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Should You Invest in Proof American Gold Eagles?

The American Gold Eagle coin is one of the world’s most successful bullion issues, but are proof American Gold Eagles a good investment?

Since the inception of the U.S. Mint’s Gold Eagle program in 1986, over 25 million ounces of these bullion coins have been released to precious metal investors. However, there are important questions regarding these beautiful coins that surface repeatedly. Are modern gold bullion coins – even proof versions – truly collectible? Should you invest in Proof American Gold Eagles?

Proof coins are carefully struck collector’s versions of existing “business strike” coins. In the case of American Gold Eagle coins, the vast majority of pieces minted are intended for the bullion market. These bullion business strike coins are struck quickly in a highly automated fashion in order to satisfy the considerable quantities demanded by precious metal investors.

In contrast, proof American Gold Eagles receive special care. The actual minting process is very involved and occurs exclusively at the U.S. Mint’s specialized West Point facility located in the Hudson River Valley of New York state. Specially selected, hand-polished coin blanks are individually hand-fed into a press fitted with the best coin dies available. The coins are then struck a minimum of two times at low speed to ensure the best impression possible.

The resulting gold coins are then hand-inspected, one-at-a-time, by white-gloved mint employees. Any coins showing even the slightest imperfection are immediately rejected and condemned to be melted down. Proof coins that pass this rigorous inspection process are sealed in plastic capsules for preservation purposes before being mounted in a satin-lined, luxury presentation case that includes a certificate of authenticity.

Proof American Gold Eagles are a sight to behold. The exacting production steps adhered to by the U.S. Mint create a coin with a mirror-like field – the flat “background” area – and highly frosted devices – the raised design portion. This highly desirable effect, a mirrored field with contrasting frosted devices, is known by coin collectors as a cameo proof. Third-party grading services, like PCGS and NGC, will note the cameo effect on proof coins they certify with the designation CAM (for cameo) or DCAM (for deep cameo). While the highly desirable cameo effect is normal on proof coins today, it was rare before the invention of highly advanced minting technology in the late 1970s.

In addition to proof coins, the U.S. Mint’s West Point branch also strikes another variety of collector’s coin, called burnished American Gold Eagles. These burnished uncirculated coins are specially struck using many of the same exacting procedures as proof coins, including individual handling. However, the resulting burnished American Gold Eagles are not proof issues and do not have the mirror-like, cameo finish of proof coins. Instead, burnished American Gold Eagles look similar to matte proof coins, with both the fields and devices possessing a softly frosted appearance. For the purposes of this article, proof American Gold Eagles and burnished American Gold Eagles have very similar attributes and can be viewed interchangeably.

In spite of the incomparable beauty and technological triumph of proof American Gold Eagles, there are some people in the bullion industry who don’t like them. If you search the internet for information on these paragons of modern Americana, one of the first results you will see is an article titled “Hidden Dangers in Buying Proof American Gold and Silver Eagle Coins“.

This article contends that many bullion dealers selling proof American Gold Eagles mark up the coins excessively, leaving clients with overpriced collector’s coins that are actually worth only a modest premium above their spot values. There is an element of truth to this charge. Some unscrupulous gold dealers, especially fly-by-night companies that advertise aggressively on television or talk radio, do charge far too much for these coins. But, of course, all industries have their share of morally questionable business people who wish to take advantage of the ignorant. An informed coin investor buying proof American Gold Eagles from a reputable dealer will have nothing to fear.

Proof American Gold Eagles are aesthetic gems that echo the golden age of American coinage. The obverse design of the American Gold Eagle was borrowed from one of the most iconic U.S. coins ever produced – the Saint Gaudens double eagle gold coin. In the early 20th century, President Theodore Roosevelt strongly believed that a great nation deserved great coins. Therefore, he commissioned renowned sculpture Augustus Saint-Gaudens to create a circulating gold coin modeled on the Greek numismatic masterpieces of ancient times. The result, minted from 1907 to 1933, was the incomparably beautiful Saint Gaudens $20 gold coin. Its front displays the personification of Liberty boldly striding forward as the rays of the sun burst forth around her.

In addition to their rich history and meticulous striking process, both proof American Gold Eagles and burnished American Gold Eagles have mintages that are far lower than their bullion counterparts. With the exception of its first two years of production when mintages were higher, 1 troy ounce proof American Gold Eagles have averaged fewer than 40,000 specimens issued per annum from 1988 through 2016. After 1987, no year had a proof mintage greater than 100,000 pieces and over half of the series sports mintages of fewer than 40,000 examples. And the fractional 1/2, 1/4 and 1/10 troy ounce coins often have even lower mintages than the 1 troy ounce pieces.

