Capstone Metals — gold and silver IRA dealer
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Structure

The custodian's role — and why it isn't us

Every IRA needs an IRS-approved custodian. The custodian holds the account, files the reporting, and settles transactions. The dealer supplies the metal. The depository stores it. Three separate parties, on purpose.

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Custodian

Holds the account

Dealer

Supplies the metal

Depository

Stores and insures

Regulator

IRS-approved trustee

What a custodian does

Opens and administers the self-directed account, processes transfers and contributions, executes your purchase instructions, files Forms 5498 and 1099-R, and provides annual valuations.

Corridor of steel shelving stacked with gold and silver bullion bars inside a secure depository vault
Where IRA and vaulted metal actually lives: a rated depository with segregated shelving and all-risk insurance — not a home safe.
Describe this illustration: Corridor of steel shelving stacked with gold and silver bullion bars inside a secure depository vault

Where your metal lives is the first question any storage or IRA page must answer. IRA and vaulted precious metals belong in a rated depository like this one — segregated, audited and insured all-risk — not in a home safe that voids both the insurance and the IRA's tax status. Capstone Metals places gold and silver in your name at accredited depositories with fully insured, segregated storage available on request, so the asset that protects your savings is itself protected to the standard the metal demands. Storage is never an afterthought here; it is part of the purchase.

Three-role diagram distinguishing the dealer who sells metal, the custodian who holds the account and the depository that stores the metal
Three separate parties. Capstone is the dealer — never the custodian, trustee or depository.
Describe this illustration: Three-role diagram distinguishing the dealer who sells metal, the custodian who holds the account and the depository that stores the metal

Three separate parties. Capstone is the dealer — never the custodian, trustee or depository. This original Capstone Metals diagram illustrates three-role diagram distinguishing the dealer who sells metal, the custodian who holds the account and the depository that stores the metal. It is educational artwork, not a price forecast, performance record or recommendation.

How to compare custodians

Look at fee structure (flat versus scaled by value), depository relationships, transaction turnaround, online account access, and how long they have administered metals accounts.

Separation of duties

A dealer that also custodies your account concentrates risk. We work with independent custodians so no single party controls both the asset and the record of it.

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The short answer

A Gold IRA custodian is the bank or trust company that legally holds your IRA, executes the purchases you direct, and takes possession of the metal through a depository. It is a different party from the dealer that sells the metal — and Capstone Metals is the dealer, not the custodian.

Key facts

Each fact below is tied to a numbered source at the foot of this page. Follow the numbers and check us.

  1. 01

    An IRA must be held by a qualifying trustee, and that requirement comes from statute.1,2

    26 U.S.C. §408(a)(2) requires the trustee of an individual retirement account to be a bank or another person who satisfies the Secretary that they will administer the trust consistently with the section. This is why you cannot simply hold your own IRA.

  2. 02

    For bullion, the trustee's physical possession is a condition of eligibility — not a formality.2

    §408(m)(3)(B) exempts qualifying bullion from collectible treatment only 'if such bullion is in the physical possession of a trustee described under subsection (a)'. Possession by you, or by an entity you control, is outside that language.

  3. 03

    Dealer, custodian and depository are three separate roles.2

    The dealer prices and supplies the metal. The custodian holds the account and moves the money on your instruction. The depository vaults the metal under the trustee's possession. A firm that appears to be all three deserves careful questions about who actually holds what.

  4. 04

    A self-directed custodian executes your instructions; it does not recommend investments.1

    That is the defining feature of self-direction and it cuts both ways. You get to choose the assets. You also do not get investment advice from the custodian, and its acceptance of a product is an administrative decision rather than an endorsement.

  5. 05

    Custodians maintain their own approved-product lists on top of the statute.2

    A product can satisfy §408(m)(3) and still be declined by a particular custodian for operational reasons. Eligibility is therefore a two-part test: the statute, then your specific custodian. Confirm before you buy, not after.

  6. 06

    Gold IRA fees are layered, and the layers sit with different parties.1

    Typically a one-time account setup fee, an annual custodian administration fee, and annual depository storage and insurance — each of which may be flat or scaled with account value. Separately, the dealer's margin is embedded in the metal price rather than billed as a fee. Comparing custodians on the administration fee alone misses most of the picture.

  7. 07

    You choose your custodian. It is your account.1

    A dealer may have existing relationships that make paperwork faster, and that is a legitimate convenience. It is not an obligation. If a dealer will only transact through one custodian and will not explain why, that is worth understanding before you proceed.

  8. 08

    Storage can be segregated or commingled, and the distinction is contractual.2,3

    Segregated storage means your specific bars and coins are held apart and identifiable. Commingled means you hold a claim on a pool of identical metal. Both are legitimate; they cost differently and mean different things if you want those exact serial numbers back.

