You can invest in palladium coins within your self-directed IRA. They are the rarest among the major precious metals. The Internal Revenue Service (IRS), however, has imposed strict rules to qualify palladium coins. Prospective investors should read up on these rules before investing in this precious metal.
Palladium Coins Allowed Within Your IRA
IRS Requirements for Palladium Coins
Palladium coins have to meet certain standards to qualify for your IRA. They have to meet a specific purity grade level of at least .9995 to become eligible. You will also need a third-party depository that is approved by your IRA. This depository stores your palladium coins invested in your IRA.
Moreover, you will need a qualified custodian to be your account’s trustee. This custodian will set up and fill your IRA account with palladium coins allowed by the IRS.
IRA-Approved Palladium Coins
Two of the most popular palladium coins allowed in your IRA, considering IRS requirements, are the Canadian Palladium Maple Leaf coins and the Russian Ballerina Palladium coins.
The Canadian Palladium Maple Leaf is a rare palladium coin and is issued by an official government mint. The Royal Canadian Mint first produced it in November 2005. It is made of one troy ounce of fine palladium.
The Russian Ballerina Palladium is in honor of the famed Russian Ballet. The Moscow Mint first produced it in 1989. It varies from a quarter to one troy ounce of fine palladium.
Advantages of Investing in Palladium Coins
Coins are also usually legal tender in the country that issues it, unlike bars, and they are more attractive and better crafted. Due to their scarcity, they may have a higher value than other metals.
Investing in palladium coins has its pros and cons. Nevertheless, the cons can be avoided by compliance with IRS regulations. Prospective investors just have to check with the IRS to ensure that it is IRA-approved.
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