Precious Metals IRA Guide for 2026

A precious metals IRA is a self-directed retirement account that holds physical gold, silver, platinum, or palladium instead of stocks and mutual funds. I rolled over $50,000 from an old 401(k) into one back in 2023, and it turned out to be simpler than I expected. The whole process took about two weeks from first phone call to metals sitting in a vault with my name on them.

That said, I went in mostly blind and had to learn the hard way which fees are reasonable, which dealers earn your trust, and which mistakes can cost you a 10% IRS penalty. This guide is everything I wish someone had handed me before I started.

What Is a Precious Metals IRA?

Think of it as a regular IRA with a different engine under the hood. Same tax advantages. Same contribution limits. Same rules about early withdrawals. The difference is what sits inside the account: instead of shares of Apple or a Vanguard index fund, you own actual gold bars, silver coins, or platinum bullion stored at an IRS-approved depository.

You need a self-directed IRA custodian to make it work. Fidelity and Schwab will not do this for you. Self-directed custodians are specialized firms licensed to hold alternative assets inside retirement accounts. They handle the paperwork, the IRS reporting, and the connection to the depository where your metals physically live.

One thing people get wrong: you never take possession of the metals while they are in the IRA. That is not a guideline. It is a hard rule from the IRS. Break it and the entire account gets treated as a distribution, which means taxes plus penalties.

Why did I bother? Three reasons, in order of importance:

• My retirement was 100% paper assets. Every dollar in my 401(k) depended on corporate earnings and Federal Reserve policy. I wanted something that moves on its own terms.
• Tax-sheltered inflation protection. Gold has held purchasing power for thousands of years. Holding it inside a tax-advantaged account makes the math better because gains grow tax-deferred (or tax-free in a Roth).
• Portfolio insurance I hope I never need. I think of my metals IRA the way I think of homeowner's insurance. If equity markets hit a prolonged downturn, I will be grateful this portion of my retirement is sitting in a vault, not on a screen.

My honest opinion: if you are 25 and aggressively building wealth, a 100% equities approach probably makes more sense for you. But if you are over 40, have a decent nest egg, and the phrase "prolonged bear market" makes your stomach tighten, a precious metals IRA deserves a serious look.

How to Open a Precious Metals IRA (Step by Step)

The full process took me about two weeks. Here is exactly what happened, step by step.

Step 1: Pick a Precious Metals Dealer

This is your first decision, not your last. The dealer you choose will connect you to a custodian, walk you through the rollover, and help you select which metals to buy. I spent a full week talking to reps at three different companies before I committed. More on each of them below.

Step 2: Open a Self-Directed IRA

Your dealer coordinates this for you. They will set you up with a self-directed IRA custodian, which is a financial institution the IRS has approved to hold alternative assets. The custodians I ran into during my research were Equity Trust Company, New Direction IRA, and GoldStar Trust. Most dealers have a preferred custodian they work with regularly. I went with the one Augusta recommended and the account was open within 48 hours.

Step 3: Fund the Account

You have three options here:

• Direct rollover from a 401(k) or existing IRA. This is what I did. No taxes, no penalties, as long as the money goes straight from your old custodian to the new one. The word "direct" matters here. More on that in a moment.
• Transfer from another IRA. Similar mechanics. Penalty-free when handled correctly.
• New contribution. You can contribute up to $7,000 per year in 2026 ($8,000 if you are 50 or older), same limits as any other IRA.

I rolled over $50,000 from an old 401(k) that had been sitting with a previous employer for years. The transfer took 7 business days total, though my old custodian ate up 5 of those days just releasing the funds. The new custodian was ready on day two. Lesson learned: the bottleneck is almost always the institution you are leaving, not the one you are joining.

Step 4: Select Your Metals

Once the money lands in your new account, you work with your dealer to choose what to buy. Not every gold coin or silver bar qualifies for IRA inclusion (the IRS has specific purity requirements I will cover below). Your dealer shows you only eligible products, so there is no guesswork involved.

Step 5: Purchase and Storage

The dealer ships your metals directly to an IRS-approved depository. You will never touch them yourself. Your custodian sends quarterly statements showing exactly what you own and where it is stored. I can also check my holdings online whenever I want, which I probably do more often than I should.

