As the inflation, global instability, and market volatility has now challenged the traditional retirement strategies for many retired individuals, now many Americans are turning towards the precious metal IRS. This is a kind of retirement account that holds physical gold, silver, platinum, or palladium. All these IRA Approved Precious Metals IRAs are generally marketed as a safe heaven option for long-term wealth preservation. But here is a legal reality that not all precious metals qualify for inclusion in the IRA. Here we will break down exactly which metal is allowed, why, and under what condition. And all of this is based solely on the official IRS regulation, tax code section 408N, and standards that are published by the US Mint and Retirement.
What Is a Precious Metals IRA
This precious metal IRA is a type of Self-Directed Individual Retirement Account, SDIRA, that allows investors to hold their physical precious metals in a tax-advantaged retirement plan. Unlike other traditional IRAs, which typically include stocks, bonds, or mutual funds, this precious metal IRA is designed to include gold, silver, platinum, and palladium, but for this metal to qualify, they must meet the strict criteria that is set by the IRS.
IRS Regulation: Internal Revenue Code Section 408(m)
All the rules that are governing these assets are in general outlined into:
Internal Revenue Code 408(m)– defines what constitutes a connectable and which precious metal is eligible from that.
IRS Publication 590-A is a contribution to IRA and 590-B is a distribution from IRAs. These explain how different alternative assets are treated within retirement accounts.
In general collectables like rare coins are not allowed into the IRA. Certain bars and bullion coins are approved only when they meet the criteria like fineness, form and custody requirements.
Requirements for IRA Approved Precious Metals
For any metal to be included into a self directed IRA there are certain criteria that these metals needs to meet like :
1. Minimum Fineness or its Purity
| Metal | Minimum Fineness |
| Gold | 0.995 (99.5%) |
| Silver | 0.999 (99.9%) |
| Platinum | 0.9995 (99.95%) |
| Palladium | 0.9995 (99.95%) |
only those billions who meet or exceed these criteria will be allowed in IRA.
- Bars must be produced by accredited refiners (e.g., COMEX, LBMA, NYMEX)
- Proof coins must be graded by the U.S. Mint and come in original packaging
- coins must be legal tender that are issued by the national government mint
3. Storage- All matters must be stored in an IRS-approved depository under the custody of a qualified IRA custodian. Any kind of home storage is not allowed and will cause penalty.
- American Gold Eagle – 22k (91.67%) gold, but explicitly allowed despite lower purity
- American Gold Buffalo – 24k, .9999 pure
- Canadian Gold Maple Leaf
- Austrian Gold Philharmonic
- Australian Kangaroo/Nugget
- .995 or higher purity
- From approved refiners like:
- PAMP Suisse
- Credit Suisse
- Johnson Matthey
- Valcambi
- Perth Mint
IRA-Approved Silver
- American Silver Eagle
- Canadian Silver Maple Leaf
- Austrian Silver Philharmonic
- Australian Kookaburra
- Mexican Silver Libertad
- .999 or higher purity
- From refiners such as:
- Sunshine Mint
- Engelhard
- Royal Canadian Mint
IRA-Approved Platinum
- American Platinum Eagle
- Canadian Platinum Maple Leaf
- Australian Platypus
- Must be .9995 or higher
- Produced by approved refiners (e.g., COMEX or LBMA-accredited)
IRA-Approved Palladium
- American Palladium Eagle (first issued in 2017)
- Canadian Palladium Maple Leaf
- Minimum .9995 fineness
- COMEX or LBMA-approved refiners
Metals NOT Approved for IRAs
All the following are not allowed in the IRA according the IRS rules :
| Not Allowed | Reason |
| Jewelry or scrap metals | Not investment-grade, not certified |
| Rare/numismatic coins | Classified as collectibles under IRC §408(m) |
| Pre-1933 U.S. gold coins | Considered collectibles |
| Foreign or privately minted bars/coins | Not verified or approved by IRS-recognized bodies |
| Home-stored bullion | Violates IRS rules on qualified depositories |
Any kind of violation of these rules will result into immediate taxable distribution of your IRA, a 10% early withdrawal penalty if you are under 59.5 years of age, loss of tax-deferred or tax-free status for you.
Storage Requirements
As per the law which is set by IRS, any kind of precious metal must be stored in a qualified depository. Such depositories are
- Delaware Depository
- Brink’s Global Services
- IDS of Texas
Storage options that are available to you are :
- Segregated: Your metals stored separately in your name
- Commingled: Stored with others, but still is IRA-labeled
All the storage will be coordinated by the custodians that you choose for your IRA and not you. These metals cannot be ever your personal possession unless you have withdrawn them, which is completely taxable.
| What’s Allowed | What’s Not Allowed |
| Gold, silver, platinum, palladium | Jewelry, collectibles, rare coins |
| Coins from official mints | Privately minted or unverified coins |
| Bars from COMEX/LBMA-approved refiners | Scrap metal or bars with no certification |
| Stored in IRS-approved depositories | Stored at home, in safe deposit boxes, etc. |
Investing in IRA Approved Metals
Gold or any other kind of precious metal IRN will provide you protection from inflation, diversification from the paper assets, and tangible assets with intrinsic values. But all these also come with higher fees, custodian storage and dealer markups, no dividend interest, IRN’s complexity and strict rules. All the financial advisors generally suggest that allocating only 5-10% of your retirement portfolio to precious metals is ideal and not more than that.
Not all the gold and silver that is available is same in the eye of IRS. If you are someone who is interested in investing for retirement, then you should only buy metal that meet the exact legal standards that are set by IRS. With the right custodial, secure storage, and verified metal, this precious metal IRA will be a stable long-term asset.
Verify Before You Buy
If you’re planning to invest in a precious metals IRA, always:
- Use an IRS-approved custodian
- Verify coins/bars are IRA-eligible
- Avoid any advisor promoting home storage IRAs (non-compliant)
- Request a full fee schedule from any custodian or dealer
You can consider Using these tools:
- IRS.gov – IRA Guidelines
- Investor.gov – SEC Alerts
- FINRA BrokerCheck
- IRS Publication 590-A
- IRC Section 408(m)
| Wall Street Metals | Check Here |