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Last updated: July 22, 2026 · By White Metal Resources Editorial
Quick answer: A precious metals IRA carries two very different kinds of cost. The custodian and the depository charge published fees for setup, annual administration, and vault storage. Those numbers usually appear on a written fee schedule. The dealer charges a markup on the coin or bar you buy, and that markup is layered into the price rather than itemized.
The custodian and depository lines are typically a few hundred dollars a year in total. The dealer markup, over the life of the account, is usually the single largest cost, and it is the least visible one. Reading a written fee schedule tells you only half the story. Asking the dealer for the buy price against the same day sell-back price tells you the other half.
Short on time? The essentials
- A compliant precious metals IRA needs three parties: a self-directed custodian, an IRS-approved depository, and a dealer that sells you the metal.
- Custodians and depositories publish written fee schedules. Setup, annual administration, and storage are usually itemized and easy to compare in advance.
- Dealers set the price on the coin or bar. The markup over spot is baked into the price and is rarely itemized in writing.
- Over the life of the account, the dealer markup on the purchase is usually the largest single cost, larger than years of custodian and storage fees combined.
- The custodian enforces the IRS fineness gate: gold 99.5 percent, silver 99.9 percent, platinum and palladium 99.95 percent, per IRC 408(m)(3).
- American Silver, Gold, Platinum, and Palladium Eagles qualify through the separate carve-out for United States coins at 31 U.S.C. 5112.
- The 2026 IRA contribution limit is 7,500 dollars, with a 1,100 dollar catch-up at age 50 and over, so most accounts are funded by rollover, not fresh cash.
- Federal regulators police the metals market. A 2020 CFTC order against JPMorgan cited gold, silver, platinum, and palladium futures and totaled 920.2 million dollars.
- The cleanest way to test any dealer: ask for the buy price and the same day sell-back price on the exact product you would buy.
This page maps the two very different kinds of cost inside a precious metals IRA. One kind is written on a fee schedule you can compare in advance. The other kind is baked into the price of the coin or bar you buy. Below we explain who charges each cost, why the second one drives most of the lifetime bill, and how to see the true all-in figure before you sign.
Who charges what in a precious metals IRA
A compliant precious metals IRA has three parties. A self-directed IRA custodian holds legal title and files the tax reports. An IRS-approved depository takes physical possession of the metal in a vault. A precious metals dealer sells you the coin or bar the account will hold. You pick each party. You never take personal possession while the metal stays inside the IRA (source: IRS Issue Snapshot on collectibles).
Each party charges you a different kind of cost. Two of those costs are usually itemized in writing. One usually is not, and that gap is where most of the lifetime bill lives.
| Cost line | Who charges it | Usually disclosed in writing | Typical shape of the number |
|---|---|---|---|
| Setup fee | Custodian | Yes, on a written fee schedule | One time, flat dollar amount |
| Annual administration | Custodian | Yes, on a written fee schedule | Yearly, flat or tiered by balance |
| Annual storage | Depository | Yes, on a written fee schedule | Yearly, flat or a share of balance |
| Dealer markup on the metal | Dealer | Usually no, baked into the price | Percent over spot, per transaction |
Sources: 26 U.S.C. section 408(m); IRS Publication 590-B; IRS Issue Snapshot on collectibles. Fee structure is structural; the dollar figures depend on the firms you pick. Checked June 2026.
Where the custodian actually helps you
The custodian is not a passive paperwork office. It runs a compliance gate on the metal before the depository ever accepts it. That gate is drawn from federal law. A bar or coin that fails the fineness floor cannot enter the account, even if the dealer sold it in good faith.
The Internal Revenue Code sets the standard by reference. Section 408(m)(3)(B) recognizes gold, silver, platinum, or palladium at a fineness equal to or above the minimum a commodity contract market requires for futures delivery (source: 26 U.S.C. section 408). Those commodity market minimums are gold 99.5 percent, silver 99.9 percent, platinum 99.95 percent, and palladium 99.95 percent.
