WEBVTT 00:00:00.000 --> 00:00:02.520 Welcome to the deep dive. So you're probably 00:00:02.520 --> 00:00:05.459 exploring different ways to build that retirement 00:00:05.459 --> 00:00:08.839 nest egg. And maybe you're looking at precious 00:00:08.839 --> 00:00:12.400 metals for security thinking, hmm, what about 00:00:12.400 --> 00:00:14.460 those really interesting collectible coins? Can 00:00:14.460 --> 00:00:17.500 I add those to a gold IRA? Yeah, that's a common 00:00:17.500 --> 00:00:19.539 thought. It's definitely appealing, isn't it? 00:00:19.699 --> 00:00:22.940 Mixing the stability of gold with the history 00:00:22.940 --> 00:00:25.160 and art of collectibles. It really is. So let's 00:00:25.160 --> 00:00:27.300 really get into this today. Our goal, drawing 00:00:27.300 --> 00:00:30.339 on Doug Young's piece, Can I Use My Gold IRA 00:00:30.339 --> 00:00:32.759 to Buy Collectible Coins? He's an expert here, 00:00:32.759 --> 00:00:36.240 is basically to untangle those IRS rules about 00:00:36.240 --> 00:00:38.799 gold IRAs and collectible coins. We want to make 00:00:38.799 --> 00:00:41.060 it super clear what you can and can't do for 00:00:41.060 --> 00:00:43.280 your retirement savings. Absolutely. It's easy 00:00:43.280 --> 00:00:45.079 to see why people are curious. I mean, putting 00:00:45.079 --> 00:00:47.359 rare coins in your retirement fund, you might 00:00:47.359 --> 00:00:49.259 see it as diversification, something tangible, 00:00:49.280 --> 00:00:51.799 maybe with growth beyond just the metal price. 00:00:51.759 --> 00:00:54.719 But, well, when you dig into the actual rules 00:00:54.719 --> 00:00:57.240 for gold IRAs, it becomes pretty clear. Okay, 00:00:57.299 --> 00:00:59.280 so let's just cut to the chase then. Can you 00:00:59.280 --> 00:01:01.780 or can you not put those prized collectible coins 00:01:01.780 --> 00:01:04.239 into your gold IRA? The short and sweet answer, 00:01:04.560 --> 00:01:07.519 based on how Doug Young interprets the IRS regulations, 00:01:08.219 --> 00:01:11.620 is a definite no. A definite no, okay. Collectible 00:01:11.620 --> 00:01:13.620 coins just aren't allowed in a gold IRA. Right. 00:01:14.459 --> 00:01:17.500 Straightforward. So why? What's the logic there? 00:01:17.620 --> 00:01:20.420 Why does the IRS draw this line between, say, 00:01:20.920 --> 00:01:23.719 standard gold bullion and a rare coin? It's actually 00:01:23.719 --> 00:01:26.640 quite interesting their reasoning. The IRS wants 00:01:26.640 --> 00:01:30.260 the assets in a gold IRA to have a value that's, 00:01:30.260 --> 00:01:34.659 well, relatively stable. Predictable. Tied mostly 00:01:34.659 --> 00:01:37.719 to the intrinsic metal content. The actual gold, 00:01:37.799 --> 00:01:40.120 silver, whatever it is. Exactly. But collectible 00:01:40.120 --> 00:01:42.579 coins. Their value comes from other things too, 00:01:42.680 --> 00:01:44.659 much more subjective things. Like? Well, think 00:01:44.659 --> 00:01:47.120 about rarity, right? The coin's condition, its 00:01:47.120 --> 00:01:49.319 history, who owned it, even just collector demand, 00:01:49.459 --> 00:01:52.640 which can go up and down. Ah, OK. So it's about 00:01:52.640 --> 00:01:54.920 keeping the valuation grounded in something solid, 00:01:55.099 --> 00:01:58.180 the metal itself, and less about the sometimes 00:01:58.180 --> 00:02:00.500 unpredictable collector market. Precisely. Especially 00:02:00.500 --> 00:02:02.620 for a retirement fund meant for long -term security. 