How a Precious Metals IRA Actually Works

The separate roles of the account owner, custodian, metals dealer and depository

A "Gold IRA" generally refers to a self-directed individual retirement account that is permitted to purchase eligible physical precious metals. The account may hold qualifying gold, silver, platinum or palladium, but the metal must satisfy federal requirements and the custodian's individual policies. Federal law excludes certain coins and sufficiently refined bullion from the general rules governing collectibles when the applicable requirements are met. Review the IRS guidance on precious metals and collectibles.

Four separate parties participate in a properly structured precious-metals IRA transaction:

• The account owner selects the metals and directs the custodian according to the custodian's procedures.
• The IRA custodian establishes and administers the account, determines its requirements, authorizes transactions and sends IRA funds.
• The metals dealer provides product availability and pricing, supplies the approved metals and coordinates the transaction.
• The depository receives and stores the IRA-owned metals under the required account arrangement.

Pryce House acts only as the precious-metals dealer. It does not establish or administer the IRA, hold retirement funds, approve products for the account or store the metals. Pryce House works with New Direction Trust Company as the custodian and International Depository Services of Texas as the depository. Both are independent organizations that control their own applications, approvals, fees and policies.

The Transaction Process

First, the account owner establishes and funds a self-directed IRA and completes the depository arrangements required by the custodian. Once the custodian confirms that funds are available, Pryce House provides current, itemized pricing for products the custodian will accept. The account owner reviews the proposed purchase and approves it in writing.

The custodian then sends payment directly from the IRA. The approved metals are shipped through insured logistics directly to the designated depository, where they are held under the IRA's ownership arrangement. The customer does not pay for the metals personally and does not receive personal delivery.

Which Metals May Qualify?

General minimum fineness standards commonly applied to IRA bullion are:

• Gold: .995
• Silver: .999
• Platinum: .9995
• Palladium: .9995

Certain coins are specifically authorized and may qualify despite having a different fineness. The American Gold Eagle is one example. Collectible, numismatic, graded, jewelry and gemstone products may not qualify. Acceptance always depends on the exact item, applicable law and the custodian's requirements.

Storage is not merely a shipping decision. IRS guidance states that qualifying bullion must remain in the physical possession of a bank or approved non-bank trustee. IRS Publication 590-B further cautions that when an IRA owner or beneficiary personally takes possession of qualifying coins, the metals are treated as distributed from the account. Review IRS Publication 590-B.

Once your self-directed IRA is established and funded, visit Pryce House Precious Metals IRAs for current product availability, itemized pricing and transaction coordination.

Pryce House is a precious-metals dealer and a trade name of Pryce Hall LLC. It is not a bank, trust company, IRA custodian, trustee, depository, broker-dealer, registered investment adviser, tax adviser or law firm. Pryce House does not provide investment, tax, legal, custodial or retirement-plan advice. Account approval, funding, product eligibility, storage requirements and tax consequences are determined by the applicable custodian, depository, law and individual circumstances. Read the complete IRA terms and disclosures.