Investing in precious metals is often used to “hedge” against the volatility of Wall Street while maintaining the tax benefits associated with a retirement plan.
Many investors choose to build their retirement through alternative assets like gold, silver and other precious metals. These investors often look to centuries’ worth of wealth preservation using physical metals as evidence of their stability.
A Kingdom Trust account allows you to invest in precious metals via a retirement account like a Self-Directed IRA. So, whether you are new to retirement investing or have had previous experience with investing personal funds in precious metals, consider generating tax-free or tax-deferred retirement wealth by investing in qualified metals using retirement funds.
While some precious metals and coins are considered collectibles and cannot be held in a retirement account, the Internal Revenue Service, via Section 408(m)(3), has carved out some exemptions. This includes certain gold, silver, platinum and palladium bullion. Check out our free Precious Metals Resource Guide (in the “Related Information” section of this page) for a breakdown of these exemptions.
Please note you cannot be in physical possession of metals held in a retirement account.
Physical precious metals must be stored in a metals depository. Kingdom Trust has relationships with multiple depositories in the United States and in Canada,* each offering an insured, secure storage environment and providing easy access for the physical delivery of the metals.
Just as precious metals investors have a variety of tastes, there are likewise a variety of ways to invest in gold, silver, platinum or palladium using a self-directed account:
- Direct ownership, which provides titled ownership of physical metals by your IRA or other retirement account; or
- Indirect ownership, which provides ownership of a third-party entity by your IRA or other retirement account.
The precious metals market has evolved over time, and interested investors now have several ways to invest.
- Broker or dealer: If you choose to work with a broker or dealer directly to buy and sell metals, you must initiate the relationship with a broker or dealer, coordinate the process of acquiring the precious metals and have them delivered to the IRA-approved depository of your choice. Your Kingdom Trust account owns the metals directly. Be sure to understand the broker or dealer’s specific processes to avoid any transaction issues or delays.
- Online trading account: Should you choose to invest in metals via an online dealer platform, you would utilize an online dashboard for transactions, with your Kingdom Trust account automatically linked to the online dealer as well as an IRA-approved depository. You then buy and sell approved precious metals through the online platform, with your account also owning the metals directly.
- IRA-owned single-member LLC: To invest in precious metals indirectly via an IRA-owned single-member LLC, you must have a legal team create an LLC. The LLC may then purchase the metals via any of the methods discussed on this page. Instead of your Kingdom Trust account, the LLC would have titled ownership of the physical metals. Note that assets held indirectly by an LLC inside a retirement account must still follow the rules and requirements as those held directly by the account.
- Exchange-traded fund: You may also utilize an exchange-traded fund (ETF) for an indirect precious metals investment. Your Kingdom Trust account would own metals ETF shares. The account would not be assigned titled ownership of the physical metals within the ETF.
For more information on the Kingdom Trust process, depositories and your responsibilities as an account holder, please see our Precious Metals Resource Guide.
* In Ontario the Canadian government imposes a 13% Goods and Service Tax/Harmonized Sales Tax (GST/HST) on products entering Canada that do not meet a minimum purity requirement. Please check with your broker to ensure that your purchase meets those requirements.