How A Gold IRA Works

What a gold IRA is

A gold IRA is a self-directed individual retirement account that holds physical, IRS-approved precious metals instead of — or alongside — traditional paper assets. It carries the same tax advantages as a conventional IRA; the difference is what sits inside it.

Because it is self-directed, you choose the metals, while a specialized custodian handles the account and an approved depository stores the metal.

The four players involved

• You — the account owner who makes the decisions.
• A precious-metals dealer who sources IRS-approved coins and bars.
• A custodian who administers the IRA and keeps it compliant.
• An IRS-approved depository that securely stores and insures the metal.

Which metals qualify

The IRS sets purity standards for metals held in an IRA — generally 99.5% for gold, 99.9% for silver, and 99.95% for platinum and palladium. Common eligible products include American Gold Eagles and approved bars from accredited refiners. Collectible or numismatic coins typically do not qualify.

How storage works

Metals in a gold IRA must be held at an IRS-approved depository such as Delaware Depository, Brink's, or Loomis — not at home. The metal is titled to your IRA and can be held in segregated storage so your specific holdings are kept separate, fully insured and audited.

The fees to expect

A gold IRA usually involves a one-time setup fee, an annual custodian/maintenance fee, and an annual storage fee, plus the dealer's markup on the metal itself. Reputable providers publish or clearly explain these. Always confirm the full schedule in writing before you commit.