Gold and silver bullion bars and rounds are also allowed in an IRA if they have a fineness of 99.9%. This usually means they must be produced by a NYMEX or COMEX approved refinery or a government mint. Most IRA custodian banks don’t allow you to own gold in their IRAs. Just like silver, not all gold bars qualify for a Gold IRA account.
Approved gold investments must fall under a pre-approved list (as described above) and be pure 24-carat gold bars (1 ounce — 400 ounces). For more information, see IRS Publications 590-A %26 590-B, but there are also some specific risks associated with investing in physical gold. Any physical item can be stolen.
Someone could break into the depot where your gold is stored. However, to qualify for Gold IRAs, deposits must be insured, which would protect your investment as long as your account doesn’t exceed the value in the accounts stated by the custodian bank. The term Gold IRA refers to a specialized individual retirement account (IRA) that allows investors to hold gold as a qualifying retirement plan. Investors with gold IRAs can hold physical metals such as gold bars or coins, as well as securities related to precious metals, in their portfolio.
A Gold IRA must be managed separately from a traditional retirement account, although the rules regarding things like contribution limits and payouts remain the same. Investors can open gold IRAs through a broker-dealer or another custodian bank.