What Counts as IRA Approved Precious Metals?
A metal is IRA-approved when it is bullion in a form the tax code recognizes, meets a minimum fineness for its metal, and is bought and held through your custodian rather than by you. Internal Revenue Code Section 408(m) treats anything else in an IRA, such as most collectibles, as a taxable distribution.
Three tests apply to every product. First, the metal must be gold, silver, platinum, or palladium. Second, the coin or bar must reach the purity floor for that metal, or be a coin the statute specifically allows. Third, the product must be produced by a national government mint or by a refiner whose bars meet an accepted exchange or LBMA Good Delivery standard, and it must sit in the custody of an IRS-approved trustee.
The IRS Fineness Floors
Fineness is the share of a coin or bar that is pure metal, written as a decimal. A .995 gold bar is 99.5 percent gold. The IRS sets one floor per metal, and a product that falls below it cannot be bought with IRA money no matter who sells it.
Why Some Coins Pass Below the Floor
Congress wrote an exception into the code for gold, silver, and platinum coins issued by the United States Treasury, which is why American Eagle coins are eligible. The American Gold Eagle is a 22-karat coin and therefore less than .995 fine, yet it qualifies by statute. Foreign coins get no such exception: they must clear the purity floor on their own, which popular Canadian and Australian gold coins do easily at .9999.
Which Gold Coins and Bars Does the IRS Approve?
Approved gold includes American Gold Eagles, American Gold Buffalos, Canadian Gold Maple Leafs, Australian Gold Kangaroos, and bars from accredited refiners that meet the .995 floor. Most bars and foreign coins sold for IRAs are in fact .9999 fine, well above the minimum.
When the product is a bar, the refiner matters as much as the purity stamp. A bar with an unknown or unaccredited maker can carry a correct fineness mark and still be rejected by a custodian. Stick to refiners on the exchange accredited lists that your custodian already recognizes.
Coins Versus Bars
Coins are easier to recognize and resell, and dealers usually charge a higher premium over spot for them. Bars cost less per ounce above spot, but larger bars are harder to sell in small pieces. Both are valued by metal content, and either kind can be IRA-approved if it meets the rules above.
IRA Approved Precious Metals Beyond Gold: Silver, Platinum, Palladium
Silver must be .999 fine and platinum or palladium must be .9995 fine. Approved silver includes American Silver Eagles, Canadian Silver Maple Leafs, and qualifying .999 bars; approved platinum and palladium comes from government mints and accredited refiners that reach .9995.
Silver: Heavier, Cheaper per Ounce
Silver trades at a small fraction of gold's per-ounce price, so one ounce of IRA silver ties up far less cash. The trade-off is bulk: the same dollar value takes up many more coins or bars, and storage and shipping charges are tied to the metal's weight or count, so check how your depository bills before you buy.
Platinum and Palladium: Narrower Choice
Both metals are IRS-eligible, but fewer products and fewer dealers support them, and not every custodian or depository handles them. One provider in our reference list, Augusta Precious Metals, deals in gold and silver only. Confirm in writing that your custodian will accept a platinum or palladium purchase before you commit funds.
Gold, Silver, Platinum, or Palladium for an IRA?
Gold is the most liquid and widely held IRA metal; silver costs less to start with but swings more; platinum and palladium follow industrial demand and carry the highest price risk.
How Investors Usually Split IRA Approved Precious Metals
A common pattern is 70–80% gold and 20–30% silver inside the metals portion of the account, with platinum and palladium held to 0–5% at most. Palladium demand is tied heavily to catalytic converters, which makes both industrial metals behave less like a safe haven in an equity sell-off. These are rules of thumb, not IRS requirements.
What Is Not Allowed in an IRA?
The IRS does not allow collectible coins, jewelry, ETFs, mining stocks, futures, or any metal below the purity floors. The IRS also bars storing IRA metal at home. Under IRC Section 408(m), buying a collectible with IRA funds is treated as a distribution to you, taxable in that year.
