How Gold IRA Companies Make Money (Markups and Spreads)

Most companies that advertise gold IRAs are precious metals dealers. They help you open the account, but the account itself is held by a separate custodian, and the metal sits in a separate vault. The dealer earns its money from selling you the metal.

That isn't wrong. Every business has to earn something. But the way dealers are paid is easy to miss, because it is built into the price of the coins rather than shown as a fee. This page explains where the money goes and how to compare quotes. It draws mainly on a joint alert from two US regulators, the CFTC and FINRA.

How do gold IRA companies make money?

Mostly through the markup on the metal. A dealer sells coins and bars for more than the metal is worth on the market, and buys them back for less.

The market value of gold is called the spot price, the price for one ounce delivered today. The CFTC and FINRA explain that a dealer "will always sell metal above the spot price and buy it back below" it.

So a dealer has two chances to earn:

1. The markup, or premium, when you buy. This is the amount above spot value.
2. The buyback gap when you sell. The dealer pays you less than spot.

Together, the difference between the dealer's selling price and buying price is called the spread. The regulators say each dealer sets its own spread, so it pays to shop around.

Who else gets paid in a gold IRA?

Two other companies charge their own fees, separate from the dealer:

The custodian and vault fees are published, and in the schedules we read in October 2026 they came to roughly $215 to $325 a year in total. Our gold IRA fees guide shows the details.

The lines between these companies are not always clean. The Texas Bullion Depository, for example, says storage fees for IRA metal are usually negotiated between the custodian, the dealer and the depository. It is fair to ask a dealer whether it has a financial relationship with the custodian or vault it suggests.

How much is a typical gold markup?

There is no single typical figure, which is why getting it in writing matters.

The CFTC and FINRA say some fraudulent dealers have charged spreads of more than 300 percent, while other dealers charge less than 20 percent. They also describe cases where fraud victims lost one-third to one-half of their savings to markups, fees and commissions.

In general, plain bullion coins and bars carry smaller markups. Coins sold as rare, collectible or "semi-numismatic" usually carry much larger ones. The regulators call "semi-numismatic" a made-up industry term with no special meaning, and they warn that being charged more for such coins is a sign of a likely scam.

Why do markups matter so much?

Because the metal's price has to rise by the size of the spread before you are back where you started.

Here is a simple hypothetical example using round numbers, not real prices:

In the high-spread case, gold's price would need to rise by more than a quarter just to get your $50,000 back, before any yearly fees. The CFTC and FINRA put it plainly: the higher the spread and other costs, the more the spot price has to rise for you to profit.

Is "no fees" or "free silver" really free?

No. A company that pays your custodian fees or sends you free silver still has to cover that cost, and it is usually covered by the price of the metal you buy.

These offers can look generous next to a yearly fee of a few hundred dollars. But a markup only a few percent higher on a $50,000 purchase can cost far more than the fees being waived. The CFTC and FINRA suggest asking how the company earns its profit, "especially if it appears to be giving away precious metal."

The regulators also list free gifts and limited-time offers among the tactics used by high-pressure sellers. An offer with a deadline is a reason to slow down, not speed up. See our list of gold IRA scams and red flags.

How are gold IRA salespeople paid?

Often by commission, and the commission usually comes out of the spread.

The CFTC and FINRA suggest asking the person you talk to how they are paid, and whether their commission is included in the spread. They also note that, in most cases, the salesperson urging a rollover is not qualified to give investment or tax advice. If someone tells you what to buy, how much, or when, ask whether they are registered, then check it yourself.

How do I compare gold IRA quotes?

Ask each company for the same metal, then compare the price against its spot value and against the buyback price.

The regulators suggest these steps before you sign or send money:

1. Get everything in writing: every fee, cost and commission, and the agreed price. If fees aren't available in writing before you buy, the regulators call that a red flag.
2. Work out the spot value. Multiply the weight of the metal by today's spot price, which you can find in financial news. Compare that with the price you are quoted.
3. Ask for the buyback price today. What would the dealer pay if you had to sell the same metal back tomorrow?
4. Ask how the company makes its profit on this sale, including any free offer.
5. Compare like with like. Get quotes from two or three dealers for the same coins or bars, in the same amounts.

Our 12 questions to ask a gold IRA company turns this into a checklist you can print. For more on premiums when buying gold outside an IRA, see our sister site, bestgoldsilverinvestment.com.

Does a legitimate custodian check the dealer's prices?

No. Self-directed IRA custodians hold and administer the account, but they don't judge your investments.

The SEC, NASAA and FINRA say self-directed IRA custodians do not evaluate the quality of the investments in the account and do not verify their financial information. Using a well-known custodian doesn't make a dealer's prices fair. Checking the markup is your job, and a fee-only fiduciary can help you look at a quote before you commit.

Metals also pay no income and can fall in price, so how much you hold matters as much as what you pay. Our guide to how much of your portfolio could be in gold explains common ranges.