Do you guys even bother with coin grading for Gold IRA?

Joyce Cooper

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Do you guys even bother with coin grading for Gold IRA?

joyce_cooper📊Growing (50-100k)

about 9 hours ago

Key Takeaways

•Okay, so I'm trying to figure out if I'm overthinking this or not.
•As some of you know, I manage the books for our school here in Little Rock, and I also teach a financial literacy class.
•I started buying just a few coins here and there, then really kicked it up a notch in 2020.

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Okay, so I'm trying to figure out if I'm overthinking this or not. As some of you know, I manage the books for our school here in Little Rock, and I also teach a financial literacy class. Trying to set a good example, I’ve been gradually building up my Gold IRA over the last few years – got about $75k in there now, mostly in American Gold Eagles and Canadian Maples, with a smattering of Krugerrands. I started buying just a few coins here and there, then really kicked it up a notch in 2020.

My question for you all is: how much do you care about coin grading for your IRA-eligible gold, particularly bullion coins? I’m talking about PCGS or NGC certification. My local coin dealer (bless his heart, he's a good guy) always tries to upsell me on graded coins for a higher premium, saying it's "peace of mind" and "future resale value." For my personal stack at home, sure, I get it for numismatic pieces. But for my IRA, where the main goal is simply exposure to gold as a hedge against inflation and market volatility, does it really matter if it's graded MS69 vs. MS70?

When I'm buying, say, a 1oz Gold Eagle, I'm buying it for its gold content, not its potential as a collectible. My understanding is that for IRA purposes, the coins just need to be of a certain purity (0.995 for bars/rounds, 0.9167 for Gold Eagles) and not be considered "collectibles." A graded MS70 coin usually commands a significantly higher premium than an MS69, and let's be honest, those extra points don't mean more gold. If I’m putting $10,000 into my Gold IRA, I want as much gold as I can get for that cash, not paying an extra 3-5% for a tiny difference in strike or surface imperfections that don't affect the melt value.

Am I missing something crucial here? Is there a hidden benefit to having graded bullion coins in an IRA that I'm not seeing? Or is this just my dealer trying to maximize his profit margins on me? I’m genuinely curious what your strategies are. Have any of you had issues selling ungraded (but still IRA-approved) bullion from your IRA when you needed to liquidate? Any insights would be super helpful!

3 comments

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Best Answer▲ 9 upvotes

brian_edwards🌟Ultra (5m+)

Honestly, for a Gold IRA, I think stressing about coin grading is probably a bit much for most. Unless you're specifically buying rare, numismatic coins (which often have different rules for IRAs anyway), you're typically looking at bullion. The value there is primarily in the metal content, not the slab. A reputable dealer will ensure the purity and weight are correct, and that's usually all an IRA custodian cares about too. Seems like an extra layer of complexity without a huge payoff for the average investor.

Comments (3)

matthew_murphy👑Elite (1m-5m)Real Investor•less than a minute ago

Hey, interesting question! When you say "coin grading," are you specifically talking about something like PCGS or NGC certification, or more generally about ensuring the coins meet the fineness requirements for a Gold IRA?

james_wilson👑Elite (1m-5m)Real Investor✓ Verified•less than a minute ago

Totally get where you're coming from on this! I had the exact same thought when I first started looking into a Gold IRA. I was all set to get everything graded before realizing most places that facilitate these types of investments have specific guidelines for fineness and condition anyway. Ended up saving myself a good chunk of change by not bothering with it for the IRA stuff. For my personal stack, that's a different story haha.