The vocabulary

Custodian
The bank or trust company holding your IRA and administering it. Also called the trustee.
Trustee
The statutory term in §408(a)(2) for the party that must hold the account — and, for bullion, physically possess the metal.
Depository
The vault operator storing IRA metal under the trustee's possession, with insurance and audit.
Dealer
The firm that sells and buys the metal. Capstone Metals occupies this role.
Self-directed IRA
An IRA where the account holder chooses the investments and the custodian executes rather than advises.
Segregated storage
Your specific items held separately and individually identifiable.
Commingled storage
A claim on a pooled quantity of identical metal rather than on specific items.
Approved product list
The custodian's own list of items it will administer, applied on top of the statutory test.

Who does what in a Gold IRA

If a page about Gold IRAs does not draw this distinction clearly, be careful with the rest of what it tells you.

RoleWhat it doesWho this is
DealerSells and buys the physical metal. Quotes the price, sources the product, ships to the depository.Capstone Metals is a dealer. We are not a custodian, trustee or depository.
Custodian / trusteeHolds the IRA itself. Opens the account, accepts funds, executes your purchase instruction, files the account reporting.A bank or a trust company qualified under 26 U.S.C. §408(a) — for example Preferred Trust Company or GoldStar Trust Company.
DepositoryHolds the physical bars and coins in a vault, insured and audited, under the trustee's possession.An independent vault operator. Not the dealer, and usually not the custodian either.

How to compare custodians

  • The complete fee schedule in writing: setup, annual administration, storage, insurance, wire and termination fees.
  • Whether fees are flat or a percentage of assets — flat schedules favour larger accounts and the reverse is also true.
  • Which depositories they work with, and whether segregated storage is available and at what cost.
  • Their approved-product list, checked against what you actually intend to buy.
  • How long funding, purchase settlement and in-kind distributions typically take.
  • How you get statements, and whether holdings are reported by serial number.
  • What happens on distribution: can you take metal in kind, and what does that cost?
  • How long they have administered precious-metals IRAs specifically, as opposed to self-directed accounts generally.

Risks and limitations

Anyone who only tells you the upside is selling, not explaining.

  • Fee drag compounds quietly.

    Flat annual fees are a large percentage of a small account. Percentage fees grow with a large one. Model your own balance rather than trusting a comparison table.

  • Bundled arrangements can obscure the metal price.

    When one firm arranges dealer, custodian and storage together, the dealer's margin is the least visible number in the transaction. Ask for it separately.

  • Home-storage arrangements are promoted and are not supported by the statute.

    §408(m)(3)(B) conditions eligibility on the trustee's physical possession. Structures designed around that language carry real tax risk, and we will not help arrange one.

  • The custodian does not vouch for your investment.

    Acceptance is administrative. Suitability remains yours, with your own adviser.

Common misconceptions

The dealer is the custodian.

They are separate parties with separate roles. A dealer that describes itself as a custodian is either mis-speaking or mis-describing the structure.

The custodian recommends what to buy.

A self-directed custodian executes your instructions. It offers no investment recommendation, and its approved-product list is not advice.

Storing IRA metal in a safe deposit box under an LLC is acceptable.

The statutory exception requires the bullion to be in the physical possession of a qualifying trustee. Arrangements built to sidestep this carry substantial risk of the account being treated as distributed.

Whoever the dealer suggests is the only option.

You select the custodian. Existing relationships can speed the paperwork, but the choice remains yours.

Mistakes worth avoiding

  • Choosing a custodian on the setup fee, then discovering the storage and insurance schedule.
  • Buying metal before confirming the custodian will administer that specific product.
  • Never asking what the dealer's margin on the metal was.
  • Assuming commingled storage means the same bars come back.
  • Treating the custodian as an adviser.

Take this with you

Ten questions to ask a Gold IRA custodian

Ask all ten, in writing, before you fund anything.

  1. 1.What is your complete fee schedule, including termination and wire fees?
  2. 2.Are fees flat or asset-based, and where are the tier breakpoints?
  3. 3.Which depositories do you use, and is segregated storage available?
  4. 4.What does storage and insurance cost annually, and who insures it for how much?
  5. 5.Will you administer the specific products I intend to buy?
  6. 6.How long does funding take, and how long does settlement take after I instruct a purchase?
  7. 7.Do statements identify holdings by serial number and weight?
  8. 8.Can I take a distribution in kind, and what does that cost?
  9. 9.Who is the trustee of record, and are you it?
  10. 10.How long have you administered precious-metals IRAs specifically?

What people ask next

Sources and references

Everything factual on this page traces to one of the following. Law and government publications come first, then exchange specifications and standards bodies.

