Precious Metals IRA: How does it Work?
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With the volatile and unstable nature of the global economy today, precious metal investments have become an essential part of any retirement plan. Setting up a precious metal IRA is much easier than you might think, and it may even be possible for you to roll over an existing IRA.
At Orion Metal Exchange, our more than 50 years of experience in the precious metals market has taught us a thing or two about precious metal IRAs. We’ve put together a brief guide explaining how it works and broken down the process into six easy to follow steps.
Step 1: Select Your IRA Plan
When it comes to storing your precious metals, you have two different options available.
Local Storage Plan
Also known as a home storage gold IRA, allows your gold and silver to be sent directly to you (the manager of the IRA). You can then choose where you want to store the metal. Many investors of gold and silver prefer a vault as the ideal storage space. We, at Orion Metal Exchange, can recommend a variety of reliable vault storage services both in the US and abroad. We can also help you choose the right safe if you prefer to store your precious metal at your residence.
National Storage Plan
A national depository is the other option you have. However, if you opt for a national storage plan, your precious metals will be shipped directly to the national depository instead of an IRA manager.
Step 2: Fund Your IRA
You must make transfers, contributions and/or rollover from an existing retirement plan such as a Roth IRA or a 401k. Precious metal dealers also require a minimum investment (usually around $5,000) to start your precious metal IRA.
Step 3: Selecting the Precious Metals
Orion Metal Exchange will be your designated precious metals vendor, and will guide you in the different products available and which will be the most suitable for your portfolio. Some of the most popular coins that are approved by the IRA include Canadian Maple Leaf Gold coins and American Eagle Gold coins.
Step 4: Invest in Precious Metals
There are certain rules and restrictions when it comes to what precious metals can be purchased through a precious metals IRA. Silver, gold, palladium and platinum are all allowable. However, there are certain stipulations in terms of the fineness of the metals.
Step 5: The Purchase and Payment Process
The purchase of the precious metals that you and your advisor have chosen will be funded by the directed trust company. If you’ve opted for local storage of the metals, the trust company will fund you and you will then fund your precious metals dealer. If you’ve chosen a national depository as your storage option, the trust company will fund your precious metals dealer once it receives the invoice.
Step 6: Your IRA Account Now Includes Precious Metals
The precious metals are now available to be picked up/shipped, or sent directly to the national depository.
A precious metals investment company with more than 50 years of experience in the market, Orion Metal Exchange is your go-to silver buying stop. Whether you need an individual retirement account for silver investment or are simply looking to buy some, we’ve got you covered. Check out our free investment kit or get in touch with us for more information.