Buying gold for an IRA is not as simple as walking into a coin shop and making a purchase. The IRS has strict rules about what types of gold qualify for IRA inclusion, how the purchase must be executed, and where the metals must be stored. Buying non-approved products — even unknowingly — can result in the transaction being treated as a distribution, triggering taxes and potential penalties.
This guide covers everything you need to know about buying gold within the IRA framework: the fineness requirements, the specific coins and bars approved by the IRS, the products that are prohibited, and the practical steps involved in placing an order through your custodian.
IRA Gold Requirements: What the IRS Demands
Under Internal Revenue Code Section 408(m), most collectibles are prohibited in IRAs. However, the code carves out specific exceptions for precious metals that meet defined purity standards and are produced by approved manufacturers.
Gold Fineness Requirements
| Metal | Minimum Purity | Exceptions |
|---|---|---|
| Gold | 99.5% (.995) | American Gold Eagle (91.67% / 22k) |
| Silver | 99.9% (.999) | None |
| Platinum | 99.95% (.9995) | None |
| Palladium | 99.95% (.9995) | None |
In addition to purity requirements, gold bars and rounds must be manufactured by a refinery or mint accredited by NYMEX/COMEX, a national government mint, or a manufacturer meeting ISO 9001 standards. This ensures the authenticity and quality of every product in your IRA.
IRS-Approved Gold Coins for IRA Investment
The following gold coins are widely accepted by gold IRA custodians and meet all IRS requirements for IRA inclusion. This is not an exhaustive list — other coins from national government mints that meet the 99.5% purity standard may also qualify.
American Gold Eagle
Purity: 91.67% (22 karat)
Mint: U.S. Mint
Sizes: 1 oz, 1/2 oz, 1/4 oz, 1/10 oz
The only gold coin exempt from the 99.5% purity rule. The most widely held gold coin in U.S. IRAs.
American Gold Buffalo
Purity: 99.99% (24 karat)
Mint: U.S. Mint
Sizes: 1 oz
The first 24-karat gold coin produced by the U.S. Mint. Popular for its high purity and domestic origin.
Canadian Gold Maple Leaf
Purity: 99.99% (24 karat)
Mint: Royal Canadian Mint
Sizes: 1 oz, 1/2 oz, 1/4 oz, 1/10 oz, 1/20 oz
Known for advanced security features including DNA anti-counterfeiting technology. Among the purest gold coins available.
Austrian Gold Philharmonic
Purity: 99.99% (24 karat)
Mint: Austrian Mint
Sizes: 1 oz, 1/2 oz, 1/4 oz, 1/10 oz, 1/25 oz
Europe's best-selling gold coin. Features the Vienna Philharmonic Orchestra on its design.
Australian Gold Kangaroo
Purity: 99.99% (24 karat)
Mint: Perth Mint
Sizes: 1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Features a new kangaroo design each year, adding collectible appeal. Backed by the Australian government.
British Gold Britannia
Purity: 99.99% (24 karat)
Mint: Royal Mint (UK)
Sizes: 1 oz, 1/2 oz, 1/4 oz, 1/10 oz
Updated to 99.99% purity in 2013. Features advanced security features including micro-text.
IRS-Approved Gold Bars for IRA Investment
Gold bars (also called bullion bars or ingots) are eligible for IRA investment if they meet the 99.5% purity standard and are produced by an accredited manufacturer. Bars typically carry lower premiums than coins, making them cost-efficient for larger purchases.
Recognized Refiners and Manufacturers
Gold bars must include the manufacturer's hallmark, weight, and purity stamp. Bars are available in sizes from 1 gram to 400 troy ounces, though 1 oz and 10 oz bars are most common for IRA investors.
Prohibited Investments: What You Cannot Hold in a Gold IRA
The IRS explicitly prohibits certain types of gold and gold-related investments from being held in an IRA. Purchasing prohibited items with IRA funds is treated as a distribution, which can trigger income taxes and a 10% early withdrawal penalty.
Collectible and numismatic coins
Coins valued primarily for their rarity, condition, or historical significance rather than their metal content. This includes graded coins, rare date coins, and most pre-1933 U.S. gold coins.
South African Krugerrands
Despite being one of the world's most popular gold coins, Krugerrands are only 91.67% pure and do not qualify for the American Eagle exception. They are explicitly excluded from IRA eligibility.
