Investment Options

Hold Precious Metals in Your Self-Directed IRA

A Self-Directed IRA can provide access to certain eligible gold, silver, platinum, and palladium investments while preserving the tax treatment associated with your retirement account.

Preferred Trust provides the custody and account administration required to hold eligible precious metals within a Self-Directed IRA.

Overview

Why Investors Consider Precious Metals

Some investors choose to include physical precious metals as part of a broader retirement investment strategy. A Self-Directed IRA can hold certain IRS-permitted gold, silver, platinum, and palladium products, allowing investors to add tangible alternative assets to their retirement holdings.

A Tangible Asset

Precious metals are physical assets rather than shares of a publicly traded company or investment fund.

Broader Investment Choice

A Self-Directed IRA gives investors access to eligible alternative assets beyond traditional stocks, bonds, mutual funds, and ETFs.

Long-Term Holdings

Eligible metals can be held within a Self-Directed IRA until the investor chooses to sell or take an eligible distribution.

Precious metals involve investment risk, including changes in market value, dealer premiums, liquidity considerations, and storage costs. Preferred Trust does not recommend or evaluate investments.

Eligibility

Eligible Precious Metals.

Not every coin, bar, or precious metal product is eligible to be held within an IRA. IRS requirements apply to the type and purity of precious metals purchased.

Gold

Certain eligible gold coins and bullion may be held in an IRA.

Minimum fineness generally 99.5%

Silver

Certain silver coins and bullion may qualify.

Minimum fineness generally 99.9%

Platinum

Certain platinum coins and bullion may qualify.

Minimum fineness generally 99.95%

Palladium

Certain palladium bullion may qualify.

Minimum fineness generally 99.95%

Eligibility matters.

Before purchasing precious metals through your IRA, confirm that the specific product meets applicable IRA requirements and Preferred Trust’s custody requirements.

Process

How It Works

Open or Fund Your Self-Directed IRA

Open an eligible Preferred Trust account and fund it through an eligible transfer, rollover, or contribution.

Select Your Precious Metals

Choose the eligible metals you want your IRA to purchase and conduct your own due diligence.

Direct your investment

Select the precious metals dealer you want to work with.

Submit Your Investment Instructions

Provide Preferred Trust with the required documentation and instructions for the IRA purchase.

Metals Are Sent to an Eligible Depository

IRA-owned precious metals must be held by an eligible third-party storage facility rather than personally stored by the IRA owner.

Before You Choose a Dealer

Know What You're Paying For

Precious metals dealers determine their own pricing and may charge premiums above the market price of the underlying metal. Preferred Trust does not select, recommend, or evaluate precious metals dealers. Investors are responsible for researching the dealer and the investment before making a purchase.

Understand the Spot Price

The spot price is the current market price for a precious metal and fluctuates throughout the trading day.

Knowing the current spot price gives you a reference point when comparing dealer pricing.

Compare Dealer Premiums

The purchase price offered by a dealer may be higher than the current spot price.

Understand the difference between the underlying metal value and the total price you are being asked to pay.

Understand the Bid/Ask Spread

The price at which a dealer sells metals and the price at which it may later buy them back can differ.

That difference can affect the amount you receive if you later sell your investment.

Conduct Your Own Due Diligence

Before making a purchase, consider factors such as dealer reputation, pricing, commissions, delivery terms, repurchase policies, and the specific product being purchased.

Storage

How Precious Metals Storage Works

Precious metals owned by a Self-Directed IRA cannot simply be stored at home by the IRA owner.

Eligible IRA-owned metals must generally be held in the physical possession of an eligible bank or approved nonbank trustee or depository.

Preferred Trust serves as the IRA custodian. The depository is a separate organization responsible for physically storing the metals.

Investor

Selects the investment

Preferred Trust

Custodies and administers the IRA

Precious Metals Dealer

Provides the metals

Depository

Physically stores the IRA-owned metals

Storage options may include the following:

Segregated Storage

Your metals are generally stored separately from the holdings of other clients.

The specific bars or coins associated with the account remain individually identified.

This type of storage may cost more.

Non-Segregated Storage

Certain fungible bullion products may be stored with equivalent metals owned by other clients.

This structure may provide lower storage costs.

Storage options vary by depository and type of metal. Investors should confirm available options, fees, insurance, and procedures directly before selecting a storage arrangement.

Costs

Understand the Costs Before You Invest

In addition to the purchase price and dealer costs discussed above, investors should plan for account administration and storage expenses.

Custodial Fees

Preferred Trust charges account administration and applicable transaction fees for Self-Directed IRA accounts.

Storage Fees

Third-party depositories charge separately for precious metals storage.

Liquidity

Plan Ahead for Future Distributions

Physical precious metals do not generate cash inside the IRA. Investors should consider how future account fees and distributions will be handled before allocating retirement funds to metals.

Sell Metals for Cash

An investor may instruct the IRA to sell some or all of its precious metals, with proceeds returning to the IRA

Take an In-Kind Distribution

Subject to applicable requirements, investors may be able to take physical possession of metals as an IRA distribution.

The distribution may have tax consequences depending on the account type and individual circumstances.

Planning for Required Minimum Distributions

Traditional IRA owners generally must begin Required Minimum Distributions at the applicable IRS-required age, currently 73 for many IRA owners.

Roles

You Choose the Investment. We Administer the Account.

For the investor

For Preferred Trust

Preferred Trust does not sell precious metals or recommend dealers or investments.

Frequently Asked

Precious Metals IRA Questions

Can I store IRA-owned precious metals at home?

IRA-owned metals generally must be held by an eligible bank, approved nonbank trustee, or depository. They should not be personally stored by the IRA owner.

Does every gold or silver product qualify for an IRA?

No. Specific IRS eligibility and fineness requirements apply, and the product must also meet Preferred Trust’s custody requirements.

Does Preferred Trust sell or recommend precious metals?

No. Preferred Trust serves as the IRA custodian and does not sell, recommend, or evaluate precious metals or dealers.

What happens when I want to sell or take possession of my metals?

Investors may direct the IRA to sell eligible holdings, with proceeds returning to the IRA, or take an in-kind distribution subject to applicable account procedures and tax considerations.

Get Started

Interested in Holding Precious Metals in Your IRA?

Preferred Trust can help you establish and administer a Self-Directed IRA designed to hold eligible alternative investments, including certain precious metals.