Question re: self directed Ira metals purchases

By jcat3022 on Thu, Jan 17, 2013 - 6:23pm

Wanted to get other people's opinions regarding my self directed Ira.  My wife and I just rolled over 401k's from previous employers and have a joint self directed Ira in our LLC name.  I'd like to make a large order of silver & gold.  The rules are that we can purchase the metals but can physically hold them.  They need to be in a storage facility or lock box.

So do we purchase the metals, pay the % above spot & reoccurring storage fees each year? Or, since we can't actually take hold if the metals, should we buy GLD & SLV and pay the small trading fee?

I know the rule that if you don't hold it, you might not own it.  So this one is sort of a tough call.


shizah's picture
Status: Member (Offline)
Joined: Dec 19 2012
Posts: 6
self directed Ira metals purchases

To get the answer to you question, you will probably need to give some more information. Off course, at the same time I understand not wanting to give to much information out on a forum. I'll try to answer your questions the best I can and how I am understanding what you are asking.

With regard to taking physical possession - you actually take physical possession of the gold and silver under IRA distribution rules. This is not common knowledge and very few people know that this is an option. Also, when looking to purchase precious metals - there are strict guidelines as to what can be held in the IRA. Here's a link that should be able to answer most, if not all of your questions -

For storage - you are correct that it needs to be stored in a facility. Storage facility fees are minimal when you are talking about storing precious metals. You can find storage facilites that have flat annual fees regardless of the amount of metals. A good rule of thumb is not to pay more than 1% for a storage fee. 

I'm not sure what you mean when you say lock box - are you talking about safety deposit boxes at a bank? My parents refer to their safety deposit box as a lock box. If this is what you are talking about, I strongly advise against putting any precious metals in a safety deposit box. Safety depost boxes from what I understand are not FDIC insured. Plus, if your bank becomes insolvent - the precious metals in the safety deposit will be gone. I touch on this in another post. Here is the url linking to an article that talks about these risks-

And finally, if you should by GLD and SLV - It depends on what you want precious metals for in the first place. If you think that all the fiat currencies are going to be worthless, then it probably does make a whole lot of sense to buy GLD and SLV. On the other hand, if you want something that is tangible and will always have value - you should get the real thing. For me personally, I like the real thing since it's store of value.

Good luck!

jcat3022's picture
Status: Bronze Member (Offline)
Joined: May 9 2012
Posts: 78
thanks Shizah, that is good

thanks Shizah, that is good information.  I think we'll go with the physical delivery and store at a place in Delaware an hour from our home.  Their rates are a half of percent of the value of the metals. Seems fair to me.

KeithM1116's picture
Status: Bronze Member (Offline)
Joined: Sep 10 2012
Posts: 77

You might want to watch this short video of Kyle Bass about the fractional reserves of the COMEX traded PMs. 

For trading purposes, as long as the price is "in a reasonable range" these ETFs are fine, but if you're looking for protection against a calamity, then you need the physical assets.


harlyd's picture
Status: Member (Offline)
Joined: Sep 11 2012
Posts: 1
The short answer is yes it is

The short answer is yes it is possible to hold physical gold.

The question is do you want to. Do you have proper insurance?

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