IRA-Approved Gold, Silver, Platinum and Palladium

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Last updated: June 29, 2026 · By Gold California Editorial

This page is the reference for California savers asking which gold, silver, platinum, and palladium products qualify inside a retirement account. Below we cover the federal rules verbatim, the four metals one by one, the California tax layer, and the upsell pattern federal regulators have prosecuted. Every figure traces to an IRS, FTB, U.S. Code, CalPERS, CalSTRS, or CFTC source, cited inline.

What does "IRA-approved" actually mean?

"IRA-approved" is shorthand for "outside the collectibles ban in IRC Section 408(m)". The Internal Revenue Code generally forbids an IRA from buying a collectible. Buying one is treated as a taxable distribution equal to its cost (source: IRS Issue Snapshot on collectibles).

The IRS Snapshot is direct: "The acquisition by an individually-directed account under a qualified plan of a 'collectible' is treated as an immediate distribution from such account in an amount equal to the cost to the plan of such collectible." There is no warning letter, no second chance, and no California override.

The statute then carves out a short list of metals that are not collectibles for this purpose. A coin or bar that falls inside the carve-out is what dealers, custodians, and tax pros mean when they say it is "IRA-approved" or "IRA-eligible". Anything outside the carve-out is a collectible by default.

Two facts surprise most first-time buyers. First, no federal agency keeps a published list of approved products by brand. The status is read from the statute, coin by coin and bar by bar. Second, California adds no separate approval rule, so the federal carve-out controls in this state too.

The two federal tests every coin or bar must pass

IRC Section 408(m)(3) defines the exception with two tests. A coin or bar must satisfy one of them. Most of the confusion in the market traces back to a salesperson treating the two as the same test.

Test A: the named-coin carve-out at 408(m)(3)(A)

The first test, 408(m)(3)(A), is a list of specific coins by reference to 31 U.S.C. Section 5112. The statute names four sub-clauses (source: 26 U.S.C. Section 408(m)(3)(A)):

• (i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31, United States Code,
• (ii) a silver coin described in section 5112(e) of title 31, United States Code,
• (iii) a platinum coin described in section 5112(k) of title 31, United States Code, or
• (iv) a coin issued under the laws of any State.

This carve-out lists four sub-tests. Three name a specific Treasury coin program (the American Gold Eagle, the American Silver Eagle, the American Platinum Eagle). The fourth allows any coin issued under the laws of a U.S. state. There is no palladium sub-test here.

A coin in this list qualifies regardless of its fineness. The American Gold Eagle is .9167 fine, not .995, yet it is IRA-eligible because Congress wrote it into the carve-out. The fineness rule lives in the second test, not the first.

Test B: the bullion-fineness route at 408(m)(3)(B)

The second test, 408(m)(3)(B), covers bullion. The statute reads: "any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 5 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a)" (source: 26 U.S.C. Section 408(m)(3)(B)).

The rule sets fineness by reference to the U.S. futures markets, not by a literal number written into the tax code. The IRS-recognized minimums, set by the COMEX delivery standard, are .995 for gold, .999 for silver, .9995 for platinum, and .9995 for palladium.

This bullion test is the only route for palladium. It is the alternate route for gold, silver, and platinum bars and rounds that meet the fineness standard, even when they are not named coins. The "physical possession of a trustee" rule is the legal hook behind the home-storage ban discussed further down.

IRA-approved gold coins and bars

Gold has the widest set of approved options because Congress used both routes. The result is a two-track rule that catches the major U.S. coin program and most foreign and refiner bullion at the .995 fineness standard.

Gold coins permitted under 408(m)(3)(A)

The carve-out at 408(m)(3)(A)(i) permits gold coins described at 31 U.S.C. Section 5112(a)(7) through (10). These four sub-paragraphs were added by Public Law 99-185 in 1985 and authorize the American Gold Eagle program. The American Gold Eagle ships in four sizes: one ounce, half ounce, quarter ounce, and tenth ounce.

