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Gold IRA Scams: The Markup, the 1933 Myth, and the Coins That Fail Twice

By the Metals Retirement research desk  ·  Published 27 July 2026  ·  How we research

The important thing first. In most of these cases the gold is real, the company exists, and the paperwork is in order. The fraud is the price. You are moved from bullion at a small premium into "collectible" coins at a premium of 40 to 200 percent over spot, and in enforcement cases markups of 100 to over 300 percent above melt value have been alleged.

The moment you buy, a large part of your retirement account has been converted into someone's commission. Nothing has to go wrong afterwards for you to have lost it.

The mechanism, step by step

  1. Contact, usually unsolicited

    A call, an ad aimed at people near retirement, or a free guide that requires your phone number. The opening subject is rarely coins. It is the economy, the dollar, or the safety of your 401(k).

  2. Fear, then urgency

    A specific and frightening prediction, followed by a reason the decision cannot wait. The urgency is never about an administrative deadline, because there is not one. Transfers take weeks and no legitimate step depends on you deciding today.

  3. The switch from bullion to "collectible"

    This is where the money is made. Bullion carries a small premium and thin margin. Numismatic or "semi-numismatic" coins carry a premium that can be many multiples of that. The justification offered is usually rarity, exclusivity, or the confiscation story below.

  4. The spread is never stated

    You are told the price you pay. You are not told what the same coin would fetch if you sold it back that afternoon. That gap is the whole transaction from the seller's point of view, and it is the single number they will not volunteer.

The 1933 story, and why it is used

Executive Order 6102 was real. In 1933 Americans were required to hand in gold. That part is history.

The sales pitch built on it is not history. It claims a modern confiscation is coming, and that "collectible" coins would be exempt from it, which conveniently justifies moving you into exactly the products carrying the largest markup. Regulators list this among the known deceptive tactics in this market.

The connection nobody draws

Here is what makes this worse than a pricing problem. The "collectible" coins pushed as confiscation-proof are, in most cases, not IRA eligible at all. Numismatic and graded coins carry precisely the collectible premium that § 408(m) exists to keep out of retirement accounts. So the same purchase can both overcharge you by six figures on a large account and be treated as a taxable distribution of the amount involved. The coin fails twice: once on price, once on eligibility.

The warning signs, in order of how much they tell you

Red flag They will not put the sell price in writing

Ask: "What would you pay me for this exact coin today?" A legitimate dealer answers. The gap between that number and your purchase price is your real cost. If the answer is deflected twice, you have learned everything you need to know.

Red flag Steering away from plain bullion

If you ask for American Eagles or Maple Leafs and are told those are "not the best value" or "what everyone else has", you are being moved toward margin. Plain bullion is the boring, low-premium, IRA-eligible option, which is exactly why it is not being recommended.

Red flag Free silver, free gold, fees waived for life

Nothing is free in a transaction with a spread you cannot see. Promotional metal is priced into the deal somewhere, and the somewhere is the spread. Treat a generous-sounding giveaway as a signal to ask harder about the price.

Red flag "IRS approved" with nothing to point at

For a non-bank custodian this is a checkable claim against the IRS list of approved nonbank trustees. Ask which exact legal entity name they are listed under, then check it yourself. For depositories, note that no IRS approved-depository list exists at all, so the phrase means nothing there.

Red flag Home storage offered as a feature

A company telling you that you can keep the metal at home is describing an arrangement the Tax Court has already ruled against. This one is diagnostic: it tells you what the firm is willing to say to close a sale.

Red flag They knew about your 401(k) before you told them

If an unsolicited caller already knows you have a retirement account of a certain size, your details came from a list. That is not illegal by itself, but it tells you the conversation started as a targeting exercise and not as a service.

The two questions that do most of the work

You do not need to become an expert. Two questions, asked early and in writing, filter out most of the problem.

  1. "What would you pay me for this same product today?"

    This exposes the spread, which is the actual cost of the transaction and the thing markups hide inside. Ask it about one specific product, not in general.

  2. "Is this product IRA eligible, and under which provision?"

    A dealer who cannot answer this about the coin they are selling for your IRA either does not know or does not want to say. Both are disqualifying. Our gold and silver pages let you check the answer yourself in a few seconds.

Where to check and who to tell

These are the official sources, and we link them rather than paraphrasing them because on this subject you should not be taking our word for it either.

If you think you have been overcharged, gather the purchase confirmations and any written materials the seller provided before you contact anyone. The documents are the case.

Questions people ask

Is a gold IRA itself a scam?

No. The structure is legitimate and specifically contemplated by the tax code. The problems are in how some firms sell it, particularly markups and home storage claims. Judge the provider, not the wrapper. Whether the wrapper suits you is a separate question we cover in is a gold IRA worth it.

What markup is normal on bullion?

Plain bullion coins normally carry a modest premium over spot that varies with product and market conditions. What tells you something is wrong is not a precise number, it is a refusal to disclose the buyback price, and premiums that are multiples of what the same product costs elsewhere.

Are proof coins a scam?

Not inherently, but they carry higher premiums and many custodians will not accept them. If a proof is being pushed for an IRA, ask why that rather than bullion, and get the custodian's acceptance in writing first.

Can I get my money back?

It depends on the facts, the timing and the state. Start with the firm's own complaints process, then your state securities regulator. Keep everything in writing. We are not lawyers and this is not legal advice.

Why does this target retirees specifically?

Because that is where the balances are. A rollover is one of the few moments when a large sum becomes visible and movable, and the regulators' joint campaign exists precisely because of that pattern.

Primary sources

Metals Retirement is an independent research site. We are not a broker, dealer, custodian, law firm or investment adviser, and nothing here is investment, legal or tax advice, nor an allegation about any particular company. Enforcement matters referenced are drawn from regulators' own published materials. If you believe you have been defrauded, contact your state securities regulator. We may be compensated by providers we compare, at no cost to you, which is exactly why this page tells you to verify the spread yourself rather than trust a recommendation. Last reviewed 27 July 2026.