  1. 1.
    Publication 590-A — Contributions to Individual Retirement Arrangements (IRAs)

    Internal Revenue Service · Tier 1 — Primary / government · checked 2026-09-02

    The IRS's own annual guide to IRA contribution limits, eligibility, deduction phase-outs, transfers and rollover mechanics.

  2. 2.
    26 U.S.C. § 408(m) — Investment in collectibles treated as distributions

    Legal Information Institute, Cornell Law School · Tier 1 — Primary / government · checked 2026-09-02

    §408(m)(1) treats an IRA's acquisition of a collectible as a distribution equal to its cost. §408(m)(2) lists 'any metal or gem' and 'any stamp or coin' as collectibles. §408(m)(3) carves out specific U.S. coins and gold, silver, platinum or palladium bullion meeting a contract-market delivery fineness, and only where that bullion is in the physical possession of a trustee described in §408(a).

  3. 3.
    Good Delivery

    London Bullion Market Association · Tier 2 — Industry / authoritative · checked 2026-09-02

    The LBMA maintains the Good Delivery List of accredited gold and silver refiners and the physical specifications a bar must meet to be acceptable in the London market.

Who wrote and reviewed this

Written by
Travis Bugli
Chief Executive Officer and licensed agent, Capstone Metals
Reviewed by
Mark Bugli
Senior Advisory Partner, licensed since 1970
First published
2026-09-02
Last reviewed
2026-09-02
Change log (1)

  • 2026-09-02

    Added the dealer / custodian / depository role table, the statutory possession requirement, a ten-question custodian interview and an explicit statement that Capstone is a dealer only.

    Why: Role confusion is the single most common source of Gold IRA mis-selling, and the page needed to state our own role unambiguously.

This page explains general rules and mechanics. It is not individualised tax, legal or investment advice, and Capstone Metals is a precious-metals dealer rather than a custodian, trustee or depository. Confirm eligibility for any specific product with your IRA custodian, and discuss suitability with your own advisers.

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Common questions

Can I pick my own custodian?
Yes. We work with several and will happily work with one you already use.
What is a Gold IRA custodian?
The bank or trust company that legally holds your IRA, accepts and moves funds, executes the purchases you direct, arranges depository possession of the metal, and handles account reporting.
Why does a Gold IRA need a custodian?
Because §408(a)(2) requires an IRA to be held by a bank or other qualifying trustee, and because §408(m)(3)(B) makes the trustee's physical possession of the bullion a condition of it not being treated as a collectible.
What does a custodian actually do day to day?
Opens and maintains the account, receives contributions, transfers and rollovers, executes your written purchase and sale instructions, coordinates with the depository, produces statements and valuations, and files the required account reporting.
Is the dealer the custodian?
No. Capstone Metals is a dealer: we price, source, and buy back metal. We are not a custodian, trustee or depository, and we never hold your IRA. Your custodian is an independent trust company such as Preferred Trust Company or GoldStar Trust Company.
What is a depository?
An independent, insured, audited vault facility that physically stores IRA metal under the trustee's possession. It is normally neither the dealer nor the custodian.
Who actually stores the physical metals?
The depository holds them physically, on the trustee's behalf, for the benefit of your account. You do not take possession while the metal is an IRA asset.
What fees can a Gold IRA involve?
Commonly a one-time setup fee, an annual custodian administration fee, and annual storage and insurance charged by the depository. Separately, the dealer's margin is built into the price of the metal rather than invoiced. Ask for all four figures.
How do I compare custodians?
Get the complete written fee schedule, establish whether fees are flat or asset-based, check the approved-product list against what you intend to buy, confirm depository options and whether segregated storage is available, and ask how long settlement and in-kind distribution take.
Can I choose my own custodian?
Yes. It is your account. A dealer's existing relationships may make the paperwork faster, which is a genuine convenience and not an obligation.
Can I store my Gold IRA metal at home?
No. The bullion exception in §408(m)(3)(B) applies only where the metal is in the physical possession of a qualifying trustee. Home-storage structures marketed around that requirement carry real risk of the account being treated as distributed.
Does the custodian tell me what to buy?
No. A self-directed custodian executes your instructions and does not give investment advice. Its willingness to administer a product is an operational decision, not a recommendation.
What questions should I ask before opening a Gold IRA?
The complete fee schedule from every party, who the trustee of record is, which depository holds the metal and on what storage basis, what the dealer's margin on the metal is, and how distributions in kind are handled and priced.

Continue reading

Costs

Gold IRA Fees

Retirement

Gold IRA

Rollover

Gold IRA Rollover

Compare custodian fee schedules

We'll send the current schedules for the custodians we work with.

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