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March 8, 2010Gold coins and bars were declared legal assets to be held in Individual Retirement Accounts (IRAs) as part of the 1997 Taxpayer Relief Act. Since then, American bullion has been profitable for people looking to grow and protect their future assets, with gold prices increasing 288 percent in the past ten years. There is now a recommendation from the Internal Revenue Service regarding the admissibility of American Buffalo coins.

 

The 1997 law required that in order for gold coins and bars to be accepted in a gold IRA, they must be 99.5 percent pure and be classified as bullion. While both American Buffalo proofs and uncirculated coins meet the purity requirement, the proof coins do not meet the allowed criteria for gold IRAs due to these reasons:

 

1. Only the uncirculated coins are considered bullion; the proofs are classified by the US Mint as collector’s coins.

 

2. Proof gold coins do not trade based solely on their precious metal value.

 

3. The production and distribution ...

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