What does a storage fee pay for?
A depository storage fee pays for vault space, custody operations, recordkeeping, and the provider's applicable insurance arrangement. A separate custodian fee may cover IRA administration, reporting, statements, and transaction processing.
Schedules can be flat, value-based, or affected by metal type and whether storage is segregated or commingled. The provider's written fee schedule should identify who bills each amount and what it covers.
Why is a storage fee not a commission?
A storage or custodian fee is an ongoing service charge after the purchase. A dealer commission is compensation connected to the sale itself and usually sits inside the premium or markup rather than appearing as a separate annual bill.
Confusing the two can make a low annual fee look like a low-cost transaction even when the purchase premium is wide. Buyers need the recurring schedule and the itemized metal quote to see the full cost.
How does a storage fee show up in practice?
Request the custodian and depository schedules before funding, including setup, annual, transaction, wire, storage, insurance, withdrawal, and termination charges. Then compare those ongoing costs separately from the dealer's premium and the buyback spread on the exact products quoted.