IRA Gold Storage Fees - Am I crazy or is this too high?

James Wilson

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IRA Gold Storage Fees - Am I crazy or is this too high?

james_wilson👑Elite (1m-5m)

about 2 months ago

Key Takeaways

•I've been kicking around the idea of a Gold IRA for a while now.
•I've had a significant portion of my portfolio in gold and silver for years, even before I retired from the Street a decade ago.
•It’s always been my anchor, especially living in New York where everything feels a bit more volatile, you know?

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I've been kicking around the idea of a Gold IRA for a while now. Most of my metals are physical, in my personal vault, but with the market being… interesting… lately, I’m looking to diversify some of my longer-term retirement holdings into precious metals within an IRA. I've had a significant portion of my portfolio in gold and silver for years, even before I retired from the Street a decade ago. It’s always been my anchor, especially living in New York where everything feels a bit more volatile, you know?

I’ve been talking to a few different custodians and I’m getting some wildly varying quotes on storage fees. One I just got hit with was 0.75% of assets annually. For a portfolio that's going to be in the low seven figures, that's almost $10k a year just for storage! Another custodian was talking about a flat fee that works out to something like $250 for up to $100,000, then scales up from there, but still seemed to cap out around the $2000-$3000 range for my projected allocation. That's a huge difference. Am I missing something here?

I understand there are different types of storage – commingled vs. segregated, different vaults, insurance, etc. I’m definitely leaning towards segregated storage for peace of mind, considering the value. But is 0.75% just completely out of line for segregated storage on a substantial amount of gold within an IRA? What have you all experienced with your Gold IRA storage fees, especially those of you with higher balances? Are there any hidden fees or things I should be looking out for that might make a lower percentage look better on paper but cost more in reality?

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3 comments

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Best Answer▲ 9 upvotes

karen_robinson💼Starter (0-50k)

Honestly, "too high" is all relative, right? What one person considers a bargain, another sees as highway robbery. It really depends on what you're getting for that fee and your overall investment strategy. If your peace of mind and the potential tax advantages are worth that extra cost, then it might not be crazy at all. But yeah, always worth shopping around, because those fees can definitely eat into returns over the long haul.

Comments (3)

michelle_collins🏆Advanced (250-500k)Real Investor•about 2 months ago

Totally get where you're coming from. I went through a similar thing last year when I was consolidating a couple of old 401ks into a Gold IRA. The first quote I got for storage fees felt like they were trying to buy themselves a new yacht! It really pays to shop around and not just go with the first company that pops up. There's definitely a range out there.

michael_anderson🏆Advanced (250-500k)Real Investor•about 2 months ago

Hey, totally get wanting to diversify right now. With the fees, are you looking at segregated storage or commingled? That usually makes a pretty big difference in the cost.