12 Questions to Ask a Gold IRA Company Before You Sign

A phone call leaves no record, and the details that matter most (the markup, the buyback price, the yearly fees) are easy to skip in a friendly chat.

This checklist gives you 12 questions to ask any company before you sign anything or move any money. Each one says why it matters and what a good answer sounds like. Most come straight from the questions US regulators (the CFTC, FINRA and the SEC) tell retirees to ask.

What should I ask a gold IRA company before I sign?

Ask these 12 questions, and ask for the answers in writing. A company that won't put its answers on paper has already told you something.

1. Can you send me every fee in writing?

Why it matters: A gold IRA has several layers of cost: a setup fee, a yearly custodian fee, storage, insurance, shipping and sometimes a fee to close the account. The CFTC and FINRA say fees not available in writing before you buy are a red flag.

A good answer looks like: "Yes, here is the full fee schedule." You get one document listing every fee, whether it is flat or a percentage, and who charges it. Our gold IRA fees guide shows what a complete list includes.

2. What is your markup on each coin or bar, compared with today's spot price?

Why it matters: The spot price is the market price for an ounce of metal right now. Dealers sell above spot, and that markup is often the biggest cost of all. The CFTC and FINRA say some fraudulent dealers have charged spreads of more than 300 percent, while others charge less than 20 percent.

A good answer looks like: A price per coin or bar, the spot price at that moment, and the difference shown as a dollar amount or percentage. You can check it yourself: weight times spot price, compared with what you are being charged. See how gold IRA companies make money.

3. If I wanted to sell it back tomorrow, what would you pay?

Why it matters: The buyback price is what you get when you sell. The gap between what you pay and what you would get back is the spread, and the price of gold has to rise by at least that much before you break even.

A good answer looks like: A clear buyback price or formula for each item (for example, a stated amount below spot), in writing. "We always pay a fair price" is not an answer.

4. How are you and your salespeople paid?

Why it matters: Commissions are usually built into the price of the metal. If the company offers free silver or other bonuses, the cost is usually built in somewhere too. The CFTC and FINRA suggest asking how a company profits, especially if it seems to be giving metal away.

A good answer looks like: A plain explanation, such as "our reps earn a commission that is included in the price you pay." Vague answers, or "it doesn't cost you anything," are not good answers.

5. Who is the custodian, and is it a bank or an IRS-approved trustee?

Why it matters: The custodian holds your IRA and reports to the IRS. The SEC, NASAA and FINRA warn that fraudsters sometimes use fake custodians. A real custodian is a bank or a company the IRS has approved.

A good answer looks like: The custodian's full legal name, so you can contact it yourself. The IRS publishes a list of approved nonbank trustees and custodians. The SEC notes the list is not complete, so if a name is missing, ask why and look further. Our page on what a gold IRA custodian does explains the role.

6. Which depository will hold my metal, and can I choose a different one?

Why it matters: IRA metal must be held by a trustee, which in practice means a secure vault called a depository. The CFTC lists an agreement that doesn't say where the metal is as a warning sign.

A good answer looks like: The depository's name and city, whether it is insured and audited, and whether you can pick another one. Anyone who says you can keep IRA gold at home is giving you a wrong answer. See gold IRA storage rules.

7. Will my metal be stored segregated or commingled, and what does each cost?

Why it matters: Segregated storage keeps your coins and bars apart, and you get back the exact pieces. Commingled storage keeps them with other people's metal of the same type, and you get back the same kind and amount. Segregated usually costs more.

A good answer looks like: Both options explained, with the yearly price of each in writing, and whether the fee is flat or a percentage of your metal's value.

8. Is everything you are recommending allowed in an IRA?

Why it matters: The IRS only allows certain coins and bullion in an IRA. The CFTC and FINRA say "semi-numismatic" is a made-up industry term, and pressure to buy collectible coins at higher prices is a common warning sign.

A good answer looks like: A list of each product with its purity and why it qualifies. Plain bullion coins and bars are the usual choice. Our page on IRA-approved gold and silver explains which metals qualify.

9. Is anyone I'm talking to registered, and where can I check?

Why it matters: Retail metal dealers are not regulated at the federal level, according to the CFTC and FINRA. But if a salesperson tells you what to buy, how much or when, they might be required to register. Registration doesn't prevent fraud, but the CFTC notes that most scams involve unregistered people and products.

A good answer looks like: A straight yes or no, and a name you can look up. Then check it yourself with the right tool:

10. Where can I see complaints about your company?

Why it matters: The CFTC and FINRA suggest checking with your state attorney general and your state securities regulator to see if a dealer has a history of complaints.

A good answer looks like: "Look us up anywhere." Then do it:

• Your state attorney general, found through NAAG's Find my AG page
• Your state securities regulator, found through NASAA
• The Better Business Bureau, for complaints and how the company answered them
• A web search of the company and owners' names with "complaint"

11. How will the money move from my current account?

Why it matters: The safest way is usually a direct move between account custodians, where the money is never paid to you. If a check is paid to you from a work plan, 20% is withheld and you have 60 days to finish the rollover. Money should never go to a salesperson's own account.

A good answer looks like: "We'll help you request a direct transfer from your current custodian to the new IRA custodian." See gold IRA transfer vs. rollover for the details.

12. What statements will I get, and how can I check my metal is really there?

Why it matters: The CFTC and FINRA note that some fraudulent dealers have charged storage fees for metal that never existed. Your statements are how you check.

A good answer looks like: Regular statements from the custodian listing each coin or bar and its "melt" value (weight times spot price), plus the right to ask the depository to confirm your holdings. Compare the first statement with what you paid.

What if a company won't answer?

Many people simply walk away. A reluctant answer, a rushed answer, or "let's talk about fees after you sign" is reason enough to stop. Our page on gold IRA scams and red flags lists other warning signs, and our page on gold IRA scam calls covers what to do if a call doesn't feel right.

Good answers still don't make gold right for everyone

Even with an honest company and low fees, gold pays no income, costs money to store each year, and its price can swing a lot or stay flat for years. People in this situation often keep metals to a small share of savings and look at the whole plan first.

Our guides on protecting your retirement savings after 50 and how much of your portfolio could be in gold can help. For advice on your own situation, talk to a fee-only fiduciary or a tax professional before you move retirement money.