These three terms often confuse people, so let us sort it out for you.
Uncle Sam has to be able to account for the location and status of your precious metals for tax purposes and to allow you to add more metals as you continue your retirement investment program.
Broker/Dealer – Someone who sells precious metals suitable for inclusion in an IRS-approved IRA account.
A Gold IRA Custodian – The Company that can act as the holder of your IRA account and the physical assets that make it up.
As mentioned, some companies can act in all 3 capacities though it is far more common to see them separated by function as this allows for specialization of service.
The one you need to choose the most carefully is, of course, your custodian. This is for several reasons.
Where to keep your Gold
You will most likely register your IRA with a custodian service that will handle the mechanics of the IRA and where the precious metals will be stored.
They in turn may contract out to a depository and this is where your gold will be stored. Depending on how you purchase additional gold or other metals, the actual transfers will all be handled by the custodian. This makes it convenient and simple to handle the physical movement, security, and storage of your assets.
This takes all the work off your shoulders. This is also a reason many are rolling over their IRAs to gold in the first place.
Bullion and Ingots
The storage and acquisition of bullion and ingots are straightforward. The inherent value of the metal itself gives your portfolio its value and fluctuates as the prices of silver, gold, and palladium rise and fall in the market. Most custodians will segregate your metals from the metals of others, and this is one of the things you need to look for in a precious metals custodial service.
- A Gold IRA is a great way to avoid the high inflation rates that continue to grow in the last year of President Obama’s term in office.
- This has created a boom in people shifting their retirements from 401ks and traditional IRAs to Gold and Gold Coin IRAs to provide security against inflation and distrust in the current stock market that can change direction without any warning.