We have all heard both the good and bad stories of individual speculating by investing into precious metals. Precious metals certainly has its place in the menu of choices with self-directed retirement plans.
Outside of real estate, the choice of many self-directed clients is the ability to invest in precious metals. Precious metals is a tangible asset that one can relate to….it is not paper, it is not an interest in a non-descript asset. It is real, you can hold it, touch it, feel it. Some of the advantages of investments into precious metals is that: 1) precious metals acts as an inflationary hedge compared to other assets, 2) it is a universally-held asset, 3) tangibility….your plan can possess it (there are, however, specific rules on how precious metals are held). It is physical, it isn’t paper.
As the Manager of your IRA LLC or Trustee of your 401(k) plan, you will make the decision as to whether your plan will invest in precious metals; however, with a self-directed plan, you now have the freedom and flexibility to invest in this type of asset.