A Bullion IRA is a specialized type of individual retirement account that allows investors to include physical gold, platinum, palladium and silver precious metals of specific criteria and other approved precious metals articles as part of their retirement portfolio.

The process of opening a Bullion IRA and the contribution limits mirror those of traditional IRAs. For both 2024 and 2025, the contribution limit is $7,000, increasing to $8,000 for individuals aged 50 and over.

### How Bullion IRAs Function

Bullion IRAs operate on a similar principle to traditional IRAs, with the primary distinction being the option to hold physical precious metals that meet specific criteria. Like traditional IRAs, Bullion IRAs enable you to save for retirement, with your investments growing tax-deferred until you begin taking withdrawals. Alternatively, you can use after-tax funds to invest in a Roth Bullion IRA, which allows for tax-free withdrawals during retirement.

With a Bullion IRA, you purchase and store physical precious metals of specific criteria and precious metals. This requires using a certified depository for the physical assets, as the IRS prohibits storing your precious metals at home; doing so would be considered a distribution from the IRA.

 Advantages of Opening a Bullion IRA

Diversification:  Gold, platinum, palladium and silver precious metals often exhibits low correlation with conventional assets like stocks, which can provide diversification benefits to your overall portfolio.

Inflation Hedge:  Many investors view precious metals as a reliable store of value and a potential hedge against long-term inflation.

Disadvantages to Consider

Fees: Bullion IRAs may involve slightly higher fees compared to standard IRAs. Custodians typically charge storage fees for holding physical precious metals, and other fees may apply..

Lack of Cash Flow: Unlike assets such as stocks or bonds, precious metals do not generate underlying cash flow, which can make its valuation more challenging.

Limited Investment Options:  Bullion IRAs mandate holding physical precious metals as part of the IRA, but they cannot simultaneously hold traditional investments like stocks and bonds within the same account. You would need to establish a separate IRA for these types of investments, although the total contribution limits across all your IRAs remain the same. Notably, standard IRAs generally do not permit investments in physical precious metals as it’s classified as a collectible by the IRS. Investing IRA funds in collectibles is treated as an immediate distribution, potentially incurring taxes and a 10 percent penalty.