In-Depth Gold IRA Fees and Costs Analysis
Uncover the true costs of gold IRAs with our concise fee breakdown. Learn about setup, maintenance, storage, and purchase premiums. Compare top companies to minimize expenses and maximize your investment.
Written by Rick Erhart
Rick Erhart is an experienced precious metals professional with more than ten years in the field. He earned a degree in finance and is widely regarded as a specialist in self-directed IRAs.
Gold IRAs allow you to take advantage of valuable tax benefits, but you have to set them up and maintain according to IRS regulations. Only a self-directed gold IRA can hold physical gold, and this gold must be stored at an approved depository. For this reason, there are some fees beyond what you’d pay for a typical traditional or Roth IRA.
These fees shouldn’t deter you from opening a gold IRA. However, it’s smart to take the time to understand the costs and how to minimize them. In this guide, I will unravel the details of gold IRA fees you might encounter and explore ways to keep them low.
Complete Breakdown of the Fees Involved
Gold IRA costs can reduce your investment returns if not managed wisely. And for that reason, importance of understanding the cost structures of precious metals IRAs is hard to overestimate.
The average annual fee for maintaining a gold IRA is approximately $250. However, some unethical gold IRA companies may downplay these fees, which can quietly erode your profits over the long term. For instance, a 1% annual fee increase on a $100,000 gold IRA could result in a loss of more than $20,000 over ten years.
To help you understand the full cost of a gold IRA, I’ve compiled a detailed breakdown of all expenses. This breakdown draws from the data provided by leading custodians and gold IRA companies.
Beyond the commonly advertised fees, I’ll also highlight charges that are often downplayed in promotional materials.
One-Time Fees to Start Your Gold IRA
Account Creation Fee: When opening a new gold IRA or transferring funds from a 401(k) or existing IRA, the custodian handling your account charges a one-time setup fee. This cost varies depending on the company, but you can typically expect to pay approximately $50-$100.
Wire Transfer Charges: When buying or selling precious metals within a gold IRA, custodians often apply a fee for each transaction. These charges are assessed per trade, with $25-$50 being an average amount. However, costs may differ depending on the provider.
Gold IRA Rollover Fee: The rollover process itself is often free if done via a direct trustee-to-trustee transfer, as most custodians don’t charge for incoming transfers.
Precious Metals Purchase Premium: Generally 3% to 5% above the spot price. This additional cost is charged each time you buy precious metals for your account. It includes a dealer markup, as well as costs for minting and fabrication.
Yearly Recurring Fees
Gold IRAs come with ongoing costs that you’ll need to budget for annually. Record-keeping services are often included in the base fee. However, there are recurring admin fees, as well as annual storage and insurance costs:
Account Administration Fees: These cover the management of your IRA. They may include: basic account oversight ($75 to $300 per year), online account access ($0 to $30 annually), account statements ($0 to $25 per year),
Gold IRA Storage Fees and Insurance Costs: Your precious metals must be stored in an IRS-approved depository, and fees typically depend on the type of storage. You can keep your precious metals separately from others, or together.
Segregated storage keeps your gold or silver bars and coins separate. All precious metals are tracked with unique serial numbers for clear ownership and security. It costs more due to the extra effort.
Non-segregated storage mixes your metals with others’ of the same type. This way, you are getting a share of the pool at a lower cost.
- Segregated storage (metals stored separately): $150 to $300 per year.
- Commingled or non-segregated storage (metals stored with others): $100 to $250 annually.
- Insurance for your metals: Typically included in storage fees.
- Security measures: Bundled within the storage cost.
Fees for Buying and Selling Metals
- Purchase Premiums: 3% to 5% above the market spot price when buying metals.
- Sell-Back Spreads: 1% to 2% below the spot price when selling.
- Shipping and Handling: $0 to $40 per transaction, depending on the dealer.
- Transaction Processing Fee: $25 to $50 per trade.
