Reference · Questions and answers
Precious metals, answered plainly.
The questions people actually ask about gold IRAs, physical gold and silver, platinum and palladium, storage, taxes and fees. No pitch, no urgency, no promises.
ByDavid Love, Founder
Short version
Plain answers to the questions people actually ask about gold IRAs, physical metals, storage, taxes, and fees.
- A gold IRA is a self-directed IRA that holds IRS-approved physical bullion through a custodian and approved depository, not paper metal.
- Eligible bullion must meet the minimum fineness a futures exchange requires for delivery; for platinum and palladium, the NYMEX rules set 99.95 percent. American Gold Eagles are the written exception.
- Metal in an IRA cannot be stored at home. Personal possession turns the position into a taxable distribution.
- Outside an IRA, you can buy any quantity of bullion privately. Price is spot plus premium; your real cost also includes the dealer's buyback spread.
- Platinum and palladium are legal in an IRA, but they trade in thinner markets with wider spreads and fewer buyers.
Gold IRA basics
What the account is, what it can hold, and what the rules actually require.
What is a gold IRA?
A gold IRA is a self-directed individual retirement account that holds IRS-approved physical bullion instead of only stocks, bonds and funds. It carries the same contribution limits, deduction rules and distribution ages as any other traditional or Roth IRA. What differs is custody: a custodian administers the account and an approved depository holds the metal.
Go deeper: Gold IRA guide
How does a gold IRA work?
You open a self-directed IRA with a custodian that supports metals, fund it by transfer, rollover or contribution, choose eligible coins or bars through a dealer, and the dealer ships the metal directly to an approved depository where it is recorded against your account. You never take possession while the metal is in the IRA. Selling works in reverse: the depository releases metal, the dealer buys it, and the proceeds return to the IRA in cash.
Go deeper: How it works
Are gold IRAs a good idea?
It depends on what you want it to do. The case for one is diversification into an asset with no counterparty and a long monetary history. The case against is that metal pays no dividend or interest, costs money to hold, and can fall in price for years. Anyone who answers this question with a guarantee is selling, not advising.
How do I choose a gold IRA company?
Compare the dealer, custodian and depository separately, then ask for the metal price, premium, buyback price and all account fees in writing. The full guide covers the records, pricing questions and sales practices worth checking before you open or fund an account.
Go deeper: How to choose a gold IRA company
What is the difference between a gold IRA and buying gold outright?
An IRA gives you tax deferral or tax-free growth but requires a custodian, an approved depository, eligible-only products and no personal possession. Buying outright means you can hold the metal in your hand, store it where you like and sell it whenever you want, with no tax shelter and any gain taxed as a collectible. Many people do both for different reasons.
Go deeper: Buying directly
How much money do you need to open a gold IRA?
Most custodians have no legal minimum, but dealers commonly set practical minimums, and below roughly a five-figure balance the flat annual fees consume too large a share of the account to make sense. The right question is what percentage of the balance the yearly costs represent, not whether you clear someone's threshold.
Go deeper: Minimums explained
Can I have a gold IRA and a regular IRA at the same time?
Yes. You can hold as many IRAs as you like. The annual contribution limit applies across all of them combined, not per account, and each account has its own custodian and fee schedule.
Can I take physical possession of gold in my IRA?
Not while it stays in the IRA. You can take an in-kind distribution, where the actual coins and bars are shipped to you, but that is a distribution: it is taxed on fair market value at that date and carries a 10 percent penalty if you are under 59½.
Go deeper: Tax rules
Who actually holds my metal in a gold IRA?
Three separate parties are involved: the custodian administers the account and files the reporting, the depository physically holds the metal under insurance and audit, and the dealer sells and buys the metal. You are entitled to know who each is and what each charges. Be cautious of any arrangement presented as one inseparable package.
Go deeper: The custodian's role
Is a gold IRA safe?
The intended custody structure uses audited depositories, commercial insurance, and metal identified as held for your account. Those features support a client-property position, but they do not guarantee an insolvency result: the custody agreement, records, identification, segregation, liens, actual control, policy terms, and governing law still matter. The price of the metal is not safe in any sense, and it can fall substantially. Structural safeguards and investment risk are different questions.
Eligibility and approved metals
What the IRS will and will not let an IRA hold, and why fineness decides it.