These low mintage numbers for proof American Gold Eagles are in sharp contrast to the business strike, bullion version of the coin. The average mintage of bullion 1 troy ounce American Gold Eagles is over 600,000 pieces struck annually (from inception through 2016) with several individual years exceeding 1,000,000 coins. The proof versions, on the other hand, have dramatically lower mintages – often 1/10 or less of the bullion coins.

Burnished American Gold Eagles, like their proof cousins, also have shockingly low mintages. Mintages for 1 troy ounce burnished American Gold Eagles have averaged a scant 13,000 examples per annum through 2016. These modest mintage numbers are absolutely dwarfed when compared to those for circulating U.S. coins, which generally vary between millions and billions of examples. Simply put, burnished and proof American Gold Eagles are some of the rarest modern U.S. coins in existence.

Another little known advantage of proof American Gold Eagles is that they are the only type of proof gold coin eligible for ownership in a precious metal IRA account. While collectibles and antiques are specifically prohibited in U.S. retirement accounts, a carve-out was made for holding physical bullion bars and coins in a precious metal IRA. Luckily for the savvy tangible asset investor, the U.S. Congress overlooked the numismatic potential offered by gold bullion coins held in a precious metal IRA.

With premiums generally ranging from a modest 10% to 40% over spot for common date coins, burnished and proof American Gold Eagles have a lot of hidden investment potential. Despite possessing little numismatic potential, regular bullion American Gold Eagles have premiums that aren’t much lower, ranging from around 4% to 20%. Paying a slightly higher premium for the aesthetically desirable proof or burnished versions makes a lot of sense when you consider their inherent numismatic optionality.

Now there are situations where burnished or proof American Gold Eagles don’t make sense. If you are simply interested in buying the most gold bullion possible for your money and don’t have any interest in generating higher investment returns via numismatic potential, then you should pass on these coins. But, provided you pay a reasonable premium above their bullion value, burnished or proof American Gold Eagles represent a wonderfully low-risk, high-return investment. Not only that, but they are some of the only collector-oriented coins that can be legally purchased in a precious metal IRA.

Value Density and Tangible Asset Investing

Hard assets – precious metals, gemstones and antiques – can be remarkably portable, concentrating significant dollar values in relatively small objects. This phenomenon gives rise to an idea I call “value density”. At its core, value density quantifies the dollar price of an item in relation to the volume it occupies.

The more dense and valuable an object is, the higher its value density. This concept is pivotal to anyone interested in alternative assets today. Tangible assets with high value densities are compact, making them easier to discreetly transport and securely store. As trust in traditional finance and banking continues to wane, value density becomes increasingly important for the savvy tangible asset investor.

Below is a chart showing the value density of various currencies and tangible assets expressed in dollars per cubic centimeter. Remember that these numbers, while current as of fall 2017, are subject to change due to fluctuating market prices.

Tangible Asset	Value Density per Cubic Centimeter
Silver Bullion	$ 5.73
U.S. $100 Bills	$ 88.56
European €200 Bills	$ 168.75
Palladium Bullion	$ 387.22
European €500 Bills	$ 403.41
Rhodium Bullion	$ 476.79
Platinum Bullion	$ 644.81
Gold Bullion	$ 797.62
Vintage 18K Gold Rolex Submariner (ref. 16618)	$ 1,010
Ancient Gold Stater of Philip II of Macedonia	$ 16,849
Sapphire	$ 198,990
Diamond	$ 315,900
Emerald	$ 326,400
Ruby	$ 844,200

The first thing you’ll notice is that the precious metals vie with physical currency in the rankings. This is a bit misleading, however. The highest value note in the world that commonly sees circulation is the European €500 bill. The limited circulation Swiss 1000 Franc note doesn’t count.

A stack of €500 notes not only has a similar value density to an identical volume of palladium or rhodium bullion, but also weighs substantially less. But the European €500 note, while still legal tender, has been discontinued due to the irrational fear that it is used extensively by organized crime and tax cheats to stockpile ill-gotten gains. However, many experts believe the real reason the high denomination notes are being phased out is in preparation for an extended period of widespread negative interest rates in Europe.