- Numismatic and rare coins, such as pre-1933 U.S. gold coins, whose price rests on rarity instead of metal content
- Gold or silver jewelry of any kind
- Gold ETFs, mining stocks, and futures contracts, which are paper assets and not physical metal
- Coins or bars below the purity floors: under .995 gold, under .999 silver, under .9995 platinum or palladium (apart from the American Eagle exception)
- Metal kept at your house, in a personal safe, or in a private safe deposit box
Numismatic Versus Bullion
A bullion coin is worth about what its metal content is worth. A numismatic coin is worth more because of age, scarcity, or condition. Dealers sometimes pitch rare coins for IRAs because the margin is large; the IRS list simply excludes them. A fair test is to ask whether the quoted price tracks the spot price. If it does not, the coin is probably collectible.
Proof Coins and Special Editions
Proof versions of eligible coins are allowed only when they meet the same purity minimum and come from a national government mint. Because proofs carry a collector premium, most advisers steer IRA buyers to the plain bullion strike of the same coin.
Where Must IRA Metals Be Stored?
IRA metals must be held at an IRS-approved depository under the control of an approved custodian. You cannot take delivery yourself. The custodian purchases the metal, ships it straight to the depository, and records ownership on your account statement.
Segregated or Commingled
Segregated storage keeps your coins and bars separate and individually identifiable, at roughly $150–$300 per year. Commingled storage pools your metal with other clients' holdings of the same type, at roughly $100–$150 per year, and you get back equivalent metal rather than the same pieces. Both are available at the main depositories.
Home Storage Gold IRA: A Prohibited Transaction
Some promoters sell the idea of keeping IRA metal in a home safe, often through an LLC. The Tax Court rejected this in McNulty v. Commissioner (157 T.C. No. 10, 2021). The court treated the owner's personal possession of the metal as a distribution of the whole IRA balance, taxable as ordinary income, and the 10% early withdrawal penalty applies if the owner is under age 59½. The IRS also classes it as a prohibited transaction under IRC Section 4975.
Custodians and Depositories
Four self-directed IRA custodians handle most precious metals accounts: Equity Trust Company (Westlake, OH), STRATA Trust Company (Waco, TX), Kingdom Trust (Murray, KY), and GoldStar Trust Company (Canyon, TX). All are regulated trust companies that report to the IRS through Form 5498.
Approved depositories include Delaware Depository (Wilmington, DE, ISO 9001 certified), Brinks Global Services, and International Depository Services in Texas. Depository insurance generally covers the full market value of stored metal under a Lloyd's of London all-risk policy, which is a different thing from a household policy's low cap on valuables.
What the Custodian Checks Before Accepting Metal
Before it releases funds, a custodian confirms that the order names eligible products, that the dealer is paid from the IRA and not from you, and that the shipping instructions point to the depository. If any piece is missing, the order is held. Request written approval before you order, because the custodian can hold or reject an order that names an ineligible product.
What Happens If a Product Turns Out to Be Ineligible
If you buy an ineligible item in error, the custodian may require you to return it, or the IRS may treat its purchase price as a distribution that triggers income tax and, if you are under age 59½, possibly the 10% early withdrawal penalty. Ask the dealer in advance how returns on rejected orders are handled and who bears the cost.
How Can You Check That a Product Is IRA-Eligible?
Read the fineness stamp, identify the mint or refiner, and get your custodian to confirm the product in writing before any money moves. Do not rely on a dealer's phrase 'IRA approved' alone, because the sales team is not the one who accepts the metal.
Step 1: Match Fineness to the Metal
Compare the stamped purity with the floor: .995 gold, .999 silver, .9995 platinum and palladium. A coin that reads 'gold' but shows a lower number is not eligible, unless it is a U.S. Eagle covered by the statutory exception.
Step 2: Identify the Maker
Coins should come from a national government mint. Bars should come from a refiner on an accepted exchange or LBMA Good Delivery list. A bar with no recognizable maker mark is a warning sign.