The American Gold Eagle is .9167 fine, a 22-karat coin. That falls below the .995 bullion-fineness standard. It still qualifies because it sits in the named-coin carve-out, not the bullion test. This is why no other 22-karat foreign coin qualifies by reference: only the American Eagle has a named sub-clause.

The American Gold Buffalo, a separate U.S. Mint coin first struck in 2006, is .9999 fine. It is IRA-eligible through the bullion-fineness route at 408(m)(3)(B), not the named-coin carve-out. Both coins are IRA-approved. The legal hook differs.

Any coin issued under the laws of a U.S. state also qualifies through 408(m)(3)(A)(iv). This is the legal anchor that lets several state-issued bullion coins reach IRA accounts where state law authorized them.

Gold bars permitted under 408(m)(3)(B)

Gold bars and rounds qualify through the bullion-fineness route. The IRS-recognized minimum is .995 fine, the standard the COMEX delivery rules use. Bars from accredited refiners that meet the .995 fineness, and that sit at an IRS-approved depository, generally qualify.

Foreign gold coins that meet .995 fine, including most modern foreign bullion programs, qualify through the bullion route as well. Coins below .995 that are not in the named carve-out do not qualify. See the IRA-approved gold coin list for the full set of products that meet either test.

IRA-approved silver coins and bars

Silver has a narrower named-coin carve-out and a higher fineness floor than gold. The American Silver Eagle is the only U.S. coin program named in the statute by itself. The rest of the silver world qualifies through the bullion test or the state-coin sub-clause.

Silver coins permitted under 408(m)(3)(A)

The carve-out at 408(m)(3)(A)(ii) permits the silver coin described at 31 U.S.C. Section 5112(e). Section 5112(e) authorizes the American Silver Eagle: a one-ounce coin containing .999 fine silver, with a $1 face value and the inscriptions "Liberty", "In God We Trust", "United States of America", "1 Oz. Fine Silver", "E Pluribus Unum", and "One Dollar".

The Silver Eagle is the only silver coin named in a dedicated sub-clause. Other silver coins, foreign or domestic, reach IRA-eligibility through the bullion-fineness route or the state-coin sub-clause at 408(m)(3)(A)(iv). The Treasury, through the U.S. Mint, also strikes the America the Beautiful Silver Bullion Coin series, .999 fine silver, which qualifies through the bullion route.

Silver bars permitted under 408(m)(3)(B)

Silver bars and rounds qualify through the bullion-fineness route at 408(m)(3)(B). The IRS-recognized minimum is .999 fine. Bars from accredited refiners that meet that standard and sit at an IRS-approved depository generally qualify.

Numismatic silver coins, "premium" silver coins, and silver coins below .999 fineness that are not in the named carve-out do not qualify. The Red Rock Secured federal order, discussed below, targeted silver coins sold as "premium" outside this rule. See the IRA-approved silver coin list for the full product set.

IRA-approved platinum coins and bars

Platinum sits between gold and palladium in the statute. It has a named-coin carve-out, but it also requires a higher fineness on the bullion side, because the COMEX standard for platinum is tighter.

Platinum coins permitted under 408(m)(3)(A)

The carve-out at 408(m)(3)(A)(iii) permits the platinum coin described at 31 U.S.C. Section 5112(k). Section 5112(k) authorizes the American Platinum Eagle program, first issued in 1997. The coin is .9995 fine platinum, with face values of $100, $50, $25, and $10 across the four sizes.

The American Platinum Eagle is the only platinum coin in a dedicated sub-clause. The U.S. Mint also strikes proof and reverse-proof Platinum Eagles for collectors. Those qualify as bullion coins because they are .9995 fine and described in 5112(k), although the proof premium pushes the dealer markup higher than common bullion.

Platinum bars permitted under 408(m)(3)(B)

Platinum bars qualify through the bullion-fineness route. The IRS-recognized minimum is .9995 fine, the standard the COMEX platinum delivery rules use. Bars from accredited refiners that meet .9995 and sit at an IRS-approved depository qualify.

Foreign platinum coins that meet .9995 fine qualify through the bullion route as well. Platinum coins below .9995, and platinum products sold as "rare" or "premium" outside this rule, do not qualify by reference to the statute.