00:02:02.780 --> 00:02:05.180 That makes a lot of sense. Yeah, the IRS is trying 00:02:05.180 --> 00:02:07.900 to ensure stability and transparency in these 00:02:07.900 --> 00:02:10.620 retirement accounts. When value gets tied up 00:02:10.620 --> 00:02:13.979 in subjective stuff, it adds complexity, potential 00:02:13.979 --> 00:02:16.939 volatility, things they want to avoid here. They're 00:02:16.939 --> 00:02:19.840 trying to prevent inflated values based on how 00:02:19.840 --> 00:02:22.020 rare a coin is, which could mess with the stability 00:02:22.020 --> 00:02:24.099 of the retirement account. They want the core 00:02:24.099 --> 00:02:27.180 asset value to be consistent globally recognized. 00:02:27.479 --> 00:02:29.520 And the article really drives home that the IRS 00:02:29.520 --> 00:02:32.180 isn't just suggesting this, right? It's a hard 00:02:32.180 --> 00:02:34.939 rule. Oh, absolutely. The Doug Young is very 00:02:34.939 --> 00:02:38.340 clear. The IRS explicitly prohibits rare or collectible 00:02:38.340 --> 00:02:41.060 coins in gold IRAs. There's really no gray area. 00:02:41.360 --> 00:02:43.780 The whole point is ensuring the main value driver 00:02:43.780 --> 00:02:46.460 is the metal content. OK, so to make this really 00:02:46.460 --> 00:02:48.759 concrete for you listening, what kind of coins 00:02:48.759 --> 00:02:50.360 are we actually talking about? The ones that 00:02:50.360 --> 00:02:52.099 are definitely not allowed in our gold IRA. Can 00:02:52.099 --> 00:02:54.319 you give some examples of these off limits collectibles? 00:02:54.479 --> 00:02:56.879 Like I read about the 1933 St. Godin's double 00:02:56.879 --> 00:02:59.219 eagle. Wow. Even something legendary like that 00:02:59.219 --> 00:03:01.439 is out. That's a perfect example from the article. 00:03:01.819 --> 00:03:05.340 That specific coin. the 33 St. Godin's Double 00:03:05.340 --> 00:03:08.840 Eagle. It has immense historical value, numismatic 00:03:08.840 --> 00:03:12.319 value, way beyond its gold weight. Also think 00:03:12.319 --> 00:03:14.460 about commemorative coins from private mints. 00:03:15.020 --> 00:03:17.000 They often fall into this category. Why those 00:03:17.000 --> 00:03:19.699 specifically? Well, unlike official government 00:03:19.699 --> 00:03:21.919 mints that guarantee purity and legal tender 00:03:21.919 --> 00:03:24.680 status for their bullion coins, these private 00:03:24.680 --> 00:03:27.979 mint commemoratives, their value is often tied 00:03:27.979 --> 00:03:31.340 to being a limited edition. or the theme. It's 00:03:31.340 --> 00:03:33.680 less about the standard weight and purity, which 00:03:33.680 --> 00:03:35.979 makes them less suitable for the stable value 00:03:35.979 --> 00:03:38.659 needed in a gold IRA. Gotcha. And of course, 00:03:38.860 --> 00:03:41.039 any coin that just doesn't meet the IRS minimum 00:03:41.039 --> 00:03:43.479 purity standards for the metal itself is also 00:03:43.479 --> 00:03:47.210 out. Okay, so no finding a rare gem in the attic 00:03:47.210 --> 00:03:49.189 and sticking it straight into your gold IRA. 00:03:49.409 --> 00:03:51.830 No limited edition private mint stuff either. 