How do I purchase Precious Metals with my IRA? – American Estate & Trust

Investing in precious metals like gold, silver, platinum, and palladium through your IRA is a smart way to diversify and protect your retirement savings. Precious metals are often seen as a stable investment, especially in times of economic uncertainty. If you’re considering adding precious metals to your IRA, here’s everything you need to know about how to do it, particularly if you have a Self-Directed IRA (SDIRA) with American Estate & Trust (AET).

Why Invest in Precious Metals with Your IRA?

Precious metals have long been a go-to for diversifying a retirement portfolio, especially because they tend to hold their value well. By investing in precious metals within your IRA, you’re adding an extra layer of protection against market volatility and inflation. They’re also a great way to balance more traditional investments like stocks and bonds, helping to safeguard your savings for the long term.

Eligibility and IRS Regulations for Precious Metals Purchases

Not all precious metals qualify for IRA investments. The IRS has strict rules on which metals are eligible. To comply with these regulations, the metals must meet certain purity standards. The IRS-approved metals for IRA investment are:

Gold: Must have a minimum purity of 99.5%
Silver: Must have a minimum purity of 99.9%
Platinum: Must have a minimum purity of 99.95%
Palladium: Must have a minimum purity of 99.95%

Make sure any precious metal you purchase meets these standards to ensure compliance with IRS rules.

Step-by-Step Guide to Purchasing Precious Metals Using Your SDIRA

If you’re ready to invest in precious metals, follow these easy steps to make a purchase using your SDIRA:

Set Up Your SDIRA
You first need a Self-Directed IRA with a custodian like AET. Unlike traditional IRAs, SDIRAs give you the flexibility to invest in alternative assets like precious metals.
Choose Your Precious Metals
Once your SDIRA is established, you can select the type of precious metal you want to invest in. Be sure to choose only IRS-approved metals that meet the purity requirements.
Decide on Your Vendor
You have two options when purchasing precious metals through your SDIRA:
- Use Your Own Vendor: You can choose your own vendor to handle the purchase. If you go this route, you must submit an invoice billed in the name of your IRA along with your Direction of Investment (DOI) form.
- Let AET Handle the Purchase: If you'd rather AET handle the transaction for you, simply indicate that on your DOI. In this case, no invoice is required from you. AET will take care of all the details, including sourcing the metals and ensuring they meet the necessary standards.
Complete the Required Forms and Documents
Before you begin the DOI process, you’ll need to complete and save the Metals Buy/Sell Form to your computer. If you're purchasing from an external vendor, ensure the vendor’s invoice is billed to your IRA (in the name of your IRA). If AET is facilitating the purchase, you don’t need to provide an invoice, but you must still complete the Metals Buy/Sell Form.
Login to Your Online Portal
To create your DOI for the precious metals purchase, login to your account through AET’s online portal.
- Navigate to the “Invest (DOI)” tab
- Click on the “NEW INVESTMENT” button
- Select “PRECIOUS METALS” as the investment type
Enter Investment Details
Provide the necessary details about your investment, including:
- Describe Your Investment: Briefly describe the precious metals you plan to purchase.
- Vendor: Enter the vendor’s name or "AET" if we are facilitating the purchase.
- Investment Amount: Enter the total amount needed for the purchase (use decimals for cents and no dollar signs or commas).
- Funding Method: Choose "WIRE" or "CHECK" as your funding method.
Provide Payment Instructions
If you're using an external vendor, enter their payment details. If AET is handling the purchase, choose "Check" and enter your personal details as the payee.
Carrier and Handling Notes
- Carrier: Select "EMAIL" if paying by wire or specify the carrier if paying by check.
- Handling Notes: Add any applicable notes, such as special handling or instructions related to the purchase.
Upload Supporting Documents
- Metals Buy/Sell Form: Upload the completed form.
- Vendor Invoice: If you're using an external vendor, upload the invoice billed to your IRA.
Click “Add Document” to upload these files.
Review and Submit
After you’ve completed all the necessary sections and uploaded your documents, click “REVIEW” to double-check your submission. If everything looks good, click “SUBMIT” to complete your DOI for the precious metals purchase.
Wait for Review and Approval
AET will review your DOI submission within 3-5 business days. You can track the status of your DOI through your online portal and check if any additional information is needed to complete the process.

AET-Specific Process for Precious Metal Purchases

At AET, the process for purchasing precious metals with your SDIRA is designed to be as seamless as possible, whether you’re using your own vendor or requesting AET’s assistance:

Using Your Own Vendor: If you opt to purchase metals through a vendor of your choice, be sure to provide an invoice billed in the name of your IRA along with your DOI. This invoice will serve as proof of the transaction and help AET complete the purchase process for you.
AET Handling the Purchase: If you prefer AET to take care of the purchase, simply let us know on your DOI, and we will handle the sourcing, purchasing, and delivery of the precious metals on your behalf. In this case, you don’t need to provide an invoice—AET will manage all the details.
Storage at Delaware Depository: Precious metals purchased through your IRA must be stored at an IRS-approved depository. AET’s preferred depository is the Delaware Depository, which meets all the necessary security and regulatory requirements. If you'd prefer a different storage facility, we can accommodate that request.

Compliance and Reporting Requirements

When investing in precious metals, it’s essential to stay on top of compliance. At AET, we guide you through the necessary documentation and reporting, including:

Annual Asset Valuations: You’ll need to provide annual valuations of your precious metals. AET offers an easy process for submitting these valuations, which are required to maintain your IRA’s tax-advantaged status.
IRS Compliance: AET ensures that all precious metals purchases comply with IRS rules, including the requirement that metals be stored in an approved depository. This helps you avoid potential penalties or issues with the IRS.

Storing Your Precious Metals

As mentioned, precious metals held in your IRA must be stored in an IRS-approved depository. AET’s preferred depository is the Delaware Depository, but we can work with other depositories at your request. Your metals will remain safe, insured, and compliant with IRS regulations when stored at a qualified facility.

Conclusion

Purchasing precious metals for your IRA is a straightforward process, especially if you work with AET. Whether you choose to use your own vendor or have AET handle the purchase, we’re here to ensure that the process runs smoothly and in compliance with IRS regulations.

If you’re ready to add precious metals to your retirement portfolio or if you have any questions about the process, feel free to contact us for assistance. We’re happy to guide you every step of the way!