Reading a Precious Metals Purchase Agreement
A precious metals purchase agreement is the written contract that controls what you pay, when the price is fixed, what happens if you change your mind, and how your metal is delivered or stored. Read the price-lock, cancellation, spread, shipping and buyback sections before you fund anything, because those clauses decide most of the money questions later.
Why the Paperwork Matters More Than the Phone Call
Most gold and silver purchases begin with a conversation, but the conversation is not the deal. The agreement, order confirmation and any account forms are what a company will rely on if there is a dispute. If a specialist describes a buyback, a delivery date or a price that does not appear in writing, treat it as unconfirmed until it does.
The Commodity Futures Trading Commission's consumer education pages repeatedly point out that metals buyers who later complain often relied on verbal promises that were never in the contract. Asking for every material term in writing is the simplest protection available.
The Price Lock: When Your Price Becomes Final
Precious metals prices move throughout the trading day, so every agreement has to say when your price is fixed. Look for language that answers three questions:
- What triggers the lock? Common triggers are a recorded phone confirmation, a signed order form, or receipt of funds. Some companies lock at the moment of verbal confirmation even though payment arrives days later.
- What price is locked? The agreement should state a per-unit price for each product, not just a total, so you can compare it with the spot price at the time.
- What happens if funds are late? Many contracts let the dealer cancel or reprice the order if payment does not arrive by a deadline. Check whether you are responsible for any market loss if the order is cancelled.
For purchases inside a retirement account, the timing works differently: the money usually has to arrive at the custodian first, and the price lock often happens after that. Our guide to how holding physical gold in an IRA works explains the sequence.
Cancellation and Market-Loss Clauses
A precious metals order is not like a retail return. Once a price is locked, the dealer typically buys matching inventory or hedges its position. If you cancel, the contract may charge you the difference between your locked price and the current market price, plus a flat cancellation charge.
Read whether the contract offers any cooling-off window, how you must give notice (phone, email or signed letter), and whether a cancellation charge applies even when prices have moved in your favour. Some states have specific consumer rules for certain sales, so if a term seems unusual, a consumer protection attorney or your state attorney general's office can tell you what applies where you live.
Spreads, Premiums and Fee Disclosures
The difference between what a dealer charges you and what it would pay you back on the same day is the spread. The amount above the spot value of the metal is the premium. Neither is always shown as a separate line item, so you may have to calculate it yourself from the per-unit price and the spot price at lock time. Our page on premiums and bid/ask spreads walks through the arithmetic.
Look for any statement of the company's markup range, and compare it with what a few other sellers quote for the same coin or bar on the same day. Proof, commemorative and limited-mintage products usually carry far larger premiums than standard bullion, which matters if you might sell within a few years.
For retirement-account purchases there are also custodian and depository charges. For Goldco specifically, the only fee figures we show are in Goldco's published fee statement below, and you should confirm current terms with the company and the custodian before signing.
Gold IRA Fees
The required minimum purchase at Goldco to start a gold IRA is $25,000. Goldco’s preferred Custodian charges a flat annual account service fee which includes a one-time IRA account set-up fee of $50. as well as a $30 wire fee. Annual maintenance is $100, and storage is $150 for segregated storage or $100 for non-segregated storage.
Fees for gold storage and custodianship can vary depending on the company you select to handle these services (required by the IRS, as all IRA assets must be managed by a custodian). Depending on the Custodian, storage fees can range from $10 to $60 per month, or as a percentage of assets, from 0.35% to 1% annually.
Shipping, Delivery and Title
For a direct purchase delivered to you, the agreement should say:
- the expected shipping window, and what happens if the product is back-ordered;
- who bears the risk of loss in transit, and whether the package is insured until you sign for it;
- whether a signature is required and whether packages ship discreetly;
- when legal title passes to you.
Delayed delivery is one of the warning signs regulators describe, so a clear delivery commitment in writing is worth more than a verbal estimate. See shipping and delivery of precious metals for what a normal timeline looks like.
Storage Terms for Metals Held in a Depository
If metal is going to a depository, the agreement or custodian documents should name the facility, state whether storage is segregated or commingled, describe insurance coverage, and explain how you can verify holdings. IRS rules generally require metals in an IRA to be held by a trustee or approved custodian, not at home. Our guide to segregated vs non-segregated storage covers the trade-offs.
Buyback Language: Read the Exact Words
Many companies advertise that they will buy metals back. Look at whether the written terms describe an obligation, an intention, or simply a willingness to make an offer. Check how the buyback price is calculated, whether it applies to every product or only some, and whether any charges are deducted.
Goldco, for example, advertises a buyback program for IRA-approved coins "at the highest price." That is a description of what the company advertises; read the written terms of the program and compare offers from other buyers before selling. Our article on how buyback programs work explains what to ask.
A Short Checklist Before You Sign
- Every product is listed by name, quantity, weight and fineness.
- Per-unit prices and the lock time are stated.
- Payment deadline and consequences of late funds are clear.
- Cancellation rights, notice method and any market-loss charges are written out.
- Shipping or storage details, insurance and title transfer are covered.
- Buyback terms are quoted exactly, not paraphrased by a salesperson.
- Any dispute-resolution or arbitration clause is understood.
Keep a signed copy with the rest of your precious metals records. If you want to see how one company structures its process before reading its paperwork, our Goldco review walks through the steps.
Frequently Asked Questions
Can I cancel a precious metals order after the price is locked?
Usually you can, but the contract may charge you for any market movement against the dealer plus a cancellation charge. The exact terms vary by company, so read that section before confirming.
Should the agreement show the spot price?
Not always. If it does not, note the spot price at your lock time from a public source so you can work out the premium yourself.
Is an arbitration clause normal?
Many consumer contracts include one. It may limit your ability to go to court, so if the clause concerns you, ask a licensed attorney before signing.
Where can I report a dealer that did not honour its contract?
You can file with your state attorney general, the Consumer Financial Protection Bureau, the FTC's fraud reporting site, and the CFTC if the transaction involved leverage or undelivered metal.