A gold IRA can be a good investment for a small, long-term slice of savings bought at a low markup, yet gold fell 23.3% from its January 2026 record. The LBMA PM price, gold's afternoon benchmark set in London, went from $5,405.00 an ounce on January 29 to $4,144.55 on September 28, 2026. So what do you gain, what does it cost, and who does it suit?
A gold IRA is a self-directed individual retirement account (IRA) whose custodian buys IRA-eligible gold and has a depository hold it for you. Self-directed means you pick the investments. The table shows who does what.
| Who | What they do | What they do not do |
|---|---|---|
| Dealer (the gold IRA company in the ads) | Sells you coins or bars, sets the markup, buys them back at its own price | Hold your metal or run your account |
| Custodian (a trust company or bank) | Runs the account, pays the dealer on your written order, sends tax forms | Check whether the price you paid is fair |
| Depository (a vault, usually a private company) | Stores and insures the metal | Insure what you paid above the metal's value |
| IRS | Sets the rules for which metal qualifies | Approve any coin, dealer or vault (it approves only nonbank trustees, 73 as of April 1, 2026) |
The markup, also called the premium, is the percent a dealer adds above gold's market price. Below, 5 real upsides and 8 downsides are priced in dollars, followed by 2026 losses, safety, gold versus stocks and a verdict for 9 situations. SafeOunce sells no metal, and every figure names its dated source or our own stated computation.
Is a Gold IRA a Good Investment? The Short Answer#
A gold IRA is a reasonable investment for a small slice of retirement money that you can leave in low-markup bullion for 10 years or more. Bullion means coins and bars valued for their metal, not their rarity. A gold IRA is a poor investment for small balances, money needed within about 5 years, or high-markup coins.
Whether it is worth it depends less on the gold price than on 3 numbers you control: the markup, the account's size and how long you can wait. Five price words explain why the markup matters most.
| Price word | What it means |
|---|---|
| Spot price | The market price of raw gold right now |
| Markup (premium) | What the dealer adds on top of spot when you buy |
| Bid (buyback price) | What the dealer pays you when you sell, usually below spot |
| Spread | The whole gap between what you pay and what the dealer pays you back |
| Break-even | The gold price at which a sale returns everything you paid |
The table weighs the 5 upsides against the 8 downsides, each with its number.
| Pros (5 real upsides) | Cons (8 real downsides) |
|---|---|
| Real gold held for you in the custodian's name | Markups of 5% to 30%: gold must rise 6.4% ($100,000 at 5%) to 35.3% ($10,000 at 30%) to break even |
| Gold rose in 7 of the 11 years US stocks lost money, 1972 to 2025 | $235 a year in flat fees on Equity Trust's metals-only schedule (September 2026) = 2.35% of a $10,000 account |
| A 1973 retiree ended 30 years with $1,722,036 holding 10% gold, vs $493,160 with no gold ($500,000 start) | No interest, dividends or income |
| 9.0% a year, or 5.0% after inflation, 1971 to 2025 | Bigger yearly swings: 27.1% vs 16.9% for stocks, 1971 to 2025 |
| Coins can be shipped to you instead of cash; no 28% collectibles tax inside the IRA | 28 years to break even after buying at the 1980 peak with a 5% markup |
| Over $500 million of overpriced metals in cases brought by the CFTC (Commodity Futures Trading Commission, the federal commodities regulator) over a decade, per its 2024 release | |
| Exit fees of $30 to $250 on Equity Trust's metals-only schedule (September 2026) | |
| Withdrawals from a traditional (pre-tax) IRA taxed at regular income-tax rates, like a 401(k) |
The rest of this page prices each line in dollars, and the verdict table matches them to 9 situations.
Can you lose money in a gold IRA?#
Yes: a $100,000 gold IRA opened in early January 2026 at a 5% markup was worth about $87,394 on September 28, 2026, a loss of 12.6% in 9 months.
Gold's market price fell only 7.0%; the markup, fees and sale below market caused the other 5.6 percentage points.
You lose money in 2 ways. The price can fall, as it did in 19 of the 55 years from 1971 to 2025. And the costs start you below zero (downside 1), so your first statement shows less than you paid.
To test other start dates, the gold IRA calculator replays real prices after markup and fees.
What Are the Pros of a Gold IRA? 5 Real Upsides#
A gold IRA has 5 real upsides: tax-sheltered physical gold, gains in 7 of 11 losing stock years, help for retirees in bad decades, growth above inflation and in-kind coins. Each of these gold-backed IRA pros has a limit, stated next to its number.
1. Physical gold held for you inside a tax-advantaged account#
A gold IRA lets you own specific coins and bars inside an IRA, where the metal grows tax-deferred (no tax until you withdraw). In a Roth IRA, funded with money already taxed, qualified withdrawals are tax-free.
Only 2 kinds of gold qualify: coins the law names, such as the American Gold Eagle at any purity, and bullion at least 99.5% pure (a "fineness" of .995). The IRS says "there is no list of approved investments" (Retirement Plan Investments FAQs), so no coin or company carries IRS approval. If the IRA buys a coin that does not qualify, its cost is taxed as a withdrawal (26 U.S.C. 408(m)(1)), and a 10% additional tax may apply before 59 1/2.
The shelter is worth real money. The table assumes a $100,000 after-tax budget, gold that doubles and a 24% bracket.
| Where the gold sits | What you keep after tax |
|---|---|
| Taxable account, gain taxed at 24% | $176,000 |
| Taxable account, gain taxed at the 28% cap | $172,000 |
| Taxable account, 28% plus the 3.8% net investment income tax | $168,200 |
| Traditional IRA ($131,579 deducted, grows to $263,158, taxed at 24%) | $200,000 |
| Roth IRA | $200,000 |
Before fees. SafeOunce computation; IRA withdrawals escape the 3.8% tax (26 U.S.C. 1411(c)(5)). The 28% rows assume a higher-income filer (a 24%-bracket filer pays at most 24%), and the 3.8% tax starts above $200,000 single or $250,000 joint modified adjusted gross income. The traditional row assumes pre-tax rollover money, not a new contribution.
