How Does a Gold IRA Work?
The 3-Step Process
For beginners, the logistics of a Gold IRA can seem complex. In reality, it operates through a secure triangular relationship between you, a custodian, and a depository. Aurum Gold Reserve guides you through every step of this process.
Step 1: The Custodian
IRS regulations require that all IRAs be administered by a qualified custodian. This is usually a bank, trust company, or credit union. For a Gold IRA, you need a custodian that specializes in self-directed assets.
Their Role: They handle the paperwork, report to the IRS, and process the funds. They do not sell you the gold or give investment advice.
Step 2: The Precious Metals Dealer (Aurum Gold Reserve)
This is where we come in. Once your custodian account is open, you need to buy the actual metals.
Our Role: We help you select IRS-approved gold and silver coins or bars. We lock in the price and arrange for the secure shipping of your metals.
Step 3: The Depository
The IRS has strict guidelines for Precious metals IRAs. Failing to follow these can result in severe tax penalties. As your educational partner, Aurum Gold Reserve ensures you stay compliant.
1. Purity Standards (The “Fineness” Rule)
Not all gold is eligible for an IRA. Collectible coins, numismatics, and most jewelry are strictly prohibited. To be eligible, metals must meet minimum purity (fineness) requirements:
Gold: .995 pure (99.5%)
Silver: .999 pure (99.9%)
Platinum: .9995 pure (99.95%)
Palladium: .9995 pure (99.95%)
Common Eligible Coins: American Gold Eagle, Canadian Gold Maple Leaf, Austrian Gold Philharmonic. Common Ineligible Coins: Pre-1933 Gold Coins, South African Krugerrands (due to lower purity).
2. The "No Home Storage" Rule
This is the most common misconception. You cannot keep your IRA gold at home. The IRS considers this a “distribution,” meaning you would immediately owe income tax on the entire value of the gold, plus a 10% penalty if you are under age 59½. Always use an approved depository.
Why Partner with Aurum Gold Reserve?
Navigating the IRS rules and selecting the right metals can be daunting for beginners. That is why Aurum Gold Reserve focuses on education first.
No High-Pressure Sales: We don't employ "closers." We employ specialists who answer your questions.
Transparent Pricing: We explain the spot price, the spread, and the fees clearly before you sign anything.
Lifetime Support: From your first rollover to your final distribution in retirement, we remain your partner in precious metals.
