Friday, January 24, 2020
Frequently Asked Questions - Precious Metals

frequently asked questions (precious metals)

Q. Can precious metals investments be made through my current IRA?

A. Yes, provided the current trustee or custodian is willing to administer the investment. However, many IRA custodians or trustees are affiliated with an investment provider and are not equipped or willing to handle other types of investments. Others may have difficulty meeting the storage requirements for holding precious metals for an IRA. GoldStar is willing and able.

Q. can I contribute bullion or coin I already own into a precious metals self-directed IRA?

A. No. All contributions must be made in cash, except in case of transfers and rollovers.

Q. Am I limited to only precious metals in my GoldStar IRA?

A. Absolutely not. In addition to precious metals, your GoldStar IRA may contain precious metals, stocks, bonds, mutual funds, treasury securities, annuities and other investments. GoldStar does not accept investments in assets unless a fair market value is readily available.

Q. How do I choose a precious metals dealer?

A. GoldStar cannot recommend a precious metals dealer to be used. GoldStar does not buy or sell precious metals. Once you choose a dealer and your IRA has been funded you will negotiate the precious metals to be purchased or sold, and the price and terms directly with the dealer. Precious Metals dealers can be found through an internet search. You may also wish to check the Better Business Bureau rating. Click here for more information.

Q. What types of precious metals can I hold in a self-directed IRA?

A. Click here for a list of allowable and unacceptable precious metals.

Q. Why are US Gold Buffalo bullion coins allowed, while US Gold Buffalo proof coins are not?

A. GoldStar’s policy is based on an unclear description of the gold Buffalo proof coin by the US Mint. Click here to read more.

Q. What is the minimum amount I can invest in precious metals?

A. The minimum investment to open a precious metals self-directed IRA is $5,000 with no minimum for subsequent purchases.

Q. What fees are currently required with a Precious Metals IRA?

A. Click here for a guide to calculate fees due when your GoldStar Precious Metals IRA is opened. Please see the Fee Schedule for specific details or call Investor Services at (800) 486-6888 for an estimation of annual fees.
The following administrative fees apply:

  • Termination / Closing Fee $50
  • In-Kind Distribution or Transfer-Out Fee $25
  • In-Kind Precious Metals Distribution is shipped to the client Cash on Delivery (COD)

Q. Can I take possession of my precious metals after investing?

A. Not while held in the IRA. All IRA assets must remain within the custody of a custodian or trustee of the IRA, which means you may not take custody of the assets yourself or choose your own storage facility. You may, however, take distribution of precious metals assets from the IRA at any time, which is a taxable event reported to the IRS and may also be subject to withdrawal penalties. As always, consult your investment and tax advisors regarding these matters prior to taking any action.

Q. Where are the Precious Metals stored?

A. IRA assets must remain in the custody of the IRA custodian until distribution, which means that you can’t hold them yourself while in the IRA or determine your own storage facility. Precious metals for GoldStar IRAs are held within one of two depositories: 1) Delaware Depository Service Company or 2) Diamond State Depository, both in Wilmington, Delaware. The dealer you buy precious metals from usually determines which depository will be used. Depository information can be found at and respectively.

Q. What forms do I need to get started?

A. The forms needed to open a GoldStar IRA are the Simplifier, Transfer or Rollover form and the Precious Metals Investment Direction form. Other identification requirements apply..

Q. How long will it take to complete the process?

A. The normal processing time for a Precious Metals purchase, sale, or in-kind shipment is 30 business days.

Q. My bank IRA is free. Why is there a fee for my precious metals self-directed IRA at GoldStar Trust Company?

A. A bank generally has its fee built into the interest rate it pays you. In addition, a bank probably will not allow you to invest in precious metals. Since GoldStar receives no commission from any of your investment actions, separate fees are necessary to cover the costs of maintaining your account.

Q. My statement shows a market value less than I invested.

A. The fair market value we provide is a bid price or wholesale price used for tax reporting purposes. GoldStar updates this value every two weeks. Any fees or commission paid to your dealer may have been included in your purchase price. Please call your dealer for real-time sale pricing and any fees or commission paid.

FDIC NOTICE: IRA and/or Bond investments represented on this website are not FDIC-insured, are not guaranteed by GoldStar Trust Company, and involve risk including possible loss of principal. If held in a GoldStar IRA or GAMMA account, the un-invested cash portion is FDIC insured up to $250,000.