Home storage breaks the trustee rule: the Tax Court taxed coins an owner kept at home as a withdrawal (McNulty v. Commissioner, 157 T.C. No. 10, November 18, 2021). A home storage gold IRA is the setup that case taxed.
2. Gold often held up when stocks fell#
Gold rose in 7 of the 11 years that the S&P 500 lost money from 1972 to 2025, including +66.1% in 1974 and +4.3% in 2008. The S&P 500 is an index of 500 large US companies, shown here as total return: price change plus dividends.
The table shows 5 of those losing years for stocks, including 1981, when gold fell too.
| Year | S&P 500 total return | Gold |
|---|---|---|
| 1973 | -14.3% | +73.0% |
| 1974 | -25.9% | +66.1% |
| 1981 | -4.7% | -32.6% |
| 2008 | -36.6% | +4.3% |
| 2022 | -18.0% | +0.5% |
Source: Aswath Damodaran's year-end data, NYU Stern (saved August 24, 2026). London (LBMA) year-end prices give +4.3% for 2008 and +0.4% for 2022.
Gold also rose in 7 of the 8 US recessions since 1969 (NBER dates). But it is not a reliable hedge, an asset that moves apart from stocks. It fell 12.4% from March 6 to March 19, 2020, while stocks fell 18.9%, and lost 4.3% in 2021 as consumer prices rose 7.0%.
Gold during stock market crashes has a mixed record in research too. Dirk Baur and Brian Lucey ("Is Gold a Hedge or a Safe Haven?", 2010) found gold "a safe haven in extreme stock market conditions." A safe haven holds its value while stocks crash, but "the safe haven property is short-lived."
Every S&P 500 fall of 19% or more from a record high since 1968 is listed in gold during stock market crashes.
3. A small gold slice helped retirees in the worst decades#
A retiree who started in 1973 with $500,000 and withdrew 4% a year ended 30 years later with $1,722,036 holding 10% gold, against $493,160 with no gold. The 4% withdrawal rate is the share taken out in year one, then raised with inflation.
A 60/40 portfolio holds 60% stocks and 40% bonds, rebalanced (reset to those shares) each year. The table replays 4 retirement start dates.
| Retirement years | 60% stocks, 40% bonds | 55% stocks, 35% bonds, 10% gold | 50% stocks, 30% bonds, 20% gold | 100% gold | 100% stocks |
|---|---|---|---|---|---|
| 1973 to 2002 | $493,160 | $1,722,036 | $2,557,748 | $812,564 | $544,474 |
| 1981 to 2010 | $5,337,931 | $4,077,717 | $2,930,472 | Ran out in 1993 | $5,683,541 |
| 1996 to 2025 | $2,274,176 | $2,366,105 | $2,419,589 | $440,193 | Not run |
| 2000 to 2025 | $624,526 | $863,729 | $1,132,790 | $3,769,842 | $63,997 |
Assumptions: $500,000 start, 4% first-year withdrawal raised by inflation, taken at the start of each year, rebalanced yearly, no fees. SafeOunce computation from Damodaran (NYU Stern) data.
Gold worked like insurance: it paid off when retirement began in a stock crash with high inflation (1973) and cost money in a stock boom (1981). Fees would lower every gold column, and no mix here is a recommendation.
Bad years early in retirement do the most damage, because you sell to pay bills while prices are down. Planners call this sequence-of-returns risk, and the role of gold is tested in sequence-of-returns risk and the role of gold.
4. Gold's long-run growth above inflation#
Gold returned 9.0% a year from the end of 1970 to the end of 2025, or 5.0% after inflation, while US stocks with dividends returned 11.1% (7.0%).
These are compound annual returns, the steady yearly rate that turns the start amount into the end amount. A real return is the return after inflation. The start date decides the winner.
| Window | Gold | S&P 500 total return |
|---|---|---|
| 1971 to 2025 | 9.0% a year | 11.1% a year |
| 1981 to 2025 | 4.6% a year | 11.7% a year |
| 2000 to 2025 | 11.0% a year | 8.0% a year |
These figures come before markup, fees and taxes. Watch for "average return" claims: the simple (arithmetic) average of gold's yearly returns, 1971 to 2022, was 10.4%, but money grew at 7.8% compound. If $100 rises 50% and then falls 50%, the simple average is 0%, yet you end with $75.
Some pages say the dollar lost 99% against gold. That only restates the price rise; savers earned 9.0% a year (5.0% after inflation) from 1971, and 4.6% from 1981.
Year-by-year gold IRA returns since 1971 are shown after IRA costs.
5. Coins you can take out in kind, and no 28% collectibles rate inside the IRA#
A gold IRA lets you take coins out instead of cash, and while the metal stays inside the IRA, the 28% collectibles tax rate never applies.
Taking cash or physical gold is your choice at withdrawal. In an in-kind distribution the custodian ships you the coins, counted at fair market value (their selling price that day) on Form 1099-R.
As of September 2026, shipping coins out costs $125 on Equity Trust's metals-only schedule and $75 plus a $10 fee and shipping at GoldStar Trust. The steps for taking cash or physical gold out are explained one by one.
The 28% rate caps long-term gains on collectibles held outside an IRA (26 U.S.C. 1(h)(4)-(5)). IRS Topic 409: "Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate."
Inside a traditional IRA you skip the 28% rate, but withdrawals are taxed at your regular income-tax rate instead. Outside an IRA, the 28% collectibles rate is the most you pay on long-term gains, not a rate everyone pays.
What Are the Cons of a Gold IRA? 8 Real Downsides#
A gold IRA has 8 real downsides: the dealer's spread, fixed fees, no income, big price swings, long recoveries after peaks, sales pressure, slow exits and income tax. The spread usually costs the most, and each of these gold IRA risks is priced below with its date and source.
1. The dealer's spread, and the rise you need to break even#
The dealer's spread is usually the largest cost of a gold IRA: after a 5% markup, a $10,000 account needs gold to rise about 9.2% just to break even. After a 30% markup, it needs about 35.3%.