00:03:52.030 --> 00:03:53.830 But it's not like you can't use gold in your 00:03:53.830 --> 00:03:55.689 IRA, right? There are specific coins that are 00:03:55.689 --> 00:03:57.889 allowed. What makes the cut? Absolutely. The 00:03:57.889 --> 00:04:00.030 IRS does allow certain precious metal coins, 00:04:00.129 --> 00:04:02.289 provided they meet specific criteria. These are 00:04:02.289 --> 00:04:04.469 usually well -known bullion coins. Bullion coins, 00:04:04.530 --> 00:04:07.310 okay. Yeah, recognized as legal, tender, high 00:04:07.310 --> 00:04:11.389 purity standards. The article mentions... Popular 00:04:11.389 --> 00:04:14.409 ones like the American gold eagle. Mm -hmm the 00:04:14.409 --> 00:04:16.470 Canadian gold maple leaf the Australian gold 00:04:16.470 --> 00:04:19.209 kangaroo These are widely traded and their value 00:04:19.209 --> 00:04:22.110 tracks the gold spot price very closely So these 00:04:22.110 --> 00:04:24.970 are the standard government backed coins clear 00:04:24.970 --> 00:04:28.050 purity levels, okay that clarifies things now 00:04:28.050 --> 00:04:29.730 Maybe it just for a second for anyone listening 00:04:29.730 --> 00:04:32.209 who's maybe a bit newer to this Can we quickly 00:04:32.209 --> 00:04:34.949 define what a gold IRA is? How is it different 00:04:34.949 --> 00:04:38.110 from say my regular IRA with stocks? Sure. Good 00:04:38.110 --> 00:04:40.860 idea A gold IRA is basically a type of individual 00:04:40.860 --> 00:04:42.699 retirement account, you know, like a traditional 00:04:42.699 --> 00:04:45.360 Roth IRA. But instead of holding paper assets 00:04:45.360 --> 00:04:48.360 like stocks or bonds digitally, it holds physical 00:04:48.360 --> 00:04:50.759 precious metals, gold mainly, but also silver, 00:04:50.819 --> 00:04:52.720 platinum, platinum, usually stored in a secure 00:04:52.720 --> 00:04:54.959 vault. Physical metal. OK. And why do people 00:04:54.959 --> 00:04:57.800 do it? The main draw for a lot of folks is seeing 00:04:57.800 --> 00:05:00.279 precious metals as a hedge, a hedge against inflation, 00:05:00.519 --> 00:05:03.079 maybe market downturns. It adds diversification 00:05:03.079 --> 00:05:06.639 to your overall strategy, gives a sense of tangible 00:05:06.639 --> 00:05:08.879 security, especially when the economy feels uncertain. 00:05:08.939 --> 00:05:11.800 Right. Holding the actual asset. And you mentioned 00:05:11.800 --> 00:05:14.639 purity or fineness requirements earlier. That's 00:05:14.639 --> 00:05:17.180 super important for anything going into a gold 00:05:17.180 --> 00:05:19.740 IRA, isn't it? Oh, absolutely critical. The IRS 00:05:19.740 --> 00:05:22.980 has very specific minimum purity levels. Like 00:05:22.980 --> 00:05:26.939 what? For gold, it has to be at least 99 .5 % 00:05:26.939 --> 00:05:30.600 pure. OK, 99 .5%. Silver needs to be 99 .9 % 00:05:30.600 --> 00:05:32.439 pure. And both platinum and palladium need to 00:05:32.439 --> 00:05:36.819 be even purer, 99 .95%. Wow. These high levels 00:05:36.819 --> 00:05:38.699 ensure the investment is really in the metal 00:05:38.699 --> 00:05:42.170 itself. not significantly diluted by other alloys, 00:05:42.370 --> 00:05:44.449 it lines up with that long -term security focus 00:05:44.449 --> 00:05:46.709 for retirement, makes the value more directly 00:05:46.709 --> 00:05:49.430 tied to the metal. So not just any old gold jewelry 00:05:49.430 --> 00:05:52.370 or anything, it has to meet these strict IRS 00:05:52.370 --> 00:05:55.009 standards. Now, setting one of these up, it's 00:05:55.009 --> 00:05:56.790 not just buying gold and telling your broker, 00:05:56.970 --> 00:05:58.649 right? There are other players involved, like 00:05:58.649 --> 00:06:00.870 gold IRA companies and custodians. What do they 00:06:00.870 --> 00:06:02.949 do? Right. That's a key practical point. You 00:06:02.949 --> 00:06:04.829 generally work with a gold IRA company first. 