Every gold IRA has a custodian, which runs the account, and a depository, which holds the metal. They're separate from the dealer who sells you the gold. Understanding who they are, how they're paid and how to check them is one of the simplest ways to protect your savings.
Custodian vs. Depository vs. Dealer
| Custodian | Depository | Dealer | |
|---|---|---|---|
| Role | Holds the IRA, keeps records, reports to the IRS | Stores and insures the metal | Sells and buys back metal |
| Who regulates it | Banking regulators, or IRS approval for non-bank trustees | Varies; often audited and insured, some approved by futures exchanges | Not regulated like a broker; CFTC and states can pursue fraud |
| How it's paid | Setup and annual fees | Annual storage and insurance fees | Premium over melt value; buyback spread |
| Examples named by dealers we reviewed | Equity Trust; GoldStar Trust | Delaware Depository; Brink's Global Services; International Depository Services; Texas depositories | The gold IRA companies you see advertised |
How Custodians Are Regulated
The tax code requires IRA assets to be held by a bank or by a non-bank trustee that the IRS has approved under Treasury Regulation §1.408-2(e). The IRS publishes the list of approved non-bank trustees and custodians. If a company describes itself as your custodian, check it's a bank or on that list. A dealer is not a custodian.
Segregated vs. Commingled Storage
| Segregated | Commingled (non-segregated) | |
|---|---|---|
| Your metal | Stored separately, under your account | Pooled with identical products from other customers |
| What comes back | The exact bars and coins you bought | The same type and quantity |
| Cost | Usually higher | Usually lower |
Both are permitted for IRAs. Some depositories describe holdings as "fully allocated," meaning specific metal is assigned to customers and kept off the depository's own balance sheet. Ask how your depository defines its terms.
Questions to Ask a Custodian
- Are you a bank, or on the IRS list of approved non-bank trustees?
- What are your setup, annual, transaction, transfer-out and closing fees?
- How do I see my holdings: online, statements, or both?
- Which depositories can I use, and does my choice change the fees?
- How quickly do you process sales and distributions?
Questions to Ask About the Depository
- Where is the vault, and is storage segregated or commingled?
- Who insures the metal, and for how much?
- How often is the depository audited, and by whom?
- Is customer metal kept off the depository's balance sheet?
- How is metal released when I sell or take a distribution?
Switching Custodians or Depositories
If you're unhappy with fees or service, you can move your gold IRA to a new custodian by trustee-to-trustee transfer. Metal can often move in kind between depositories rather than being sold. Expect a transfer-out fee and possibly shipping and insurance costs, and don't let the metal pass through your hands. See gold IRA rollovers and transfers.