I want to buy for my IRA 30 pieces of gold coins. Spot is $1,312 each and the company wants NOT considering storage $1,416 or say 8% up front. That boils down to costing 104.93 profit per coin for the company. This is not a school problem. In fact the price quoted me and before I agreed to it was more like $45,000. Good deal or better ones out there? Have not purchased it as yet.

1,312 x 1.08 = 1,416 x 30 = $42,508

Just ran this for coins instead of spot value upping value $50.00

1362 X 1.08 = 1470.96 x 30 = $44,128.80

It seems that the fees are about $3100 for $39K of coins - that's seems high. A quick google search led me to a company that would charge $225 one time set-up and transaction fee + $160 annual fee for an IRA account of less than $75K in value.

I think they sort of have you over a barrel since you have to purchase the product from
them as well.

Why do people buy actual coins with storage if they aren't going to have them in hand? Buy bullion on paper.
Gold isn't a good LT investment, in my book. Too volatile with world events that you have to be on top of every day.

If I bought gold... I wouldn't want to pay anyone to hold it... (except maybe for the safe deposit box at a bank I could walk into an hold it or take it home if I wanted. But then it wouldn't be in an IRA if I could.

@Joy The reason I want to buy gold or silver in my IRA account is because the custodians of your assetts pay a paultry .01 percent on your cash in the account.
It makes more sense to buy gold even though it is IRA Gold, you can get a lot more
value if say your gold goes from 1300 up to 2000 dollars. IRA Gold is not held forever
you can have it sent to you as your MRD and pay the taxes with other money. There is more than likely some +'s and -'s that I have not considered.

PS It is getting so bad, that a dollar bill is not worth the ink that is printed on it.

[MENTION=27423]smoothy[/MENTION] I agree with you better in my hands than the "gobmints".

The way I see it... an entity could disappear and you would not have access to what's yours... or a paper trail could be erased or corrupted... (but then so can bank accounts).

I'd trust a large very heavy old safe in my basement ahead of some faceless names at a business I can't see. Too heavy for a burgler to carry out... they aren't going to crack it... and even if your house burns down... its still there (except maybe paper money). And you can touch it and look at it anytime you want.

Not one of these little things you buy at Costco, home depot or staples either.

Quote:

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Originally Posted by joypulv

Why do people buy actual coins with storage if they aren't going to have them in hand?

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To fund an IRA with gold you are required to (a) invest only in fine coins, 99.5% pure or better -(the IRS has a list of approved investement coins for IRAs), and (b) the coins must be physically held by a 3rd party. Hence the fees associated with this.

catonsville - given the fact that gold doesn't spin off taxable dividends or interest, it seems to me wiser to put your gold commodity investments in a taxable account, and put investments that spin off ordinary income (like dividend paying stocks and corporate bonds) in the IRA. That way you avoid the third party fees, assuming you are comfortable with it in a safe in the basement, and you can avoid the IRA "trap" of turning gains that would be taxed at a low capital gain rate into ordinary income, which for many is taxed at a higher rate. When you go to sell the gold the tax differences can be quite significant. You may also want to consider gold futures in your taxable account instead of actual gold bullion or coins - there are some interesting tax breaks for futures.

Even though it is over 2 years old.

This post showed up in my email today. I want to give my kids, grandkids and great grandkids some of the coins I have. Like birthdays and Christmas. Maybe spend a coin or two on my Casino weakness. An old saying "I would rather give with a warm hand than to give after I am gone". To see a smiling face is worth it 10x over.