408(m) is the interesting part — it warns that investment using IRA funds into “collectibles” will be considered a disbursement, but makes a specific exemption for precious metal coins and bullion of a minimum “fineness”, *provided that bullion is in the physical possession of the trustee*. I assume that the “trustee” here would be the same as the “custodian”, and good luck to you finding a bank or broker willing to hold physical gold for you. Nor do I think businesses who do hold physical gold, like Kitco, be willing to deal with retirement account regulations.
And if you are considering investment in shiny metal outside a retirement account — I’m under the impression that these are considered “collectibles” in this context, hence subject to 28% long-term (>1yr) capital gains rate.