The CFTC's "Lies Versus Facts" (2024) says the spread "can range anywhere from 30 to 300 percent or more. The higher the spread, the more the spot price would have to climb simply for you to break even" (CFTC, 2024). Money.com's fees page (March 24, 2026) says spreads "range from 1% to 2% for standard gold bars."
Your statement never shows the markup or spread you paid. How dealers set gold IRA markups and spreads decides most of your cost.
The table shows how much gold must rise before you can sell without a loss.
| Account balance | 3% markup | 5% markup | 10% markup | 30% markup |
|---|---|---|---|---|
| $10,000 | 7.2% | 9.2% | 14.4% | 35.3% |
| $25,000 | 5.3% | 7.3% | 12.4% | 32.9% |
| $50,000 | 4.7% | 6.7% | 11.8% | 32.1% |
| $100,000 | 4.4% | 6.4% | 11.4% | 31.7% |
Includes $300 of first-year fees and a sale 1% below spot. SafeOunce computation: rise = ((balance + fees) x (1 + markup)) / (0.99 x balance) - 1.
Time matters as much as the percentage. The table turns a markup into years, using hypothetical steady growth, not a forecast.
| Markup | Share of your money that never buys metal | Years to break even if gold rose a steady 5% a year | At a steady 8% a year |
|---|---|---|---|
| 23% | 18.7% | 4.2 | 2.7 |
| 33% | 24.8% | 5.8 | 3.7 |
| 64% | 39.0% | 10.1 | 6.4 |
| 100% | 50.0% | 14.2 | 9.0 |
| 130% | 56.5% | 17.1 | 10.8 |
SafeOunce computation: share = markup / (1 + markup); years = ln(1 + markup) / ln(1 + growth). Fees excluded.
Real spreads vary by product and seller. Numismatic coins are priced for rarity rather than metal. Firms below are dated sources, not a ranking.
| Source (date) | What it shows |
|---|---|
| CFTC advisory (August 4, 2020) | Bullion typically 5% to 10% over spot; numismatic coins 40% to 200% |
| American Hartford Gold transaction agreement (September 2026) | Spreads allowed up to 19.99% on bullion, up to 39.99% on "exclusive" and semi-numismatic coins, up to 59.99% on limited numismatic coins |
| Lear Capital terms (December 2025) | Spreads "generally range between 2% and 35%" |
| Lear Capital's own 2022 average, from its Chapter 11 plan (June 5, 2023) | 23.4% (one firm's average, not an industry average) |
| SD Bullion posted prices (September 29, 2026) | Cheapest IRA-eligible 1 oz coins 2.02% to 3.03% over spot; a Gold Eagle bought at $4,280.53 sold back at $4,049.93, a 5.39% round-trip loss |
Even cheap bullion lost about 5% when bought and sold back the same day. Enter your own quote in the gold IRA break-even calculator before any money moves.
2. Fixed fees that are heavy on small accounts#
A gold IRA's custodian and storage fees are flat dollar amounts, so $235 a year costs 2.35% of a $10,000 account but only 0.47% of a $50,000 account.
The $235 is Equity Trust's metals-only schedule, as of September 2026: $125 a year for the account plus $110 for "non-segregated" storage, where your coins sit with other owners' coins of the same kind. A gold ETF (exchange-traded fund) holds vaulted gold and trades like a stock. Its expense ratio is a yearly percentage fee, such as 0.10% for GLDM (SPDR Gold MiniShares).
| Account balance | Gold IRA fee ($235 a year) as % | GLDM fee in dollars | GLDM fee as % |
|---|---|---|---|
| $10,000 | 2.35% | $10 | 0.10% |
| $25,000 | 0.94% | $25 | 0.10% |
| $50,000 | 0.47% | $50 | 0.10% |
| $100,000 | 0.235% | $100 | 0.10% |
| $250,000 | 0.094% | $250 | 0.10% |
Sources: Equity Trust precious-metals-only schedule FS-0004-05 Rev. 081726, named only as a published schedule; GLDM annual report (10-K); both as of September 2026.
Gold IRA fees differ by custodian: published schedules cost $215 to $656 a year at $50,000 (September 2026), above the "$160 to $200" some pages quote. The flat fee beats GLDM's yearly cost only above $235,000. Add a 5.4% round trip and the $50 setup, and a gold IRA never catches up with GLDM's total cost at $50,000 or $100,000 (SafeOunce computation). Every schedule is compared in gold IRA fees.
This page's examples round fees to $250 a year, or $300 in the first year with the $50 setup. Closing the account adds $250 on Equity Trust's metals-only schedule and $150 at GoldStar Trust (September 2026).
The dealer usually costs far more than the custodian. The table prices 10 years on $100,000 with gold flat.
| Cost on $100,000 over 10 years (gold flat) | About |
|---|---|
| Custodian and vault (Equity Trust metals-only, segregated: $50 setup, $285 a year, $280 to exit) | $3,200 |
| Dealer: bullion at a 5.4% round trip | $5,400 |
| Dealer: Lear Capital's own 2022 average spread of 23.4% plus the bid gap (27.0%) | $27,000 |
| Dealer: American Hartford Gold's 39.99% cap plus the bid gap (42.8%) | $43,000 |
SafeOunce computation, as of September 2026. The product and the dealer matter about 10 times more than the custodian.
The gold IRA fee calculator adds setup, yearly and exit fees over 10 years.
3. No interest, dividends or income#
Gold pays no interest or dividends, so a gold IRA earns only what the price rises, minus its costs. Warren Buffett's 2011 letter to Berkshire Hathaway shareholders put it plainly: "if you own one ounce of gold for an eternity, you will still own one ounce at its end."
No income also shapes withdrawals. Required minimum distributions (RMDs) are yearly withdrawals the IRS requires from traditional IRAs. They start at 73 if you were born from 1951 to 1958 and at 75 if born in 1960 or later; for 1959, 73 applies under proposed rules. Each RMD means selling metal or taking coins, as these steps show.
- You are 75 and hold a $200,000 all-gold IRA at the end of 2012, when gold is $1,657.50 an ounce.