The Rollover: What Made Me Nervous (and What Actually Happened)

I will admit it. Moving $50,000 between financial institutions felt like walking a tightrope. In reality, it was straightforward. But a few details really matter, and getting them wrong has consequences.

Direct rollover versus indirect rollover. Always, always, always do a direct rollover. Direct means the money travels from your old account to your new custodian without stopping in your bank account along the way. With an indirect rollover, the check comes to you, and you have exactly 60 days to deposit it into the new IRA. Miss that window by even one day and the IRS treats the entire amount as a distribution. You will owe income tax on it, plus a 10% early withdrawal penalty if you are under 59 and a half. I was not willing to take that risk with $50,000, and you should not be either.

Here is what my timeline actually looked like:

1. Day 1: Signed paperwork with Augusta and the new custodian
2. Day 2: Custodian sent the rollover request to my old 401(k) provider
3. Day 7: Funds arrived in the new self-directed IRA
4. Day 8: Selected metals with my Augusta rep (a mix of Gold Eagles and Silver Eagles)
5. Day 10: Purchase confirmed, metals shipped to depository
6. Day 14: Received confirmation that metals were in storage

Two weeks. For something that kept me up at night beforehand, the reality was almost anticlimactic.

Which Metals Qualify for an IRA?

The IRS has strict purity requirements. You cannot toss any gold coin into a retirement account and call it a day.

Gold

• Must be .995 fine (99.5% pure) or higher
• American Gold Eagles (the one exception to the purity rule, at .9167 fine)
• American Gold Buffalos (.9999 fine)
• Canadian Gold Maple Leafs (.9999 fine)
• Gold bars from approved refiners meeting the purity threshold

Silver

• Must be .999 fine (99.9% pure) or higher
• American Silver Eagles
• Canadian Silver Maple Leafs
• Silver bars and rounds from approved manufacturers

Platinum and Palladium

• Must be .9995 fine
• American Platinum Eagles
• Canadian Platinum Maple Leafs

What is NOT allowed: collectible or numismatic coins, pre-1933 gold coins, South African Krugerrands, and anything below the purity thresholds. I asked specifically about Krugerrands because I already owned a few. They are .9167 fine, which meets the exception only for American Eagles. Krugerrands are out. That surprised me.

My recommendation: stick with American Eagles and Maple Leafs for coins, and go with recognizable brand bars (PAMP Suisse, Credit Suisse, Valcambi) for bullion. These have the highest recognition and the best liquidity when you eventually sell or take distributions. Obscure products might save you a small premium now but cost you when it is time to liquidate.

What a Precious Metals IRA Actually Costs

Most guides stay vague here. I will not. These are the real numbers from my own account.

Setup Fee

Most custodians charge $50 to $150 to open the account. Some dealers absorb this cost as a promotion. Augusta waived mine entirely.

Annual Custodian Fee

Expect $75 to $300 per year depending on the custodian and your account size. This covers administration, record-keeping, and IRS reporting. I pay $100 per year.

Storage Fee

The depository charges to hold your metals. You will choose between two options:

• Segregated storage: Your metals sit in their own section, labeled as yours. Typically $100 to $175 per year. This is what I chose, because I want to know that the exact coins I purchased are the ones I will receive if I ever take a distribution in kind.
• Commingled storage: Your metals get stored alongside other investors' metals of the same type. Cheaper at $50 to $100 per year, but you receive equivalent metals, not the specific bars or coins you originally bought.

Dealer Markup

This is the spread between the spot price and what you actually pay. It varies by product and dealer. Coins typically carry a 3% to 8% premium over spot. Bars run 1% to 5%. This is not a separate line item on a statement; it is baked into the purchase price. Every dealer charges it. The question is how transparent they are about it.

What I Pay in Total

For my $50,000 precious metals IRA, I pay roughly $200 to $250 per year in combined custodian and storage fees. That works out to about 0.4% to 0.5% of the account value. Cheaper than an actively managed stock fund, but more expensive than a Vanguard index fund at 0.03%. I consider it the cost of holding a genuinely different asset class inside a tax shelter. Whether that tradeoff makes sense depends on how much you value physical diversification.

