Reading Your Precious Metals IRA Statement
A precious metals IRA statement lists the specific coins and bars you own and assigns each a value, usually based on a market pricing source rather than what you paid. That value often differs from both the spot price and what a dealer would actually pay you. Your custodian reports the account's year-end fair market value to the IRS on Form 5498.
What a Typical Statement Shows
Layouts vary by custodian, but most statements include:
- Account details: owner, account type (traditional, Roth, SEP, SIMPLE) and statement period.
- Holdings: each product by name, such as "American Gold Eagle, 1 oz," with quantity and sometimes total troy ounces.
- Price and value: a per-unit price and a market value for each line, plus a total.
- Cash position: cash not yet used, available for fees, purchases or distributions.
- Activity: transfers in, contributions, purchases, sales, fees and distributions during the period.
- Storage information: the depository and sometimes whether storage is segregated or commingled.
If your statement does not list specific products and quantities, ask the custodian for a holdings report. You should be able to match it to your original dealer invoice.
Three Prices That Get Confused
Spot price
The spot price is the current market price for immediate delivery of a standard quantity of raw metal, derived from wholesale and futures markets such as COMEX and the London benchmark auctions. It is a reference for one troy ounce (31.1035 grams) of pure metal, not the price of any specific coin. See gold spot price explained.
Retail (ask) price
The price you paid when buying, which includes a dealer premium above spot. Premiums vary by product and by market conditions.
Bid price
What a dealer will pay to buy the metal back. It is usually below the retail price and may be near, above or below spot depending on the product. The gap between retail and bid is the spread. See premiums and spreads.
Which Price Your Statement Uses
Custodians use a pricing source to value holdings, and practices differ. Some apply a spot-based price adjusted by product, some use a dealer's bid, and some use a third-party valuation service. Because of this:
- Your statement value may be noticeably lower than what you paid right after purchase. That gap mostly reflects the premium you paid, not a loss in the metal's market value.
- Two custodians could show slightly different values for the same coin on the same day.
- The statement value is not an offer. What you receive when selling depends on the buyer's bid that day.
Ask your custodian which pricing method it uses and how often it updates.
Fair Market Value and Form 5498
Custodians must report each IRA's fair market value as of December 31 to the IRS and to you on Form 5498. The form also reports contributions, rollovers, Roth conversions and whether a required minimum distribution is due for the next year. It is usually sent in the spring because contributions for the prior year can be made until the tax filing deadline.
The year-end value matters because it is the starting point for calculating RMDs, as described in IRS Publication 590-B. Our page on RMDs and precious metals explains the calculation. The same valuation approach is used when metal is distributed in kind and reported on Form 1099-R.
Checking Your Statement
- Match quantities to your dealer invoice and buy direction.
- Check product names carefully. A "1/10 oz" coin is very different from a "1 oz" coin.
- Review fees charged during the period against the fee schedule you signed.
- Do a rough value check by multiplying total ounces by the current spot price, using a source like the LBMA gold price. Expect differences, but large unexplained gaps deserve questions.
- Confirm the depository matches what you were told. You can ask for written confirmation of holdings.
Why Specialty Coins May Look Low
Commemorative, proof or limited-mintage coins often carry high premiums when sold. Custodians frequently value them closer to their metal content than to their retail price. If your statement value is far below what you paid for such coins, that may reflect how the market values them. See commemorative and limited-mintage coins.
Who to Ask
Statement questions go to your custodian, which keeps the official records. Goldco, a precious metals company, references Equity Trust statements in its FAQ and says it works with all major self-directed IRA custodians. Its precious metals specialists can help explain what products you bought. See Goldco storage and custodians.
Frequently Asked Questions
Why is my gold worth less on my statement than I paid?
Usually because you paid a premium above the metal's value, and the statement uses a market price that does not include that premium.
How often are metal values updated?
It depends on the custodian. Some update online values daily; printed statements usually reflect the value on the statement date.
Does Form 5498 mean I owe tax?
No. It is an informational form. You generally do not file it with your return.