What Is a Gold IRA? How It Works, Pros, Cons & Costs (2026)

A gold IRA (sometimes called a precious metals IRA) is an individual retirement account that holds physical gold, silver, platinum or palladium instead of - or alongside - stocks, bonds and mutual funds. It follows the same basic tax rules as any other IRA: a traditional gold IRA is tax-deferred, and a Roth gold IRA can be tax-free in retirement if you meet the Roth rules.

What makes it different is the paperwork and the plumbing. Most brokerages do not let you hold physical metal in a regular IRA, so a gold IRA is set up as a self-directed IRA with a custodian that is willing to hold "alternative" assets like bullion.

Three separate parties are usually involved, and it helps to know who does what:

• The custodian (or trustee) - a company approved to hold IRA assets. It opens the account, keeps the records, reports to the IRS and sends you statements.
• The dealer - the gold IRA company you see advertised. It sells you the coins or bars and usually helps with the paperwork. This is where most of the cost hides.
• The depository - a secure vault (Delaware Depository, Brink's and IDS of Texas are common names) where the metal is physically stored on the custodian's behalf.

The usual sequence is: you open a self-directed IRA with a custodian, fund it (by a transfer, a rollover or a new contribution), tell the custodian which metal to buy from your chosen dealer, and the dealer ships the metal straight to the depository. You never take delivery yourself while it is inside the IRA.

One point that confuses many people: the IRS does not approve gold dealers or gold IRA companies. The IRS sets rules for which metals qualify and who may hold them. Any company calling itself "IRS-approved" is using marketing language, and that alone is worth noting.

Only metal that meets the tax code's rules. Under IRC Section 408(m), collectibles held in an IRA are treated as a distribution - but there is an exception for certain US-minted coins and for bullion that meets minimum fineness standards and is held by a trustee. In practice:

• Gold must generally be .995 fine or better (the American Gold Eagle is a specific exception).
• Silver must be .999 fine.
• Platinum and palladium must be .9995 fine.

Commonly eligible products include the American Gold Eagle and Gold Buffalo, Canadian Maple Leaf, Austrian Philharmonic, American Silver Eagle and bars from accredited refiners. South African Krugerrands, most proof and "rare" numismatic coins, and collectibles are generally not eligible. See our full list in IRS-approved gold and silver for an IRA.

There are three ways to get money in:

• Transfer from an existing IRA - a direct, trustee-to-trustee move. It is not taxed and there is no limit on how often you can do it.
• Rollover from a 401(k), 403(b), TSP or similar plan - usually after you leave the employer (or, for the TSP, at age 59½ while still working). A direct rollover is the cleanest route; see how to roll over a 401(k) to a gold IRA and the TSP rollover guide.
• New contributions - subject to the normal IRA limits. For 2026 that is $7,500, plus a $1,100 catch-up if you are 50 or older, for a total of $8,600 (IRS Notice 2025-67). The limit is shared across all your IRAs, not per account.

Most gold IRA companies set their own minimums, which range from no minimum at some dealers to $50,000 at others.

Costs come in two layers:

• Account fees - a one-time setup fee (from $0 to a few hundred dollars), plus yearly custodian and storage fees. Annual fees cluster around $175-$300 a year and are usually flat, not a percentage of your balance. Segregated storage (your own coins kept separately) usually costs more than non-segregated (commingled) storage.
• The markup or spread on the metal - the difference between what you pay and the metal's market value. On common bullion this is often in the range of roughly 5-10%. On "premium", proof or numismatic coins, enforcement cases have found markups of 30% to well over 100%.

The markup is usually the bigger number, and few dealers publish it. Ask for it in writing before you sign. Our gold IRA fees explained guide breaks this down, and the gold IRA fee calculator lets you estimate the total.

Possible advantages

• You own physical metal rather than a paper claim, held in a professional vault in your name's account.
• Gold has historically behaved differently from stocks and bonds, so some people use a small slice for diversification.
• You keep the IRA tax treatment - tax-deferred (traditional) or tax-free growth (Roth).
• Flat fees can become a smaller percentage as the account grows.

Real drawbacks

• Gold pays no dividends or interest; any gain depends entirely on the price going up. Prices can fall sharply - gold closed at a record of about $5,318 an ounce on January 29, 2026 and was trading around $4,150-$4,200 in mid-October 2026, roughly 20% lower.
• Costs are higher than a gold fund in a regular brokerage IRA - compare in gold IRA vs gold ETF.
• Dealer markups and buyback spreads mean you start behind the market price.
• Required minimum distributions still apply to traditional accounts from age 73; you can take cash or the metal itself. See gold IRA taxes and RMDs.
• The industry has a history of high-pressure sales and fraud - read gold IRA scams and red flags.

That depends on your whole financial picture, your time horizon and how much risk you can stomach. Many people who choose one keep it to a modest portion of their savings - see how much gold in a retirement portfolio for the ways people think about sizing it. Nobody can promise that gold will go up, and you should be wary of anyone who does.

If you decide to go ahead, compare companies on total cost in writing - setup, yearly fees, storage, the markup on the exact products you will buy and the buyback price. Start with our ranking of the best gold IRA companies, or read reviews of Augusta Precious Metals, Goldco and American Hartford Gold, or the head-to-head Augusta vs Goldco.

This article is general information, not financial, tax or legal advice. Fees, minimums and promotions change often and vary by custodian and account size - confirm current terms in writing with the company and your custodian before you invest.