Goldco for First-Time Precious Metals Buyers
If you have never bought precious metals, start with a few basics: learn the vocabulary, decide whether you want metals inside a retirement account or in your own hands, and get every price compared against spot before you commit. Goldco, a precious metals company, offers both IRA and direct purchase options, and this guide shows how to approach either one as a first-timer.
Ten Terms to Know First
- Spot price: the current market price for one troy ounce of raw metal, used as the reference for dealer pricing. See gold spot price explained.
- Troy ounce: the standard unit for precious metals, equal to 31.1035 grams, slightly heavier than an ordinary ounce.
- Premium: the amount a product costs above the spot value of its metal content.
- Bid and ask: the price a dealer pays you (bid) and charges you (ask). The gap is the spread.
- Bullion: coins and bars valued mainly for metal content.
- Proof and commemorative coins: specially struck or themed coins, usually with higher premiums.
- Fineness: metal purity, expressed as a decimal such as .9999.
- Self-directed IRA: an IRA that can hold alternative assets such as physical metals.
- Custodian: the firm that administers a self-directed IRA.
- Depository: the secure vault that stores IRA metals.
A longer list is in our precious metals glossary.
First Decision: Retirement Account or Direct Ownership?
Goldco offers both, and they suit different goals.
Holding metals in a self-directed IRA
You fund the account by transfer or rollover from an existing IRA, 401(k), or similar plan. Metals must meet IRS fineness rules and are stored at an independent insured depository. You keep the tax treatment of the retirement account but pay recurring custodian and storage fees, and you cannot keep the metals at home. Goldco's IRA minimum is in its published fee statement below.
Owning metals directly
You buy with savings outside any retirement account and take ownership yourself. There is no custodian, but you handle storage and insurance, and gains are taxed when you sell; the IRS generally treats physical gold and silver as collectibles. Goldco's website lists a $10,000 minimum for direct purchases, according to Goldco's website at the time of writing; confirm current terms. See buying directly from Goldco.
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.
A licensed tax or financial professional can help you weigh the two for your situation.
How to Avoid Overpaying on Premiums
First-time buyers most often overpay through premiums, not fees. Practical habits:
- Check spot before every quote. Look up the current spot price from a public source so you have a reference.
- Ask for price per ounce. Divide the quoted price by the metal content in troy ounces.
- Compare against plain bullion. Ask what a standard American Gold Eagle, Gold Maple Leaf, or Silver Maple Leaf costs per ounce, and compare any suggested themed or proof coin against it.
- Ask for the bid. Find out what the company would pay you for the same product today. The difference is your immediate cost of round-tripping.
- Get it in writing. Request a written quote before approving any order.
See premiums and spreads and common gold buying mistakes.
Questions to Ask on Your First Call
- Which custodian and depository would I use, and can I choose?
- Is each product you suggest IRA eligible, and will you confirm that in writing?
- What is the premium over spot on each product?
- What are the written terms of your advertised buyback program?
- What recurring costs will I pay each year?
Remember that Goldco's specialists are not licensed to give financial, legal, or tax advice. Our guide to the specialists' role has more questions.
Setting Realistic Expectations
Precious metals can be one way to diversify a portfolio. Some people hold gold as a potential hedge against inflation, a relationship the World Gold Council and Bureau of Labor Statistics data let you explore. But metals pay no interest or dividends, prices can fall for long periods, and the costs of buying, storing, and selling reduce returns. Treat any purchase as a long-term holding and avoid allocating money you may need soon.
Next Steps
- Read the Goldco review for the full picture.
- Request the free Gold & Silver Kit if you want Goldco's own materials.
- Gather your statements using the setup checklist.
- Compare at least one other company using the same questions.
Frequently Asked Questions
Should a beginner start with gold or silver?
It depends on your goals. Gold has historically been less volatile; silver has a lower price per ounce and more industrial demand. A licensed professional can help you decide.
Is it better to buy coins or bars?
Coins are widely recognized and easy to sell; bars often have lower premiums per ounce. See gold coins vs gold bars.
Can I start small?
Goldco has minimums on both its IRA and direct options. If your amount is smaller, other dealers may be more suitable.