'Free Silver' and Fee-Waiver Gold IRA Promotions: How to Evaluate Them

Some Gold IRA sellers advertise "free silver" or waived fees for new accounts. This page does not say whether any particular offer is good or bad, and we name no company. It explains what government sources say to check, and how to turn an offer into one comparable number. It is general education, not advice. For the wider picture, see Gold IRA fees and costs.

Are "free silver" promotions really free?

We can't answer that for any single offer, and no source we found says that all such offers are free or that none are. What we can say is what the regulators advise.

The Commodity Futures Trading Commission (CFTC) is the federal agency that oversees commodity markets and warns the public about metals fraud. FINRA is the securities industry's self-regulator. Both publish the same advice in their joint list of 10 questions to ask before buying physical metals (FINRA's copy). It says to "ask how the company earns its profit, especially if it appears to be giving away precious metal or offering other big freebies."

Note what that sentence does and does not say. It does not call freebies improper. It says a giveaway is a reason to ask a question. We have no source on how any given promotion is paid for, so this page does not guess. Ask the seller.

What does the FTC say about the word "free"?

The Federal Trade Commission (FTC) has a general guide on using the word "free" in advertising, at 16 CFR Part 251. It covers all kinds of products, not only metals. Two points are useful for readers:

• The guide says offers of "free" merchandise or service are "a promotional device frequently used to attract customers."
• It says all the terms and conditions for getting and keeping the free item "should be set forth clearly and conspicuously at the outset of the offer so as to leave no reasonable probability that the terms of the offer might be misunderstood."

The guide also describes what consumers expect when they buy one item to get another "free." As we read section 251.1, they expect to pay nothing for the free item and no more than the regular price for the other item, and the seller is not supposed to recover the free item's cost by marking up the item you pay for. Whether a metals promotion falls under this guide is a legal question we have not researched. That is our reading of a general guide. If you think an offer was misleading, a securities or consumer-law attorney can tell you how it applies.

Where could the cost of a promotion show up?

We can't say how any offer is financed. But a Gold IRA purchase has several price layers, and the CFTC and FINRA tell buyers to ask for all of them in writing. They say to "ask for all fees, costs, commissions and agreed retail price in writing before signing," and that "if fees are not available in writing before your purchase, that is a red flag." (The CFTC page uses "are not"; FINRA's copy abbreviates to "aren't.")

The CFTC and FINRA describe the spread this way: "A dealer will always sell metal above the spot price and buy it back below the spot price." They add that "some fraudulent dealers have charged spreads of more than 300 percent while others dealers may charge less than 20 percent." That range is why two quotes for similar metal can differ by a lot, with or without a promotion.

How do I compare the all-in price of a promoted purchase?

The idea is simple: price the same purchase two ways and compare the totals. Use the real numbers from written quotes. The figures below are made up to show the method only. They are not real prices or fees.

On these made-up numbers, the first comparison looks like Quote A gives more: a gift worth $1,000 and no fees. But the real test is what the metal is worth if you had to sell it. The questions that decide it are: What is each dealer's buy-back price for the metal you receive, including the "free" silver? Are the two quotes for the same products and weights? What do the fees cost in years two, three and later? Do the "free" items go into the IRA, or are they shipped to you? That last one matters for taxes (see below).

Steps:

1. Get written quotes for the same metals and amounts from more than one seller, with and without the promotion if the seller will give both.
2. For each, write down the quoted price, the price per ounce, and the spot price at the time of quote.
3. Ask for the buy-back price on every item, including the free one.
4. List every custodian and storage fee, the date each waiver ends, and what the fee becomes afterward.
5. Add up several years of costs, not only the first. Our total cost of ownership page shows how, and the fee database lists published schedules.
6. Read the terms: minimum purchase, how long you must hold, and what happens to the offer if you close or transfer early. The FTC guide says terms should be clear "at the outset." If they are not, ask for them in writing.

Does a "free" gift raise any IRA or tax questions?

It can. We have not researched the IRS treatment of promotional items, so we make no claim. Two questions to put to the seller and to a tax professional: where will the free metal be held, and is it counted as part of your IRA? Ask how the seller treats it. See our guides to the Gold IRA rules and take the answer in writing.

What are common mistakes with promotions?

• Comparing the gift's advertised value instead of the total price and the buy-back price.
• Counting a waived first-year fee as if it were waived forever.
• Not checking whether the offer needs a minimum purchase or holding period.
• Accepting terms by phone only. Both agencies say to get fees and costs in writing.
• Deciding quickly because an offer "ends soon." Time pressure is a reason to slow down and compare, not to skip the steps above.

For help judging whether a quote fits your situation, a fee-only financial adviser or a tax professional can help.