Any thing that holds intrinsic value and is essential for economic wealth must be stored in the most secure way possible. The same is true when handling gold and any other precious metals.
Some investors and owners of gold are wary that they might lose their gold because of thieves and dishonest workers. With this in mind, storing it in your home seem a viable option. But is it really?
In this article entitled 'Home Storage Gold IRA Scams', I will be answering questions related to storing gold at home so read on to see what I have in store for you.
Gold - A Valuable Asset
Gold may be a smart method to diversify your portfolio, lower total risk, and safeguard your capital over time. Gold-backed individual retirement accounts (IRAs) are one approach to accumulate wealth.
It's crucial to shop around before deciding on a gold IRA account because there are various financial organizations that provide them. Whether you're a rookie or a seasoned pro, this is a must-have.
A self-directed IRA must invest in physical gold in order to be considered a retirement account. Physical assets, such as precious metals, real estate, enterprises, and stocks are also available.
Many investors and buyers alike are in business with an IRA firm that provides investment and storage services, such as Augusta Precious Metals. The question now about gold home storage now arises.
Is it lawful? Are financial institutions and organizations affected by gold storage at home? Is it really a safe method? These are the accompanying questions that storing gold at home brings.
Gold IRA - How Does It Work?
Gold IRA belongs to the self-directed IRA, which is a form of IRA that permits you to own alternative assets that are not normally allowed in Roth and standard IRAs.
A gold IRA allows investors to invest in gold that has been permitted by the Internal Revenue Service (IRS). In this type of account, a certain custodian and a precious metal dealer conduct business together.
Through this, the investor can easily add precious metals to their account. A gold IRA firm can also help by putting down possible courses of action that can help in the investment process.
IRA firms in the industry today also aims to educate their clients on economical and wealth literacy, which is a good thing! Although occasionally, there are some times where they step out of line.
Although the IRA industry is a legit one, there are a few deviants wherein they would recommend questionable acts. An example of this would be storing their gold in their own houses.
Is Home Storage of Gold Legal?
The short answer is no, not unless you pass certain qualifications and requirements wherein almost close to a hundred percent who applies for such privilege is turned down.
Some gold IRA firms and companies that encourage their clients to store their gold and precious metals at their respective abodes requests them to open a simultaneous limited liability company.
Although a lot will be dissuaded from this because of the sheer extra work one to do, there are still some whose prospect about storing their gold at home defeats the added work dumped on them.
After the creation, the investor should proclaim their selves as the owner and trustee of the IRA, and at that point on, the client can decide on where to store his/her gold.
This is illegal with the terms and conditions set by the IRA, and it punishable by law, both the client and the IRA firm that encourage such ridiculous suggestions.
It is stated above that storing gold at home is illegal, UNLESS you passed certain qualifications and requirements. These are the following:
- Related experience and excellent competence
- Good track record on being a trustee and custodian
- Good track record on past businesses
- Capacity to handle wealth and assets
- Bond and stocks standing
- Capacity to handle audits, both personal and governmental
- Net worth
- Other essential information
If an individual does not pass even one of this qualifications, he/she is barred from creating and abiding decisions and decisions such as storing their IRA-owned gold and precious metals at home.
I heartily recommend to not go through these lengths because one, you will most probably get declined, and second, all the assets and hard work you dispensed will not be rewarded.
So you are not interested in the idea of creating a limited liability, declaring yourself as a trustee, etc. just to store your precious gold at home? You have my commendation!
But, there are still firms that are overly-assertive and pushy. 'We have devise solutions for this!', they might say. But, do not underestimate the IRS and their knack for these things.
Do not fall for any words that these companies tell you because it would not end well. The IRS will undoubtedly impose severe sanctions upon you and the firm you have chosen.
Your economic problems would only start by then. Your dream of a steady investment with minimum risks would then end up as your worse nightmare. Always be cautious and wise!
Conduct business with legitimate gold IRA firm that does not encourage these type of actions. My top recommended gold IRA firm is Augusta Precious Metals.
1. Where can I store my gold and other precious metals then?
Owners of gold IRAs must keep their precious metals in an IRS-approved depository. This is a storage facility dedicated to the safekeeping of tangible precious metal assets like gold and silver.
Previously, the IRS only permitted investors to keep their funds in depositories located within the United States. Now, investors can store their assets in recognized depositories in the world.
2. Which are illegible for IRS-backed depositories?
Metals such as gold (must be 99.5% pure), silver (must be 99.9% pure), and platinum and palladium (must be 99.5% pure) can be stored.
Other coins are not eligible for IRA accounts. If you encounter a firm encouraging the depositing of such coins, never contact them again or better yet, report them to appropriate authorities.
It is a common scam nowadays. You can read more about these scams in the IRA industry here.
3. What are the penalties for storing gold at home?
The IRS will be unforgiving, as they should be, if they found out that you are violating their terms and regulations and is unlawfully storing gold and other precious metals at home that is IRA-owned.
You will be hit with a multitude of taxes, penalties, added expenses, etc. Expect a personal level of auditing too! And always bare in mind that you can be demanded of payment or even jail time!
Opening your own gold IRA account is a mighty fine way of securing your future through investments in the precious metals industry. I am recommending this to everyone.
Although this drive to protect your future is necessary, it goes without saying that you must not also jeopardize your present. That is why, never fall for petty schemes and scams by some industries.
Any company or firm that is encouraging you to store your precious metals assets at your home must be reported to the IRS or authorities immediately. Again, do not fall for these traps.
Talk to a representative of a trusted precious metals dealer. In this way, you will be given assurance that the IRS will not come hounding you because of an unlawful breach of their rules.
Thank you for reading this article of mine entitled 'Home Storage Gold IRA Scams'. Any suggestions and comments is deeply appreciated. Please leave them in the section below.