- Your RMD is $200,000 divided by 24.6, the IRS divisor at 75: $8,130.
- Sell at once, at the end-2012 price, and you sell about 4.91 ounces.
- Wait until December 2013, when gold was $1,204.50, and you sell 6.75 ounces, about 37% more metal.
The example applies today's IRS table to 2013 prices.
4. Big price swings#
Gold's price has swung more than stocks: its yearly volatility was 27.1% from 1971 to 2025, against 16.9% for the S&P 500. Volatility measures how much yearly returns bounce around their average. Gold fell in 19 of those 55 years; the S&P 500 fell in 11.
Three falls show the swings (LBMA PM prices). The last 2 are drawdowns: drops from a peak to a later low.
- 1981: a 32.6% loss in one calendar year.
- 2011 to 2015: a 44.6% drop, from $1,895.00 on September 6, 2011 to $1,049.40 in December 2015.
- 2026: a 26.1% drop, from $5,405.00 on January 29 to $3,993.55 on July 16.
Silver swings more: 66.3% yearly volatility from 1971 to 2025, and a 48.2% fall from its January 2026 record by September 28. One commission-earning news page (2023) promises gold's "steady returns," which is not what 55 years of prices show.
5. Recoveries that took decades after gold's peaks#
A buyer at gold's January 1980 peak who paid a 5% markup waited 28 years, until January 14, 2008, to break even. A 2011 peak buyer who paid 20% waited 12.6 years.
The table shows when peak buyers got their money back after the markup.
| Bought | LBMA PM price | Markup | Break-even price | First reached | Years waited |
|---|---|---|---|---|---|
| January 21, 1980 | $850.00 | 5% | $902 | January 14, 2008 | 28.0 |
| January 21, 1980 | $850.00 | 20% | $1,030 | October 6, 2009 | 29.7 |
| September 6, 2011 | $1,895.00 | 5% | $2,010 | August 5, 2020 | 8.9 |
| September 6, 2011 | $1,895.00 | 20% | $2,297 | April 5, 2024 | 12.6 |
| September 6, 2011 | $1,895.00 | 30% | $2,488 | August 19, 2024 | 13.0 |
| August 6, 2020 | $2,067.15 | 20% | $2,506 | August 20, 2024 | 4.0 |
| January 29, 2026 | $5,405.00 | 5% | $5,733 | Not reached by September 28, 2026 | Not yet |
| January 29, 2026 | $5,405.00 | 20% | $6,552 | Not reached by September 28, 2026 | Not yet |
Break-even price = purchase price x (1 + markup) / 0.99. Yearly fees are excluded; they push break-even later.
After inflation the wait was longer. A real price is a price adjusted for inflation: the January 1980 peak equals about $3,660 in August 2026 dollars, and gold regained that buying power only on September 3, 2025, 45.6 years later. Every major fall since 1971, and how long recovery took, is listed by metal.
6. Sales pressure, overpriced coins and scams#
The CFTC said in March 2024 that investors had been sold over $500 million of overpriced precious metals in its cases over the past decade (release 8881-24).
Red Rock Secured shows how these sales work; the CFTC charged it on May 15, 2023. At least 950 people paid over $69 million for coins worth about $30 million, at markups of 91.89% to 129.97% over cost. Its consent order (a court order the firm agrees to) of April 23, 2024 totals $56,334,313.90: $38,984,313.90 restitution, $5.1 million disgorgement and a $12.25 million penalty (release 8898-24). In May 2024 the SEC said the firm "now operates under the name American Coin Co."
The 11 warning signs of gold IRA scams come from case files like Red Rock's.
The CFTC lists this as a lie: "Putting all your retirement savings in precious metals is safe and secure" (Lies Versus Facts, 2024). Sellers call some coins "semi-numismatic," meaning partly valued for rarity; the CFTC's 2020 advisory calls that "a made-up industry term."
A common script quotes plain bullion, then steers you to pricier "rare" coins, the switch behind numismatic coin upsells.
7. Slower, costlier selling and withdrawals#
You cannot sell IRA gold with a tap on a phone: the custodian must process each sale or withdrawal, and each step can carry a fee. A liquidation is a sale of IRA metal for cash.
No law or published rule sets how long a sale takes, so ask the custodian in writing. The dealer's buyback, its offer to buy your metal back, comes at its bid, below spot.
As of September 2026, Equity Trust's metals-only schedule charges $30 per sale, $125 to ship coins out and $250 to close the account. What it costs to sell gold in your IRA and cash out depends on the dealer's bid and the custodian.
Complaints follow the exit. In the latest one-star Trustpilot reviews we read on September 29, 2026, exit delays and fees drove 14 of 22 at Equity Trust (64%) and 15 of 20 at GoldStar Trust (75%).
That is a small, recent sample, not a survey.
RMDs add a sale or coin shipment every year from 73 or 75, and planning sales for gold IRA required minimum distributions avoids selling in a hurry.
8. Withdrawals taxed as ordinary income#
Money you take out of a traditional gold IRA, in cash or coins, is taxed as ordinary income, like wages. Before age 59 1/2, a 10% additional tax usually applies too. Only after-tax (nondeductible) contributions come back tax-free, in proportion.
Some sellers' pages say early withdrawals face "capital gains taxes." They do not; the lower capital gains rates never apply.
The rules for gold IRA taxes come from 26 U.S.C. 408(d)(1) and 72(t). Custodians also hold back 10% of each withdrawal for federal tax (withholding) unless you pick another amount on Form W-4R. The full rules for gold IRA taxes run from contribution to distribution.
You can still contribute up to $7,500 in 2026, or $8,600 at 50 or older (IRS Notice 2025-67).
A Roth IRA works the other way: a tax-free Roth gold IRA holds money you already paid tax on. Withdrawals are qualified only once 5 tax years have passed since your first Roth contribution. You must also be 59 1/2, disabled or buying a first home (up to $10,000 lifetime), or the payment goes to an heir after your death (26 U.S.C. 408A(d)(2)).