American Silver, Gold, Platinum, and Palladium Eagles pass through a separate route. They qualify under the carve-out for coins described in 31 U.S.C. section 5112, which is why the 22 karat American Gold Eagle stays eligible despite sitting below the bullion floor. Bars must come from a refiner that meets the relevant delivery standard. The London Bullion Market Association sets the Good Delivery standard for gold and silver bars (source: LBMA Good Delivery).
Worth knowing: the custodian gate protects the account, but it does not stop a dealer from selling you an eligible coin at a very high markup. The custodian checks whether the coin qualifies, not whether the price was fair.
Why the dealer markup is the biggest lifetime cost
The dealer markup is the gap between what you pay for the metal and what you could sell it back for the same day. That gap has several names. Some firms call it the spread. Others call it a premium. On numismatic or graded coins, the extra price is often described as a rare coin premium. In every case, the gap is a real cost. It is paid by you.
Two features make this the largest cost on the account. First, it is paid on the full purchase amount, up front, on every buy. Second, it is paid again, in part, on every sell. The custodian and depository lines are a few hundred dollars a year on a mid-size account. A wide dealer spread on a large rollover is measured in thousands of dollars per transaction.
The dealer sets the price and, in most cases, does not itemize the markup. You see a per-coin price, not a spot plus premium breakdown. That is why the same coin can carry very different total prices at two different firms on the same day.
| Dimension | Custodian and depository | Dealer |
|---|---|---|
| What they sell | Regulated account services and vault space | Physical coins and bars |
| Regulatory status | Bank or IRS-approved non-bank trustee; approved depository facility | Retail seller; not a federally regulated fiduciary of the account |
| How they earn | Published fees paid by the account holder | Markup baked into the price of the metal |
| Written fee schedule | Yes, standard practice in the industry | Rarely; markup is embedded in the per-coin price |
| Effect on a small account | Fixed dollars are a larger share of the balance | A wide spread on a small buy still costs many percent |
| Effect on a large account | Fixed dollars shrink as a share of the balance | A wide spread on a large buy costs the most in absolute dollars |
Structural comparison. No dollar figure asserted; ask any firm for its written schedule and same day buy versus sell-back price on the exact product. Checked June 2026.
How to read a fee schedule the way an auditor would
A written fee schedule usually lists the custodian setup fee, the annual administration fee, and the depository storage fee. It rarely lists the dealer markup, because the dealer is a separate party. Reading the schedule well means reading it twice: once for what is on it, once for what is not.
Ask for the schedule before you fund the account. Look for whether the annual fees are flat dollars or a share of the balance. Flat dollars punish small accounts. A share of the balance punishes large ones. Look for segregated versus commingled storage. Segregated storage keeps your specific coins or bars apart and costs more. Commingled storage pools metal of the same type and costs less.
Then ask, separately, for the dealer buy price and same day sell-back price on the exact product you would purchase. That single question, priced in writing, reveals the dealer markup you would otherwise never see.
How to see the true all-in cost before you sign
The all-in cost of the first year has four moving pieces. Three sit on paper: setup, annual custodian, annual storage. The fourth sits in the coin price. The steps below make each piece visible before you commit.
- Ask the custodian for its written fee schedule. Setup, annual administration, and any transaction or wire fees should appear on the schedule as flat dollars or a clear formula.
- Ask the depository for its written storage schedule. Confirm segregated versus commingled pricing and whether storage is a flat dollar amount or a share of the balance.
- Ask the dealer for the buy price on the exact product. Get the price in writing for a specific coin, bar, and quantity, not a generic quote for a category.
- Ask the dealer for the same day sell-back price on the same product. The gap between the buy price and the sell-back price is the dealer markup you would pay on that transaction.
- Add the four numbers to get year one, then add the annual lines only to project year two. Year one shows the fee drag plus the markup. Year two and beyond show only the recurring drag.
- Compare against a second firm on the same day. Prices move together across the industry, so any large gap between two written quotes is a real cost difference, not a market difference.
