The Full Picture
A Gold IRA has three cost layers. If any layer is missing from your paperwork, you are not evaluating a complete offer.
Use this simple sequence: quantify entry cost, quantify carrying cost, then quantify exit terms.
The three cost layers:
- Custodian and storage fees — paid to the custodian and depository
- The dealer spread — the difference between spot price and what you pay
- Buyback terms — what you receive when you sell
Custodian & Storage Fees
Every Gold IRA requires an IRS-approved custodian and an approved depository. These entities charge annual fees for administering your account and storing your metals.
Typical custodian and storage fees range from $175 to $375 per year, depending on the custodian, the depository, and whether you choose segregated storage (your metals stored separately) or allocated storage.
Important distinction:
The custodian fee covers account administration and storage. It does not cover the dealer's spread — which is typically a much larger cost, especially on your initial purchase. If someone quotes you only the custodian fee as “the total cost,” you're not seeing the full picture.
The Dealer Spread
The spread is the difference between the current spot price of a metal and the price you pay for a specific product. This is how dealers earn revenue on each sale.
Spreads vary significantly depending on the type of product:
| Product Type | Typical Spread Range |
|---|---|
| Standard bullion bars | 3–8% |
| Government-minted coins (Eagles, Maples) | 5–12% |
| Semi-numismatic / “collector” coins | 15–35%+ |
The product a dealer recommends directly affects how much they earn — and how long it takes you to break even. A 5% spread means gold needs to appreciate 5% before your investment returns to par. A 30% spread means gold needs to appreciate 30%.
When someone says “about 4%,” ask: on which specific products? The lowest-spread bar product is not necessarily what will be recommended for your account.
Buyback & Exit Costs
When you sell your metals back to a dealer, the price you receive is based on the current bid price — which is below the current ask price by the amount of the buyback spread.
A simple example:
You purchase a gold coin for $3,000 when spot is $2,700 (an 11% spread). If you sold it back immediately, the buyback price might be approximately $2,700 — the current bid. The $300 difference is the spread, and it represents the cost of the transaction.
Gold would need to appreciate by 11% before you break even on this particular purchase.
“Fee-free buyback” means there's no separate buyback fee. It does not mean you sell back at or near your purchase price. The buyback price is always based on the current market bid, which is below the price you originally paid by the amount of the spread.
Before you buy, you should know: what is the buyback spread on the specific products being recommended? Is it documented?
Melt Value vs. Market Value
If you already own metals in an IRA, your account statement may show a figure lower than what you paid. This is often because the statement reports melt value — the raw metal content at current spot prices — rather than the retail price you paid, which included the dealer's spread.
This difference is normal and expected. But you should understand it before you buy, not discover it after.
What to Ask For
A complete fee picture includes all three layers — custodian/storage fees, the dealer spread on specific products, and buyback terms. Before you commit to any Gold IRA, ask to see all three in writing.
Get the written fee breakdown
On consultation, you receive your product-level spread assumptions, carrying costs, and buyback terms in one written breakdown.