The Three Dealers I Recommend

I requested information kits and had phone calls with representatives at all three of these companies before committing. Each has clear strengths and real weaknesses. I am going to be straight about both.

Augusta Precious Metals (My Top Pick)

Augusta is where I opened my own IRA. The deciding factor was their education-first approach. Before asking me to buy anything, they put me through a one-on-one web conference that lasted about 45 minutes. It covered IRS regulations, storage mechanics, fee structures, and common mistakes. No pressure to close. No countdown timers. Just information.

What impressed me:

• Transparent pricing on every product before I committed. They showed me the exact markup over spot, which not every dealer does voluntarily.
• They handled most of the rollover paperwork for me. I signed where they told me to sign. The rest was done.
• Consistently outstanding customer reviews. I checked BBB, Trustpilot, and Google before signing up. Nearly all five-star ratings across every platform.
• A dedicated agent who stayed with me through the entire process and is still my point of contact today.

What gave me pause:

• The $50,000 minimum for IRA accounts is a real barrier. If you have a smaller rollover, Augusta is simply not an option.
• Product selection is narrower than some competitors. They stick to popular, high-liquidity items. Smart strategy, but limiting if you want niche platinum bars or specific palladium products.

Best for: Investors with $50,000 or more who want a guided, education-focused setup. Especially good for first-time precious metals IRA buyers who value having someone walk them through the process.

Get Augusta's Free IRA Guide

Goldco

Goldco is probably the most recognized name in precious metals IRAs, and they have earned that reputation through volume. They have processed thousands of rollovers and the machinery runs smoothly.

What impressed me:

• Lower barrier to entry than Augusta. You can start with $25,000, which opens the door for a lot more people.
• The rollover process was the fastest and most polished of the three. The paperwork was minimal. They have clearly refined this over years.
• Good promotional offers. When I requested my kit, they were offering up to 10% back in free silver on qualifying purchases. These promotions change, so check what is current.
• A strong buyback program. When you are ready to liquidate, they will purchase your metals back. That simplifies distributions in retirement considerably.

What gave me pause:

• The initial sales call moved faster toward closing than I was comfortable with. Not aggressive, exactly, but the rep clearly wanted a commitment sooner than I was ready to give one. I prefer to take my time with five-figure decisions.
• Pricing transparency was a step behind Augusta. I had to specifically ask for a breakdown of their markups over spot. They provided it when asked, but Augusta offered it upfront.

Best for: Investors with $25,000 to $50,000 who want a fast, streamlined rollover and appreciate promotional offers like bonus silver.

Request Goldco's Free IRA Kit

Birch Gold Group

Birch Gold has been selling precious metals since 2003. That is the longest track record of the three companies I looked at, and they offer the most flexibility in terms of what you can buy and how much you need to get started.

What impressed me:

• The lowest minimum of the three: $10,000 for IRA accounts. If you have a smaller 401(k) or you just want to test the concept without a huge commitment, Birch Gold is the most accessible entry point.
• Widest product selection by far. Gold, silver, platinum, palladium, bars, coins, rounds. If it is IRA-eligible, Birch Gold likely carries it.
• The representative I spoke with had deep market knowledge. He did not just quote talking points; he answered follow-up questions about platinum-to-gold ratios and historical price patterns without hesitation.
• Endorsed by several well-known financial commentators, which added a layer of credibility during my research.

What gave me pause:

• The website looks dated compared to Augusta and Goldco. Superficial concern, but it did affect my first impression.
• The setup process required more initiative on my end. Augusta held my hand through every step. Birch Gold expected me to follow up on certain paperwork items myself. Fine if you are organized and self-directed. Potentially frustrating if this is your first time navigating retirement account transfers.

Best for: Investors with smaller rollover amounts ($10,000 to $25,000) or those who want maximum product variety and do not mind being a bit more hands-on during setup.

Get Birch Gold's Free Info Kit

How I Allocated My Precious Metals IRA

This is my approach, not a prescription. Your allocation should reflect your own risk tolerance, timeline, and beliefs about where metals prices are headed.

