How to Buy Gold in an IRA
You never buy the gold yourself — the IRA buys it. Money moves from your custodian to the dealer, metal moves from the dealer to a depository, and your name appears on neither shipment. Every step below exists to keep that chain intact, because the moment you touch the metal it stops being a retirement asset and becomes a taxable distribution.
Step 1 — Have funds settled before you shop
A dealer cannot fill an order against money that has not arrived. Fund the self-directed IRA first, by trustee-to-trustee transfer from an existing IRA or a direct rollover from a 401(k), and wait for the custodian to confirm cleared cash. This normally takes three to ten business days and is the slowest part of the whole process.
Shopping before settlement is how people end up accepting whatever is in stock at whatever premium, under pressure from a dealer holding a quote that "expires today".
Step 2 — Get the quote as spot plus a percentage
This is the single most consequential number in the transaction and it appears on no fee schedule. Ask, in writing: what is the premium over spot, as a percentage, on the exact products you are proposing?
- Bars and rounds from an approved refiner: 3%–5% over spot
- American Gold Eagles and Buffalos: 5%–8% over spot
- Graded, proof or "exclusive" coins: 20%–30% — and the buyback desk will price them as ordinary bullion
On a $50,000 purchase the difference between 5% and 25% is $10,000 of retirement money handed over on day one. Two written quotes on identical products is the entire negotiation.
Step 3 — Check eligibility before you commit
Under IRC §408(m)(3) an IRA may hold gold of at least .995 fineness, silver at .999, platinum and palladium at .9995, plus the American Gold Eagle and Silver Eagle, which qualify by name. The Eagle is .9167 fine and eligible anyway because Congress listed it.
What your custodian will refuse: Krugerrands (.9167 and not named), pre-1933 US gold, graded collectibles priced on grade, pre-1965 90% silver, and rounds from refiners not on the approved list. Ask the custodian for its approved-products list rather than taking the dealer's word.
Step 4 — Place the order through the custodian
The mechanics vary slightly by custodian but the shape is constant: you agree the products and price with the dealer, the dealer sends a purchase authorisation or invoice to the custodian, you approve it (often by e-signature), and the custodian wires IRA funds directly to the dealer.
Two things to verify on the authorisation before signing: the exact product names and quantities, and the total dollar amount including any shipping or handling. A substitution — proof coins in place of bullion, a private-mint round in place of a sovereign coin — is easiest to unwind before the wire leaves.
Step 5 — Metal ships to the depository, not to you
The dealer ships insured, directly to an IRS-approved depository, titled to the IRA. Delaware Depository, Brink's, International Depository Services and Texas Precious Metals Depository are the usual choices. You pick commingled storage (roughly $100–$150 a year) or segregated (roughly $150–$300).
Any arrangement that puts the metal in your house — including a single-member LLC that you control — is a distribution. The Tax Court said so in McNulty v. Commissioner (157 T.C. No. 10, 2021), where the coins themselves were perfectly eligible and the taxpayer still owed tax on the full purchase amount plus penalties.
Step 6 — Reconcile what arrived against what you ordered
Within two to four weeks you should have, in writing: the products and quantities held, the depository name and storage type, bar serial numbers where applicable, and the custodian's valuation. Compare it line by line against your purchase authorisation.
This is also when you confirm the fee schedule that will bill going forward — annual custodian fee ($75–$200), annual storage, and whether either is charged flat or as a percentage of account value.
What the purchase actually costs
| Cost | Typical | When |
|---|---|---|
| Dealer premium over spot | 3%–8% | Every purchase |
| Account setup | $0–$50 | Once |
| Wire fee | $25–$50 | Per transfer |
| Annual custodian fee | $75–$200 | Yearly |
| Annual storage | $100–$300 | Yearly |
| Buyback spread at sale | 1%–3% under spot | At exit |
Recurring fees are visible and small; the premium is invisible and large. Investors routinely spend an hour negotiating a $50 setup fee and none at all on a $2,500 markup.
Mistakes that cost real money
- Buying before funds settle — you lose price leverage and end up with whatever is in stock.
- Accepting a quote without a stated premium — you cannot compare dealers on price you were never shown.
- Letting "limited mintage" justify the price — mintage does not affect IRA eligibility and does not survive resale.
- Taking delivery — a deemed distribution of the entire purchase, plus 10% under 59½.
- Skipping the reconciliation — substitutions are cheap to fix in week one and impossible to argue in year three.
Frequently asked questions
Can I buy gold I already own into my IRA?
No. That is a prohibited transaction between the account and a disqualified person under §4975, and it can disqualify the entire IRA. Contributions must be in cash; the IRA then buys metal from a third party.
How long does a purchase take once funded?
Usually one to three business days to price and authorise, then one to two weeks for shipping and depository intake.
Can I choose which coins the IRA buys?
Yes — within the eligible universe. The choice is yours; the constraint is fineness and refiner accreditation.
What if the price moves between quote and wire?
Most dealers lock the price at the point of authorisation for a defined window, commonly 24–48 hours. Get the lock terms in writing; an unlocked quote is not a price.
Next step: the dealer sets the premium, and the premium sets your outcome. Compare the firms in our 2026 table before you fund.