The discontinuation of the €500 note leaves the €200 note as the European Union’s next largest denomination. With a value density of just $169 per cm³, the €200 note – along with every other nation’s physical currency, barring the uncommon Swiss 1000 franc note – falls significantly below the precious metal complex on the scale. Even a stack of redoubtable U.S. $100 bills only has a value density of about $89 per cm³. Only silver, the least valuable and dense of the precious metals, is lower at a mere $5.73 per cm³.

In contrast, palladium, rhodium, platinum and gold bullion have value densities that range from $387 to $798 per cm3. Interestingly, platinum, although slightly denser than gold, currently has a lower value density than the precious yellow metal. This is a very unusual situation; historically speaking, platinum has almost always been more expensive than gold.

Going further up the list we come to two very different antiques. The first is the iconic solid 18K gold Rolex Submariner (ref. 16618) wristwatch. This vintage wristwatch has a value density of just over $1,000 per cm³. Next on the list is an ancient gold stater coin of Philip II of Macedonia, struck during the mid 4th century BC. This numismatic masterpiece has a value density of nearly $17,000 per cm³ – a jaw droppingly high value.

But the very top of the chart is reserved for precious gemstones. The “big four” gemstones – sapphires, rubies, diamonds and emeralds – have value densities ranging from almost $200,000 to over $800,000 per cm³ for top quality specimens. This is only possible because of the amazingly high prices that nearly flawless gemstones of excellent color bring on the world market.

The positioning of gemstones near the top of our list helps explains the persistence of jewelry as a savings vehicle across the centuries. Throughout history, fine jewelry has traditionally been a way to display high quality, high value density gemstones. If you want to own exceptionally valuable and portable tangible wealth, few things can compare to fine jewelry.

There are, of course, some limitations to the concept of value density. For example, I used the prices of top quality gemstones and antiques when compiling the data for this list. Unless you are rolling in money, you are unlikely to purchase or own items of this superlative quality. The value density of more attainable art and antiques would naturally be somewhat lower, though still impressive.

The theoretical value densities for some tangible assets shown in the above list will also generally be lower due to their irregular shapes. This is a limitation that precious metals and physical cash will not share for the most part. Gemstones, on the other hand, may have incredibly high value densities, but cut stones cannot really be distilled down to completely fill a cube of space. There will always be air gaps. This may reduce the effective value density of gemstones by 50% or even more.

Antiques, jewelry and other abnormally shaped tangible assets will suffer even greater reductions in value density than gemstones. Of course, this is ultimately a very minor drawback. An effective value density of $5,000 or $10,000 per cm³ will be more than enough for most of us. Only the mega-rich have to worry about trying to shove a million dollars into a space the size of a lipstick tube. In any case, high value density is a compelling benefit if you are looking to put significant amounts of money to work in alternative assets.

Blockchain 3.0 and the Problem with Bitcoin

Almost every article on the internet about Bitcoin uses a photo avatar of the crypto-currency, including this one. But this physical representation, while understandable, is rather misleading. This is because Bitcoin is a crypto-currency that promises you the safe, reliable payment of…nothing. As strange as it sounds, even though Bitcoin currently trades at more than $7,000 per unit, it is a completely virtual, purely conceptual, Veblen good.

Now, I’m sympathetic to many of the arguments put forth by crypto-currency enthusiasts. The world desperately needs some form of stable currency that is free from the manipulation of self-serving central banks and rapacious politicians. Crypto-currencies fulfill some of these needs, but not all of them. Bitcoin, for example, is an excellent medium of exchange, but a poor store of value.

The origin of Bitcoin reads like a cyberpunk Tom Clancy novel. The conceptual framework for the granddaddy of all crypto-currencies was laid down in a white paper posted online in November 2008 titled “Bitcoin: A Peer-to-Peer Electronic Cash System“. The author was one Satoshi Nakamoto, a pseudonym for an unknown individual or group of like-minded individuals. To this day no one knows who Satoshi Nakamoto, the pioneer of the world’s first practical crypto-currency, was. And it is highly unlikely anyone will ever find out.

On January 3, 2009, the mysterious Satoshi Nakamoto mined the very first Bitcoin into existence. This was in the form of 50 unspendable Bitcoins – the legendary initial Bitcoin block known as the Genesis Block. On May 22, 2010, a famous transaction involving the delivery of two Papa John’s pizzas in exchange for 10,000 Bitcoin took place. While the payment was only worth $41 at the time, right now, in the fall of 2017, these same 10,000 Bitcoin have a market value of more than $72.4 million.