Qualified withdrawals from a tax-free Roth gold IRA owe no federal income tax.
What Do the Downsides Cost in Real Dollars?#
The downsides cost real money even in good years: in gold's strong 2016 to 2025 decade, a 20% markup and fees cut the result on $100,000 by about $75,000. In 2026, a buyer at the record lost 27.7% after a 5% markup.
The sections below replay real LBMA prices for actual start dates and markups.
How much a markup took from a strong decade for gold#
$100,000 put into gold at the end of 2015 grew to $412,057 by the end of 2025 at spot prices, but to $337,027 after a 20% markup and fees. That was a strong decade for gold, at 15.2% a year.
Gold is weighed in troy ounces of 31.1 grams, about 10% heavier than a kitchen ounce. Net value is what you keep after selling and paying every fee.
| Markup | Ounces bought | Net value on December 31, 2025 | Return a year |
|---|---|---|---|
| 0% (spot, no costs) | 94.34 | $412,057 | 15.2% |
| 2% | 92.44 | $396,987 | 14.8% |
| 5% | 89.80 | $385,566 | 14.4% |
| 10% | 85.72 | $367,916 | 13.9% |
| 20% | 78.58 | $337,027 | 12.9% |
| 30% | 72.53 | $310,890 | 12.0% |
Assumptions: $100,000 on December 31, 2015; the $50 setup comes out of the purchase; $250 a year billed for 11 calendar years (2015 through 2025) = $2,750; sold 1% below spot. SafeOunce computation from LBMA PM prices.
At a 30% markup the account ended $101,167 below spot. About $95,000 of that was the markup itself; the rest was fees and the sale below spot. The markup is the number to negotiate, and it is why a new gold IRA statement shows less than you paid.
What $100,000 opened in different years is worth today#
$100,000 opened in a gold IRA in January 2006 at a 5% markup was worth $739,060 on September 28, 2026. The same amount opened in January 2026 was worth $87,394.
Each row assumes a 5% markup, a $50 setup, $250 a year in fees and a sale 1% below spot.
| Opened (early January) | Gold price then (LBMA PM) | Value on September 28, 2026 | Your return a year after costs | Gold price return a year |
|---|---|---|---|---|
| 2006 | $524.75 | $739,060 | 10.1% | 10.5% |
| 2011 | $1,368.00 | $281,509 | 6.8% | 7.3% |
| 2013 | $1,648.00 | $233,500 | 6.4% | 6.9% |
| 2016 | $1,077.00 | $359,902 | 12.7% | 13.4% |
| 2020 | $1,548.75 | $250,438 | 14.6% | 15.7% |
| 2021 | $1,940.35 | $199,792 | 12.8% | 14.2% |
| 2025 | $2,646.80 | $147,066 | 24.9% | 29.5% |
| 2026 | $4,456.40 | $87,394 | -12.6% in 9 months | -7.0% in 9 months |
The start date mattered most. Costs took about half a percentage point to 5 percentage points a year, and hurt most in short holdings, because the markup is spread over fewer years.
What happened to people who bought at the January 2026 record#
Anyone who bought gold at the LBMA PM record of $5,405.00 on January 29, 2026 was down 23.3% by September 28, 2026, or 27.7% after a 5% markup.
| Buyer | Loss on September 28, 2026 |
|---|---|
| Gold at spot, bought at the record | -23.3% (low point -26.1% on July 16) |
| Gold with a 5% markup, bought at the record | -27.7% |
| Gold with a 30% markup, bought at the record | -41.6% |
| Silver at its $118.45 record, to $61.33 | -48.2% |
| Gold IRA opened January 5 (5% markup, fees) | -12.6% (gold price -7.0%) |
The record depends on which price you read. The LBMA sets a morning (AM) and afternoon (PM) price each day; on January 29 the AM price was $5,501.70. Gold futures (contracts to buy gold later) touched $5,586.20 that day, so headlines saying gold hit $5,600 quoted a different price.
These record buyers need $5,733 to break even at a 5% markup and $6,552 at 20%.
Is it too late to buy gold after a record run?#
A record run has not predicted what came next: after gold's 9 finished 25%-plus years since 1971, the next 5 years ranged from +22.4% to -9.6% a year.
| Year of a 25%+ gain (LBMA PM) | Average yearly return, next 5 years |
|---|---|
| 1972 | +20.5% |
| 1973 | +15.0% |
| 1974 | +22.4% |
| 1978 | +11.1% |
| 1979 | -9.6% |
| 2002 | +19.1% |
| 2007 | +14.7% |
| 2009 | +2.1% |
| 2010 | -5.5% |
| 2024 (+25.5%) | 2025: +67.4%; 2026 to September 28: -5.1% |
Record central-bank buying did not prevent the 2026 fall either. Central banks bought 1,082 tonnes of gold in 2022, 1,050.8 in 2023, 1,092.4 in 2024 and 863 in 2025, against 473 a year in 2010 to 2021. They added 289 tonnes in the second quarter of 2026, yet the average LBMA PM price fell 8% from the first quarter (World Gold Council, Gold Demand Trends Q2 2026).
Nobody can time gold from this record, though research finds a pattern in prices after inflation, set out in what the research says about buying gold at high prices.
Is a Gold IRA Safe?#
A gold IRA keeps your metal apart from the custodian's own property, but no government program insures it and its price can fall fast.
Safety has 3 parts: the price, the vault and the people you buy from. The table shows who protects what.
| Protection | Covers | Does not cover | Source |
|---|---|---|---|
| FDIC (bank deposit insurance) | Bank deposits, including IRA deposits, up to $250,000 per owner | "Safe Deposit Boxes or their contents"; metal | fdic.gov |
| SIPC (protection for accounts at a failed brokerage) | Securities up to $500,000, including $250,000 cash | Commodities such as metal; "the decline in value of your securities" | sipc.org |
| Depository insurance (example: Delaware Depository, $1 billion all-risk plus $100 million contingent, as of September 2026) | Theft and loss, at metal value | What you paid above metal value; war, terrorism, cyber-attack, government confiscation | Depository FAQ and agreement |
| Custodian | Records, tax forms, buying on your instruction | Whether the dealer or price is fair: custodians "generally do not evaluate the quality or legitimacy of any investment" (SEC and NASAA) | sec.gov |
| IRS | Sets eligibility rules | Approves no coin, dealer or depository: "there is no list of approved investments" | irs.gov |
All-risk insurance covers every loss the policy does not exclude; contingent cover is an extra layer for set situations. Most gold IRA depositories are private companies, while the Texas Bullion Depository is a Texas state agency. What gold IRA depositories charge is compared vault by vault.
