A recent Wall Street Journal article, A Couple Stored IRA Gold at Home. They Owe the IRS More than $300,000, is a reminder about what can be complex rules for using an IRA to invest in esoteric assets, such as gold, silver, platinum, and other precious metals. Precious metals tax avoidance strategies and investment scams proliferate on the internet and social media. These scams are so common that the Commodity Future Trading Commission published a fraud advisory. According to the California Department of Financial Protection & Innovation, Department of Business Oversight Sues to Stop $185 Million Coins Scam that Targeted Senior Citizens | The Department of Financial Protection and Innovation, for example, the business behind metals.com targeted senior citizens through advertisements on conservative media and websites. Metals.com, according to the state, used fear tactics to pressure seniors to purchase overpriced coins through self-directed IRAs. The promotion of self-directed IRAs to hold esoteric or alternative investments is common in precious metals investing scams. These scams often combine bad tax advice with bad investment advice. They also often charge high fees, which in some cases are not disclosed. In some instances, the people and entities behind the investments are unlicensed. The Wall Street Journal article makes it clear that an investor considering using an IRA to invest in precious metals would be wise to obtain professional advice.