What is IRA eligible gold?
Gold bullion of at least .995 fineness produced by a national mint or an accredited refiner, plus the American Gold Eagle, which is admitted by statute at .9167. Common qualifying pieces include the Canadian Maple Leaf, Austrian Philharmonic, Australian Kangaroo and refiner bars from accredited producers in standard weights.
Go deeper: IRA-eligible metals
What is IRA approved silver?
Silver of at least .999 fineness from a national mint or accredited refiner. American Silver Eagles, Canadian Silver Maple Leafs, and one, ten and one hundred ounce accredited refiner bars are the usual qualifying products. Pre-1965 US junk silver at .900 does not qualify, and neither do most privately minted rounds without accreditation.
Go deeper: Silver IRA guide
Can an IRA hold platinum and palladium?
Yes. The tax code allows platinum and palladium bullion that meets the minimum fineness a regulated futures exchange requires for delivery, and the NYMEX delivery rules set that minimum at 99.95 percent, which is where the .9995 figure comes from. The statute also names the American Platinum Eagle. Eligibility is not the hard part; liquidity is, because both markets are far thinner than gold or silver and the spread to sell reflects that.
Go deeper: Is platinum a good investment?Platinum vs palladium
Are collectible or graded coins allowed in an IRA?
No. Collectibles are excluded, which rules out numismatic and semi-numismatic coins, graded rarities and most proof issues sold at collector premiums. If a seller is pushing graded coins into a retirement account, that is a warning sign, not a strategy.
Go deeper: Proof coins vs. bullion: premiums and resale value
Does IRA eligible mean a coin is a good buy?
No. Eligibility is a fineness and issuer test, nothing more. Two eligible coins holding the same ounce of gold can be sold to you at very different premiums, and the more expensive one is not better metal. Compare price per ounce over spot, not badges.
Can a self-directed IRA hold gold ETFs or mining stocks instead?
Yes, and an ordinary brokerage IRA can hold both without any of this machinery. They are different exposures: an ETF is a security with a manager and counterparties, while bullion in a depository is a physical asset held for your account. Neither is a substitute for the other.
Can I move gold I already own into my IRA?
No. Contributions to an IRA must be in cash, so personally owned metal cannot be transferred in, even if the coins would otherwise be eligible. Metal you already hold stays outside the account.
Does it matter which mint produced the coin or bar?
For eligibility, yes: it must be a national mint or an accredited refiner. For resale, also yes. Widely recognised sovereign coins and major refiner bars sell easily anywhere in the world, while obscure issues can require assay or take a discount when you sell.
Can a non-US citizen or foreign national open a gold IRA, or buy directly from Dormy?
For a gold IRA, eligibility generally requires a US taxpayer identification number, such as an SSN or ITIN, and US-source earned income; those are general IRA rules, not Dormy-specific requirements. A custodian and qualified tax professional should confirm eligibility for the person's circumstances. For an outright purchase outside an IRA, Dormy considers international and non-US buyers case by case, subject to identity, payment, delivery, storage and applicable legal requirements.
Rollovers, transfers and funding
Moving existing retirement money into metal without triggering tax.
How do I roll over a 401(k) into gold?
If you have left the employer, request a direct rollover from the plan to your self-directed IRA custodian, then buy eligible metal inside that account. If you are still employed, check whether the plan allows in-service distributions; many do not before 59½. A direct movement of funds avoids withholding and the 60-day rule entirely.
Go deeper: Rollover guide
What is the difference between a transfer and a rollover?
A transfer moves money directly between two IRA custodians, is not reported as a distribution, and has no annual limit. A rollover involves funds leaving a plan or account and being redeposited, must complete within 60 days, and is limited to one indirect IRA-to-IRA rollover in any twelve months. Direct movement is safer in every case.
Go deeper: Transfer vs rollover
Will a rollover to a gold IRA trigger taxes?
Not if it is done correctly as a direct transfer or direct rollover between retirement accounts of the same tax character. Tax is triggered by taking possession of the money and missing the 60-day window, or by converting pre-tax money to a Roth, which is a deliberate taxable event.
Which accounts can be rolled into a precious metals IRA?
