A Precious Metals IRA is a self-directed individual retirement account that holds physical gold, silver, platinum, or palladium in place of — or alongside — conventional securities. It offers the same tax treatment as a traditional or Roth IRA, but the underlying assets are physical metal held with an approved depository rather than paper securities held in a brokerage.
How the structure works
Three parties are involved: the IRA custodian (a specialized trust company that administers the account), the depository (an insured facility that holds the physical metal on behalf of the account), and the dealer (which sources the metal at the client's direction). The account owner selects each of these providers, and the custodian coordinates the transactions.
- Open a self-directed IRA with a qualified custodian.
- Fund the account via contribution, transfer, or rollover from an existing retirement plan.
- Direct the custodian to purchase eligible metals through a chosen dealer.
- Metals are shipped directly from the dealer to the approved depository.
- The depository holds the metal, insured, in the name of the IRA.
Which metals are eligible
The Internal Revenue Code specifies fineness requirements: gold must be at least 99.5% pure, silver 99.9%, platinum and palladium 99.95%. Certain sovereign coins are permitted by exception even if slightly below these thresholds — most notably the American Gold Eagle, which is 91.67% pure but explicitly eligible by statute.
| Metal | Examples |
|---|---|
| Gold | American Gold Eagle, American Gold Buffalo, Canadian Gold Maple Leaf, approved bars |
| Silver | American Silver Eagle, Canadian Silver Maple Leaf, approved bars |
| Platinum | American Platinum Eagle, approved bars |
| Palladium | Canadian Palladium Maple Leaf, approved bars |
Storage requirements
Metal held in an IRA must be stored at an approved depository — never at home, in a private safe, or in a personal safe deposit box. The IRS treats personal possession of IRA metals as a taxable distribution, which can trigger income tax and penalties. Depositories offer either segregated storage (your specific pieces held apart) or commingled storage (allocated by type and weight). For more on storage generally, see [Secure Delivery & Storage Options](/knowledge-center/secure-delivery-storage-options).
Rollovers and transfers
Funding a Precious Metals IRA from an existing 401(k), 403(b), TSP, or other qualified plan is straightforward when handled as a direct trustee-to-trustee transfer. Because the funds move institution to institution without passing through your hands, there is no withholding and no 60-day rule to worry about. Your custodian and advisor coordinate the paperwork.
A well-structured Precious Metals IRA is a long-horizon vehicle — designed for stewardship across decades, not tactical rotation.
Fees to understand
Costs typically include a one-time account setup fee, an annual custodial fee, and an annual storage fee at the depository. These are usually flat dollar amounts rather than percentages of assets, which means they become proportionally smaller as the account grows. A transparent provider will disclose every fee in writing before the account is opened.