If you file for bankruptcy yourself, federal law protects IRA money up to $1,711,975 for cases filed from April 1, 2025 (11 U.S.C. 522(n)). Money rolled over from an employer plan such as a 401(k) is protected on top of that cap. This does not help if a dealer or vault fails.
What protects the gold in your IRA, and what does not#
The gold in your IRA is protected by the vault's private insurance and by being held in your IRA's name, not by the government. That insurance pays the metal's market value, not what you paid.
Vault insurance has limits. Delaware Depository's policy pays market value unless a higher value was declared in advance, and excludes war, terrorism, cyber-attack and confiscation. Gold.com's AMGL vaults carry $50 million of first-layer cover plus extra layers to $500 million, shared across all locations (fiscal 2026 annual report), which does not say whether it covers customer IRA metal.
How gold IRA storage is insured matters most for premium coins: a 1 oz coin bought at a 30% markup is insured for its metal value only. Segregated storage keeps your own coins apart; non-segregated storage pools them with the same kind. Both are "allocated," meaning legally assigned to you. Limits of how gold IRA storage is insured differ by vault.
What happens if a vault, dealer or custodian fails#
Vault failures have lost customer metal, and dealer failures turn undelivered orders into bankruptcy claims (formal demands for payment). A custodian that is sold or quits hands accounts to a successor.
First State Depository in Delaware shows what a vault failure looks like. It held 2,102 accounts, about 90% of them IRAs. In January 2023 the receiver, a court-appointed manager, estimated $56.8 million to $110.4 million of customer metal missing. First State advertised $400 million of insurance but carried $75 million from May 2021, and segregated storage did not protect customers.
Owner Robert Leroy Higgins was sentenced on June 17, 2025 to 65 years, with about $76 million in restitution. What IRA owners lost at First State Depository, and what they got back, is documented case by case.
Custodians are a different risk, because the law bars them from mixing IRA assets with their own (26 U.S.C. 408(a)(5)). Midland Trust's accounts, for example, moved to Equity Trust on July 15, 2024. In a 2014 SEC case, an administrator was accused of taking about $24 million from about 5,500 IRA holders.
Sellers fail too. As of September 29, 2026, Rosland Capital is in a liquidating Chapter 11 (a bankruptcy that sells off what is left) filed July 2, 2026, owing about $60.8 million to about 617 customers.
About $49 million of Rosland's debt is for undelivered orders. With Red Rock Secured and Regal Assets, failed gold IRA companies involve more than $131 million of known customer money. Delivered metal sits in your custodian's name for you, so what happens at failed gold IRA companies depends on delivery.
Are gold IRAs a scam aimed at retirees?#
A gold IRA is a legal account under federal tax law, but the CFTC warns that fraudulent dealers target people near retirement. Its 2024 advisory says: "These scam dealers also set their sights on people in or near retirement because they have saved the most."
Three checks separate the account from the sales pitch.
- Check that your metal appears on your custodian's depository statement, not only in the dealer's letter.
- Compare the price per coin with the spot price on the same day.
- Look up the seller in CFTC and state enforcement records.
One call to the custodian answers is your gold really in your IRA, and the guide covers metal that never arrived.
Your custodian does not vet the seller. An SEC and NASAA alert (NASAA is the association of state securities regulators) says custodians "generally do not evaluate the quality or legitimacy of any investment" (SEC and NASAA).
The dated record of gold IRA enforcement actions since 2008 names every case.
Has Gold Beaten Stocks? Buffett's Test and What Researchers Found#
Gold has beaten US stocks only from lucky start dates: 11.0% a year against 8.0% from 2000 to 2025, but 4.6% against 11.7% from 1981 to 2025.
Over the full 1971 to 2025 period, gold returned 9.0% a year and the S&P 500 returned 11.1% with dividends.
Gold also swung more, with 27.1% volatility against 16.9%. Every period of gold vs the S&P 500 since 1971 is compared side by side.
Warren Buffett's gold test, 14.6 years later#
In February 2012, Warren Buffett argued that productive assets such as stocks would beat gold, and 14.6 years later the numbers back him. From February 24, 2012 to September 28, 2026, gold grew 2.33 times while US stocks grew about 7.2 times with dividends.
His letter to Berkshire Hathaway shareholders for 2011 says gold has "two significant shortcomings, being neither of much use nor procreative" (able to produce more of itself). All the world's gold "would form a cube of about 68 feet per side," worth "$9.6 trillion" at $1,750 an ounce (2011 letter).
| February 24, 2012 to September 28, 2026 | Start | End | Grew to | A year |
|---|---|---|---|---|
| Gold (LBMA PM, dollars an ounce) | $1,777.50 | $4,144.55 | 2.33 times | 6.0% |
| S&P 500, price only (index points) | 1,365.74 | 7,683.69 | 5.63 times | 12.6% |
| S&P 500 with dividends (approximate) | About 7.2 times | About 14.5% |
Along the way, gold fell 41% from its February 2012 price to $1,049.40 in December 2015. SafeOunce computation from LBMA and S&P 500 index data.
The test covers one start date; gold won other windows, such as 2000 to 2025. Buffett and Dave Ramsey share one objection, that gold pays nothing, and why Dave Ramsey and Warren Buffett say no to gold is answered point by point.
What the research says about buying gold at high prices#
Economists Claude Erb and Campbell Harvey found that when gold's price after inflation was above average, the years that followed usually brought below-average real returns.