A worked example on a 50,000 dollar rollover
Picture a saver rolling 50,000 dollars from a former employer 401(k) into a precious metals IRA. Assume the written fee schedule adds a 50 dollar setup fee, a 100 dollar annual custodian fee, and a 150 dollar annual storage fee, for 300 dollars a year in disclosed fees. That is the fee drag. Now consider the dealer side of the same rollover.
- Year one disclosed fees: 50 plus 100 plus 150 equals 300 dollars, or 0.6 percent of the balance.
- Year two disclosed fees: 100 plus 150 equals 250 dollars, or 0.5 percent of the balance.
- Dealer markup at a 5 percent spread on the coins bought: 5 percent of 50,000 equals 2,500 dollars, paid up front on the purchase.
- Dealer markup at a 15 percent spread on the same purchase: 15 percent of 50,000 equals 7,500 dollars, paid up front on the purchase.
- Ten years of the annual fee drag at 250 dollars a year: 250 times 10 equals 2,500 dollars, spread across a decade.
Point one: the gap between a fair 5 percent spread and a punishing 15 percent spread is 5,000 dollars on this rollover. That is larger than a full decade of annual custodian and storage fees on the same account. Point two: the disclosed fees are what the schedule shows; the spread is not. Ask for both in writing before you fund.
The figures above are illustrative, not quotes from any firm. This is an illustration, not financial advice; consult a licensed advisor for your situation.
The same lesson applies to a rollover of any size. The custodian and storage lines matter more, as a share of the balance, on a small account. The dealer markup matters more, in absolute dollars, on a large account.
Estimate how annual fees compound against your balance
The calculator below estimates how the annual fee drag compounds against an account over time. Enter a balance and a fee rate to see the effect. It does not model the dealer markup, which is a separate up-front cost paid on the purchase.
Precious metals IRA fee-drag calculator
Precious metals IRAs charge mostly flat dollar fees (setup, annual custodian, storage). Flat fees take a much bigger bite out of a small account than a large one. Enter your numbers to see the drag.
Estimate only. Fee amounts vary by provider and are often not published; enter figures you confirm in writing. This tool ignores metal price changes and the dealer spread, which also affect returns. Not financial advice.
The five patterns that hide a large markup
The dealer side of the account is where most disputes arise. The custodian side is regulated and well documented. Federal enforcement in the metals market focuses on price manipulation and fraud, not custody paperwork.
In one 2020 order, the Commodity Futures Trading Commission required JPMorgan Chase and its subsidiaries to pay a total of 920.2 million dollars over spoofing. That conduct spanned gold, silver, platinum, and palladium futures, among others (source: CFTC release 8260-20). Retail buyer harm looks different from institutional spoofing, but the incentive to widen a spread is the same one: the buyer cannot see the reference price.
Five patterns tend to hide a large markup on a retail account:
- Free silver or free metal promotions. The free coins are usually paid for by a wider spread on the coins you buy, so the total price to the account rises.
- Numismatic or graded rare coin upsells. These sit outside the standard bullion category and carry the widest premiums; many are not even IRA-eligible under the collectibles rule in Section 408(m)(3)(A).
- Price quotes without a same day sell-back number. A buy price alone does not show the spread; the sell-back price is the other half of the sentence.
- Countdown timers and one day offers. Urgency is a sales tactic, not a cost; a real fee schedule and a real spread do not expire tonight.
- Vague references to a preferred custodian without a written fee schedule. If the custodian and depository are named, you can verify their written fees; if they are not, the account has a hidden layer.
The custodian is the referee, not the seller. It is worth using the referee as a source of truth. Ask the custodian, in writing, which depositories it accepts and what its own transaction, wire, and annual fees are. Then compare the dealer buy price and sell-back price on the same product across two firms on the same day.
When a precious metals IRA is a bad idea
A balanced look has to name when this account works against you. For several savers, a precious metals IRA is the wrong move, and saying so plainly is part of an honest guide.
It is usually a bad idea in these situations:
- A small balance against the fee drag. Setup, annual custodian, storage, and the dealer spread hit a small account very hard as a share of the balance. A modest position may never recover the friction.
