A precious metals IRA involves several real, ongoing costs worth understanding upfront. Setup fees for opening the self-directed IRA are typically a one-time charge. Annual custodian fees cover account administration. Storage fees, charged by the IRS-approved depository, vary depending on whether you choose segregated storage (your specific metals held separately) or commingled storage (pooled with other clients’ like-kind metals) – segregated storage generally costs more.

These fees exist because the IRS requires precious metals IRAs to use a qualified trustee/custodian and an approved depository under IRC Section 408(m) – you cannot personally hold the metals, so someone has to be paid to hold and insure them securely. Reputable depositories carry insurance against theft or loss, typically through major underwriters.

Before opening an account, get the complete fee schedule in writing, including any liquidation or buyback fees, which some marketing materials leave out. Compare the all-in annual cost across a few custodians rather than focusing only on the advertised setup fee, since ongoing storage and administration costs compound over the years you hold the account.

FAQ

Are precious metals IRA fees higher than a standard brokerage IRA? Generally yes, because of the physical storage and specialized custodial requirements involved, which standard stock/bond IRAs don’t have.