Their 2013 study "The Golden Dilemma" (Financial Analysts Journal 69(4); NBER Working Paper 18706) says gold "may be an effective hedge if the investment horizon is measured in centuries." It adds: "Over practical investment horizons, gold is an unreliable inflation hedge."
The study also found: "In the past, when the real price of gold was above average, subsequent real gold returns have been below average consistent with mean reversion." Mean reversion means prices drifting back toward their long-run average. A 2020 paper by Erb, Harvey and Tadas Viskanta (SSRN 3667789) measured what followed the 2 earlier real-price peaks.
| Real-price peak | Price fall 5 years later | Fall after inflation |
|---|---|---|
| January 1980 | 55% | 67% |
| August 2011 | 28% | 33% |
The 2026 peak is the highest yet after inflation.
| Peak | Price then (LBMA PM) | In August 2026 dollars |
|---|---|---|
| January 21, 1980 | $850.00 | About $3,660 |
| September 6, 2011 | $1,895.00 | About $2,798 |
| January 29, 2026 | $5,405.00 | About $5,567, the highest on record |
Inflation-adjusted prices and gold as an inflation hedge are tested year by year.
Who Is a Gold IRA Good For? A Verdict by Situation#
A gold IRA suits people with $50,000 or more who want part of their retirement money in physical bullion for 10 years or more. It usually costs too much for balances under about $25,000 or money needed within 5 years.
Your allocation is the share of savings you put in gold. The table matches 9 situations to what usually fits.
| Your situation | What usually fits | The number that decides it |
|---|---|---|
| 1. Under about $25,000 to put in gold | A gold ETF in an IRA you already have | $235 a year = 0.94% of $25,000, vs 0.10% for GLDM; $10,000 in a gold IRA costs about $3,720 over 10 years (segregated storage at $285 a year, $280 to exit, 5.4% round trip), vs about $100 in a 0.10% ETF |
| 2. You need the money within about 5 years | Not a gold IRA | Break-even rise of 6.4% to 9.2% after a 5% markup; gold fell 26.1% within 2026 |
| 3. Retiring soon and told to move "everything" into gold | Not a gold IRA | A 100%-gold retiree from 1981 ran out of money in 1993; the CFTC lists "Putting all your retirement savings in precious metals is safe and secure" as a lie |
| 4. Offered proof coins (specially struck collector versions), "exclusive" or "semi-numismatic" coins | Decline the product | CFTC: numismatic coins sell 40% to 200% over spot; break-even is 35.3% at a 30% markup on $10,000 |
| 5. $50,000 or more in an old 401(k) or IRA; wants part of it in physical bullion for 10+ years | A self-directed gold IRA at a low markup can fit | Break-even rise of 4.7% to 6.7% at 3% to 5% markups on $50,000; 10-year cost about $5,880 for bullion (5.4% round trip) vs about $16,675 at Lear Capital's own 2022 average spread of 23.4% plus the dealer's bid gap (gold flat) |
| 6. Wants coins delivered at retirement | A gold IRA is the usual route inside an IRA that ships coins | In-kind distributions count at fair market value |
| 7. Retired at 55 to 59 1/2 and drawing on a 401(k) | Keep that money in the plan | The age-55 exception to the 10% additional tax does not apply to IRAs (26 U.S.C. 72(t)(3)(A)) |
| 8. Roth IRA with years to go | A Roth gold IRA or a gold ETF in the Roth | Qualified Roth withdrawals are tax-free (26 U.S.C. 408A) |
| 9. Already has a Fidelity IRA and wants US bullion | Fidelity's in-IRA bullion program | Buying fee from 2.90% (orders under $10,000) down to 0.99% ($100,000 and up); storage 0.50% a year |
Numbers as of September 2026. The 10-year costs in rows 1 and 5 use Equity Trust's metals-only schedule with segregated storage ($50 setup, $285 a year, $280 to exit), not the $235 non-segregated figure used elsewhere. Situations overlap, so check every row that fits. General information, not advice.
The table describes situations, not instructions; a fee-only planner or tax professional can check your numbers. Moving 401(k) money into a gold IRA (a rollover) also gives up 401(k) rules such as the age-55 exception, covered in 401(k) to gold IRA rollover.
When a gold IRA can make sense#
A gold IRA can make sense when you want metal held in your IRA's name, pay a low markup on plain bullion and can leave the money alone for years.
The 4 conditions are listed below.
- Physical metal as the goal: an ETF cannot deliver coins to you; a gold IRA can.
- A markup near 2% to 5%, in writing, before money moves; the cheapest eligible 1 oz coins cost 2.02% to 3.03% over spot at SD Bullion on September 29, 2026.
- A balance large enough that flat fees stay near 0.5% a year or less: about $50,000 at $235 a year.
- A share of savings you could hold through a 26% fall, like gold's January to July 2026 drop.
Before you choose a gold IRA company, get the coin price, that day's buyback price and every fee in writing, using the 12 questions in choose a gold IRA company.
When a gold IRA usually does not make sense#
A gold IRA usually does not make sense for small balances, money you need soon, all-in bets, high-markup coins or anyone being pressured by a caller.
The 5 poor fits are listed below.
- Small balances: $10,000 costs about $3,720 over 10 years on Equity Trust's metals-only segregated schedule (September 2026).
- Short horizons: gold must rise 6.4% to 9.2% to break even after a 5% markup, and it fell 26.1% within 2026.
- All-in bets: a retiree who held only gold from 1981 ran out of money in 1993.
- High-markup coins: numismatic coins sell 40% to 200% over spot (CFTC, 2020).
- Pressure: the CFTC calls "all your retirement savings" in metals being "safe and secure" a lie.
The balance at which flat fees bite, when a gold IRA is too expensive, is worked out by account size.
At $5,000, the $235 yearly fee on the same schedule (non-segregated, September 2026) alone takes 4.7% a year.
Each seller, not the IRS, sets a minimum: for example $5,000 at Birch Gold Group and $25,000 at Goldco, as of September 29, 2026. Some ask more, and meeting a minimum does not make the account worth it.
The full list is in how much money you need to start a gold IRA.