For my $50,000 IRA, I went with roughly:

• 60% Gold American Eagles. The backbone. Stable, highly liquid, universally recognized. When I eventually take distributions, gold will be the easiest to sell or receive in kind.
• 30% Silver American Eagles. More volatile than gold, but the upside potential is higher. Silver also has significant industrial demand (solar panels, electronics, medical devices) that gold does not, which I think supports prices long term.
• 10% Platinum American Eagles. A smaller speculative position. Platinum is trading well below gold right now, which is historically unusual. I like the risk/reward at these levels, and I am comfortable being wrong on 10% of the account.

If you want a deeper look at the rollover mechanics, I wrote a separate gold IRA rollover guide covering direct versus indirect transfers, the 60-day rule, and which retirement accounts qualify.

Mistakes That Will Cost You (I Made Some of These)

Learn from my experience and the stories I have heard from other investors along the way.

1. Doing an Indirect Rollover

I keep repeating this because the stakes are high. If the check comes to you instead of going directly to the new custodian, the 60-day clock starts ticking. Miss the deadline and the IRS treats every dollar as a taxable distribution. Add the 10% early withdrawal penalty if you are under 59 and a half. On a $50,000 rollover, that mistake could cost $15,000 or more in taxes and penalties. Always go direct. No exceptions.

2. Rolling Over Too Much

Some dealers will happily let you convert your entire retirement savings into metals. Do not do this. Most financial planners recommend allocating 5% to 15% of your total portfolio to precious metals. I went with about 15%, which felt right for my situation and risk tolerance. Going above 25% makes me uneasy, and I say that as someone who clearly believes in metals enough to write this guide.

3. Ignoring How Fees Scale

Annual fees on a precious metals IRA are higher than a standard brokerage IRA. If you only have $10,000 in the account and you are paying $250 per year in custodian and storage fees, that is 2.5% of your account value gone before your metals appreciate a single dollar. For smaller accounts, the fee drag is painful. I would not open a precious metals IRA with less than $25,000 unless you plan to contribute more each year.

4. Buying Numismatic Coins Instead of Bullion

Some dealers push collectible coins with markups of 30% to 50% over spot. They will talk about scarcity, collector demand, and appreciation potential. Here is the truth: most numismatic coins in IRA accounts are a bad deal. The premiums are enormous, the liquidity is lower, and your returns diverge from the actual metal price. Stick with standard bullion products. Gold Eagles, Silver Eagles, Maple Leafs, and reputable brand bars. Your future self will thank you when it is time to sell.

5. Trying to Store Metals at Home

There are people online who claim you can set up a "home storage IRA" using an LLC structure. The IRS has cracked down on this. There have been court cases, and the investors lost. The penalties for getting it wrong are brutal: the entire account value treated as a distribution, triggering income tax and the 10% early withdrawal penalty. The $100 to $175 per year you pay for professional depository storage is cheap insurance against that nightmare.

6. Not Thinking About Your Exit Before You Enter

Figure out how you want to take distributions before you set up the account, not after. You can receive the physical metals themselves (a distribution in kind) or liquidate for cash. Each option has different tax implications and different logistics. I have already told my custodian that I plan to take some distributions in kind when I hit 59 and a half, so I can add those metals to my personal collection. Having that plan mapped out now means I will not be scrambling later.

Precious Metals IRA vs. Gold ETF: Why I Chose Physical

Friends ask me this all the time. Why not just buy GLD or SLV in a regular IRA?

Fair question. If low fees and simplicity are your top priorities, a gold ETF might be the better fit. GLD charges about 0.4% per year with no setup fees, no storage fees, and no custodian fees. That is objectively cheaper.

But here is why I still prefer physical. An ETF is a paper claim on metal stored somewhere by a financial institution. You do not own specific bars. You own shares that track the price. In a genuine systemic crisis (the exact scenario where you most want to own precious metals), paper claims on metal may not behave the way you expect. Counterparty risk is real. I also like knowing that my specific Gold Eagles and Silver Eagles are sitting in a segregated vault with my name attached. Call it paranoia. Call it prudence. It lets me sleep well, and that is worth $200 a year to me.

For a more detailed comparison of moving your 401(k) or existing IRA, check out my gold IRA rollover guide.

