Coins in Your IRA?
Focus: ALTERNATIVE INVESTMENTS
Eric Jordan, author of Modern Commemorative Coins, discusses a little-known provision that allows one to have some coins in their IRA.
You don’t just have to put the typical asset classes into your retirement accounts. Today, we’re talking about that with our guest, Eric Jordan. Now Eric, I understand that some gold and silver coins are allowable in IRAs. I didn’t know that.
Yes, they are. Silver, gold, and platinum eagles are allowable in IRAs, and that’s very interesting you should ask that question. The government says that all silver, gold, and platinum eagles are allowed in IRAs, but collectibles aren’t, right.
What they completely overlook is that silver, gold, and platinum eagles are the fastest growing collector group of coins there are, and because they have, by pronouncement, said that silver, gold, and platinum eagles are allowable in IRA’s, they’re a very special class.
You cannot take a rare better day classic coin and put it in an IRA, because it’s a collector item. It’s not allowable, but you can put a collectible, potentially collectible, silver, gold, or platinum eagle in an IRA even though you pay twice the amount for it, because it’s been pronounced allowed. It’s a wonderful loophole. I mean, they just handed it to you and they can do much, much better than the base metal, if you’re selective in what you buy.
Now, it seems a lot of people, I would guess, probably don’t know about that. What would be the advantages of doing this rather than stocks or fixed income?
It diversifies your portfolio for starters. A lot of people are very interested in silver, gold, and platinum right now. Honestly, that much interest scares me, because I’m a contrarian and I like to buy things when they’re a little bit overlooked.