Cheaper ways to own gold in a retirement account#
The cheapest way to hold gold in an IRA is a low-cost gold ETF in an account you already have. On $100,000 over 10 years, GLDM costs about $1,035 against about $6,341 for a low-cost gold IRA.
The 4 ETFs are IAUM (iShares Gold Trust Micro), GLDM (SPDR Gold MiniShares), IAU (iShares Gold Trust) and GLD (SPDR Gold Shares). The letters are ticker symbols.
| Route | 10-year cost on $100,000 (gold price flat) |
|---|---|
| IAUM (gold ETF, 0.09% stated fee) | $936 |
| GLDM (gold ETF, 0.10%) | $1,035 |
| IAU (gold ETF, 0.25%) | $2,511 |
| GLD (gold ETF, 0.40%) | $3,967 |
| Fidelity in-IRA bullion | $6,990 plus the dealer spread, which Fidelity does not publish |
| Low-cost gold IRA (3.03% Gold Eagle markup, sold at 99% of spot, Equity Trust fees) | $6,341 |
| Gold IRA at a 10% spread | $16,521 |
| Gold IRA at a 23.4% spread (Lear Capital's own 2022 average) | $29,293 |
SafeOunce computation, as of September 2026, from fund annual reports and the Equity Trust schedule. A fee waiver (a temporary cut the fund can end) lowers IAUM to 0.07% through June 30, 2027.
The gold IRA vs gold ETF choice turns on one question: do you need coins? Outside an IRA a gold ETF is taxed as a collectible, at up to 28%, but not inside one. The full gold IRA vs gold ETF comparison includes in-kind delivery.
Gold ETFs trade in an ordinary brokerage IRA, so you need no new account.
Fidelity IRAs can also hold American Gold Eagles, Gold Buffalos and bars through Fidelity's own bullion program, with a $1,000 minimum IRA purchase (September 2026).
That program is the closest thing to a Fidelity gold IRA and needs no gold IRA company.
What Else Do People Ask Before Buying a Gold IRA?#
The most common follow-up questions have short answers: gold you already own cannot go into an IRA, $10,000 of gold from 2006 became about $49,929 in a gold IRA bought at a 5% markup, and no study backs a set share of gold.
Questions about gold itself#
Four questions about gold itself come up most often next to gold IRA pros and cons.
Is it better to have physical gold or a gold IRA?#
Retirement money keeps its tax break inside an IRA, while gold at home is bought with after-tax money and taxed up to 28% on long-term gains.
Gold you already own cannot go into an IRA, because contributions must be cash (26 U.S.C. 408(a)(1)). Gold IRA vs physical gold compares costs, taxes and control.
What if you invested $10,000 in gold 20 years ago?#
$10,000 of gold bought on September 28, 2006 at $603.00 was worth about $68,732 at spot 20 years later, or about $49,929 in a gold IRA bought at a 5% markup.
The gold IRA figure also takes off $250 a year in fees; at a 30% markup it reached about $37,529. The S&P 500 turned $10,000 into $57,389 on price alone, and after inflation $68,732 is about $41,800 in 2006 dollars. The year-by-year table shows what $10,000 became after IRA costs.
Is gold a safe haven when stocks crash?#
Gold has often held its value in stock crashes, but researchers call that protection short-lived, and gold fell 12.4% in March 2020 while stocks fell 18.9%.
Baur and Lucey (2010) found the effect lasts through the worst days of a crash, not for years. The limits are tested in is gold a safe haven.
Is gold a good investment for retirement?#
Gold helped the 1973 retiree in the withdrawal test above as a 10% slice and ruined the 1981 retiree who held only gold.
The start date and the cost of owning gold decided most of the result, as gold and silver for retirement explains.
Questions about the critics and how much to hold#
Four questions come from the critics and from readers deciding how much to hold.
Why does Dave Ramsey say not to invest in gold?#
Dave Ramsey says precious metals "don't produce anything, they don't pay dividends, and they don't earn interest."
That holds inside an IRA too. His 28% collectibles tax warning applies only outside an IRA (Ramsey Solutions page, updated March 19, 2026). The full answer to why Dave Ramsey and Warren Buffett say no quotes both.
Why is Warren Buffett against gold?#
Warren Buffett objects that gold is "neither of much use nor procreative": it produces nothing, so it grows only if a later buyer pays more.
His case is tested in Warren Buffett's gold test above, and why Dave Ramsey and Warren Buffett say no to gold is answered point by point.
How much of your IRA should be in gold?#
No rule backed by research exists: 4 of the 7 top-ranking pages we read suggest a share (5% to 10%, 5% to 15% or 2% to 10%), and none cites a study.
Our tests of a 60/40 portfolio from 1972 to 2025 found 10% gold cut volatility from 11.2% to 9.9%, with little extra benefit above 15% to 20%. From 1981, 10% gold lowered the return from 10.1% to 9.7% a year. Tests of how much gold to hold in an IRA cover 3 start dates.
Does a gold IRA pay interest or dividends?#
No: a gold IRA holds metal that pays no interest or dividends, so its only return is the price change minus costs.
Gold fell in 19 of the 55 years from 1971 to 2025. Offers that claim a yield are checked in does a gold IRA pay interest.
Questions from couples and families#
Two questions come from couples deciding together whether a gold IRA is worth it.
My spouse wants to move our savings into gold and silver now. Should we?#
Before moving shared savings, agree on a share you could both hold through a 26% gold fall or a 53% silver fall, the peak-to-low drops of 2026.
Get every price and fee in writing. You have at least 7 days to cancel (revoke) a new IRA under Treas. Reg. 1.408-6, but that does not by itself cancel the coin purchase. How to cancel a gold IRA, and what the dealer's terms add, is explained step by step.
Is a silver IRA a better investment than a gold IRA?#
Silver has swung far more than gold: 66.3% yearly volatility against 27.1% from 1971 to 2025, and a 48.2% fall from its January 2026 record by September 28.
Silver's LBMA price went from $118.45 on January 29, 2026 to $61.33 on September 28, 2026. A silver IRA uses the same rules with silver of at least .999 fineness.