Bitcoin is an almost perfect medium of exchange. It can be used to securely make transactions around the globe in a matter of minutes without the fear of receiving counterfeit Bitcoins or having your identity stolen. It achieves this via the impressive technology of the blockchain. The blockchain is basically an unforgeable, publicly auditable, electronic ledger than is constantly verified by a distributed computing network. The blockchain prevents the creation of any counterfeit Bitcoins, while simultaneously ensuring that only legitimate, authorized transactions are validated.

As Bitcoin has gained public exposure over the years and the price has risen, experts have come to laud the ingenious crypto-currency. One major advantage enjoyed by all crypto-currencies, including Bitcoin, is that they are strictly limited in supply. New Bitcoins are only created via mining, the name given to the process of verifying transactions in the blockchain. Central banks can create dollars, euros or yen with impunity, but Bitcoin is beyond their reach.

Some proponents of crypto-currency compare Bitcoin to gold. Both take real effort to mine; Bitcoin in the form of electricity for blockchain verification and gold in the form of diesel, electricity, steel, concrete and skilled labor. But Bitcoin isn’t perfect.

The premiere crypto-currency has two problems. First, unlike precious metals, Bitcoin doesn’t have any intrinsic value, rendering it a poor store of value. Apologists counter that this deficiency is offset by its usefulness as a medium of exchange. And it is true that Bitcoin is perfectly adapted as a medium of exchange to the online cyber-world of the 21st century.

Others readily acknowledge Bitcoin’s shortcoming as a store of value, while simultaneously arguing that fiat currency is almost identical in this regard. Although fiat currencies are still available as physical notes, they are also becoming increasingly virtual in the modern era. Fiat currencies, much like Bitcoin, rely on their widespread acceptance by other members of society for their value.

But there is a problem with that comparison. Fiat currencies are the official money of nation-states. They are accepted as payment for both taxes and debts, thus generating fundamental demand for the currency. This constitutes the underlying, intrinsic value of non-redeemable fiat currencies. These advantages are not shared by Bitcoin, which cannot be used to pay taxes or debts directly.

Some crypto-currency fans believe that the widespread adoption of blockchain technology for other applications will confer some benefit on its original incarnation in Bitcoin. While I readily agree that the blockchain may one day become widely used in a variety of different ways, this will not benefit Bitcoin investors in the least. Bitcoin has no patent on the blockchain concept and will not receive any royalty payments or other remuneration from its use in other industries.

In the end, Bitcoin is completely virtual, without any tangible presence or value. Even worse, the creation of new Bitcoins consumes real resources in the form of electricity, but provides no practical benefit outside of the Bitcoin ecosystem. Bitcoin’s blockchain, by itself, is an insufficient reason to use the crypto-currency. But these facts don’t mean that Bitcoin isn’t an important first step on the road to better, truly desirable crypto-currencies.

In my opinion, Bitcoin represents blockchain 1.0. It has a self-verifying and manipulation-proof digital ledger, but is ultimately completely self-referential. Ethereum, a newer crypto-currency, uses a different, more advanced blockchain implementation. I call it blockchain 2.0 because it has the ability to execute complex, automated transactions or “smart contracts”. But I suspect the real breakthrough will come with the future creation of blockchain 3.0. I think that blockchain 3.0 will combine the best attributes of blockchain 1.0 (an incorruptible public digital ledger) and blockchain 2.0 (smart contracts) with a third element – the creation of valuable intellectual property via the verification of the blockchain.

This has already been pioneered with Primecoin, which relies on a prime-number driven blockchain verification system. Prime numbers are the basis of modern cryptography and the discovery of new prime number chains can theoretically have useful computing and mathematical applications outside of the Primecoin ecosystem. Unfortunately, Primecoin lacks the features of Ethereum’s blockchain 2.0. While it is certainly a step in the right direction, I feel that Primecoin doesn’t quite fulfill the ultimate promise of blockchain 3.0.

Another example of computationally intensive computing that could possibly be adapted for blockchain 3.0 would be Folding@home. Folding@home is a distributed computing network where average people donate their spare computer CPU cycles to simulate protein folding in order to advance medical research related to debilitating diseases such as Alzheimer’s, cancer and HIV. An improvement in our understanding of diseases resulting from blockchain 3.0 calculations would be extraordinarily beneficial to society.

