Gold Proof Coins In A Gold IRA?

It's true -- certain gold proof coins are permitted in a gold IRA.

Retired Couple Sailing

Under IRS regulations, Americans have the option of buying ungraded American Gold Eagle Proof Coins for their gold retirement accounts.

The operative word is “ungraded.” Coins that were examined and certified by a professional grading service do not qualify.

Please visit the certified coin section at gold and silver rare coins for more details.

Certified numismatic gold coins with high grades can have substantially more numismatic (collectible) value.

I make this point so you know the additional numismatic value applied to coins with high grades is not applicable in a gold IRA (ungraded coins only).

Nevertheless Eagle Poof Coins are collectibles. Their prices are determined by gold coin buyers who place numismatic value on a coin's ...

  • Unique design features.
  • Quality of appearance.
  • Mintage rarity.

American Gold Eagles are available in 1 oz., 1/2 oz., 1/4 oz. & 1/10 oz. gold weights.

American Gold Eagle Proof Coin - Obverse

Unique Design Features

The first bullet item above refers to the special design features only found on American Gold Eagle Proof Coins, like the raised frosted image of Lady Liberty against a mirror-like background.

On most numismatic gold coins the strike quality of a design (image) can cause a coin’s worth to vary.

Strike quality refers to the precision (detail) of an image stamped (struck) onto the surface of a blank coin during the minting process.

First strike coins usually have sharper or more defined images since the dies are less worn. To help ensure a consistent strike quality, the US Mint uses multiple strikes to produce American Gold Eagle Proof Coins.

Quality of Appearance

The US Mint encapsulates American Gold Eagle Proof Coins to protect them from physical damage once they leave the mint. So these coins are reasonably protected from damage during shipment and storage.

However, as mentioned earlier, a definitive valuation of a proof coin’s appearance quality is not permitted if held in a gold IRA.

It’s unlikely that every gold proof coin minted (and encapsulated) would receive the highest grade, a PR-70 , by professional graders like PCGS or NGC. Jump to grading scale section at gold and silver rare coins.

I think it’s unrealistic to expect that every gold proof coin minted is perfect in the eyes of a skilled examiner. So I would not assume all are PR-70 grade coins because they are encapsulated at the mint.

Mintage Rarity

The US Mint determines the quantity of American Gold Eagle Proof Coins minted, and that number directly impacts a proof coin’s mintage rarity.

American Gold Eagle Proof Coin - Reverse

Two variables, the mint date and the quantity issued bearing that date, can have serious effects on a proof coin’s worth.

The mint tries to anticipate demand so that its production number does not undermine the added (numismatic) value proof coins should carry.

The US Mint reserves the right to end proof coin sales if standard bullion coin prices approach parity with proof coin prices. Hopefully this option would be exercised in a timely fashion if necessary.

Gold Bullion Coins vs. Numismatic Gold Coins

Bullion and numismatic gold coins share a common gold bullion intrinsic value. Nonetheless their markets are different.

American Eagle Gold Bullion Coins

Gold bullion investors are solely interested in the underlying asset … gold. (photo of bullion coins)

Rare gold coin collectors are focused on a coin's numismatic importance, although they remain aware of the coin’s inherent gold value.

It’s wise to have some ongoing market knowledge of numismatic gold coins for those who favor buying American Gold Eagle Proof Coins for a gold IRA.

My View

I personally would not buy American Gold Eagle Proof Coins for a gold retirement account since maximizing their true worth is not possible. There is also the added burden of staying informed on their numismatic value.

Italian Lake Scene

On the other hand, market prices of standard gold bullion coins track the
spot gold price, so it's easy to stay
up-to-date on your gold IRA value.

Once again, this is my opinion - not an absolute right or wrong position. Others who have given this subject considerable thought may believe differently.

Therefore, I hope you perform due diligence and form your own opinion as to which type of physical gold is best for your gold IRA.

Please choose a link from my navigation bar (upper left) for more details about gold bullion and silver bullion.

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