The new provision permits investment in other silver bullion coins and silver bullion bars provided that they are of a fineness equal to or exceeding 99.9 percent silver. Although investors in individually directed retirement accounts may invest in a wide variety of precious metals mining stocks and mutual funds, they currently are unnecessarily restricted in their choice of physical precious metals investments.
Bullion is fabricated in several forms, among which the two most predominant are bars and coins.
With this legislation, Congress has in effect placed precious metals on par with bonds and equities for the IRA investor. Once signed, the provision becomes effective on January 1, 1998. The significance of this provision is that it expands investment opportunities beyond the American Eagle bullion coins to silver, gold, platinum and palladium bullion coins issued by a number of other governments including the Canadian, Mexican, and Australian mints. Bullion coins provide the small investor with an economical way to make precious metals investments for diversification and portfolio protection purposes. Bullion coins are manufactured in large quantities and in a standardized and uniform manner, making them fungible, or interchangeable with each other.