Gold IRA Fees: How to Calculate the Costs

Many people use gold IRAs as a hedge against inflation and as a strategy to diversify their investments. These accounts allow you to take advantage of valuable tax benefits, but they need to be set up and maintained according to IRS regulations.

Only a self-directed IRA can hold physical gold, and that gold must be stored at an approved depository. Both requirements result in fees beyond what you’d pay for a typical traditional or Roth IRA.

These fees shouldn’t deter you from opening a gold IRA, but it’s smart to take the time to understand what costs are involved and how to minimize them. In the guide below, we will unravel the details of gold IRA fees you might encounter.

Types of gold IRA fees

The fees for gold IRAs fall into the following main categories. These cover the costs associated with creating and maintaining an IRA, storing gold, and withdrawals.

Fee	What it covers	Costs & frequency
Setup fee	Creating self-directed IRA	$50 – $100+ One-time
Administrative fee	Miscellaneous tasks company incurs (e.g., IRS records)	$275 – $2,250 (flat or percentage of account value) Annual
Gold IRA storage fee	IRS-approved gold depository to take advantage of tax benefits	$125+ Recurring (often annual)
Transaction fees	Buying, selling, or exchanging precious metals	$10 – $95+ (often per asset or per transaction) Per request
Other misc. fees	See below	Vary

Setup fees

Sometimes called an application fee, the one-time setup fee is the cost to create a self-directed IRA. These accounts have the same tax benefits as other IRAs, but they are allowed to hold alternative investments, such as precious metals, cryptocurrency, and real estate.

Setup fees can be as low as $50 at many IRA custodians, such as Madison Trust Company, Vantage, and Equity Trust. Other companies may charge $100 or more to set up an account.

Administrative fees

Once you set up your self-directed IRA, the account custodian will charge an annual maintenance fee to cover the cost of administrative tasks. Your fee pays for the company to maintain records as the IRS requires.

Some companies will charge a flat annual administrative fee, while others use a sliding scale or charge a percentage of your account value. For instance, Vantage charges its customers $275 per year for record-keeping. Meanwhile, annual fees at Equity Trust start at $225 for accounts valued at less than $15,000 and run to $2,250 for those worth more than $2 million.

Gold IRA storage fees

The IRS won’t allow you to store your gold at home, so you’ll need to keep your precious metals in an approved depository if you want to take advantage of an IRA’s tax benefits. IRA custodians collect storage fees, and each has its own fee schedule.

The amount you pay for gold storage can depend on the following factors:

• IRA custodian (financial institution or company that provides secure storage and management services for physical gold and other precious metals)
• Depository
• Value of account
• Whether gold is segregated

You can choose to have your gold commingled with that of other investors, and this is the cheapest way to store gold. If you want to keep your gold separate—known as segregated—you’ll pay a little more.

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Tip

IRA custodians may charge different fees even when using the same depository. For instance, storing gold at Delaware Depository will cost Kingdom Trust customers $125 for nonsegregated storage and $290 for segregated storage. However, at Madison Trust Company, you’ll pay $100 for up to $100,000 worth of gold stored at Delaware Depository plus $1 for every $1,000 of asset value beyond that.

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Transaction fees

Some companies, such as the GoldStar Trust Company, don’t charge any fees to buy, sell, or exchange precious metals, but it’s more common to pay for these services.

At New Direction Trust Company, for example, you’ll pay $95 for the purchase, sale, or exchange of precious metals. Kingdom Trust charges $40 per request.

Plus, you might pay additional fees, such as those listed below.

Other potential fees

Insurance fees

The cost of insuring the physical gold stored at a depository could be a separate fee or included in the storage fees. Clarifying how insurance costs are handled and whether they are an additional expense or integrated into existing fees might provide more transparency.

Metal shipping and handling fees

You might pay the costs associated with shipping and handling precious metals to and from the depository, especially for initial purchase or final distribution. This includes the cost of secure transportation and any insurance during transit.

Audit fees

Some gold IRA providers or depositories may charge fees for periodic audits of the stored metals to verify their presence and condition.

Liquidation fees

If an investor decides to liquidate their gold holdings within the IRA, specific fees separate from transaction fees might apply. These could include appraisal fees, market analysis fees, or specific liquidation charges.

Wire transfer fees

For investors who need to transfer funds into or out of their gold IRA quickly, wire transfer fees may apply. These fees can vary between institutions and could affect the total cost of managing the IRA.

Late payment or underfunding fees

If the company requires a minimum balance or on-time payments for fees and an investor fails to meet these, the company may charge penalties or late fees.

In-kind transfer fees

Those transferring gold or other precious metals into the IRA as an in-kind contribution might need to pay evaluation or processing fees.

Minimum balance fees

Some custodians might charge fees if the account balance falls below a certain threshold.

Paper statement fees

Custodians might charge a fee to receive paper rather than electronic statements.

Account closing fees

Beyond the termination fee mentioned, detailing any specific costs associated with closing an account, including any market adjustments or final audit fees, could be helpful.

How fees vary by provider

As you can see above, gold IRA fees aren’t uniform, and each custodian maintains its own fee schedule. The amounts will vary, but you should expect to pay the following regardless of the company you use:

• Application or setup fee
• Annual maintenance fee
• Gold storage fees
• Transaction fees for the purchase, sale, or exchange of gold
• Withdrawal fee to liquidate gold

Other one-time fees may include charges for distributions via check, late payments, and partial distributions.

Understand the fee schedule

Before you sign up for a gold IRA, be sure to review the fee schedules for several custodians to compare costs. Most companies post a schedule online, and you can find it by searching for the terms “fee disclosure,” “fee schedule,” or “account fees.” If you can’t find it on the company website, contact the firm to request a copy.

