There are probably 101 good reasons to own precious metals right now, and for the average consumer/investor, almost as many choices to be made.

One option that is currently very attractive is the purchase of gold and precious metals within a Self Directed IRA account. There can be material benefits to this form of Gold ownership, but as with everything these days, there are also some specific rules that must be followed in order to have the investment be qualified.

For example, only specific US gold, silver and platinum coins are allowed like the US Gold and Silver Eagles, along with other bullion coins that meet specific fineness standards (.999 pure) such as the Canadian Maple Leaf.

Numismatic items and coins certified for grade or items that carry a numismatic premium are not allowed. However beware of a common mistake many buyers make, namely purchasing Proof Gold.

The US and other mints generally manufacture both a standard MINT STATE and PROOF version of their bullion coins, however the proof coins are manufactured to a much higher standard, with specially prepared planchets (blanks) and multiple striking. They are beautiful, but this process makes them more expensive that Mint State coins with an equal amount of gold.

The trap is this, if you purchase proof gold for your IRA account, you will end up paying a premium above the actual value of the gold itself. However this premium does not increase as the spot price of the underling metal increases, so in effect you are buying less gold “value” for every dollar. Your best deal is to just purchase regular old mint state gold and silver bullion coins and you will be way ahead of the game.

However, you can’t just drop down to a local coin dealer and buy the coins yourself. In order to qualify as an IRA investment, you need to set up a Self Directed IRA account.

Self Directed IRA’s actually can hold any number of different types of assets, but the two best known and most reputable precious metals administrators for individual investors are GoldStar and New Direction IRA. Yes several of the big banks also offer administration services, but for anyone that wants to make their own choices and avoid the big fees and bureaucracy, I’d stick with the specialized companies such as New Direction IRA and Goldstar. (more…)

NGC is introducing two new certification services for coins that derive their value primarily from their metal content.

NGC is introducing two new certification services for coins that derive their value primarily from their metal content. They are NGC Certified Gold and NGC Authenticated Bullion. These services vary from NGC’s conventional numismatic services by using very accessible language to describe coins and their metal content specifically. As with other NGC services, once certified, coins are encapsulated in NGC’s archival-quality holder. Both new services are available to NGC Authorized Dealers under the bulk submission program.

A major goal of these services is to increase the availability of protection against the proliferation of counterfeit precious metal coinage. All coins certified under these programs are backed by a guarantee of authenticity from NGC. Additionally, all coins certified by NGC receive a unique serial number. This is important because it allows owners of certified coins to keep precise records of their holdings, even when coins are stored offsite or by a third-party depository.

Rick Montgomery, NGC President, comments: “We are very excited to offer these new products. Just as certification has done for graded classic coinage, NGC Certified Gold and NGC Authenticated Bullion will make it easier for individuals to buy and sell precious metal coins. We also believe that these products can make these types of coins appealing and accessible to the broadest possible audience.”

The first of these programs is NGC Certified Gold. In addition to a description of the enclosed coin, included on the certification label is its pure metal weight. These coins are also provided a written grade description that is fully transcribed and not abbreviated. For example, a coin may be described as, “Extremely Fine,” and corresponding explanations of grading terminology can be found on NGC’s website. NGC believes that this plain descriptive language can be more easily understood by novice and first time coin buyers. (more…)

Lafayette, CO (PRWEB) May 13, 2009 — When a retirement investor wants to buy gold or other precious metals through their IRA, metals dealers frequently sell “proof coins” noting that proof American Eagles are specifically allowed by the IRS. These “proof coins” usually cost an additional 20-25% beyond the value of the coin itself and are not required for a self-directed IRA, according to Bill Humphrey, CPA and Vice President of Entrust New Direction IRA, Inc, a self-directed IRA/401(k) administrator. The investor may be having their IRA pay for the wrong proof.

No longer will retirement investors need to pay 20-25% extra. First State Depository, which provides precious metal storage, is now working with Numismatic Guaranty Corporation (NGC), the industry leader in coin certification, to offer a new service which provides proof of the metal content and purity of the coin for much less than the cost of “Proof” Gold Eagles.

Humphrey said, “People who buy gold with their IRAs are often not given the option of non-proof coins.” Often, the proof coin seems more valuable because of the description of a specialized minting process and the special mounting and special plastic capsule that the coin is shipped in. Humphrey explained, “Proof coins are not required for IRAs and often cost significantly more than the equivalent non-proof coin containing the exact same amount of metal. IRA owners investing in Gold coins with IRA funds should make sure they understand what they are buying.”

According to Humphrey, clients wanting the guarantee of gold content of the coins may want to look at a new service offered by First State Depository, a company which provides precious metal storage. First State is working with Numismatic Guaranty Corporation (NGC), the industry leader in coin certification, to offer a service which provides proof of the metal content and purity of the coin for much less than the cost of Proof Gold Eagles. (more…)