Gold IRA Scams: 10 Red Flags to Watch For

A gold IRA is a legal kind of self-directed IRA that holds physical gold or silver. Plenty of people own one without trouble. But US regulators have also warned, more than once, that gold and silver IRA frauds often target people in or near retirement.

The reason is simple. People over 55 usually have the most money saved in their retirement accounts, and many want somewhere safe to keep it. The CFTC says it has charged numerous companies over the past decade for selling overpriced metals, for an alleged total of more than $500 million in fraudulent sales.

This page lists ten warning signs from the CFTC, FINRA, the SEC and the FTC, and where to report a problem. None of them means every gold IRA company is a scam. They are things to notice before you sign.

Are gold IRAs legit, or are they a scam?

Gold IRAs are legit. The tax law allows certain coins and bullion in an IRA if an approved trustee holds them. The scams come from how some sellers act, not from the account itself.

One thing to know before you start: a gold IRA is self-directed, which means you pick the investments and nobody checks them for you. The CFTC and FINRA put it plainly: "once that cash is in the SDIRA, you are on your own." The SEC, NASAA and FINRA add that self-directed IRA custodians do not check whether an investment is legitimate. They only hold and administer it.

What are the red flags of a gold IRA scam?

These are the ten warning signs that come up again and again in regulator alerts.

1. A call, email or ad you didn't ask for

The CFTC and FINRA say never to respond to cold calls, unsolicited emails, junk mail, late-night infomercials, social media posts or pop-up dealers who ask to visit your home. A good company can wait while you look it up.

2. "Move your money to protect it," or a caller who claims to be the government

Some callers say your bank account was hacked, or that your Social Security number is linked to a crime. Then they tell you to move your savings, buy gold bars and hand them to a courier, or wire money to a "safe" account. The FTC says no one from the government will ever tell you to do any of these things. In its words, moving your money "means you'll lose it, not protect it."

This is not a small problem. In FTC reports from 2024 by adults 60 and over who lost more than $100,000 to business or government impostors, gold came up in about 21% of them. Our page on gold IRA scam calls has a step-by-step checklist for the moment you get one.

3. Pressure, deadlines and "today only" prices

A limited-time offer, a deadline tied to the news, or a claim that supply is running out are classic pressure tactics, according to the CFTC. A rollover is a big decision. An honest company will still be there next week.

4. "Free silver" and other big freebies

Offers of free silver, free coins or matching bonuses can sound generous. The CFTC and FINRA say to ask how the company earns its profit, especially if it appears to be giving metal away. The cost is usually built into the price of the metal you buy. See how gold IRA companies make money.

5. Fees that are not in writing

Ask for every fee, cost, commission and the agreed price in writing before you sign or send any money. That includes setup, yearly custodian, storage and insurance fees. The CFTC and FINRA call missing written fees "a red flag." Our gold IRA fees guide shows what a normal fee list includes.

6. A huge markup over the spot price

The spot price is the market price for one ounce of metal right now. Dealers sell above it and buy back below it, and the gap is called the spread. The CFTC and FINRA say some fraudulent dealers have charged spreads of more than 300 percent, while others charge less than 20 percent. In one case they describe, a customer rolled over a $300,000 IRA and the dealer allegedly took $150,000 in fees and commissions.

A simple check: multiply the weight of the metal by today's spot price and compare it with what you are being charged. Then ask what the company would pay to buy it back tomorrow.

7. A push toward collectible or "semi-numismatic" coins

Bullion coins and bars are valued mainly for their metal. Numismatic coins are rare collector coins. The CFTC and FINRA describe "semi-numismatic" as "a made-up industry term" used to justify high prices. Most collectible coins can't go in an IRA at all. If a salesperson steers you away from plain bullion toward special coins, slow down.

8. A "home storage" or "checkbook" gold IRA

Some sellers say you can keep IRA gold in your own safe through an LLC. The tax law only allows IRA bullion if a trustee holds it, and the US Tax Court ruled against a home storage setup in the 2021 McNulty case. The result can be income tax, plus a 10% additional tax if you are under 59½. Our page on gold IRA storage rules explains the case.

9. A salesperson giving advice who isn't registered

The CFTC and FINRA say many metals salespeople are telemarketers with no investment training. A common pattern is a friendly first call, then a handoff to a "lead trader" or a special expert. If someone tells you what to buy, how much or when, that is advice. Ask whether they are registered, then check for yourself (our 12 questions to ask a gold IRA company show where).

10. Promises of guaranteed or risk-free returns

The SEC, NASAA and FINRA list "risk-free," "zero risk" and "guaranteed profit" as hallmarks of fraud. Gold prices go down as well as up. Be just as careful if someone says the custodian has checked or approved the investment. Self-directed custodians don't do that.

What should I check after I buy?

Check your statements, and make sure your metal is real and fairly priced. The CFTC and FINRA note that some fraudulent dealers have charged storage and insurance fees for metal that never existed.

• Your custodian should send statements that list each coin or bar and its "melt" value (weight times spot price).
• Compare that value with what you paid. A very large gap points to a large markup.
• Make sure the name of the depository is on your paperwork, and that it is a real vault in the US.

What can gold not do, even with an honest company?

Even a fair deal has limits. Gold pays no interest or dividends, it costs money to store and insure, and its price can swing sharply or stay flat for years. That is why most plans hold it as a small part of savings, if at all, never most of it.

If you are weighing it, our guides on how to protect your retirement savings and how much of your portfolio could be in gold cover the bigger picture. For a personal answer, talk to a fee-only fiduciary or a tax professional.

Where do I report a gold IRA scam?

Report it to the FTC, the CFTC and your state securities regulator. You can report to more than one. Do it even if you didn't lose money, because reports help investigators spot patterns.

If you already moved money or shared account details, call your bank, broker or IRA custodian right away, using the number on your statement, not one a caller gave you.