Traditional and Roth IRAs, SEP and SIMPLE IRAs, and eligible 401(k), 403(b), 457(b) and TSP balances, generally once you are separated from service or the plan permits in-service distributions. Roth money moves to a Roth IRA and pre-tax money to a traditional IRA to keep the tax character intact.
Go deeper: Gold IRA for the self-employed
How long does a gold IRA rollover take?
Usually two to four weeks end to end: a few days to open the account, one to three weeks for the releasing plan to send funds, then a day or two to price and place the metal order once cash lands. The releasing institution controls most of that timeline, not the dealer.
Can I roll over only part of my retirement account?
Usually yes for IRAs, and often yes for former-employer plans, though some plans only allow a full distribution. Partial funding is common: people move a defined percentage into metal rather than the whole balance.
What happens if I miss the 60-day rollover deadline?
The amount is generally treated as a taxable distribution, with a 10 percent penalty if you are under 59½ and mandatory withholding already taken by the plan. Limited relief exists in narrow circumstances, but the reliable fix is to never hold the funds personally in the first place.
Storage and custody
Where the metal sits, who insures it, and what home storage really means.
Where is IRA metal stored?
In an IRS-approved depository or a bank vault under the custodian's control. These are commercial bullion facilities with class-rated vaults, continuous monitoring, independent audits and all-risk insurance. Metal ships from the dealer straight to the vault.
Go deeper: Storage guide
Can I store gold IRA metal at home?
No. The bullion exception requires possession by a bank or approved non-bank trustee. A home safe, a private safe deposit box in your name, or metal held through an LLC you manage is personal possession and is generally treated as a full distribution with penalties.
Go deeper: Home storage myth
Who counts as a 'disqualified person' for a gold IRA?
A disqualified person generally includes you, certain close family members, fiduciaries and entities you control. These are parties your IRA cannot deal with directly without risking a prohibited transaction, so a custodian or qualified adviser should review any related-party arrangement before it occurs.
Go deeper: Disqualified personProhibited transaction
What is the difference between segregated and commingled storage?
Segregated storage keeps your specific bars and coins under your account and returns those exact items. Commingled storage pools identical bullion and returns matching items of the same type, weight and purity. Segregated costs more; for standard bullion the two are functionally equivalent.
Go deeper: Allocated vs unallocated
Is the metal insured while in storage?
Approved depositories carry all-risk commercial insurance covering loss, theft and physical damage in the vault and usually in transit. Ask for written confirmation of coverage. Insurance protects the metal, never its market price.
Can I visit the depository and see my metal?
Most approved facilities allow scheduled visits with identification and advance notice, and segregated holdings can generally be inspected. Policies vary by facility, so ask before you fund if this matters to you.
How should I store gold and silver I own personally?
Three practical routes: a quality home safe bolted down and covered by a rider on your homeowner's policy, a bank safe deposit box, which is private but not federally insured for contents, or private vault storage for larger positions. Standard homeowner's coverage for bullion is usually very small, so check the limit rather than assume.
Go deeper: Dormy storage and delivery
Does silver cost more to store than gold?
In practice, often yes. The same dollar value of silver occupies many times the vault space, so some fee schedules price it by bulk or apply minimums, and shipping a silver position is heavier and more expensive.
Costs, fees and pricing
What you actually pay, and which number matters most.
How much does a gold IRA cost per year?
Typically a one-time setup fee, an annual custodian administration fee, and an annual storage and insurance fee, either flat or as a small percentage of value. Those are the visible costs. The larger cost is usually the premium paid on purchase and the spread when you sell.
Go deeper: Fees compared
What is the spot price of gold?
The market reference price for one troy ounce for immediate settlement, quoted continuously in the wholesale market. It is not the price you pay for a coin or receive when you sell; it is the benchmark that both prices are built from.
Go deeper: Spot price in the glossary
Why does a coin cost more than the spot price?
The premium covers refining or minting, distribution, and the dealer's margin. Fabrication genuinely costs money, especially for small denominations, so a tenth-ounce coin carries a much higher percentage premium than a one-ounce coin or a kilo bar.
Go deeper: Premium in the glossary
What is the dealer spread and why does it matter?
The spread is the gap between the price a dealer sells at and the price the same dealer will buy it back for. It is your true round-trip cost, and it dwarfs annual fees. A wide spread on an overpriced coin can require years of price appreciation just to break even.
