Evaluate gold IRA custodians on six dimensions: (1) total annual fees including custodian + storage; (2) which depositories they use; (3) flat-fee vs scaled-fee pricing model; (4) BBB and FINRA history; (5) how they're compensated when you buy metals; (6) clarity of their fee disclosure. Reputable custodians have flat annual fees, no hidden dealer kickbacks, and welcome you to use any approved depository, not just their preferred one.
Custodians charge in two structures: flat annual fee (typically $75-$300/year regardless of account size) or scaled fee (a percentage of assets, often 0.5-1.0%). For accounts above $100K, flat-fee custodians are dramatically cheaper. A $500K account at 1% scaled = $5,000/year vs $300/year flat, a $4,700 annual difference for the same service.
Storage is typically a separate fee from the custodian, but the custodian may have a default depository they steer you to. Reputable custodians let you choose between Delaware Depository, Brink's Global, IDS of Texas, or others. Watch for custodians who only offer one depository at unusually high storage rates, the markup may be a kickback to the custodian.
Check FINRA BrokerCheck (for any associated representatives), the Better Business Bureau, and state regulator complaint records before signing. Multiple complaints alleging high-pressure sales, hidden fees, or 'IRA approval' delays are red flags. A clean record over 10+ years of operation is the minimum bar.
The most common conflict: custodian receiving undisclosed kickbacks from a specific dealer when you buy metals. Ask directly: 'Are you compensated if I buy metals through dealer X?' If the answer is yes (or evasive), use a different dealer. The custodian's job is custody, not steering you to a specific seller. We help our clients evaluate custodian options without bias.
Key facts
- Flat fee custodians: $75-$300/year regardless of account size, better for $100K+ accounts
- Scaled fee custodians: 0.5-1.0% of assets, only better for very small accounts
- Storage fee (separate): typically $100-$300/year or 0.5% of holdings
- Approved depositories: Delaware Depository, Brink's Global, IDS of Texas, others
- Red flags: pushy sales, single-depository offering, undisclosed dealer kickbacks
- Verify: FINRA BrokerCheck, BBB rating, state regulator complaint history
Can I switch gold IRA custodians later?
Yes. The transfer is custodian-to-custodian and doesn't trigger a taxable event when done correctly. The metals can either be transferred in-kind (the depository transfers ownership without physically moving the bars) or sold and re-bought (which incurs dealer spread, usually a worse outcome). In-kind transfer is the standard. Custodian transfer fees vary; some charge $50-$100 per transfer.
What's the difference between custodian and depository?
The custodian is the IRS-required administrative entity that holds your IRA, they handle paperwork, distributions, contributions, and reporting. The depository is the secured vault where the actual physical metals are stored. Some companies offer both services; many are separate. The custodian sees account paperwork; the depository sees the metals. Both are required and both charge separate fees.