Opening a Gold IRA has benefits like protection against stock market volatility and tax benefits, among others. Still, to open a Gold IRA, you have to learn more about this, as not all gold is treated the same, and there are different coins you can invest in, but not all are eligible to be added to the IRA. So, before you go and open a Gold IRA, you will need to know a bit about IRA-approved gold coins, which we’ll cover here.
Why Invest in Gold?
Gold is one of the most coveted metals and has been like that for ages. It is relatively scarce, and because of this, it has become the standard for wealth for years. Thus, investing in gold could mean good payoffs in the long run.
Investing in gold allows you protection against inflation, as with the prices going up, the value of money decreases. But the price of gold is not related to the value of the US dollar, so you don’t depend on the stock market and are not exposed to the related risks.
There are plenty of good reasons you should consider investing in gold, more specifically gold coins, as a long-term investment and adding them to your IRA. Deciding to invest in gold means you can diversify your portfolio; thus, not all your money is invested in stocks or bonds so you will be partially protected against instant stock market volatility.
If you make a sound investment in gold, when you get ready to retire, you can very easily and quickly liquidate your gold investments and receive cash. Also, gold investment companies provide other services where you can bank on your gold investment.
Here we’ll talk about investing in gold coins; unlike investing in gold bars that are appreciated for their weight, gold coins sometimes can be worth more than their weight in gold. It is especially true for very popular or rare coins.
If you invest in gold coins and add them to your IRA, if they become more popular or scarcer by the time you retire, you can make a good earning from your initial investment. Another benefit when investing in gold coins is that you can pass the physical gold coins to your children and set their financial security.
How to Add Gold Coins to an IRA
There are two ways you can add gold coins to your IRA. The first one is to open a new Gold IRA, also called a precious metals IRA. Such an account allows you to hold gold and other precious metals in an IRA account, and you can either have a self-directed IRA or have a gold investment company set up your account and help you fund the account and manage the funds.
Another option is turning an existing retirement plan into a Gold IRA one. To do this, you will have to work with a representative from a gold investment company; they can guide you through turning your existing account into a new Gold IRA.
Of course, you must check and ensure your funds are correctly transferred and comply with IRS regulations. After setting up your Gold IRA, you can make yearly contributions; if you are under 50, you can contribute $6,000 without IRS penalties; people over 50 can contribute $7,000 a year. Of course, you can split the funds between the plans if you have multiple IRAs, provided the sums don’t exceed over $3,000 per account.
Requirements for IRA Approved Gold Coins
The Gold IRA is a self-directed IRA, and it allows its holders to hold assets other than stocks and bonds in a retirement account, allowing you to hold gold in your self-directed IRA. Of course, you can’t add any type of gold to your account, and the coins you can add need to be with a minimum purity of 99.5%. Still, one coin that is allowed in the Gold IRA that is not over 99.5% purity is the Gold American Eagle Bullion Coin.
Another requirement for the gold coins to be eligible for a gold IRA must be produced by a national government mint or by an accredited producer. Also, the coins that have been graded as collectibles by the Professional Coin Grading Service or the PCGS, the Numismatic Guaranty Corporation or NGS or another classification group, or the IRS can’t be added to a Gold IRA.
The gold coins that need to be added to the Gold IRA must be purchased through an IRA custodian. If you already have gold coins that satisfy the requirements, you will not be able to add them to your gold IRA. Instead, it would be best if you worked with an IRA custodian who will guide you through the process of moving your funds and adding coins to your IRA.
Another thing you need to consider when planning to add gold coins to your IRA is that they need to be stored in an IRS-approved depository. You will not be able to store your gold at home; in such case, you’ll have to face significant penalties. Once you reach the age of 59 and a half years, you will become eligible for disbursements from your retirement account.
At this age, you can choose if you would like to receive the physical metals in your account or if you would like to sell the coins and receive cash for them. Now to the good part, which coins are eligible to be added to your gold IRA.
IRA Approved Gold Coins
Many gold coins seem like an attractive investment, but you will have to be careful when selecting, as you should only select the ones that meet the IRS requirements.
Below are just some of the gold coin options you can add to your gold or precious metals IRA. Please note that these are not the only options but the most popular ones.
Gold American Eagle Coin: 1 ounce
- Face value: $50
- Purity: 0.9167
- Gold content: 1 troy oz
- Produced by: United States Mint
- Obverse design: A strong and confident Lady Liberty holds an olive branch and a torch as she walks in front of the sun’s rays.
- Reverse design: A female bald eagle with her baby waiting in their nest as the male bald eagle approach with an olive branch in his talons
Gold American Eagle Coin: 1/2 ounce
- Face value: $25
- Purity: 0.9167
- Gold content: 0.5 troy oz
- Produced by: United States Mint
- Obverse design: A strong and confident Lady Liberty holds an olive branch and a torch as she walks in front of the sun’s rays.