Sample Gold IRA Cost Breakdown
Let’s say you want to move $100,000 from your 401(k) or IRA to a gold IRA to buy precious metals. Here’s an estimate of first-year expenses for a $100,000 gold IRA investment:
- One-time account setup fee: ~$100
- Annual administration fee: ~$100
- Storage fee: ~$150
- Premiums on metal purchases: ~$5,000 (5%)
Total one time cost: ~$5,350 (approximately 5.35% of the investment). Each year after that, you will have to pay an annual fee of ~$250 (yearly administration fee of ~$100 and ~$150 for storage).
Minimum Investment Requirement
Gold IRAs let you invest in actual gold, and that comes with some extra costs. You’ll need to pay for secure storage and special account management, which is why trusted gold IRA companies often set a minimum investment.
This helps cover those fees and keeps the account worthwhile, especially for investors with bigger portfolios who want to mix things up and diversify.
To avoid high percentage-based fees, it’s advisable to open a gold IRA with at least $25,000-$50,000. With this amount, the average ~$250 annual fee translates to just 0,5-1% of your investment. The more you invest in your gold IRA, the lower your expense ratio becomes.
Top Precious Metals IRA Companies: Side-by-Side Fee Comparison
Based on extensive research, here’s a clear breakdown of the fees for Augusta Precious Metals, Goldco, Birch Gold Group, Noble Gold Investments, and American Hartford Gold.
| Company | Setup Fee | Annual Maintenance Fee | Storage Fee | Minimum Investment | Notable Feature |
|---|---|---|---|---|---|
| Augusta Precious Metals Fees | $50 | $100 | $100–$150 | $50,000 | Premium service with lifetime support and webinars led by a Harvard-trained economist |
| Goldco Fees | $50 | $125 | $100-$150 | $0 | Doesn’t have an investment minimum, available for investors with any portfolio sizes |
| Birch Gold Group Fees | $50 | $80 | $100–$150 | $10,000 | Focus on education with excellent support for beginners |
| Noble Gold Fees | $80 | $100 | $150 | $5,000 | Lowest minimum and unique Texas storage option with Royal Survival Packs |
| American Hartford Gold Fees | $50 | $75-$125 | $100 | $10,000 | Top-notch customer service, low bullion price, wide variety of precious metals |
Please note:
- Fees may vary based on account size or promotional offers. Confirm details directly with the company.
- Storage fees depend on whether segregated or non-segregated storage is chosen.
- Investors are encouraged to research custodians and compare fee structures. Verify costs directly with a gold IRA company before investing in a gold IRA.
Beware of High Markups
Physical precious metals come in two main types. First, there’s bullion. These are bars or coins made with a set weight and purity, like gold or silver.
Then, you’ve got “numismatic” coins, which are rare, older pieces or special collectibles minted for their value beyond the metal.
Bullion prices start with the current market spot price, then add a markup, usually 5% to 10%. Numismatic coins, though, often carry much higher markups. Sometimes they reach 50% to 200% above spot. This is because dealers pitch them as rare treasures that will only gain value.
But here’s the catch: these coins can be tough to price fairly, and the market for rare or proof coins isn’t very active. If you need to sell, you might have to go back to the dealer, who’ll likely buy them back for way less than you paid.
Only specific bullion coins are allowed in an IRA. Some gold investment companies, however, sneak in hidden one-time or monthly fees that can eat into your investment. In some cases, people have lost up to half their money to these costs.
Some eligible precious metals include U.S. Treasury-minted gold coins (1 ounce, 0.5 ounce, 0.25 ounce, or 0.10 ounce), 1-ounce silver coins, certain platinum coins, and bullion (gold, silver, palladium, or platinum) that meets the purity standards of regulated futures contracts
Conclusion
Gold IRAs offer tax benefits and diversification, and gold IRA fees shouldn’t deter you from opening a precious metals IRA. However, keep in mind that annual maintenance, storage fees, and purchase premiums can potentially erode returns.
Don’t jump into a purchase just because of a random phone call, email, social media ad, or TV pitch. Always shop around and ask for a written breakdown of all fees.
Compare custodians, prioritize low-fee companies, and invest at least $25,000-$50,000 to reduce expense ratios. Always verify costs in writing and avoid high-markup numismatic coins or unethical dealers. Research thoroughly to ensure your gold IRA aligns with your financial goals. Good luck!