Investing In The Best Gold Bullion for Your IRA

• Gold bullion is the most common way to invest in gold.
• Investment-grade bullion bars are the purest form of gold, with 99.99% purity.
• Gold is seen as the classic safe-haven asset, and it is often viewed as a store of value and insurance against risk.

Gold is the go-to precious metal for IRA investors. Gold bullion is the most popular way to hold gold, and it's also the most common way to invest in gold. Investment-grade bullion bars are the purest form of gold, with 99.99% purity. They are often used in jewelry and coin-making, though some are minted specifically for investment.

Bullion Versus Coins

Investors looking to put physical gold into their IRAs will have to decide between bullion and numismatic coins. Bullion is the generic term for all gold bars, rounds, and coins and refers to all non numismatic coins, including bullion coins, such as the American Eagle and Canadian Maple Leaf.
Numismatic coins are coins that have been graded, or assessed, by third-party organizations. These coins tend to have numismatic value, which increases as they become scarcer.
Purchasing numismatic coins, however, may not be the best way for an IRS-permitted IRA investor to invest in gold. The Internal Revenue Service (IRS) prohibits IRA investors from purchasing "collectibles." The definition of a collectible is broad and includes coins and paper money, and, therefore, numismatic coins are collectibles.
Instead, investors can purchase bullion coins that are considered legal tender, like the American Eagle and Canadian Maple Leaf coins.

Gold Bullion

Gold bullion is pure gold contained in bars or coins. Gold bars are traded in lots of 400 oz. Gold bullion coins are available in 1 oz., 1/2 oz., 1/4 oz., and 1/10 oz. sizes. American Gold Eagles are 24-karat gold coins minted by the U.S. government. American Gold Buffalo coins are 24-karat gold coins minted by the U.S. Mint. Gold bars come in weights of 1 oz., 1/2 oz., 1/4 oz., 1/10 oz., 1/20 oz., and 1/25 oz.

Gold Coins

Gold coins are minted by governments around the world. Some coins are legal tender, and some are not. The coins come in various denominations and weights, all bearing a face value of gold or silver.
Gold bullion coins include American Eagles, Canadian Maple Leafs, South African Krugerrands, and Australian Kangaroos.
Gold coins are available in a variety of weights, from 1/10th of an ounce to more than 400 ounces. They are legal tender in their country of issue, and their value is equal to that of gold or silver content.
Gold bars are available in various weights, from 1 gram to more than 400 ounces. Many investors prefer gold bars because they are easier to transport and store.

Gold Bars

Gold bars come in two forms: cast and minted. Cast bars are also known as ingots, and they weigh 400 troy ounces (12.4 kg). They are often produced by melting mined gold and then pouring it into molds. Minted bars are stamped using machines, and they weigh 1,000 troy ounces (32.151 kg).
Both types of bars are suitable as IRA investments, but for IRA purposes, only cast bars are acceptable.
Gold coins
Apart from gold bars, gold bullion coins are also popular investments for IRAs. They can be minted by the world's major mints, including the U.S. Mint, the Royal Canadian Mint, and the Austrian Mint, among others. These coins have the same value as gold bars, and their weight and purity are certified by government regulatory agencies.
Gold bullion coins come in three forms: 1-ounce, 1/2-ounce, and 1/4-ounce.

But There's More to Gold Investing Than Just Metals

Gold bullion and coins are considered one of the safest investments you can make, and gold investment performance is unique in that its value doesn't correlate with that of other investments. Gold bullion and coins are tangible and can easily be stored at home or in a safe-deposit box.
Investing in gold in your IRA is no easy task because not all gold is created equal. Not all gold investments are made the same either. Investing in gold bullion or coins is safer and easier than investing in gold mutual funds and ETFs. However, bullion and coins are more susceptible to theft, and you'll have to deal with the storage fees. With IRAs, you won't have to worry about storage fees, but you will have to make sure you're following IRS rules.

Gold IRA: Should You Open One To Save For Retirement?

The Bottom Line

An IRA, or Individual Retirement Account, is a savings plan that allows you to invest pre-tax money for the future retirement. You can't use IRA funds for anything but retirement.
Setting up an IRA account is fairly simple, and you can look at precious metals IRAs as a way to diversify your savings.