Can an LLC Own Precious Metals?

Can an LLC own precious metals

Precious metals add diversification value and serve as a secure store of wealth, yet their storage costs can be costly and they are subject to capital gains tax upon sale.

Some precious metal dealers offer an innovative solution, encouraging IRA owners to form LLC companies to purchase and store precious metals at home.


Precious metals offer numerous advantages when it comes to investing, including unique inflationary protection and genuine upheaval insurance against political or military instability – not to mention industrial uses as well.

Precious metals as investment instruments have led to the growth of “gold IRAs,” where investors can buy and store precious metals within their retirement accounts. These investments typically occur through opening a self-directed IRA account with a custodian who offers this feature.

While your LLC may allow for holding precious metals, these investments must be stored outside your home (unless using an IRA-approved storage facility) because the IRS considers precious metals collectable investments that require capital gains taxes upon selling – this differs from investments such as company shares or real estate that are taxed at both levels – pass-through taxation being the norm here. You can avoid this by engaging an Exchange Facilitator to execute a Section 1031 exchange and placing metals into an escrow bank account with proper storage options available escrow bank accounts.


Some dealers use the term LLC IRA or Super IRA to promote an IRA’s ability to own physical precious metals outside of custodial settings and thus avoid the high fees imposed by custodians as well as restrictions such as prohibited transactions and disqualified persons. This method often results in lower fees being assessed to the IRA owner in this instance.

An LLC provides privacy and estate planning flexibility by keeping precious metal ownership separate from its members’ personal accounts. However, for optimal operation of an LLC it must be properly formed with clear chain of title in place.

Investors with self-directed retirement accounts who own precious metals in bars or coins often invest them. Storing precious metals at home may be expensive and vulnerable to theft; as per 26 U.S.C SS 408 investors should verify if their precious metal dealer has an established track record of customer service as well as having an all risk custody policy specifically written for precious metals instead of just general insurance policies.

Chain of Title

Chain of Title refers to the history of ownership for any piece of real property such as land or precious metals, from its initial owners up to its current one. Usually this documentation is stored centrally within systems or registries for easy reference.

Establishing ownership rights to real estate and other properties relies heavily on having a clear chain of title. Finding information for previous owners may require searching city archives or visiting old cemeteries, and time can also be wasted searching immigration records.

An LLC and precious metals provide greater legal protection. If sued, judgment creditors would have to sue both you and the company to access individual membership stakes; this process is much more time consuming and complex than going after assets held individually or through trusts.


Due to their rarity, high demand, and prior use as currency, precious metals possess high economic worth. They are frequently employed as an insurance against inflation or to diversify retirement accounts.

Many investors in precious metals invest in precious metals by setting up an LLC that manages their investments, but there are several considerations before doing so. First and foremost, the LLC must be legally formed in good standing in order to avoid complications with legal matters; furthermore, storage should also be taken into account.

IRA owners who invest in precious metals using an LLC as custodian should be mindful that this action may violate 26 U.S.C 408. In addition to mandating that bullion be stored with a federally insured bank or custodian, this section also stipulates that an IRA LLC be established as a self-directed IRA special purpose corporation.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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