What To Know About Precious Metals IRAs In 2026

Precious metals IRAs are self-directed retirement accounts that hold physical gold, silver, platinum, or palladium instead of only paper investments. These accounts are a way to own a tangible asset inside a tax-advantaged account. 

This guide covers the metals you can hold, storage and tax rules, fees, and how to open one.

How do precious metals IRA accounts work?

This account works like any IRA, except the self-directed structure lets you hold physical bullion. A standard IRA at a brokerage limits you to stocks, bonds, and funds.

A self-directed custodian handles the paperwork and IRS reporting. You choose the metal, the custodian records the account, and a depository holds the bars and coins under your name.

What are the types of precious metals IRAs?

You can open the account under four types, each with its own tax treatment:

• Traditional: You fund it with pretax dollars, then pay income tax when you withdraw in retirement.
• Roth: You fund it with after-tax dollars, so qualified withdrawals come out tax-free.
• SEP: Built for self-employed and small-business owners, with higher annual contribution amounts.
• SIMPLE: Offered through smaller employers, with a contribution schedule set by the IRS.

If you want to weigh the two most common options, you can compare a Traditional and a Roth account side by side.

Which precious metals can you hold?

The IRS sets a minimum purity for each metal you can hold in the account:

• Gold: 99.5% pure, though the American Gold Eagle is allowed with a specific exception
• Silver: 99.9% pure, available as coins, bars, or rounds
• Platinum: 99.95% pure from an approved source
• Palladium: 99.95% pure from an approved source

Eligible metal includes coins, bars, or rounds, and it must come from an accredited refiner or a national government mint. Coins like the Canadian Maple Leaf qualify, as do bars from names such as PAMP Suisse and Valcambi. 

You can review a list of IRS-approved metals before you buy.

Where is your metal stored?

You can’t keep the metal at home. The IRS treats metal you take personal possession of as a distribution, which can trigger taxes and penalties.

Instead, the metal sits at an approved depository, such as the Delaware Depository or the Texas Bullion Depository. Your account holds a specific, recorded position at that facility.

What are the tax rules and contribution limits?

For 2026, you can contribute up to $7,500 if you’re under 50, or $8,600 if you’re 50 or older. These limits apply across your IRAs combined, not per account.

A Traditional or SEP account uses pretax money and grows tax-deferred, and you may qualify for a deduction. A Roth uses after-tax money, and qualified withdrawals in retirement are tax-free with no required minimum distributions.

Traditional and SEP accounts require minimum distributions starting at age 73. You can take penalty-free withdrawals from age 59 1/2, either as cash or as the physical metal itself. You can find more details in our guide to withdrawal rules.

What are the costs and fees?

A precious metals IRA has fees and costs beyond the metal itself:

• Account setup fee: A one-time charge to open the self-directed account
• Annual maintenance fee: An ongoing custodian charge for recordkeeping and reporting
• Storage fee: Paid to the depository that holds and insures the metal
• Dealer premium: The amount above the spot price you pay when buying coins or bars

Setup plus first-year fees start around $250. 

Precious metals IRA vs. gold ETF

A gold ETF gives you price exposure without owning the metal. Here’s how physical metal in an IRA compares with an ETF:

Feature	Precious metals IRA	Gold ETF
Ownership	Physical metal titled to your IRA	Fund shares that track gold’s price
What you hold	Bars and coins you can take in kind	A paper claim you can’t redeem for metal
Cost	Storage fee plus a dealer premium	A small annual expense ratio
Trading	Settled through a dealer	Traded instantly during market hours

What are the pros of a precious metals IRA?

• Inflation protection: Gold has held its purchasing power while paper currencies decline over time.
• Safe haven: Demand for gold tends to rise when markets and currencies come under stress.
• No counterparty risk: Since gold separated from the dollar in 1971, it depends on no issuer, balance sheet, or default.
• Global liquidity: Gold is recognized globally, so you can sell it almost anywhere

What are the forecasts for gold demand and prices?

