Gold IRA Due-Diligence Checklist (Printable)

This checklist is for the questions to settle before you send money anywhere. Print it, take it to your calls, and write the answers down. If someone will not answer in writing, treat that as an answer.

It does not tell you whether a Gold IRA is right for you. That depends on your finances and tax situation, so consider a fee-only adviser or tax professional. For the basics, see what a Gold IRA is and how precious metals IRAs work.

Why bother? FINRA and the CFTC say that over the past decade the CFTC "has charged numerous companies with selling overpriced precious metals to customers, for an alleged total of more than $500 million in fraudulent sales," and that gold and silver IRA frauds "frequently target older workers and retirees" (FINRA and CFTC). Those are allegations, not findings against any one company.

How to use this checklist

Each item below is phrased as something to ask or confirm. Write the answer and the date next to it. Where an item states a rule, the source is linked.

Part 1: Are the metals eligible for an IRA?

Not every coin or bar can go in an IRA. The IRS says that when an IRA buys a "collectible," it is "treated as an immediate distribution from such account in an amount equal to the cost" (IRS). A distribution can mean taxes on the amount. Exceptions include certain gold, silver or platinum coins described in 31 U.S.C. Section 5112, coins issued under state law, and gold, silver, platinum or palladium bullion "of a certain fineness if a bank or approved non-bank trustee keeps physical possession of it" (same IRS page).

• Ask: "Which exact coin or bar am I buying, and which exception makes it IRA-eligible?"
• Ask: "Will my custodian confirm in writing that this product is eligible?"
• Ask: "Is this bullion, or is it sold as rare, numismatic or semi-numismatic?" FINRA and the CFTC explain that numismatic and semi-numismatic claims are often used to justify inflated markups (FINRA and CFTC).
• Confirm: the CFTC warns that "Only certain bullion coins can go in an Individual Retirement Account," and that if someone tries to sell you higher-priced "collectibles" for an IRA, "the coins likely are not rare and you're being scammed" (CFTC).
• Confirm: the metal will be held by a bank or approved trustee, not shipped to you. See IRA-eligible precious metals.

Part 2: Are all the fees disclosed?

The CFTC's advice is plain: "compare costs and insist on getting all fees in writing" (CFTC). FINRA and the CFTC also say to demand written disclosure of fees and commissions before you buy, and to compare them with the spot price (the cash price for immediate delivery of the metal) (FINRA and CFTC).

• Ask: "What are the commissions, markups and fees on this purchase, in dollars?"
• Ask: "What is the total I pay compared with the spot price on the day of purchase?"
• Ask: "What are the account setup, annual, transaction, storage, insurance and closing fees? Who charges each one: the custodian, the dealer or the depository?"
• Ask: "What does it cost to take a distribution or close the account?" FINRA and the CFTC list storage, insurance, administrative fees and possible taxes or penalties on withdrawals as costs to consider.
• Compare: the CFTC describes a case in which "a gold dealer and IRA custodian charged nearly $150,000 in commissions and fees to a customer who rolled over a $300,000 retirement account into a gold IRA" (CFTC). FINRA and the CFTC describe the same kind of example as an alleged $150,000 in fees. It shows why a total in dollars matters.
• Read: the IRS says the trustee or issuer of a traditional IRA "must generally give you a disclosure statement at least 7 days before you open your IRA" (Publication 590-A). Read it and the fee schedule before funding.

See Gold IRA fees for a fuller breakdown.

Part 3: Have you verified the custodian and the depository?

The IRS says "The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian" (Publication 590-A). A dealer that sells you metal is a different role from the custodian that holds your IRA. In some cases one company may act as both, as the CFTC example above describes.

• Ask: "Who is my IRA custodian, and on what basis is it a bank or an IRS-approved entity?" Then check that answer yourself with the custodian's regulator or the IRS rather than relying on the seller's word.
• Ask: "Who is the depository? Where are the vaults, and may I see the storage agreement?"
• Ask: "Will my metal be stored separately, or pooled with other customers' metal of the same type?" Terms vary, so get the answer in the agreement. See segregated vs commingled storage.
• Ask: "How will I confirm what is held in my name?" See how to verify your metals.
• Check: the CFTC reports cases in which customers were "charged extra to store bullion in far-away vaults that didn't exist," and cases in which no metal was bought at all (CFTC). Do not accept storage claims you cannot verify.
• Check: if a seller claims to be a financial adviser, check credentials and disciplinary history. FINRA and the CFTC point to FINRA BrokerCheck, the SEC's adviser database, CFTC registration records and state regulators. The CFTC also suggests contacting the attorney general in the dealer's home state to ask about a history of complaints.

For custodian questions, see how to choose a Gold IRA custodian.

Part 4: What are the buyback terms?

Selling metal back is where the cost of buying often shows up. The CFTC says "Dealers will always charge more than the current spot price when you buy, and pay less than the spot price when you sell." It adds that this spread "can range anywhere from 30 to 300 percent or more" (CFTC). FINRA and the CFTC say fraudulent dealers have charged "spreads of more than 300 percent."

• Ask: "What is the spread on this product, in percent and dollars?"
• Ask: "If I sell back today, what would you pay per ounce, compared with what I pay today?"
• Ask: "Is the buyback commitment in writing? Are there fees, minimums or conditions?"
• Ask: "If I sell, who handles the sale and the cash: you, the custodian or the depository?"
• Remember: "Gold and silver prices can be highly volatile just like other commodities," and there are no guarantees (CFTC). A buyback policy does not protect you from price changes.

Part 5: Are there sales-pressure red flags?

The CFTC says these schemes "often begin with an unsolicited email, phone call, or brochure in the mail" and warns against responding to "unsolicited email, mail, cold calls, advertisements, videos, or social media posts" (CFTC). FINRA and the CFTC advise avoiding cold calls, unsolicited emails, commercials and pop-ups.

Stop and slow down if you notice any of these:

• You were contacted first, or came through an ad you can't trace to a real business.
• The seller claims to be an "IRA expert" or gives personal investment advice. The CFTC says some unscrupulous dealers "pose as 'IRA experts' or act as illegal investment advisors."
• You are told there are secret tax breaks. The CFTC says "There are no special tax breaks for self-directed IRAs, if anything the rules are more complex and the fees are higher."
• You are told collectible coins have special protection. The CFTC says "There is no special federal protection for collectible coins."
• The seller leans on shared political or religious views. The CFTC says fraudsters may "target their ads to political or religious programming just to gain your trust."
• The seller says you must act today, or will not put terms in writing.
• You are told you are speaking to an expert with inside information. The CFTC's answer: "Most likely you're talking to a telemarketer whose only experience is separating people from their money."

If one of these appears, you can stop the call. Nothing requires a decision the same day. See Gold IRA scams for more.

What to do next

1. Pick two or three providers and ask each the same questions above, in writing where you can.
2. Compare the written fee totals and spreads side by side.
3. Verify the custodian and depository through independent sources.
4. Have a qualified tax professional or fee-only adviser review the paperwork before you sign.

Some people also ask whether a Gold IRA is the only route to metals. FINRA and the CFTC list exchange-traded products as another way to own precious metals. Whether brokerage-based options are available through your own provider is a separate question, covered in can you buy gold in a Fidelity, Schwab or Vanguard IRA.