Fineness
Definition
Fineness is the purity of a precious metal, expressed as parts per thousand. For Gold IRA eligibility, the IRS requires a minimum fineness of 0.995 (99.5% pure) for gold, with one exception: American Gold Eagles are exempt at 0.9167 fineness (22 karat). Silver must meet a minimum fineness of 0.999, while platinum and palladium must be at least 0.9995. These requirements are outlined in Internal Revenue Code Section 408(m)(3)(B).
Why It Matters for Gold IRA Investors
Fineness determines whether a specific coin or bar qualifies for your Gold IRA. Buying a product that does not meet the IRS fineness requirement means it cannot be held in your account — and a reputable custodian will reject the purchase. Knowing the fineness thresholds helps you verify that a dealer is offering IRA-eligible products.