Go deeper: Spread in the glossary
What's the difference between a storage fee and a dealer's commission?
A storage fee is the ongoing charge from the custodian or depository for holding the metal. A commission is the dealer's markup on the transaction itself. Buyers regularly confuse the two, but they are billed by different parties for different services.
Go deeper: Storage feeCommission
How do I read a dealer's quote?
Insist on four numbers in writing: the spot price used, the premium per ounce or per coin, the all-in total, and the current buyback price for that exact item. If any of the four is missing, you cannot compare the offer to anything.
Go deeper: How to read a quote
Are there hidden fees in a gold IRA?
Rarely hidden in the literal sense, but frequently unmentioned: wire fees, account termination and liquidation fees, and above all the pricing of the metal itself, which is where most of the money is made. Ask for the full schedule and the buyback terms before funding.
Go deeper: Custodian fees
Are bars cheaper than coins?
Usually yes per ounce, because fabrication is simpler and larger units spread the cost further. Sovereign coins carry higher premiums but are more widely recognised and easier to sell in small amounts. Larger bars save money on the way in and are less flexible on the way out.
Go deeper: Bars vs coins
How do free silver or free coin offers work?
The cost is in the price of what you buy. A promotion funded by a wider premium on the main purchase is a discount presented as a gift. Compare the all-in price per ounce against a plain quote and the promotion usually disappears.
Taxes and distributions
How metal is taxed inside and outside a retirement account.
How is physical gold taxed when I sell it?
Outside a retirement account, physical bullion is treated as a collectible, so long-term gains are taxed at your ordinary rate capped at 28 percent, and short-term gains at your ordinary rate. Losses can offset gains under normal capital-loss rules.
How are gold IRA distributions taxed?
The same way as any IRA. Traditional IRA distributions are ordinary income; qualified Roth distributions are tax-free. In-kind distributions of coins and bars are taxed on the fair market value at the distribution date, with a 10 percent penalty on early withdrawals.
Go deeper: Gold IRA tax rules
Do required minimum distributions apply to a metals IRA?
Yes, for traditional, SEP and SIMPLE IRAs once you reach the applicable RMD age. Because metal is not divisible like cash, satisfying an RMD usually means selling part of the position or taking specific coins in kind, so it needs planning before the deadline.
Go deeper: RMDs and metals
Does a dealer report my sale to the IRS?
For certain products and quantities, yes, on Form 1099-B, and cash payments above the reporting threshold are reported separately. Your obligation to report a gain does not depend on whether a form is issued.
What happens if I inherit a gold IRA?
It becomes an inherited IRA with its own distribution timetable, usually a ten-year window for most non-spouse beneficiaries, while spouses have additional options. The metal can be held, sold within the account, or distributed in kind, and the deadlines are unforgiving.
Go deeper: Inheriting a gold IRA
Is there sales tax on buying gold or silver?
It depends on your state and often on the product and purchase size. Many states exempt investment-grade bullion entirely, some exempt above a threshold, and a few tax it fully. Confirm the treatment for your delivery address before ordering.
Estate and ownership planning
How records, titling and governing law shape what happens to outright-owned metal.
What happens to physical gold or silver I own when I die?
For metal owned outright, bullion has no registered title, so ownership is supported by possession and records such as the storage agreement, account title, purchase records and a written inventory. What happens at death depends on how the holding is titled or documented through joint ownership, a trust or a will, together with governing state law; no result should be assumed from possession alone. This is separate from metal held inside an IRA, which follows the IRA's beneficiary and distribution rules.
Can I hold gold or silver in a trust?
Yes, a revocable living trust can hold physical metal you own outright in the same way it can hold other property, provided the metal and storage records are actually titled or assigned to the trust under governing law. Dormy can source and price the metal and coordinate with your attorney on the mechanics, but we do not draft trust documents or give legal advice. This is not a way to take personal control of metal held inside an IRA.
Go deeper: Trust versus LLCTrust glossary entry
Can I use an LLC to hold my gold or silver?
For metal you own outright, an LLC can hold the metal as it holds other property when it is properly formed, documented and maintained with your own attorney. For metal inside an IRA, an LLC you control is not a personal-possession workaround: using it to hold IRA metal yourself can create the prohibited-transaction and distribution problem addressed in McNulty v. Commissioner. The documents, control and governing law matter in both settings, but the IRA custody rule remains separate.
