Precious Metals Dealer Fees & Spreads
The economic cost of a precious-metals purchase is not always summarized by an account fee. Compare the price you pay, the market reference used, and the terms under which the dealer would repurchase the metal.
Key Takeaways
- Verify tax and custody rules using primary sources before moving retirement assets.
- Compare total costs, including dealer transaction economics, not just the annual account fee.
- Know the storage and liquidation process before authorizing a precious-metals purchase.
Premium Versus Spot
A retail bullion product is commonly sold at a price above a reference spot price. The premium can reflect fabrication, distribution, product demand and dealer economics.
The Bid-Ask Difference
The price a dealer charges you and the price it would pay to buy the asset back can differ. That spread means the metal's market price may need to rise before a position breaks even.
Ask For Dollar Quotes
Percentages and vague statements can hide the practical cost. Request the actual purchase price and current repurchase price for the exact same product.
Separate Dealer And Account Costs
Dealer transaction economics are distinct from IRA custody and storage fees. A complete cost comparison includes both.
Product Eligibility Is Specific
The IRS generally treats metals and coins as collectibles but provides exceptions for specified coins and certain qualifying bullion. Do not assume that every gold or silver product is suitable for an IRA.
Price Is More Than Spot
Physical metal is commonly bought above a reference market price and sold under different dealer terms. Premiums and spreads can materially affect the economics of entering and exiting a position.
Storage Depends On Ownership
Personally owned metal and IRA-owned bullion are different structures. IRS guidance states that qualifying IRA bullion must be in the physical possession of a bank or an approved nonbank trustee.
Plan The Exit Before The Purchase
Before buying, understand how the asset can be sold or distributed, how a dealer's buyback process works, and which costs could apply. Convenience is useful, but it is not the same as a guaranteed resale price.
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- Gold Vs Silver
- Gold IRA Vs Physical Gold
- Gold IRA Vs Gold ETF
- Gold Coins Vs Gold Bars
- Dealer Fees And Spreads
Primary Sources
- IRS: IRA FAQs And Precious-Metals Rules
- IRS: Rollovers Of Retirement Plan And IRA Distributions
- IRS Publication 590-A