Over the years those that kept a keen eye on the gold coins market noticed a steadily upward trending value and price of those gold coins. Once they found out that they could open a gold backed IRA and take advantage of the taxing structure associated with a gold IRA, they picked up the phone to see what was involved in gold IRA investing, and sometimes that phone call came to my desk at ITM Trading. The callers had questions, and here are some of the most interesting questions they had along with the answers that I gave them.
Your Competitor Says I Can Open A Gold Backed IRA, But Hold The Coins Myself, Is That True?
No. We at ITM Trading had heard that some people were opening gold baked IRA’s and being told they could take immediate physical possession of their gold coins, so we checked with our sources, and they confirmed that nothing had changed, and that all gold coins in gold IRA investments must be held in approved gold IRA vaulting facilities. Beware of gold companies that tell you whatever you want to hear just to make a sale. The last thing you want is problems involving gold, taxes, and the IRS.
Why Can’t I Just Put Any Old Gold Coin I Own In A Gold IRA?
There are probably several reasons, but the most important one, I believe is this: generally, the gold coins in a gold backed IRA are co-mingled. That is, when you open and deposit gold coins into a gold IRA investment, they do not go into a private lockbox with your name on it, (unless you open a special segregated gold IRA account) they all get counted, categorized, and then lumped together in one big vault. The last thing you want, is to put in real gold coins, and get back Chinese copies of U.S. Gold coins twenty years later when you cash out your gold IRA investment. For this reason, only gold coins that are sold by recognized gold companies who can guarantee the provenance of their gold coins can place gold coins in your gold IRA investment account.
I Have Gold Coins In My Bank Safety Deposit Box That I Bought From Another Company, Can They Open An IRA For Me And Put Those Gold Coins In The Gold IRA?
Technically no. They could however purchase those coins back from you at whatever purchase agreement you have set up with them, if any, and then you could use those funds to buy different coins from them that they would then send directly to the gold vaulting company that will store the coins for you. In this scenario, however there would be a liquidation cost of selling the gold coins, and then also the cost involved of buying new coins. For this very reason, it is of ultimate importance that you understand the buyback policies of the gold companies you are considering doing business with.