00:06:04.889 --> 00:06:06.610 They usually help with the whole setup process. 00:06:06.850 --> 00:06:09.540 Opening the account? Exactly. Opening the account, 00:06:09.620 --> 00:06:11.220 helping you choose the right metals, the ones 00:06:11.220 --> 00:06:14.439 that meet IRS rules. And they often act as a 00:06:14.439 --> 00:06:17.060 go -between with the custodian. Okay, so what's 00:06:17.060 --> 00:06:19.660 the custodian's role then? The custodian is the 00:06:19.660 --> 00:06:22.220 actual IRS approved financial institution. It 00:06:22.220 --> 00:06:25.060 could be a bank, trust company, etc. They hold 00:06:25.060 --> 00:06:27.939 and manage your IRA assets. They make sure everything 00:06:27.939 --> 00:06:30.800 complies with IRS rules. And crucially, they 00:06:30.800 --> 00:06:34.170 provide the secure IRS approved storage. for 00:06:34.170 --> 00:06:36.670 your physical metals. Plus, they send you statements 00:06:36.670 --> 00:06:38.670 and reports. So the company helps set it up. 00:06:38.790 --> 00:06:40.529 The custodian holds and manages it. And that 00:06:40.529 --> 00:06:42.389 storage part, that's mandatory, right? You can't 00:06:42.389 --> 00:06:44.730 just keep the gold bars under your bed. Definitely 00:06:44.730 --> 00:06:47.250 not. That's absolutely correct. The IRS is very 00:06:47.250 --> 00:06:50.290 strict. All precious metals in a gold IRA must 00:06:50.290 --> 00:06:53.230 be stored in an IRS approved depository. Why 00:06:53.230 --> 00:06:55.189 is that? These are specialized high security 00:06:55.189 --> 00:06:57.370 facilities. They offer insurance, protection 00:06:57.370 --> 00:07:00.370 against theft, damage, you name it. Storing it 00:07:00.370 --> 00:07:03.300 at home. even in a safe, strictly prohibited. 00:07:03.939 --> 00:07:06.639 Doing that can trigger big penalties. It's all 00:07:06.639 --> 00:07:08.500 about maintaining the integrity and security 00:07:08.500 --> 00:07:11.300 of the retirement funds. Makes sense. Okay, so 00:07:11.300 --> 00:07:14.160 we firmly establish no collectible coins in the 00:07:14.160 --> 00:07:17.120 gold IRA. But let's step outside the IRA for 00:07:17.120 --> 00:07:20.639 a moment. Why are people drawn to investing in 00:07:20.639 --> 00:07:23.620 collectibles generally? What are the pros and 00:07:23.620 --> 00:07:27.040 cons there? That's a fair question. Looking at 00:07:27.040 --> 00:07:29.629 collectibles broadly, there can be upsides. As 00:07:29.629 --> 00:07:32.290 the article hints, some coins do have historical 00:07:32.290 --> 00:07:34.490 value that might appreciate. They offer a different 00:07:34.490 --> 00:07:36.569 kind of diversification and a wider portfolio. 00:07:37.050 --> 00:07:39.029 And let's be honest, the aesthetic appeal is 00:07:39.029 --> 00:07:42.050 real. People enjoy owning beautiful, historic 00:07:42.050 --> 00:07:44.870 items. Plus, in the collectibles world, things 00:07:44.870 --> 00:07:47.209 like professional grading and documented ownership 00:07:47.209 --> 00:07:49.870 history, the provenance can really boost value. 