Tax Advantages and Rules You Need to Understand

The tax treatment is one of the strongest reasons to hold metals inside a retirement account rather than outside one. Here is what matters:

• Traditional precious metals IRA: Contributions may be tax-deductible. You pay ordinary income tax when you take distributions in retirement. Works the same as a traditional IRA holding stocks.
• Roth precious metals IRA: Contributions go in after-tax. Qualified distributions come out completely tax-free. Think about what that means: if gold doubles over the next 20 years, every dollar of that gain comes out untaxed in a Roth. I find that incredibly attractive.
• Required Minimum Distributions (RMDs): Starting at age 73, you must take RMDs from a traditional precious metals IRA. That means either selling some metals for cash or taking a distribution in kind. Plan for this well in advance.
• Early withdrawal penalty: Same as any IRA. Pull money out before age 59 and a half and you owe a 10% penalty plus income tax on the distribution (for traditional IRAs).

Here is something that surprised me: physical gold and silver held outside a retirement account are classified as collectibles by the IRS and taxed at a special 28% rate on gains. Inside an IRA, that collectibles rate does not apply. Gains in a traditional account are taxed at your ordinary income rate when distributed, and gains in a Roth account are not taxed at all. For silver especially, which carries that 28% collectibles rate outside a retirement account, the tax savings of holding it inside an IRA can be substantial over time.

Frequently Asked Questions

Can I transfer an existing IRA into a precious metals IRA without paying taxes?

Yes. A direct transfer or direct rollover between qualified accounts is not a taxable event. The key is keeping it direct: money must go from your old custodian to your new custodian without passing through your hands. I did this with my old 401(k) and there was zero tax impact. Zero penalties. Just paperwork and patience.

What is the minimum to open a precious metals IRA?

It depends entirely on the dealer. Birch Gold Group starts at $10,000. Goldco starts at $25,000. Augusta requires $50,000. If you have less than $25,000, Birch Gold is your best bet, but keep an eye on the fee-to-account-value ratio. On a $10,000 account, $250 in annual fees represents 2.5% overhead before you see any appreciation. That math gets uncomfortable quickly.

Can I hold both metals and stocks in the same IRA?

Not in the same account. A self-directed precious metals IRA is separate from your stock brokerage IRA. You can absolutely have both running simultaneously, though, and that is exactly what I do. I keep a traditional IRA for equities and a separate self-directed IRA for metals. Two accounts, two custodians, one overall retirement strategy.

What happens to my metals if the dealer goes out of business?

Your metals are safe. The dealer facilitates the initial purchase, but your metals are held by the custodian at an independent depository. If your dealer closes tomorrow, your gold and silver do not disappear. The custodian still manages your account and you can work with a different dealer for future purchases. This is a significant reason I prefer established dealers with long track records, like the three I recommended above.

How long does the whole rollover process take?

Mine took two weeks from the first signature to metals confirmed in storage. The paperwork and account opening took a couple of days. The fund transfer took about a week (mostly waiting on the old custodian to release money). Metal selection and purchase was another two to three days. Some investors report the process stretching to four weeks, especially if their old provider drags its feet. Budget three weeks to stay comfortable.

Is a Precious Metals IRA Right for You?

After going through this process myself and watching my account through bull runs, corrections, and everything in between, here is how I think about it.

A precious metals IRA probably makes sense if you:

• Have at least $25,000 available for a rollover (ideally $50,000 or more to keep fees proportional)
• Worry about inflation, currency devaluation, or a prolonged stock market downturn
• Want real, physical assets in your retirement portfolio, not paper claims on assets
• Have a long time horizon, 10 years or more before you need the money
• Accept that annual fees will be higher than a standard brokerage IRA

It probably does not make sense if you:

• Have a small retirement account where fees would eat your returns alive
• Want maximum growth and are comfortable riding stock market volatility
• Are close to retirement and need immediate liquidity
• Check your portfolio every morning (metals can swing sharply in the short term, and that volatility will stress you out)

I do not regret my decision. Not once. My precious metals IRA moves on a different cycle than my stock accounts, holds steady when markets get turbulent, and gives me a foundation that does not depend on any single company's quarterly earnings. That peace of mind is worth every dollar in fees.

If you want to explore this, I recommend grabbing a free information kit from one of the three dealers below. No obligation. Each kit includes current pricing, product guides, and specifics on their rollover process.

Get Augusta's Free IRA Guide Request Goldco's Free Kit Get Birch Gold's Info Kit