You Don’t Need a Precious Metals IRA to Buy Gold

Now is the season to hear frequent radio commercials touting the use of a Precious Metals Individual Retirement Account (IRA) to own physical gold. The focus on acquiring through a Precious Metals IRA is about the only option advertised. It finally struck me: does the general public even realize that you can acquire physical precious metal coins and bars without the expense and hassle of doing so through such an IRA?

Readers of these columns are much more sophisticated than the general public in realizing that you can purchase precious metals, coins, and bars directly without the need to pay for a trustee and storage facility, along with their transaction fees and high postage costs. Also, by purchasing them directly, you have the world of choices as to which coins or bars to acquire rather than being restricted to a much smaller selection allowed to be owned by a Precious Metals IRA. Would you like to own a pre-1934 $20 Saint-Gaudens double eagle? You can purchase one personally, but it’s a prohibited coin in the Precious Metals IRA.

Another advantage of making direct purchases is that you can hold the goods in your own hands and have multiple options about where to secure them.

I have not done any research to ascertain what percentage of the population is under the impression that they can only acquire bullion-priced gold, silver, platinum, or palladium coins and ingots through these IRAs. Because of all the advertising for Precious Metals IRAs, I suspect the proportion of people would be much higher than most of us would guess.

So, numismatists and precious metals investors, you may need to help educate the general public that there are more ways to own physical precious metals than only by using a Precious Metals IRA. If the general public understands that they can buy them directly, that might increase demand. That could accelerate the rise in prices of what you already own.

Last week, I asked: What were the highest-mintage U.S. commemorative coins in both uncirculated and in-proof strikes?

There are several issues with mintages of 1 million or more pieces, with the earliest being the 1893 Columbian Exposition silver half dollar. However, you must look to the modern-era commemoratives starting in 1982 for the highest mintages in uncirculated and proof strikes. For an uncirculated coin, the 1982 George Washington 250th Anniversary of Birth silver half dollar has the highest mintage at 2,210,458. For a proof issue, the high mintage honor goes to the 1986 Statue of Liberty copper-nickel half-dollar, of which 6,925,627 pieces were sold.

Why are so many coins denominated in the heller monetary unit issued since 1189 A.D. still so relatively affordable? Come back next week for the answer.

Patrick A. Heller was honored as a 2019 FUN Numismatic Ambassador. He is also the recipient of the American Numismatic Association 2018 Glenn Smedley Memorial Service Award, 2017 Exemplary Service Award, 2012 Harry Forman National Dealer of the Year Award, and 2008 Presidential Award. Over the years, he has also been honored by the Numismatic Literary Guild (including twice in 2020), the Professional Numismatists Guild, the Industry Council for Tangible Assets, and the Michigan State Numismatic Society. He is the communications officer of Liberty Coin Service in Lansing, Mich., and writes “Liberty’s Outlook,” a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at www.libertycoinservice.com. Some of his radio commentaries, "Things You ‘Know’ That Just Aren’t So,” and “Important News You Need To Know,” can be heard at 8:45 a.m. Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio archives posted at www.1320wils.com).