Gold IRA Glossary

Gold IRA

A self-directed individual retirement account that holds physical gold (and sometimes other approved precious metals) instead of paper assets like stocks or bonds. Subject to the same contribution limits and tax rules as traditional IRAs.

Custodian

A financial institution — typically a bank, credit union, or trust company — approved by the IRS to hold IRA assets on your behalf. Gold IRA custodians handle paperwork, reporting, and compliance; they do not store the physical metal.

Depository

A secure, IRS-approved storage facility where your physical gold is held. Common depositories include Delaware Depository and Brink's. The IRS requires that Gold IRA metals be stored at an approved depository, not at home.

Rollover

The process of moving funds from one retirement account (such as a 401(k) or traditional IRA) into a Gold IRA. A direct rollover transfers funds between custodians without you touching the money; an indirect rollover gives you 60 days to redeposit the funds.

Self-Directed IRA

An IRA where the account holder chooses the investments rather than being limited to a brokerage's menu of stocks, bonds, and mutual funds. Gold IRAs are a type of self-directed IRA that permits physical precious metals.

Required Minimum Distribution

The minimum amount the IRS requires you to withdraw from tax-deferred retirement accounts each year once you reach a certain age (currently 73). For Gold IRAs, this may require selling some metal to generate the cash distribution.

Spot Price

The current market price for one troy ounce of a precious metal, as quoted on commodity exchanges. Spot price changes throughout the trading day and serves as the baseline for what you pay — but you will always pay more than spot.

Premium

The amount a dealer charges above the spot price for a coin or bar. Premiums cover minting costs, dealer margins, and market demand. A lower premium means you are paying closer to the metal's melt value.

Segregated Storage

A storage arrangement where your metals are kept separate from other investors' holdings, typically in an individually labeled container. Segregated storage usually costs more but guarantees you receive the exact same coins or bars you purchased.

Commingled Storage

A storage arrangement where your metals are pooled together with other investors' holdings of the same type and purity. You own a specific quantity, but not specific individual pieces. Commingled storage is less expensive than segregated.

Allocated (Segregated) Storage

A depository arrangement where your specific coins and bars are stored separately from other investors' metals, individually labeled and tracked. Costs more than commingled storage but guarantees you receive your exact metals back.

Fineness

The purity of a precious metal, expressed as parts per thousand. The IRS requires minimum 0.995 fineness for gold in an IRA (except American Gold Eagles at 0.9167), 0.999 for silver, and 0.9995 for platinum and palladium.

Troy Ounce

The standard unit of measurement for precious metals, equal to 31.1035 grams — approximately 10% heavier than a standard avoirdupois ounce. When gold is quoted "per ounce," it means per troy ounce.