request more information. Call 1-800-831-0007 or email us today for your free consultation.