IRA-approved palladium coins and bars

Palladium is the outlier. The metal has no named-coin sub-clause at 408(m)(3)(A). It reaches IRA-eligibility only through the bullion-fineness route at 408(m)(3)(B). The reason is historical: Congress wrote the carve-out before the American Palladium Eagle existed.

Palladium coins under 408(m)(3)(B)

The American Palladium Eagle is authorized at 31 U.S.C. Section 5112(a)(12) and 5112(v). Public Law 111-303, signed in 2010, added the coin to title 31. The first bullion strikes appeared in 2017. The coin is one troy ounce, .9995 fine palladium, with a $25 face value.

The Palladium Eagle qualifies because it meets the .9995 fineness standard and an IRS-approved trustee holds it. The qualification runs through 408(m)(3)(B), not 408(m)(3)(A). The practical outcome is the same: a Palladium Eagle held at an approved depository is IRA-eligible. The legal route differs from the gold, silver, and platinum Eagles.

Palladium bars under 408(m)(3)(B)

Palladium bars from accredited refiners qualify through the bullion-fineness route when they meet .9995 fine and sit at an IRS-approved depository. The set is narrower than for gold or silver because the palladium market itself is thinner and fewer refiners produce IRA-eligible sizes.

Dealer inventory of IRA-eligible palladium varies from one provider to the next. Some firms advertise palladium but stock only the Palladium Eagle. Others carry bars from a short list of accredited refiners. Confirm in writing before you fund, so you do not end up forced to switch coins later.

The four metals side by side

The four metals share the same federal wrapper. They diverge on the named-coin sub-clauses and on the bullion-fineness floor. The table below shows the carve-out path for each metal.

Sources: 26 U.S.C. Section 408 (Cornell LII); 31 U.S.C. Section 5112 (Cornell LII); IRS Issue Snapshot on collectibles. Checked June 2026.

State-issued coins reach IRA-eligibility through sub-clause (iv) of 408(m)(3)(A) and apply to all four metals when a state mints a coin under its own law. Foreign coins reach IRA-eligibility only through the bullion-fineness route at 408(m)(3)(B), because the named carve-out at 408(m)(3)(A) is bounded by 31 U.S.C. Section 5112 (a U.S. Mint statute).

The collectibles trap, and why it matters in California

A coin or bar that fails both tests is a collectible. The IRS Issue Snapshot treats acquiring a collectible inside an IRA as an immediate deemed distribution equal to cost, taxed as ordinary income (source: IRS Snapshot). The taxable event happens the day the IRA pays for it.

This rule turns a "premium" or "rare" coin pitch into a tax problem inside a retirement account. The salesperson may quote a low markup, but if the coin sits outside the 408(m)(3) carve-out, the IRS treats the purchase as a distribution. The IRA owner owes income tax on the full cost.

If the IRA owner is under age 59.5, the federal 10% additional tax stacks on the deemed distribution (source: IRS Publication 590-B). California adds its own 2.5% additional tax on the same early distribution, reported on FTB Form 3805P. That is 12.5% in combined penalty tax, on top of ordinary income tax.

The federal Red Rock Secured order documents the exact playbook. The U.S. District Court for the Central District of California entered a consent order on April 25, 2024. The court found Red Rock Secured had convinced at least 950 customers to pay over $69 million for silver and gold Canadian Red-Tailed Hawk coins worth only $30 million. Markups ran between 91.89% and 129.97% over the firm's cost (source: CFTC Press Release 8898-24).

The Red Rock order also notes most customers used tax-deferred retirement funds to buy the coins. The CFTC and the California DFPI were co-plaintiffs. The pattern (quote a low markup on common bullion, switch the customer to a "premium" coin with a 90% to 130% markup) is the pattern this page exists to flag. See metals IRA scams and red flags in California.

Where IRA-approved metal must be stored

The fineness rule is only half of the bullion test. The other half is physical possession. IRC Section 408(m)(3)(B) ends with the phrase "if such bullion is in the physical possession of a trustee described under subsection (a)". The trustee, in practice, is an IRS-approved depository.

