Gold IRA Custodian vs. Dealer: Who Owes You What?

A single sales conversation can involve separate contracts

A representative may describe opening an account, choosing coins and arranging storage as one service. That can be convenient, but it leaves a basic question: which legal entity promises what? Ask for the name on the dealer agreement, the IRA agreement and the storage terms. Write them down before trying to compare the offers.

Section 408(a)(2) sets the trustee requirement for an IRA. A dealer's ability to sell coins does not establish that it satisfies that role. Conversely, a custodian's ability to administer an account does not make it the metal seller. The account documents should identify the relationship precisely.

The dealer answers for the proposed purchase

Ask the dealer which products are being sold, their quantities, the quoted total and when the price becomes binding. The dealer should also identify its repurchase policy and whether it has any obligation to buy later. A broad description of customer support cannot answer those questions.

A product-specific quote is essential when a conversation changes direction. If the kit shows bullion but the representative proposes a different coin, request a new written item list. Do not assume the original illustration supplies the new order's terms. The CFTC/FINRA metals bulletin recommends written costs and a repurchase-price check before a purchase.

The Goldco company background at our sister publication is one place to begin commercial research. The Rank Sheet is our sister site; we may earn a commission if you sign up with a company through it. Read such profiles to identify questions, then obtain the seller's actual terms. A publisher's summary is not the contract for your order.

The custodian administers the IRA

The custodian's agreement should explain account administration, instructions, reporting and charges. Ask it how funding is accepted, how a purchase is authorized, which metal it accepts, and how sale or withdrawal requests are processed. Confirm receiving instructions through the custodian's own established route.

The SEC's self-directed IRA alert warns that custodians generally do not assess investment quality or legitimacy. Do not treat the existence of a custodian as an independent recommendation to buy a dealer's products. Its recordkeeping duties and its investment-review duties are not interchangeable.

Ask what the custodian actually checks before processing an order. Also ask how it values alternative assets on statements and what evidence supports those values. A statement can record a holding without supplying an executable sale price. The fact that an account can hold an item says little about whether its price is attractive.

The depository handles safekeeping under the arrangement

Ask which facility would hold the metal and which documents describe inventory records, release instructions and insurance. Check the quoted storage type and the way your holding is identified. If the representative says segregated, ask what that means under the specific storage agreement, rather than supplying your own definition.

Also ask who has the contractual relationship with the facility. You may need the custodian to obtain records or issue instructions. Knowing the storage location is useful, but it does not by itself establish how to obtain a statement, report a discrepancy or authorize a release.

Our home-storage guide explains why personal access is a separate issue. Keeping metal in a private safe is not a replacement for identifying the account's custody arrangement. Do not ask a shipment company to change the destination based on an informal sales-call explanation.

Route each fee to the right schedule

Administration may be charged by the custodian, while storage appears under the custody arrangement. Product pricing belongs to the seller's quote. Wire, transaction, liquidation, shipping or closure charges may appear in different schedules. Ask which party bills each charge and whether a quoted total already includes another line.

The fee discussion at The Rank Sheet can help you build that question list. It cannot determine which schedule governs a proposed account. Check document dates, fee periods and the particular storage option before copying any amount into your notes.

This prevents two common mistakes: counting a storage charge twice because it appears in two summaries, or leaving it out because each party says someone else handles it. Our worksheet keeps the named custodian and depository next to the charges so a mismatch is easier to spot.

Use a question-to-document map

For a changed product price, ask the dealer for the revised order. For money not yet credited, ask both account administrators for their transaction records. For an inventory discrepancy, ask the custodian how it reconciles the depository record. For an IRA tax question, ask an independent tax professional who can consider your circumstances.

Record who supplied each answer and the document it refers to. If a dealer interprets the custodian's schedule, ask the custodian to confirm it. If the custodian refers a price question back to the seller, obtain the actual quote instead of treating that referral as approval of the proposed price.

Check introductions independently

A coordinated referral does not remove the need to verify names, contact routes and payment instructions. The SEC alert warns specifically about fake custodians and misleading statements about custodial responsibility. Use an independently checked route to confirm the institution before sending money or sensitive documents.

Publication 3125 makes clear that the IRS does not approve individual investments. The same caution applies when a sales presentation uses an institution's status to suggest the whole transaction has government approval. Administrative acceptance is a narrower fact.

The broader comparison of providers may be useful after these roles are clear. A kit becomes easier to read when every promise has an identified author and every open question has a responsible party. If a document is missing, keep that question open before giving further instructions.