A crypto-currency incorporating blockchain 3.0 would effectively solve the store of value problem that has plagued the industry since its inception. Such a crypto-currency would not only excel as a medium of exchange and facilitator of complex transactions, but would also provide tangible value to society outside of its own ecosystem. Unlike the parade of less advanced crypto-currencies mined today, the electricity used to mine a theoretical blockchain 3.0 crypto-currency would provide useful benefits to humanity instead of simply vanishing into the atmosphere as waste heat.

The Precious Metal IRA Loophole

The precious metal IRA (Individual Retirement Account), also known as a gold IRA, was a great leap forward for U.S. retirement savers. Since its inception in 1998, the precious metal IRA has allowed U.S. citizens to invest funds either tax free (Roth IRA accounts) or tax deferred (traditional IRA accounts) in gold, silver, platinum and palladium bullion. This has been a boon for U.S. investors interested in tangible assets but, unfortunately, it did come with one big drawback.

The U.S. government currently prohibits the purchase of art or antiques in IRA accounts – basically any asset that can be considered “collectible”. This depressingly complete ban includes, but is not limited to, artwork, rugs, antiques, gemstones, stamps, coins and alcoholic beverages (like fine wines). This is a pity, as this misguided policy bars U.S. retirement savers from an entire investment asset class that is tremendously undervalued right now.

However, there is one small exception to this ironclad no art, antiques or collectibles policy. And it is found exclusively in the small print of the precious metal IRA. It is a loophole so small that I’m certain the faceless IRS bureaucrats and uncaring D.C. politicians never though anybody could squeeze through it. They were wrong.

First we need to have a primer about the complex rules surrounding a precious metal IRA. An account may only purchase certain gold, silver, platinum and palladium coins and bars. These coins and bars must all have a minimum fineness of at least 99.5% or 995 fine. In addition, the prohibition on “collectibles” disqualifies any proof coins, which are specially struck under ideal conditions to appeal specifically to coin collectors.

As a logical extension of this rule, any coin that has been third party certified or slabbed, even a bullion issue that meets all the other qualifications, is not allowed. This is because third-party grading indicates a coin is meant for the collector community and is thus a “collectible”. Although it isn’t specifically written into the tax code, it is also a fair bet that any coin issued with a predetermined mintage limit would also be forbidden, as this would imply the coin was intended for collectors.

The clear intention of all these rules is to strictly limit your precious metal IRA to bullion coins and bars only. The minimum fineness requirement alone automatically disqualifies all old gold or silver coins. All older precious metal coins were originally intended for general circulation. Because of this they had to be alloyed to increase their hardness and wear resistance.

For example, old, pre-1933 U.S. gold coinage is only 90% fine. British sovereigns, which have been struck continuously from the early 19th century right up until the present day are 91.67% gold. Most other old gold coins from the early 20th century or earlier are 90% fine. Because of the precious metal IRA fineness requirement, all of these gold coins are disallowed.

That removes most gold coins – especially any antique coins with collector’s value – from contention for your precious metal IRA funds. Effectively, only modern, 24 karat, pure gold bullion coins (and bars) are allowable. There is, however, one small exception to this rule: American gold eagle bullion coins, with a fineness of 91.67% or 22 karat gold, are exempted.

Interestingly, American gold eagle coins (along with their American silver eagle brethren) possess another important exemption as well. Proof specimens of these coins are allowable in precious metal IRA accounts. This is important because these are the only proof coins of any type that can legally be owned in a precious metal IRA. Apparently, congress carved out a legal niche for these proof coins in a bid to increase the popularity of the U.S. mint’s gold and silver eagle program. It worked, as these two coins dominate the global gold and silver bullion coin market.

So with all this information about precious metal IRA requirements we can build a list of permissible gold and silver coins:

Precious Metal IRA Approved Gold Coins:

American Gold Eagles (uncirculated and proof)
American Gold Buffaloes
Australian Gold Kangaroos
British Gold Britannias (2013 to present only)
Canadian Gold Maple Leafs
Austrian Gold Philharmonics
Mexican Gold Libertads (1991 to present only)
Chinese Gold Pandas

Precious Metal IRA Approved Silver Coins:

American Silver Eagles (uncirculated and proof)
America the Beautiful Silver Coins
Australian Silver Kookaburras
Australian Silver Koalas
British Silver Britannias (2013 to present only)
Canadian Silver Maple Leafs
Austrian Silver Philharmonics
Mexican Silver Libertads
Chinese Silver Pandas

Now, this list of gold and silver coins that are allowable in a precious metal IRA might be academically interesting, but I promised you a loophole. Well, here it is. When the U.S. Congress created the precious metal IRA, they intended to completely exclude art, antiques and anything that could remotely be considered a “collectible”. But some of the gold and silver bullion coins listed above are actually stealth collector pieces that have strong numismatic potential!