Home storage of IRA metal is not permitted. Personal possession by the IRA owner is a deemed distribution. Self-dealing or use by a disqualified person also creates a prohibited transaction under IRC Section 4975(c), referenced in the IRS Issue Snapshot. The penalties run deeper than a simple tax bill.

Most major depositories used by gold IRA companies sit outside California. The Delaware Depository in Wilmington and the International Depository Services facilities in Texas and Delaware see the bulk of the volume. One commonly used depository, Brink Global Services, operates an IRS-approved precious-metals location in Los Angeles, California, which is the in-state option Californians ask about most.

Confirm in writing which depository will hold your metal before you fund the account. Some companies advertise California storage but route the metal out of state by default. See where California gold IRA metals are stored for the full list of facilities most California savers see.

How California treats the same metals

California adds no separate approval list. The federal 408(m)(3) carve-out controls in this state too. What California adds is on the tax side: ordinary-income rates that reach 12.3%, the 1% Mental Health Services Tax above $1,000,000, and a 2.5% additional tax on early distributions.

The California Franchise Tax Board confirms the rate directly on its early-distribution page (source: FTB, Early distributions). The same page directs the taxpayer to FTB Form 3805P, the form that calculates the 2.5% state tax and any qualifying exception.

One relief point matters for retirees: California does not tax Social Security benefits (source: FTB Publication 1005). That federal income stays out of your state taxable income, separate from any IRA distribution. The 2.5% rule applies only to early distributions before age 59.5 with no qualifying exception.

California does not conform to every federal exception. A distribution that escapes the federal 10% can still owe the California 2.5%. Check the Form 3805P instructions for your situation. Consult your tax advisor for your specific case.

How to verify a coin or bar before you buy

The verification work is small. It catches most upsells before they happen. Run through the five checks below before you sign anything.

1. Identify the legal route. Ask which sub-clause of IRC Section 408(m)(3) the coin or bar qualifies under: the named-coin carve-out at (A) with a specific 31 U.S.C. Section 5112 reference, or the bullion-fineness route at (B). A clear answer in writing is a sign of a competent dealer.
2. Check the fineness against the IRS-recognized minimum. Gold .995, silver .999, platinum .9995, palladium .9995. Eagles are an exception, because Congress wrote them in by name. Anything below the standard and outside the named carve-out is a collectible.
3. Confirm the refiner is accredited. Bars qualify only when they come from an accredited refiner. Common accreditations include the LBMA Good Delivery list and the COMEX-approved list. Ask for the refiner name and confirm it sits on one of those lists.
4. Confirm the depository is IRS-approved. The dealer must name the depository in writing. Common options for California savers include the Delaware Depository in Wilmington, the IDS facilities in Texas and Delaware, and the Brink Los Angeles vault for in-state storage.
5. Refuse any "premium" or "rare" coin pitch on retirement money. The Red Rock Secured order shows the playbook: low markup quoted on common bullion, then a switch to a "premium" coin with a far higher markup that is also outside the 408(m)(3) carve-out. Stay with common bullion and the named-coin carve-out.

If the dealer cannot give a clear answer to any of those five checks in writing, end the conversation. An honest provider welcomes the verification step. See how to choose a trustworthy gold IRA company in California for the longer due-diligence list.

When IRA-approved metal is the wrong fit

A balanced look has to name when IRA-approved metal works against you. For several California savers, the answer is "not this account, not now". Saying so plainly is part of an honest guide.

