Gold IRA Fees & Cost: What You Need to Know

The truth is that any investment requires a great deal of research, and understanding the associated fees is paramount. Because gold IRAs are often life-long investments, fees charged on these accounts can have an impact on your investment portfolio for years to come, so it’s important to go in equipped with the necessary knowledge.

If you have been asking the question, “How much does a gold IRA cost?” you have come to the right place. In this article, I’ll walk you through some of the fees associated with precious metals investments so that you know exactly what to expect.

What Is a Gold IRA, Anyway?

Before I get into how much you need to start a gold IRA, I want to first make sure you know what a gold IRA is. A gold IRA is a type of self-directed retirement account that is backed by physical gold and other precious metals such as silver, platinum, and palladium.

While a traditional IRA holds paper assets, a precious metal IRA can be backed by gold coins, silver coins, bullion bars, and more. Since the gold market is often favorable for long-term investments, a gold IRA can be lucrative.

Unlike ordinary IRAs, these retirement accounts provide protection against inflation and economic downturns since the value of precious metals rises while that of other assets falls.

How Much Does It Cost to Start a Gold IRA? An Overview of the Fees Associated with Gold IRAs

Here are some of the gold IRA costs you can expect to encounter with this kind of retirement account:

Account Application Fees

Most of the precious metals IRA firms won’t charge you an account application fee. The actual amount varies from one service provider to the next, but you can expect to pay an average of about $50 if there is a fee involved.

Transaction Fees

Custodians of precious metals IRAs may levy a fee for the acquisition or sale of precious metals held in a gold IRA. Keep in mind that this will be on a “per transaction” basis.

Gold IRA Storage Fees

Precious metals deposited in an IRA must be stored in an IRS-approved depository. In order to store and safeguard your valuable assets, these depositories demand annual fees. Fees often vary depending on which company is used. Typical costs, however, may range from 0.5 to 1 percent annually, depending on the market value of the assets.

Annual Fees

Certified precious metals custodians are essentially businesses, and like all businesses, they have to make money. They do this by managing their clients’ accounts and handling the bookkeeping. Fees for these services might range from $75 to several hundred dollars per year, depending on the custodian you choose to work with. Fortunately, some companies usually offer discounts for larger accounts. Augusta Precious Metals, for example, may offer some clients zero fees for up to 10 years.

Wiring Fees

Some custodians may also charge investors a fee for wiring funds. Paying a dealer for gold bullion, for example, may incur a fee of about $25.

The Bottom Line

What’s the answer to the question, “How much money do you need to start a gold IRA?” The answer is that it depends.

It’s important to remember that fees will vary for different gold IRA companies, so it’s always best to enquire about the associated costs of setting up an account before making any commitments. Always aim to obtain as much information as possible before making any investment.

I aim to shed light on physical precious metals IRAs, so you can browse my website to learn all you need to know about gold, silver, platinum, and palladium investments.