- You may need the money within a few years. Selling means crossing the dealer spread again. Before age 59.5 you also owe the 10 percent federal additional tax on top of ordinary income tax (source: IRS Publication 590-B).
- You cannot get a written fee schedule and a written buy versus sell-back price. If either party will not put its numbers in writing, you cannot see the cost and you should not sign.
- You are chasing a guaranteed return. Nobody can predict where metal prices will go. A pitch that promises guaranteed gains is a warning sign, and it is the exact pattern federal regulators have acted on.
- The pitch is centered on numismatic or rare coins. Those sit outside the standard IRA-eligible bullion category, carry the widest markups, and can trigger a deemed distribution when they fail the fineness or carve-out test.
If one of these describes you, slowing down is the sensible call. Keeping the account clean for your spouse or heirs later is easier when the fee structure is simple and the paperwork is thin. There is no CTA in this section on purpose.
Fee questions savers ask most
What is the difference between a custodian fee and a dealer markup?
A custodian fee is a written charge for account services: setup, annual administration, and sometimes wire or transaction fees. A dealer markup is the gap between the price you pay for a coin or bar and the same day sell-back price. The custodian fee is disclosed on a schedule. The dealer markup is baked into the price of the metal and usually is not itemized.
Which cost is usually larger over the life of a precious metals IRA?
The dealer markup is usually larger. Custodian and storage fees run a few hundred dollars a year on a mid-size account. A wide dealer spread on a rollover of any size is measured in thousands of dollars, paid up front on the purchase and again, in part, on the eventual sale.
Are annual storage fees flat or a share of the balance?
Both structures exist in the market. Flat dollar storage protects a large account from paying a share of a rising balance. Percentage storage protects a small account from paying a large flat fee. The written schedule tells you which structure the depository uses, and both models are common enough that comparing quotes matters.
Why is silver storage sometimes more expensive per dollar than gold?
Silver costs far less per ounce than gold, so the same dollar amount buys many more ounces of silver and takes more vault space to store. That extra bulk can raise storage cost per dollar invested. It is a structural characteristic of the metal, not a fee schedule difference.
How do I ask for the dealer markup in writing?
Ask for the buy price and the same day sell-back price on the exact coin or bar you plan to purchase, in the exact quantity. Ask both prices in writing at the same moment. The gap between the two numbers is the markup you would pay on that transaction.
Do custodians ever sell metal or set the coin price?
No. The custodian holds legal title and files reports. The depository stores the metal. The dealer sells the metal and sets the coin price. Federal law requires that an IRS-approved trustee hold physical possession of the metal in the vault, which is a compliance role, not a sales role (source: 26 U.S.C. section 408).
Can I keep IRA metal at home to avoid depository storage fees?
No. Federal law requires an IRS-approved trustee to hold physical possession. Keeping IRA metal at home is treated as a distribution. The United States Tax Court applied this rule against the taxpayers in McNulty v. Commissioner in 2021, cited in the IRS Issue Snapshot on collectibles (source: IRS Snapshot).
Are dealer markups regulated?
Retail dealer pricing is not federally rate-regulated. Deceptive marketing and market manipulation are enforced. The Federal Trade Commission acts against unfair or deceptive practices, and the Commodity Futures Trading Commission acts on futures market manipulation and fraud. Neither agency sets a maximum markup for a retail coin sale, which is why buyer diligence matters.
Sources
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements. Checked June 2026.
- IRS Newsroom, 2026 retirement plan and IRA limits (Notice 2025-67). Checked June 2026.
- IRS, Investments in collectibles in individually directed qualified plan accounts (Issue Snapshot). Checked June 2026.
- Cornell Legal Information Institute, 26 U.S.C. section 408. Checked June 2026.
- London Bullion Market Association, Good Delivery. Checked June 2026.
- U.S. Commodity Futures Trading Commission, Release 8260-20 (JPMorgan order). Checked June 2026.
- U.S. Securities and Exchange Commission, Division of Enforcement. Checked June 2026.