It is usually a bad fit in these situations:

• A small balance against the fixed fee drag. Setup, annual custodian, storage, and the dealer spread are largely fixed costs. On a small account, those costs eat a large share of the balance, so a modest holding can struggle to ever come out ahead.
• You may need the money within a few years. Selling means crossing the dealer spread again. Before age 59.5, you also stack the 10% federal and 2.5% California additional taxes, 12.5% combined, on top of ordinary income tax.
• You want a numismatic or "rare" coin. Those sit outside the 408(m)(3) carve-out by design. Buying one inside an IRA triggers a deemed distribution at cost. A taxable brokerage approach is a cleaner fit for that interest.
• You want home storage. The statute requires an IRS-approved trustee in physical possession. Home storage of IRA metal is a deemed distribution and may carry a penalty if you are under 59.5. California offers no exception.
• You have no other retirement savings yet. Concentrating your only retirement money in one asset class leaves no buffer. A broader base usually comes first, with IRA-approved metal as a portion rather than the whole.
• You feel rushed by the salesperson. An IRS-sanctioned account is not a limited-time offer. If the call insists you decide today, end it. Honest providers welcome a slow second read.

If one of these describes you, slowing down is the sensible call. The combined early-withdrawal tax and the fixed annual costs both punish a short or small position more than most savers expect.

California questions about IRA-approved metals, answered

Who decides what counts as an IRA-approved metal?

Congress, in IRC Section 408(m)(3). The IRS administers it through publications and the Issue Snapshot on collectibles. No federal agency keeps a published brand list of approved products. The legal status is read off the statute, coin by coin and bar by bar. California adds no separate approval rule.

Why is the American Gold Eagle IRA-approved if it is only .9167 fine?

Because Congress wrote the coin into the named-coin carve-out at IRC Section 408(m)(3)(A)(i), which cross-references gold coins at 31 U.S.C. Section 5112(a)(7) through (10). The Gold Eagle sits in that carve-out, so the .995 bullion-fineness floor at 408(m)(3)(B) does not apply to it.

Is the American Palladium Eagle IRA-approved?

Yes. The legal route is the bullion-fineness rule at IRC Section 408(m)(3)(B), not the coin carve-out at 408(m)(3)(A). The coin is one troy ounce of .9995 fine palladium with a $25 face value at 31 U.S.C. Section 5112(a)(12). It qualifies because it meets the .9995 fineness standard and an IRS-approved trustee holds it.

Can my California self-directed IRA hold all four metals at once?

Yes. A single self-directed IRA can hold any mix of IRS-approved gold, silver, platinum, and palladium, with the same custodian and depository. The federal rules and the California tax treatment apply identically across the four metals. The judgment calls are which coins or bars, which dealer, what inventory each carries, and the all-in cost.

Are foreign gold or silver coins IRA-approved?

Sometimes, and only through the bullion-fineness route at 408(m)(3)(B). The named-coin carve-out at 408(m)(3)(A) is bounded by 31 U.S.C. Section 5112, which is a U.S. Mint statute. A foreign coin that meets the .995 gold or .999 silver standard, from a recognized program, generally qualifies. A foreign coin below the standard does not.

Can I store IRA-approved metal at home in California?

No. Federal law requires an IRS-approved trustee to hold physical possession of the metal. Keeping IRA metal at home is treated as a distribution, which is taxable and may carry the federal 10% and California 2.5% penalty if you are under 59.5. California offers no exception to this federal rule.

Are proof coins IRA-approved?

U.S. Mint proof Eagles in gold, silver, and platinum qualify because the underlying coin sits in the named-coin carve-out at 408(m)(3)(A). The proof premium pushes the dealer markup higher than common bullion, and that markup is the bigger lifetime cost for most savers. A proof coin pitched as having "special" IRA status above bullion is a marketing claim, not a tax rule.

How much does California tax me if I buy a non-approved coin in my IRA?

The IRS treats the purchase as a deemed distribution equal to cost, taxed as ordinary income at your federal rate plus California rates that reach 13.3% combined. If you are under age 59.5 with no qualifying exception, you also owe the federal 10% additional tax and the California 2.5% additional tax on Form 3805P, for 12.5% combined penalty before income tax. Consult your tax advisor.

Can I roll a California public pension into a metals IRA holding any of the four metals?

Not the monthly pension itself. After permanent separation, a CalPERS or CalSTRS refund of member contributions is generally an eligible rollover distribution that can move to an IRA (sources: CalPERS; CalSTRS RF1360). The refund is irrevocable and ends membership. See the CalPERS rollover guide for the trade-offs.