Question about coin grading and my Gold IRA - worth the extra cost?

Carol Carter

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Question about coin grading and my Gold IRA - worth the extra cost?

carol_carter💰Established (100-250k)

3 days ago

Key Takeaways

•I've been thinking a lot about the coin grading aspect of my Gold IRA recently, and I'm curious what others' experiences and thoughts are on it.
•I’ve got about $150k in my Gold IRA with a company based out of Dallas, been building it up for about 4 years now.
•Diversified with my 401k and some other investments, but the Gold IRA is definitely a hedge against the crazy inflation we’ve been seeing.

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I've been thinking a lot about the coin grading aspect of my Gold IRA recently, and I'm curious what others' experiences and thoughts are on it. I’ve got about $150k in my Gold IRA with a company based out of Dallas, been building it up for about 4 years now. Diversified with my 401k and some other investments, but the Gold IRA is definitely a hedge against the crazy inflation we’ve been seeing. I'm an insurance agent here in Omaha, so I'm always thinking about risk and value, and this has me scratching my head.

Most of my holdings are American Gold Eagles and Canadian Gold Maples. When I initially set it up, my advisor at the time suggested not spending the extra money on NGC or PCGS grading beyond what was required for eligibility. His argument was that for a retirement account focused on the intrinsic value of the gold, the premium for slabbed coins wasn't worth it, especially with storage fees. He said I'd just be paying for protection that wasn't really necessary given it's stored in a vault, and that the buyer down the line would be looking at the melt value more than the numismatic value for IRA-eligible bullion.

But lately, I've been seeing more discussions online about how graded coins do hold their value better or even appreciate more, even for bullion. Is there a point where having a higher grade becomes a significant advantage even for IRA-approved coins? I'm not talking about rare collectible coins here, just the standard bullion coins. What if I ever decide to take physical possession when I retire? Would an NGC MS70 coin really fetch a noticeable premium over an ungraded but still perfect condition coin in 10-15 years?

Has anyone here regretted not getting their bullion coins graded for their IRA? Or, conversely, felt like they wasted money doing so? Just trying to figure out if I missed something or if my current strategy is solid for my specific goals. Appreciate any insights!

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4 comments

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Best Answer▲ 7 upvotes

frank_rivera💎Premium (500k-1m)

Hey, cool you're thinking about the grading! It really depends on your goals. If you're purely focused on the precious metal content and don't care about numismatic value, then paying for high-grade slabbed coins might not be worth the premium. You're essentially paying more for the same amount of gold.

That said, if you like the idea of potentially selling collectible coins down the line or just appreciate the finer details, it could make sense. Have you looked into PCGS or NGC's websites? They often have good resources explaining their grading standards and why certain grades command higher prices. Could help you decide if that extra cost aligns with what you want from your IRA.

Comments (4)

james_wilson👑Elite (1m-5m)Real Investor✓ Verified•3 days ago

Oh man, I totally get where you're coming from. I had a similar thought process when I started setting up my Gold IRA a few years back. My guy also brought up the graded coins, and for a minute I was really considering it.

Ultimately, I decided against it. My main goal was just to have the physical gold as a hedge, not really to collect rare coins. I figured the extra costs for grading would just eat into my overall returns if the market stayed flat, and the potential upside didn't seem worth it for my specific situation. Glad I stuck with the plain bullion.

daniel_wright💎Premium (500k-1m)Real Investor✓ Verified•3 days ago

Hey, interesting question. When you mention "coin grading," are you talking about buying pre-1933 gold coins (like Eagles or St. Gaudens) that have been professionally graded, or are you referring to the grading of modern bullion coins (like American Gold Eagles or Canadian Maple Leafs) by PCGS or NGC?

michelle_collins🏆Advanced (250-500k)Real Investor•3 days ago

Honestly, for a Gold IRA, I'm not sure grading is always the be-all and end-all, especially if you're holding for the long term and purely for the metal itself. While high grades can add a premium, sometimes that premium eats into your potential gains, and the cost of the grading itself can be significant. If you're talking about rare numismatic coins, sure, but for standard bullion coins in an IRA, the melt value is usually the primary driver. Just something to consider!