Step 3: Ask the Custodian, Not Just the Dealer
Your custodian carries the legal duty to hold only qualifying assets. Request its list of accepted products, or send the exact item name and weight and ask for a written yes. Many custodians publish a product list on request.
Step 4: Look at the Price
Compare the quoted price against spot plus a normal premium. An unusually high figure suggests a numismatic or limited-edition product, which can make the item ineligible even if it looks like a bullion coin.
Step 5: Confirm Delivery to the Depository
Get confirmation that shipment goes directly from the dealer to the depository named on your account. Metal that passes through your hands, even briefly, can be treated as a distribution.
- Which exact coins or bars are in the quote, with weight and fineness?
- Which refiner or mint produced them?
- Has my custodian approved this product in writing?
- What is the premium over spot, and is any of it a collector premium?
- Which depository receives the metal, and will it be segregated or commingled?
How Do Approved Metals Get Into Your IRA?
You open a self-directed IRA with a custodian, fund it by rollover, transfer, or contribution, and then instruct the custodian to buy approved metals from a licensed dealer. The dealer and the custodian are separate firms: one sells the metal, the other holds the account.
Funding the Account
A direct rollover from a 401(k) or a custodian-to-custodian IRA transfer is not a taxable event and has no withholding. If a plan pays you first, you have 60 calendar days to redeposit, and the former plan withholds 20% for federal tax. Cash contributions are limited to $7,500, or $8,600 at age 50 and over, for 2026. Most direct rollovers finish in two to four weeks.
Choosing the Metal Inside the Account
Once funds settle, you tell the dealer which eligible products to buy. The custodian pays, the dealer ships to the depository, and your statement lists the holdings. If you pick the wrong product, the custodian should decline it before settlement, which is why Step 3 above matters.
Which IRA Types Can Hold Metals
Traditional and Roth IRAs can hold approved metals, and so can SEP IRAs and SIMPLE IRAs set up as self-directed accounts. The purity, custodian, and depository rules are the same for all of them. The 2026 SEP limit reaches $72,000, and the SIMPLE limit is $17,000 ($21,000 for age 50 and over), so those accounts can accumulate metals faster than a standard IRA.
What Does It Cost to Hold Approved Metals?
On a $50,000 account, expect roughly $250–$550 per year in custodian and storage costs, which is about 0.5–1.1% of the balance, plus a one-time dealer premium above spot on each purchase. The table shows each layer.
Premium is paid once at purchase and again, in effect, as the spread when you sell. The bid-ask spread on gold bars is 1–3% on purchases above $25,000. Because the premium is the largest cost on small accounts, compare quotes on the same item for the same weight.
Be wary of any dealer who prices a coin well beyond that range and calls it 'IRA approved'; a very high premium usually means a collectible, which is the main way buyers overpay for ineligible metal.
Approved Physical Metals or Gold ETFs in an IRA?
Fidelity does not offer a physical precious metals IRA. It offers gold ETFs and mining funds inside a standard IRA, which are paper assets: you own shares, not identifiable coins or bars. Physical IRA-approved metals require a custodian built for self-directed accounts.
Physical title matters for estate planning and for investors who want metal rather than a price tracker. If you want only gold price exposure at the lowest cost, the ETF route is cheaper and trades the same day.
Which Mistakes Make Metals Ineligible?
The most frequent mistakes are buying a collectible, accepting a product with no accredited maker, taking delivery at home, and skipping the custodian's approval. Each one can turn a planned purchase into a taxable distribution or a refused order.
Paying a Collector Premium
Rare, graded, or limited-edition coins look like bullion but are valued for scarcity. Dealers earn more on them, which is why they appear in IRA pitches. If the quote is far above spot plus the usual premium, ask what part of the price is collector value.
Assuming Any Gold Bar Qualifies
A bar needs a maker that exchanges accredit, plus the right fineness. Private-label bars, novelty shapes, and jewelry-grade gold do not meet the test. The same applies to silver rounds with no recognized mint behind them.