The implications of this revelation are staggering. It means that you can legally purchase and own some numismatically-oriented, collector’s coins in your precious metal IRA. Suddenly, the full promise of tangibles investing in a precious metal IRA is within your grasp.

Now, if you’re the canny type, you might well ask how modern bullion coins can be desirable to coin collectors. They are supposed to be lumps of gold or silver with their weight and fineness guaranteed by a government. They are supposed to trade as nothing more than bullion. But reality has a funny way of interfering with the best laid plans of national governments.

In short, some modern bullion coin issues are far rarer and more desirable than you might think at first. In addition, coins, like any art form, heavily rely on aesthetics to appeal to potential collectors. And modern bullion coins, which often adapt renowned historical designs, are undoubtedly the most beautiful coins of the current age.

I won’t go into all the details surrounding why some modern bullion issues have great numismatic potential here. Instead, I’ll encourage you to read another article I wrote titled: Chasing Perfection – Collecting Gold Bullion Coins. But this premise isn’t just my opinion; there are a significant number of modern bullion coins that already trade for hefty premiums over spot prices on the open market.

Maybe the best examples are proof and burnished (a special type of uncirculated strike) American silver eagles. Even common date issues for these one troy ounce silver coins currently sell for well over double their bullion value. That is a far cry from the average silver bullion coin, bar or round which might sport a modest premium of only 5% to 20% over spot.

However, I believe the best appreciation potential resides in gold bullion coins, which generally have much smaller mintages than their silver counterparts. The stunningly beautiful Mexican Gold Libertad series, for example, has never had an annual mintage that exceeded 15,000 over the last 20 years. They are ridiculously rare and undervalued, yet you can still add one ounce “bullion” Libertads to your precious metal IRA for 15% to 20% over spot!

The only better buys are proof Mexican Gold Libertad coins, which often have mintages in the hundreds. Their mintages are insanely low, especially considering that many circulating issues of coins are struck by the millions or even billions these days. Unfortunately, the proof Mexican Gold Libertad is considered a “collectible” coin and is not eligible for inclusion in precious metal IRAs. Only the uncirculated version can be safely purchased in a precious metal IRA.

If Mexican Gold Libertads don’t excite you, there are many other modern gold bullion coins with excellent return potential for your precious metal IRA. American Gold Buffaloes, Australian Gold Nuggets/Kangaroos and Chinese Gold Pandas all have that winning combination of great design and relatively low mintage. And their prices are often only modestly above their bullion melt values.

But a special mention should be made for American Gold Eagle coins. While I don’t believe the normal American Gold Eagle bullion issues have much numismatic potential due to their excessively high mintages, the special uncirculated “burnished” strike and proof examples offer tremendous value. Proof American Gold Eagle mintages are usually fewer than 50,000 specimens per annum, sometimes dramatically so. But, in spite of their rarity, premiums are normally quite reasonable at only 15% to 30% over spot, provided you aren’t chasing rare dates.

There is, however, one important detail to note if you decide to add numismatically-oriented gold bullion coins to your precious metal IRA. It is critical that you choose a custodian that offers segregated storage. Segregated storage, also known as allocated storage, means your gold is physically separated from the holdings of other precious metal IRA customers kept in the same vault. This means that if you deposit a certain type and date of gold bullion coin into your IRA, you can pull the exact same coin out at a later date.

In comparison, the more common method of gold storage is referred to as commingled or unallocated storage. This means the custodian dumps all its customers’ precious metal holdings into a single pile. If you request to withdraw or sell a coin, they will reach into the pile and randomly pull out whatever date of that type of coin they find. Commingled, or unallocated, storage is cheaper than segregated storage, but it invalidates any attempts to buy numismatically-oriented coins and must, therefore, be avoided.

Although I haven’t had the chance to use their services yet, Noble Gold is a precious metal IRA trustee that emphasizes their high-security, segregated storage facilities.

In spite of its strict requirements, a precious metal IRA is one of the few ways to invest in tangible assets (other than real estate) in a U.S. retirement account. And while your local congressman has done his best to shut you out of the lucrative art and antiques market in these accounts, he and his political friends overlooked one small detail. Take advantage of this little-known opportunity to invest in numismatically-oriented bullion coins in your precious metal IRA while you can.

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