What Are The Fees Associated With a GOLD IRA ?
Updated: Nov 19, 2019
Gold IRA Fees You Should Know About
Investing in Gold Self- Directed IRAs ( Gold IRAs) comes with several fees. It’s not like you open a savings account and save your money every month with minimal costs. Like any other precious metal, gold also has various expenses that investors have to bear if they want to earn a significant amount of money at the end of a period. Some of the fees that investors usually associate with owning a Gold IRA are as follows:
• Fees for setting up your account and administrative fees
• Yearly maintenance fees
• Storage fees
• Coin markups and commissions
• Miscellaneous fees
Understanding the different fees:
1. Setup and administrative fees
Sanctioned administrators and custodians often charge a small processing fee to start your account opening process. Different administrators charge differently, but usually, the average setup and administrative fee is approximately between $50 -$100.
2. Yearly maintenance fees
Apart from the account opening and administrative fees, the administrator will also charge an account maintenance fee. This will cover everything, such as record keeping of your holdings, periodic statement that includes processing and distribution, and monitoring your account. Again, different administrators may charge different amounts, but the average yearly maintenance fee in the U.S is around $75- $150.
3. Storage fees
You will also have to pay for the vault or safe to store your gold holdings. Always opt for IRS-approved depositories to ensure the full safety of your gold. Ideally, the administrator should pay for storage fees, but they pass this cost to their clients to make more profit. Storage fees may have different schedules depending on how you store your gold. Most people use the aggregated storage method while others use individualized segregated storage. Most companies charge half or one percent of your holdings annually as a storage fee.
4. Coin markups and commissions
It doesn’t matter whether you purchase or sell gold from your account; there is a commission that you have to pay every time. Some companies charge per transaction, while others may have a fixed commission. The approximate amount is nearly $40 per transaction.
5. Miscellaneous fees
This fee is something that you can avoid. Most IRA custodians try to wire clients to a bullion dealer or some depository. So, every wire transfer may cost approximately $25.
However, it is always wise to check both online and local IRA fees before investing. If you can do without a few fees, you will end up earning more than what you usually do. Some fees are unavoidable, but you can bypass a few of them also.
Overall, the fees in owning a Gold IRA aren't unlike owning any other investment account, in some cases, even less. The pros outweigh the cons in ownership in our humble opinion.
If you are interested in learning more about the cost of ownership and have viewed our article library in depth and still have questions on Gold IRAs , please feel free to reach out to Regal Assets. They will be happy to send you a FREE, no hassle gold investment kit.
We have a lot of good information on our website about Gold IRAs, we encourage you to start your journey there.
The Gold IRAs 101 Team