- Reverse design: A female bald eagle with her baby waiting in their nest as the male bald eagle approach with an olive branch in his talons
Gold American Eagle Coin: 1/4 ounce
- Face value: $10
- Purity: 0.9167
- Gold content: 0.25 troy oz
- Produced by: United States Mint
- Obverse design: A strong and confident Lady Liberty holds an olive branch and a torch as she walks in front of the sun’s rays.
- Reverse design: A female bald eagle with her baby waiting in their nest as the male bald eagle approach with an olive branch in his talons
Gold American Eagle Coin: 1/10 ounce
- Face value: $5
- Purity: 0.9167
- Gold content: 0.1 troy oz
- Produced by: United States Mint
- Obverse design: A strong and confident Lady Liberty holds an olive branch and a torch as she walks in front of the sun’s rays.
- Reverse design: A female bald eagle with her baby waiting in their nest as the male bald eagle approach with an olive branch in his talons
Gold American Eagle Proof
- Face value: $50
- Purity: 0.9167
- Gold content: 1 troy oz
- Produced by: United States Mint
- Obverse design: A strong and confident Lady Liberty holds an olive branch and a torch as she walks in front of the sun’s rays.
- Reverse design: A female bald eagle with her baby waiting in their nest as the male bald eagle approach with an olive branch in his talons
Gold Freedom Coin
- Face value: $25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: New Zealand Mint
- Obverse design: An image of Queen Elizabeth II designed by Rank-Broadley.
- Reverse design: The Statue of Liberty holds her torch high while standing in front of a waving American Flag.
Gold American Bald Eagle Coin
- Face value: $25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: Perth Mint
- Obverse design: An image of Queen Elizabeth II designed by Rank-Broadley.
- Reverse design: A mighty bald eagle is the main focus of the design, and a smaller, flying bald eagle is departing its nest in the background.
Gold Buffalo Coin
- Face value: $50
- Purity: 0.9999
- Gold content: 1 troy oz
- Produced by: United States Mint
- Obverse design: An Indian head profile design by James Earle Fraser. This design was created using the profile images of multiple Native Americans.
- Reverse design: A large American bison
Gold Maple Leaf Coin
- Face value: $50
- Purity: 0.9999
- Gold content: 1 troy oz
- Produced by: Royal Canadian Mint
- Obverse design: A profile image of Queen Elizabeth II without a crown designed by Susanna Blunt.
- Reverse design: A Canadian maple leaf
Gold Lucky Dragon Coin
- Face value: $10
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: Royal Canadian Mint
- Obverse design: Susana Blunt’s images of Queen Elizabeth II
- Reverse design: A Chinese dragon twisted into the shape of the number 8, which is seen as a lucky number in China.
Gold Australian Saltwater Crocodiles Coin
- Face value: $25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: Perth Mint
- Obverse design: An image of Queen Elizabeth II designed by Ian Rank-Broadley.
- Reverse design: An Australian saltwater crocodile with its mouth open and ready to snap.
Gold Austrian Philharmonic Coin
- Face value: 100 Euros
- Purity: 0.9999
- Gold content: 1 troy oz
- Produced by: Austrian Mint
- Obverse design: The Musikverein Pipe Organ.
- Reverse design: Violins, a harp, and other orchestra instruments
Royal Mint Lunar Series 2016 Year of the Monkey Coin
- Face value: £25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: UK Royal Mint
- Obverse design: Profile image of Queen Elizabeth II (designed by Jody Clark)
- Reverse design: Chinese Zodiac monkey image.
Royal Mint Lunar Series 2017 Year of the Rooster Coin
- Face value: £25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: UK Royal Mint
- Obverse design: Profile image of Queen Elizabeth II (designed by Jody Clark)
- Reverse design: Chinese Zodiac rooster image
Royal Mint Lunar Series 2018 Year of the Dog Coin
- Face value: £25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: UK Royal Mint
- Obverse design: Profile image of Queen Elizabeth II (designed by Jody Clark)
- Reverse design: Chinese Zodiac dog image
Royal Mint Lunar Series 2019 Year of the Pig Coin
- Face value: £25
- Purity: 0.9999
- Gold content: 0.25 troy oz
- Produced by: UK Royal Mint
- Obverse design: Profile image of Queen Elizabeth II (designed by Jody Clark)
- Reverse design: Chinese Zodiac pig image
Wrapping Up
Preparing your financial stability for retirement is essential, and adding gold coins to it is a sound plan. Since many Americans postpone their retirement savings, they find out they don’t have enough savings to stop working when old age comes. So, better be prepared, start an IRA immediately, and add gold coins to protect your savings.