Central banks bought a net 863 tonnes of gold in 2025, according to the World Gold Council. That’s below the pace of the prior three years, which topped 1,000 tonnes a year. 

J.P. Morgan issued a gold forecast that said gold could average about $6,000 an ounce by the end of 2026, with $6,300 possible in 2027.

J.P. Morgan also notes that the central-bank demand behind the past year’s gains has cooled and gold now trades at ... an ounce today.

What are the cons of a precious metals IRA?

• No income: Gold or silver pays no dividends or interest while you hold it.
• Higher fees: Custody and storage cost more than a standard IRA of stocks and funds.
• Price swings: Gold and silver can move sharply over short periods.
• More setup steps: A self-directed account takes more paperwork than a brokerage IRA.

Here’s a comparison of the tradeoffs: 

Pros	Cons
Hedges against inflation	Produces no income
Rises in market stress	Costs more to hold
No issuer or default risk	Swings in the short term
Sells worldwide	Takes more setup

How much should you allocate to precious metals?

There’s no single right number, and your mix depends on your timeline and comfort with risk. Use this framework as a starting point:

Profile	Precious metals allocation	Who it fits
Conservative	5%	Savers who want a small hedge alongside steady income elsewhere
Balanced	10%	Savers splitting the goal between protection and growth
Aggressive	15%	Savers most concerned about inflation and currency risk

What should you look for in a precious metals IRA dealer?

Here’s what to look for in a precious metals dealer:

• Track record: A national broker or dealer with at least a 10-year history through different markets.
• Availability: The coins the dealer quotes should be bought and delivered at that price.
• A two-way market: A good dealer buys coins or bars back from clients.
• Fast settlement: Trades settle within 72 hours, and coins arrive within two weeks.
• Honest risk disclosure: The dealer shares both the upside and the downside of a purchase.
• Certified coins with inspection: Numismatic coins should be PCGS or NGC certified, with an inspection period after delivery.
• Buying on dips: A steady approach adds on each price dip rather than all at once.

How to open a precious metals IRA?

Opening the account takes four steps:

• Open a self-directed IRA: Set up the account with a custodian such as Equity Trust or Gold Star Trust.
• Fund the account: Roll over an existing IRA or 401(k), or add new contributions.
• Buy IRS-approved metal: Choose eligible coins or bars that meet the fineness standards.
• Arrange depository storage: The custodian ships your metal to an insured depository.

Final thoughts on precious metals IRAs

A precious metals IRA gives your retirement savings exposure to a tangible asset, with defined rules on storage, taxes, and eligible metals. Whether it fits depends on your timeline, your existing accounts, and how much protection you want. 

To learn more about adding gold to your retirement portfolio, connect with the Swiss America team today.

Precious metals IRAs: FAQs

Are precious metal purchases reported to the IRS?

No. A dealer doesn’t report your purchase to the IRS when you buy metal. Cash payments above $10,000 do require a Form 8300, and that rule applies to the payment method, not the metal. 

Inside an IRA, your custodian files the reports the IRS requires.

Does the IRS know if I sell gold or silver?

Sometimes. Selling certain bullion in set quantities triggers a Form 1099-B from the dealer, such as 25 or more ounces of gold bars. Smaller sales and most coin sales aren’t reported at the point of sale. 

You still owe capital gains tax on any profit, which the IRS taxes at the collectibles rate of up to 28%.

How long does a precious metals IRA rollover take?

Usually two to three weeks. A direct rollover moves funds from custodian to custodian, so you never take possession of the money. Once it arrives, buying the metal and shipping it to the depository adds a few days. The trade itself can settle within 72 hours.

Is there a minimum investment for a precious metals IRA?

Yes. The minimum initial transfer is about $5,000 for this type of account. That amount keeps the annual fees reasonable relative to your balance. You can add to the account over time through new contributions or additional rollovers.

Are the metals in a precious metals IRA insured?

Yes. Approved depositories carry insurance on the metal they hold, covering it against loss or theft. Your position is held under your account rather than pooled with the depository’s own assets. That coverage is built into the annual storage fee you already pay.

The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.