# How to Buy Gold in an IRA
Self-directed IRAs let you hold physical gold and other precious metals alongside stocks and bonds. This option appeals to investors who want portfolio diversification beyond traditional assets.
A self-directed IRA functions like a regular IRA, but you control the investments instead of relying on a brokerage's preset menu. You can purchase gold bars, silver coins, platinum, and palladium through a custodian that specializes in alternative assets. Popular custodians include Equity Trust, Directed IRA, and American Custodian.
The purchase process requires three steps. First, open a self-directed IRA with a qualified custodian. Second, fund the account by rolling over an existing IRA, 401(k), or 403(b), or by making new contributions up to the annual limit ($7,000 in 2024 for those under 50). Third, direct your custodian to purchase IRS-approved precious metals on your behalf.
Costs matter. Custodians charge setup fees ranging from $150 to $300, annual maintenance fees between $75 and $300, and storage fees typically $100 to $300 yearly. Dealers also charge markups over spot prices, typically 5 to 10 percent above the market rate for gold.
The IRS restricts which products qualify. You can own 24-karat gold bars and 22-karat coins like American Gold Eagles. Collectible coins and jewelry don't qualify. Purity standards also apply: silver must be 99.9 percent pure, platinum 99.95 percent, and palladium 99.95 percent.
Tax advantages apply. Growth within the IRA account remains tax-deferred (traditional IRA) or tax-free (Roth IRA). Withdraw