Go deeper: Trust versus LLCIRA and LLC warningHome storage gold IRA myth
Does a transfer-on-death designation work for bullion?
For outright-owned bullion, generally not by statute, because bars and coins do not use the securities-registration system that lets stocks and brokerage accounts carry statutory transfer-on-death registration. A storage provider may offer its own contractual beneficiary designation, but that is a different arrangement whose effect depends on the agreement and governing law. Metal inside an IRA instead follows the IRA's beneficiary rules.
Go deeper: Titling physical metalTransfer-on-death registration
What's the difference between joint tenancy and tenancy in common for bullion?
For bullion owned outright, joint tenancy with a right of survivorship and tenancy in common can produce different results at an owner's death. Which form applies must be supported by the ownership and storage records rather than assumed from shared access or possession, and the outcome depends on governing state law. Metal inside an IRA follows the account's beneficiary rules instead of either form.
Go deeper: Titling physical metalJoint tenancyTenancy in common
Buying, selling and metal choice
Practical questions about the transaction itself.
How much gold can I legally own?
There is no limit on how much bullion a US person may own. Confiscation-era rules ended decades ago. What is regulated is reporting on certain sales and large cash payments, not ownership.
Go deeper: How much gold can you own
Should I buy gold or silver?
Gold is denser in value, cheaper to store, and steadier. Silver has an industrial demand component, moves more violently in both directions, carries a higher percentage premium in small units, and takes far more space. Many buyers hold both, weighted toward gold for the store of value and silver for the upside and divisibility.
Go deeper: Silver vs gold IRA
What is the gold-silver ratio, and how do people use it?
The gold-silver ratio is how many ounces of silver it currently takes to buy one ounce of gold. Some buyers watch it as a rough relative-value signal between the two metals, but it is not a proven timing tool, and Dormy does not give buy or sell recommendations based on it.
Go deeper: Gold-silver ratio guideGold-silver ratio glossary entry
Is silver more volatile than gold?
Historically yes, materially so. Silver's smaller market and industrial demand produce larger percentage swings in both directions. That is the reason people buy it and the reason it can test their patience.
Can I hold gold, silver, platinum and palladium in the same IRA?
Yes. One self-directed IRA can hold any combination of eligible metals, and you can change the mix by selling one and buying another inside the account with no tax consequence.
Is platinum or palladium worth buying instead of gold?
Both are legitimate industrial precious metals with genuine scarcity, and both trade in far thinner markets than gold. Expect wider spreads, fewer buyers when you sell, and price behaviour driven more by industrial demand than by monetary demand. They are a specialist position, not a better gold.
How do I sell physical gold or silver?
Back to a dealer who publishes a buyback price, to a private buyer, or through an auction for genuinely rare pieces. Widely recognised sovereign coins and major refiner bars sell fastest and closest to spot. Ask any dealer for their buyback price on the exact item before you buy it from them.
Will a dealer buy back what they sold me?
A reputable one will quote a buyback price on request, in writing, before you purchase. A refusal to do so, or a buyback price far below the market for the same product, tells you the product was priced for the seller rather than the buyer.
How do I avoid being taken advantage of?
Ask for the spot price used, the premium, the total and the buyback in writing; refuse graded or proof coins pitched for retirement accounts; ignore deadlines and one-time offers; and confirm who the custodian and depository are separately from the dealer. Pressure and vagueness travel together.
Go deeper: Red flags
Does my bullion need to be graded or certified?
No, and for bullion it is usually counterproductive. Grading adds cost and turns an ounce of metal into a collectible priced on opinion. Buy recognised bullion in original mint packaging or accredited refiner assay and keep it simple.
How do I get started without being sold to?
Decide first whether you want metal inside a retirement account or in your own hands, then get one written quote showing spot, premium, total and buyback. That single document is enough to compare any dealer against any other. Dormy will provide it without a pitch.
Go deeper: Speak with a specialist
Go deeper
Where to go next.
Pillar
Gold IRA, start to finish
Definitions
Precious metals glossary
Protection
Ten questions to ask before buying gold and silver
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