How to Open a Gold and Silver IRA
Opening a gold and silver IRA takes six steps and usually seven to fourteen business days end to end. The account itself is a self-directed IRA; what makes it a metals IRA is that the custodian permits physical bullion and coordinates with an approved depository. Nothing in the process requires you to take possession of metal, and if a firm suggests otherwise, stop there.
Step 1 — Choose the company you will buy through
This is the decision that determines most of your cost. The dealer sets the premium over spot, negotiates or waives first-year fees, and controls the buyback terms you will eventually rely on. Compare on four measurable things: minimum investment, quoted premium as a percentage over spot, total first-year fees in writing, and whether buyback pricing is guaranteed.
Minimums across the major firms span $10,000 to $50,000. Total annual costs across the top five run $150 to $280. If a firm will not put its premium in writing before you fund, that is the answer to the question you were asking.
Step 2 — Open the self-directed IRA with a custodian
The dealer does not hold your account; a custodian does. Most metals dealers work with two or three custodians — Equity Trust, GoldStar Trust, STRATA Trust and Kingdom Trust are the common names — and will submit the application on your behalf.
You will provide identification, beneficiary designations, and the account type: traditional, Roth, SEP or SIMPLE. Choose traditional if you are rolling over pre-tax 401(k) money and want to keep the deferral; choose Roth only if you intend to convert and pay the tax now. Account opening typically completes in one to three business days.
Step 3 — Fund the account without triggering tax
Three funding routes exist, and two of them are safe:
- Trustee-to-trustee transfer from an existing IRA — unlimited frequency, no withholding, not reported as a distribution. The default choice.
- Direct rollover from a 401(k), 403(b) or TSP — the plan sends funds straight to the new custodian, with no 20% withholding.
- Indirect 60-day rollover — funds pass through your bank account. A 401(k) distribution paid to you is subject to 20% mandatory withholding, and you must replace that withheld amount from your own pocket to roll the full balance. IRA-to-IRA indirect rollovers are limited to one per 12 months across all your IRAs. Use only if there is no alternative.
Funding is the slowest step: three to ten business days depending on how quickly the releasing institution acts.
Step 4 — Select IRS-eligible metals
Only bullion meeting IRC §408(m) qualifies: gold at .995 fineness or better, silver at .999, platinum and palladium at .9995 — plus the American Gold Eagle and American Silver Eagle, which are eligible by statute. Graded coins, pre-1965 90% silver and Krugerrands do not qualify.
Get the quote as spot price plus a stated percentage. Common bullion runs 3%–5% over spot; American Eagles 5%–8%. Anything above roughly 10% needs an explanation, and "limited mintage" is not one. Under $25,000, keep it simple and stay in gold; above that, silver in 100 oz bars controls the premium better than one-ounce coins.
Step 5 — Arrange depository storage
Metal ships from the dealer directly to an IRS-approved depository, titled to the IRA. Delaware Depository, Brink's Global Services, International Depository Services and Texas Precious Metals Depository are the usual options.
Decide between commingled storage — your metal pooled with other clients' identical products, typically $100–$150 per year — and segregated storage, where your specific coins and bars are stored and identified separately, typically $150–$300. Segregated is the sensible choice for larger accounts and for anyone who intends to take an in-kind distribution later. Confirm the depository carries all-risk insurance and ask for the certificate.
Step 6 — Verify what actually landed in the account
Within two to four weeks you should be able to confirm, in writing: the exact products, quantities and serial numbers where applicable; the depository name and storage type; the custodian's valuation of the account; and the fee schedule that will bill going forward.
Check the products against your order. Substitutions — a proof coin in place of a bullion coin, a private-mint round in place of a sovereign coin — are the most common post-purchase surprise, and they are easiest to reverse in the first few weeks.
What the whole thing costs in year one
- Account setup: $0–$50, often waived above a funding threshold
- Wire fee: $25–$50 per transfer
- Annual custodian fee: $80–$100
- Annual storage: $100–$150 commingled, $150–$300 segregated
- Dealer premium: 3%–8% of the purchase, paid once at entry
On a $50,000 account, expect $150–$280 in recurring annual fees — 0.30% to 0.56% of the balance — plus the one-time premium on the metal itself. The premium is the larger number and the one most investors underestimate.
Mistakes that cost the most
- Taking possession of the metal. Deemed distribution of the full purchase amount, plus 10% if under 59½. McNulty v. Commissioner (2021) closed the LLC workaround.
- Buying numismatic or graded coins. A 20%–30% premium that the buyback desk will not honour.
- Using an indirect rollover when a direct one was available. 20% withholding and a 60-day clock for no benefit.
- Not asking for the premium in writing. Fees are visible and small; the premium is invisible and large.
Frequently asked questions
How long does the whole process take?
Seven to fourteen business days is typical: one to three to open the account, three to ten to fund it, one to two to purchase and ship.
Can I roll over a 401(k) from my current employer?
Usually not while still employed, unless the plan allows in-service distributions — often available at 59½. Former employers' plans can be rolled over at any time.
Do I need a separate IRA for metals?
Yes, in practice. Standard brokerage IRAs do not custody physical bullion, so a self-directed IRA with a metals-capable custodian is required. You can hold it alongside your existing IRAs.
Can I add to the account later?
Yes — by annual contribution ($7,000 in 2026, $8,000 at 50 and older) or by further rollovers, which are not capped.
Next step: start with step one. Our 2026 comparison ranks the five largest gold and silver IRA companies on the exact variables above.