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Precious Metals

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. Precious metals investors often look to centuries’ worth of wealth preservation using physical gold and silver 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 has carved out an exemption for some. Section 408(m)(3) of the Internal Revenue Code states that the term “collectible” does not apply to the following:

  • U.S. Treasury minted $5, $10, $25 and $50 gold coinsINFOGRAPH Precious Metals Process
  • U.S. Treasury minted silver coins
  • U.S. Treasury minted platinum coins
  • Coins minted under the laws of any state

Additionally, the term “collectible” does not apply to gold, silver, platinum or palladium bullion that meets the fineness required by the Commodity Exchange Act. Bullion bars or rounds must meet the following fineness minimums: gold at .995, silver at .999 and platinum and palladium at .9995.

Please note that you cannot be in physical possession of the metals held in a retirement account.

The 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.

You will need to open and fund a Kingdom Trust account in order to purchase precious metals. You must find a precious metals broker or dealer, determine the quantity and type of metal you wish to purchase, and then direct us to send the vendor the funds necessary to complete the purchase. The broker or dealer will then deliver the metals to the storage facility you have chosen. Our processing time is typically 24-48 hours within receipt of investment documents, provided that they are in good order.

For more information on the Kingdom Trust process, depositories and your responsibilities as an account holder owning precious metals, please see our free Precious Metals Resource Guide (in the “Related Information” section of this page). If you are interested in holding precious metals in a single-member LLC, please visit our Single-Member LLC page.

 

* 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.