Often, the fee schedule is broken down in sections for different types of fees, such as the following:

• Account fees: These include setup and maintenance fees, which everyone pays.
• Service or transaction fees: Pay these fees only for specific actions, such as requesting a wire transfer or paper statements.
• Precious metals account fees: These costs include gold storage, shipping, and liquidation.

Service fees and setup fees are often flat fees, meaning everyone pays the same amount. You might pay annual account maintenance fees and precious metals storage fees as flat or scaled fees. 

The company might assess scaled fees in one of two ways:

1. A flat rate that increases according to a schedule as the value of your account increases.
2. A percentage of the value of your account, such as 0.1% or 0.15%. [You may also see the term “basis point,” e.g., 0.1% = 1 basis point (bps).]

Some gold IRA companies may use a combination of flat and scaled fees. For instance, you may pay a flat fee for balances up to a certain amount plus a scaled fee on any amount exceeding that.

As you review maintenance fees, check how they’re assessed. Some companies will charge you annually; others will bill you quarterly.

Long-term vs. short-term costs

As you set up your gold IRA, you will have immediate, short-term costs that include expenses related to the account and the gold:

• Setup fee for a self-directed IRA
• First year of annual account maintenance
• Cost of gold investment
• Shipping and handling to send gold to a depository
• First year of gold storage fee

Since these costs are obvious, you may be tempted to select a gold IRA company based on them. However, the long-term fees associated with one of these retirement accounts are just as important. These include:

• Ongoing account maintenance fees
• Ongoing gold storage fees
• Cost to buy, sell, or exchange gold

Over time, high fees can erode the value of your investment, so pay careful attention to how the company assesses these costs. Scaled fees, in particular, can take a significant amount of your retirement savings. What seems like a reasonable fee now could be exorbitant as you accumulate more gold.

Expert advice

Erin Kinkade

CFP®

Assess the fees applied to a gold IRA to ensure the pros outweigh the cons. If the fees begin to deplete the rate of return or result in the gold IRA growing at a rate lower than the inflation rate, it could be best to look for a different investment strategy. If the purpose of your gold IRA is truly to diversify during market fluctuations, and it’s a small portion of your overall investments and retirement savings, the former may not be as important or impactful to you. It depends on an individual’s goals, the amount of investable assets and savings, and their retirement time horizon (when retirement begins, their life expectancy, and withdrawal needs).

Tips to minimize fees

You can’t avoid all fees, but follow these tips to ensure you get the best deal on a gold IRA.

1. Compare multiple companies: Many people set up their gold IRA through a company that connects them to a custodian and depository. Talk to several companies, and find out which firms they recommend. Then ask to see the fee schedule for each one. (To start, check out our resource on the best gold IRA companies.)
2. Look beyond the headlines: Some companies may announce they don’t charge certain fees. But are they compensating for that by charging higher fees elsewhere? A thorough review of the fee schedule will help you decipher the true costs.
3. Ask about different depositories: Some IRA custodians work with multiple depositories, each with its own fee structure. Rather than signing up for the first gold storage option the company presents, ask whether other depositories are available so you can compare.
4. Do the math: Using a company that has scaled fees may be less expensive if you have a small balance, but a flat fee often saves money over time. What’s more, it is predictable. Run the numbers, or have your accountant do it for you to see which is the better deal.
5. Consider your investment style: Are you the type of investor who buys an asset and keeps it for decades? Or do you think you might be buying, selling, and exchanging gold often over time? In that case, going with the account that has low transaction fees might save you the most money over time, even if it has higher setup fees upfront.

Calculate the costs

Let’s consider how much you might pay in three scenarios using real-world numbers and assuming you’re investing $100,000.

Fee	Scenario A	B	C
Account setup (online application)	$50	$50	$50
Annual fee	$500*	$90**	$125**
Storage fee	$100^	$100^	$175^^
Total	$650	$240	$350

As you can see in the examples above, Scenario A is much more expensive due to its scaled annual fee. 

Scenario B is the least expensive but offers the same type of storage as Scenario A. 

Scenario C features a segregated storage option, which might be worth the extra cost depending on your needs.

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Tip

These examples exclude any shipping, handling, and processing costs involved in sending your gold to a depository.

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Our expert advises: Do your research when choosing a gold IRA company

Erin Kinkade

CFP®

Be sure you understand the fees and their impact on your investment. Select a reputable custodian or provider, and, depending on your investable assets or available savings, invest a small amount at first to familiarize yourself with this type of investing.

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FAQ

Are gold IRAs tax-advantageous?

Yes, just like regular IRAs, gold IRAs come with tax advantages.

You can select to open a traditional gold IRA and receive a tax deduction for your contributions. Then, your withdrawals in retirement will be subject to regular income tax.

Or you can choose a Roth gold IRA, which is funded with after-tax dollars. You won’t get an immediate deduction, but your investment will grow tax-free, and you can withdraw tax-free in retirement.

Talk to a financial professional to learn more details about each option and determine which is right for you.

How do gold IRA fees compare to traditional IRAs?

All IRAs have fees, but they are assessed differently for traditional and gold IRAs.

With a traditional IRA, you may pay a management fee that could be 1% to 2% of your account balance. Plus, mutual funds may come with their own load fees. Gold IRAs have annual account maintenance and gold storage fees.

Conventional wisdom says you’ll pay more for a gold IRA, but it depends on the costs your IRA provider charges.

Can I transfer my IRA into a gold IRA without fees?

It depends on the gold IRA company you use. Some may charge a processing fee; others will do it for free.

However, be sure that the funds transfer directly from your old IRA to your new one. If the money is sent to you first, the government might treat it as a distribution and assess a tax penalty. A trusted gold IRA company can ensure you complete this process correctly.