Why Physical Gold Storage is Important

by IRA Rollover in Gold, Gold Bullion with Comments Off on Why Physical Gold Storage is Important

If you’re thinking about making your IRA more secure by purchasing gold and other precious metals you may be wondering about physical gold storage — can you keep it in your home?  Where will it be safe from damage, vandalism, natural disasters, or theft?  You can rest assured that your gold and other precious metals that you buy for your IRA will be safe, secure, and available if and when you decide to make a withdrawal.

The Tax Payer Relief Act was passed in 1997 to allow precious metals to be included in IRA accounts.  This means you can purchase gold, silver, palladium, and platinum for your IRA rather than be confined to investing in the stock market and other riskier ventures.  However, the metals have to be 99.9% pure no matter which metal you choose.  Examples of acceptable gold are bars, ingots, US gold and silver eagles, Canadian Maple Leaf, etc.

Federal law mandates that all precious metals purchased for IRA accounts be stored at a federally licensed IRA custodian.  It is the

physical gold storage

same law that applies to stock certificates or a money market account that is part of your IRA—you cannot physically hold these assets but must store them in a safe, impenetrable facility.

One of the most well known depositories for gold and precious metals is the Delaware Depository Service Center (DDSC).  This is located in Wilmington, Delaware, and is an approved center for storage and distribution of precious metals.  It stores precious metals and provides shipping services to investors worldwide, including financial institutions and industrial giants.  It is heavily insured so that if anything should happen to your gold despite the security systems and environmental protection amenities (such as sprinklers and smoke detectors), you don’t lose the value of your precious metals.

There are two ways your precious metals are stored.  Fungible storage means that your gold or other precious metals are grouped with other depositors’.  When you take a distribution you may get a different item of gold than you deposited but the purity and value is exactly the same.  Segregated storage means that your metals are stored separately and you get the exact same items that you purchased when you take a distribution or sell them in the future.

You will pay a storage fee for your precious metals based on the value of your account. Segregated storage fees are a bit higher than Fungible storage fees.

So what if you want to store gold or precious metals in your home or a bank box?  You can certainly do that but they cannot be a part of your IRA.  Some people do purchase gold and store it in a safe on their own premises.  However, there is always the possibility of theft or natural disaster that can compromise its safety.  You can also store it wherever you choose once you withdraw it as a distribution from your IRA but that can be risky.

Purchasing gold for your IRA is an excellent way to escape the ravages of inflation, hyperinflation, and economic uncertainty.  Having a secure place for physical gold storage will give you peace of mind as you watch your gold and other precious metals appreciate.

 physical gold storage

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