Treating Dealer Language as Approval
A dealer can describe a product as IRA eligible, but the custodian decides whether to accept it. Get the confirmation from the party that will hold the account, and keep it with your records.
Taking Possession, Even Briefly
A direct delivery to your address, a promised safe, or an LLC-owned vault that you control all raise a prohibited transaction. The safe route is always dealer to depository, with the custodian named as the holder of record.
How Are Approved Metals Taxed and Distributed?
Approved metals follow the same tax rules as any IRA: Traditional accounts defer tax until you take distributions, and Roth accounts allow tax-free qualifying withdrawals. Required minimum distributions begin at age 73 for Traditional accounts and can be taken as cash or as physical metal.
Traditional and Roth Treatment
Within a Traditional IRA, contributions may be tax-deductible and growth is tax-deferred; every distribution is taxed as ordinary income, not at capital gains rates. A Roth IRA takes after-tax contributions and has no required distributions during the owner's lifetime. For 2026 the Roth income phase-out begins at $153,000 for single filers and $242,000 for married couples filing jointly.
In-Kind Distributions
When distributions begin you can have the custodian sell metal and send cash, or ask for the coins and bars themselves. An in-kind distribution is valued at fair market value on the day it leaves the depository and taxed accordingly, so you need cash on hand for the tax bill.
Forms You Will See
Your custodian reports contributions and the account's fair market value on IRS Form 5498 each year. Distributions are reported on Form 1099-R, and a properly executed direct rollover is not a taxable event. Metal valuations on the statement come from the custodian, not from the dealer who sold it.
IRA Metals or Physical Metals Held Outside an IRA?
Metals inside an IRA get tax deferral or tax-free growth but must stay at a depository; metals owned personally can sit anywhere and be sold at once, but gains are taxed at sale. The eligibility rules apply only inside the IRA.
Collectible coins that fail the IRA test are not illegal to own. They simply belong outside the account. Investors who want rare coins, emergency holdings, or immediate access usually keep those personally and use the IRA for qualifying bullion.
For amounts up to $5,000–$10,000 a quality home safe is often adequate; larger holdings call for a bank box or private vault. None of that storage can be used for IRA metal.
Reference: Dealers That Offer IRA-Eligible Metals
These five dealers sell IRS-eligible coins and bars and arrange custodian and depository setup. The data blocks are kept as a reference, not a ranking; check each firm's current eligible-product list before buying.
Augusta Precious Metals
Minimum investment is $50,000, annual fees $200–$250, and the firm lists gold and silver only.
Goldco
Minimum is $25,000 with annual fees of $200–$280 and a dedicated specialist per account.
American Hartford Gold
Minimum is $10,000 with annual fees of $175–$225 and a price match guarantee.
Birch Gold Group
Minimum is $5,000 with published fees of $180–$230 a year; it works with Equity Trust Company and STRATA Trust and stores at Delaware Depository and Brinks.
Noble Gold
Minimum is $20,000 with a single $250 annual fee; storage is available with International Depository Services in Texas.
Are IRA-Eligible Metals a Good Fit for Retirement Savings?
They fit savers who want an inflation hedge and diversification beyond stocks and bonds and can accept higher costs and no income. Most advisers suggest 5–15% of total retirement savings at most.
Strengths
Physical gold has averaged 9.6% a year over 20 years (World Gold Council, 2024) and has a low correlation with equities. Holding it in an IRA defers or removes tax on gains, which owning coins outside the account does not.
Weaknesses
Metals pay no dividends or interest, carry annual fees well above index funds (0.03–0.20%), and can take 3–7 business days to sell. Gold fell 28% in 2013, so the price can drop hard for years.
Who Should Look Elsewhere
- Younger investors with long horizons who are better served by low-cost index funds
- Anyone who cannot meet a dealer's minimum, which runs from $5,000 to $50,000
- Savers who need same-day liquidity
- Anyone who expects the account to produce income