Gold jewelry
Jewelry of any type is considered a collectible and is not eligible for IRA investment, regardless of the gold content.
Non-accredited bars and rounds
Gold bars or rounds produced by manufacturers not accredited by NYMEX/COMEX, a national government mint, or an ISO 9001 certified facility.
Gold certificates and paper gold
Certificates of ownership, gold futures contracts, and other paper representations of gold ownership are not eligible for a physical gold IRA (though they may be held in a standard brokerage IRA).
Previously owned gold
You cannot contribute gold you already own to your IRA. All metals must be purchased through the IRA with IRA funds.
Step-by-Step: How to Buy Gold for Your IRA
Ensure Your Account Is Funded
Before you can purchase metals, your self-directed IRA must have available cash — either from a rollover, transfer, or annual contribution. Most custodians require funds to fully settle before placing a metals order.
Review Available Products
Your custodian or dealer will provide a catalog of IRA-eligible products with current pricing. Compare premiums across different products. Generally, bullion bars and widely circulated coins (Eagles, Maples) offer the lowest premiums.
Place Your Order
Contact your account representative to place the order. You will confirm the specific products, quantities, and the current quoted price. Some companies allow online ordering; others require a phone call to lock in pricing. Gold prices fluctuate throughout the trading day, so the price is typically locked at the time of your order confirmation.
Order Execution and Settlement
Once your order is confirmed, the dealer purchases the metals on your behalf. Settlement typically occurs within 1-3 business days. Your IRA account will be debited for the purchase amount plus any applicable transaction fees.
Delivery to Depository
The purchased metals are shipped directly to your designated IRS-approved depository — never to your home. Shipping is fully insured. Delivery typically takes 3-7 business days after settlement.
Receive Confirmation
Once the depository receives and verifies your metals, you will receive a confirmation statement showing the exact products, weights, and storage allocation (segregated or commingled). This documentation becomes part of your IRA records.
Pricing and Markup: What You Actually Pay
The price you pay for gold in an IRA consists of two components: the spot price (the current market price of gold per troy ounce) and the dealer markup (also called the premium or spread). Understanding this markup is critical to evaluating the true cost of your investment.
| Product Type | Typical Premium | Notes |
|---|---|---|
| Gold bars (1 oz, 10 oz) | 2-4% | Lowest premium; best for pure gold exposure |
| American Gold Eagle (1 oz) | 4-6% | Most popular IRA coin; moderate premium |
| American Gold Buffalo (1 oz) | 3-5% | Pure 24k; slightly lower premium than Eagles |
| Canadian Maple Leaf (1 oz) | 3-5% | Competitive with Buffalo; advanced security |
| Fractional coins (1/2, 1/4, 1/10 oz) | 6-12% | Higher premium per oz; more flexibility for RMDs |
| Proof coins | 10-30%+ | Highest premium; not recommended for pure investment |
Tip: How to Minimize Markup
- •Focus on standard bullion products (bars, Eagles, Buffalos, Maple Leafs) rather than specialty coins.
- •Compare pricing across at least 2-3 dealers before purchasing.
- •Purchase larger denominations (1 oz bars or coins) when possible — fractional coins carry higher per-ounce premiums.
- •Be skeptical of sales pitches for “rare” or “exclusive” coins with dramatically higher markups.
How to Choose the Right Gold Products for Your IRA
With dozens of eligible products to choose from, selecting the right mix depends on your investment size, goals, and how you plan to eventually take distributions.
For Cost Efficiency: Gold Bars
If minimizing premiums is your top priority, gold bars from recognized refiners (PAMP Suisse, Valcambi, Perth Mint) offer the lowest markup. Best for investors with larger accounts ($50,000+) who are focused on maximizing their gold exposure per dollar invested.
For Liquidity and Flexibility: Coins
Gold coins (especially American Eagles and Maple Leafs) are more widely recognized and easier to liquidate than bars. The availability of fractional sizes (1/10 oz, 1/4 oz) makes them ideal for taking required minimum distributions without selling more gold than necessary.
For a Balanced Approach: Mix of Both
Many experienced investors hold a combination of gold bars (for core exposure at low premiums) and gold coins in various sizes (for flexibility and liquidity). This approach balances cost efficiency with practical needs as you approach distribution age.