00:07:50.170 --> 00:07:52.850 Yeah, you get that tangible connection maybe 00:07:52.850 --> 00:07:55.240 that you don't with the standard gold bar. But 00:07:55.240 --> 00:07:57.459 what are the downsides, the risks? Well, the 00:07:57.459 --> 00:07:59.519 risks are significant, too. Yeah. The market 00:07:59.519 --> 00:08:01.759 for collectibles can be very volatile. Values 00:08:01.759 --> 00:08:04.199 can swing wildly based on trends or collector 00:08:04.199 --> 00:08:06.560 demand, which is hard to predict. Right. Liquidity 00:08:06.560 --> 00:08:08.899 is another big one. Selling a specific rare coin 00:08:08.899 --> 00:08:11.699 quickly at the price you want. Not always easy. 00:08:11.899 --> 00:08:13.839 You might need to find just the right buyer. 00:08:13.980 --> 00:08:16.420 Takes time. It can. And then there are the ongoing 00:08:16.420 --> 00:08:20.360 costs the article mentions. Proper storage, insurance. 00:08:21.100 --> 00:08:23.480 Especially for valuable pieces, that adds up. 00:08:23.779 --> 00:08:25.500 And taxes are different too, aren't they? That 00:08:25.500 --> 00:08:27.480 seems like a really important distinction. Yes, 00:08:27.600 --> 00:08:30.240 a crucial difference. The IRS taxes collectibles 00:08:30.240 --> 00:08:32.700 differently. Their capital assets, sure, but 00:08:32.700 --> 00:08:34.899 they face a higher long -term capital gains tax 00:08:34.899 --> 00:08:39.139 rate. Currently that's 28%. 28%. Ouch. Compared 00:08:39.139 --> 00:08:41.200 to standard bullion. Compared to standard bullion 00:08:41.200 --> 00:08:43.659 held outside an IRA, which usually gets taxed 00:08:43.659 --> 00:08:45.759 at the regular long -term capital gains rates, 00:08:46.240 --> 00:08:49.860 often 15 % or 20%, maybe even 0 % depending on 00:08:49.860 --> 00:08:53.379 your income. So yeah, that 28 % on collectibles 00:08:53.379 --> 00:08:55.879 can take a bigger bite out of your returns. OK, 00:08:55.919 --> 00:08:57.840 so definitely something to be aware of. While 00:08:57.840 --> 00:08:59.960 collectibles are appealing, the rules and taxes 00:08:59.960 --> 00:09:02.519 are quite different. Now, back inside the gold 00:09:02.519 --> 00:09:05.210 IRA, Even though you're limited to those approved 00:09:05.210 --> 00:09:07.590 metals, you can still diversify within it, right? 00:09:07.950 --> 00:09:10.710 Oh, absolutely. Diversification is key, even 00:09:10.710 --> 00:09:13.549 within a gold IRA. You can't use collectibles, 00:09:13.830 --> 00:09:15.730 but you can definitely mix the approved metals. 00:09:16.169 --> 00:09:18.929 Gold, silver, platinum, palladium. Holding a 00:09:18.929 --> 00:09:21.610 mix can help manage risk because each metal behaves 00:09:21.610 --> 00:09:23.110 a bit differently in the market. And you don't 00:09:23.110 --> 00:09:25.129 just have to buy coins, right? Correct. You can 00:09:25.129 --> 00:09:27.990 also hold approved bullion bars and rounds, again, 00:09:28.029 --> 00:09:29.769 as long as they meet the purity standards. So 00:09:29.769 --> 00:09:31.710 you have choices in the form of the metal, too. 00:09:32.129 --> 00:09:34.929 And the Article briefly mentions things like 00:09:34.929 --> 00:09:37.549 gold -backed ETFs. Now, those aren't held in 00:09:37.549 --> 00:09:40.230 a physical gold IRA, but they offer a more liquid 00:09:40.230 --> 00:09:42.850 way to get gold exposure in a broader investment 00:09:42.850 --> 00:09:45.690 portfolio, just not the physical holding part. 00:09:46.210 --> 00:09:49.809 Got it. So even within the IRS rules for gold 00:09:49.809 --> 00:09:52.570 IRAs, you still have options to build a diversified 00:09:52.570 --> 00:09:55.059 precious metals holding. And like any investment, 00:09:55.200 --> 00:09:57.000 you can't just set it and forget it, presumably. 00:09:57.340 --> 00:09:59.639 That's right. Regular review, maybe re -douncing 00:09:59.639 --> 00:10:01.639 your portfolio periodically, is always wise. 00:10:02.100 --> 00:10:04.580 It helps manage risk, ensures things still align 00:10:04.580 --> 00:10:06.879 with your long -term goals. And as Doug Young 00:10:06.879 --> 00:10:09.019 suggests, talking to a qualified financial advisor 00:10:09.019 --> 00:10:11.320 is often a good idea for personalized advice 00:10:11.320 --> 00:10:14.019 based on your specific situation. OK, so let's 00:10:14.019 --> 00:10:17.100 wrap this up. The main takeaway seems crystal 00:10:17.100 --> 00:10:19.940 clear if you're looking at a gold IRA for retirement. 00:10:20.779 --> 00:10:24.399 Those cool historic maybe beautiful collectible 00:10:24.399 --> 00:10:28.080 coins. There are no go IRS rules focus squarely 00:10:28.080 --> 00:10:31.059 on the intrinsic metal value Exactly. You've 00:10:31.059 --> 00:10:34.100 got to stick to the IRS approved metals and specific 00:10:34.100 --> 00:10:36.740 coins like the American Gold Eagle Canadian Maple 00:10:36.740 --> 00:10:40.039 Leaf Making absolutely sure they meet those strict 00:10:40.039 --> 00:10:42.840 purity levels and understanding the rules working 00:10:42.840 --> 00:10:45.480 with reputable gold IRA companies choosing a 00:10:45.480 --> 00:10:48.139 solid custodian for that mandatory approved storage 00:10:48.570 --> 00:10:51.429 Those are all essential pieces. That's the foundation 00:10:51.429 --> 00:10:53.730 for doing it right. And for next steps, if you 00:10:53.730 --> 00:10:55.669 are considering this, the article recommends 00:10:55.669 --> 00:10:57.649 really doing your homework. Research gold IRA 00:10:57.649 --> 00:11:00.129 companies. Look closely at their fees. Pick a 00:11:00.129 --> 00:11:02.789 custodian carefully. Focus only on IRS approved 00:11:02.789 --> 00:11:04.769 metals. Right. Think about diversifying within 00:11:04.769 --> 00:11:06.750 the approved metals and definitely stay up to 00:11:06.750 --> 00:11:09.409 date on IRS rules and market trends. Excellent 00:11:09.409 --> 00:11:11.889 points. So here's a final thought for you to 00:11:11.889 --> 00:11:14.299 chew on. When you think about the different tax 00:11:14.299 --> 00:11:17.399 treatments, this strict focus on intrinsic value, 00:11:17.559 --> 00:11:19.919 the exclusion of collectibles, what does that 00:11:19.919 --> 00:11:23.360 ultimately tell us about what the IRS sees as 00:11:23.360 --> 00:11:25.779 the core purpose, the intended security of these 00:11:25.779 --> 00:11:27.919 gold IRA retirement accounts? It really makes 00:11:27.919 --> 00:11:30.000 you think about the underlying principles of 00:11:30.000 --> 00:11:32.179 long -term financial planning. Thanks for exploring 00:11:32.179 --> 00:11:33.519 this deep dive with us today.