How Much of Your IRA Should Be in Gold
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Short on time? The essentials
- Most planners frame a gold allocation for retirement between 5 percent and 15 percent, with a personal ceiling under 20 percent.
- The right number inside that range moves with age, time horizon, income needs, and other inflation-sensitive holdings in the plan.
- The practical dollar floor for a gold IRA sits near 25,000 to 35,000 dollars of gold, where a 350 dollar annual fee stack drops to roughly 1 percent of the gold portion.
- Below 25,000 dollars allocated, a low-cost gold ETF inside a regular IRA is almost always the better fit.
- Above 20 percent of a total plan, the tracking error against a mainstream 60/40 portfolio widens sharply and the plan becomes concentrated.
- Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution, which lifts the after-tax value of every distribution.
- The Texas Bullion Depository holds IRA metal through operator Lone Star Tangible Assets, which received IRS approval as a non-bank trustee in 2023.
- Under IRC Section 408(m)(3), gold must be at least 99.5 percent pure, with the American Gold Eagle allowed by statute at 91.67 percent.
- An IRA cannot hold metal at home. McNulty v. Commissioner (2021) treated home storage as a full taxable distribution.
On this page
- The short answer for most Texas retirees
- Why the answer is a range, not a single number
- Turning the percentage into a dollar amount
- The five inputs that set your allocation
- Worked example: a Fort Worth 240,000 dollar IRA
- Texas details that shape the allocation
- What sets the personal ceiling
- Estimate the fee drag on the gold portion
- When the allocation should be very small or zero
- Frequently asked questions
The short answer for most Texas retirees
Independent planners, model portfolios, and central-bank reserve studies land within a narrow band on this question. For a retirement plan that already holds stocks, bonds, and cash, gold sits somewhere between 5 percent and 15 percent of total IRA assets. Below 5 percent, the position is too small to shift the total return during an inflation or currency shock. Above 20 percent, the plan starts to diverge sharply from a mainstream 60/40 mix and takes on concentrated single-asset risk.
The band most retirees end up in
5 percent is the entry point cited by the World Gold Council in its long-run portfolio studies of institutional allocations. It is small enough to keep tracking error low against a standard balanced plan.
10 percent is a common midpoint for retirees carrying real-estate exposure and stock-heavy 401(k) balances. It is large enough to matter in a currency stress event and still small enough to leave room for income assets.
15 percent is often cited by advisors serving clients with concentrated employer stock, single-industry pensions, or heavy long-duration bond exposure. It is a hedge weighting, not a growth weighting.
20 percent is the personal ceiling most planners will hold at, and rarely pass. Beyond this line, gold becomes a bet rather than a hedge, and the plan needs a clear thesis to justify going further.
The answer that fits you depends on inputs specific to your household. The next section explains why the honest recommendation is a range, and the section after that walks through the five inputs that pin down the point inside the range.
Why the answer is a range, not a single number
Anyone giving you a single percentage as the correct gold allocation is either selling you gold or oversimplifying the question. A thoughtful allocation depends on inputs that vary household to household. Your age, retirement date, current mix of assets, income needs, and tax position all pull the answer in different directions.
Three principles frame the range. Each is grounded in how planners size a hedge asset inside a broader retirement plan, and each pushes back on the idea that one number fits everyone.
Gold is a hedge, not the engine of the plan
A retirement plan needs assets that grow, assets that pay income, and assets that hold value in the stress cases the growth and income legs cannot handle. Gold sits in the third bucket. It generates no dividend, no coupon, and no rent. Its job is to hold purchasing power in a currency or inflation event, not to lift the long-run return of the plan.
That role caps the sensible allocation. A hedge that grows larger than the assets it hedges stops being a hedge and starts being a directional bet. This is why 20 percent shows up so often as a personal ceiling: past that line the plan bets on the metal instead of relying on it to stabilize the rest.
Small allocations do not move the total-plan needle
An allocation of 2 percent to 3 percent gold in a 250,000 dollar IRA is 5,000 to 7,500 dollars of metal. A 30 percent move in the gold price, up or down, shifts the total account by less than 1 percent. That is too small to matter in a real inflation shock and often not worth the fee stack of a self-directed IRA.
This is why 5 percent shows up as the practical entry point in most studies. Below it, the position exists on paper but does very little work in a stress scenario. Above it, the metal has enough weight to move the total return when the currency environment shifts.
The right point in the range depends on what else you hold
Two retirees with the same 500,000 dollar IRA can land in different places. If one already holds Texas real estate outside the account, a Series I savings bond ladder, and TIPS in a taxable brokerage, the plan already carries assets that historically respond to inflation. A 5 percent to 7 percent gold slice may be enough. If the other has a stock-heavy IRA, a corporate pension, and a small cash cushion, a 10 percent to 15 percent gold slice does more work.
The framework is straightforward. Gold complements a plan that lacks other inflation-sensitive assets. It duplicates hedges you already have if the plan is well-diversified into real assets. Adjust the point inside the 5 percent to 15 percent range to fit what your total household already holds.
Turning the percentage into a dollar amount
A percentage only becomes meaningful once you convert it into the dollar amount you would actually place inside a gold IRA. That dollar figure is what determines whether the flat annual fee stack fits or overwhelms the account.
The chart below shows what 5, 10, 15, and 20 percent allocations look like at four common IRA balance sizes. Read across from the balance you have to see the dollar amount at each allocation percentage.
Two patterns matter. First, a 5 percent to 10 percent target on a 100,000 dollar IRA delivers only 5,000 to 10,000 dollars of gold, which sits below the practical fee floor for a self-directed account. In that case, a gold ETF inside the same IRA gives you the same exposure without the flat-fee drag.
Second, at 250,000 dollars of total IRA assets and above, the same 10 percent to 15 percent target lands squarely inside the workable dollar range. A 25,000 to 37,500 dollar gold portion pushes annual fees to between 1.4 percent and 0.9 percent of the metal, which is manageable and lets the physical-ownership benefits carry their weight.
The five inputs that set your allocation
The point inside the 5 percent to 15 percent range is not a guess. Five specific inputs move it up or down. Score each one honestly and the answer emerges from the total.
- Age and time horizon. Under 55 with 15 or more years to withdrawal, a smaller gold slice (5 to 8 percent) fits because stocks have time to compound and the plan can absorb a stock drawdown. From 60 to 75 with active withdrawals ahead, a larger slice (10 to 15 percent) protects the portion of the plan you will draw on first.
- Existing inflation-responsive assets outside the IRA. Texas homeowners with paid-down primary residences and rental property already carry real-asset exposure. A 5 to 8 percent gold slice inside the IRA is often enough. A retiree with a stock-heavy plan and no real assets outside it usually justifies a 10 to 15 percent slice.
- Pension or Social Security coverage of essential expenses. If a TRS, ERS, TMRS, TCDRS, or federal annuity covers most of your monthly needs, the IRA is your growth-and-hedge bucket, and 10 to 15 percent gold makes sense. If the IRA must supply most of your monthly cash flow, keep the gold slice at 5 to 10 percent and leave room for income assets.
- Cash-flow needs before age 59 and a half. If you may need to touch the account before the penalty age, keep the gold slice small (5 percent or less) because gold generates no income and the fee stack still runs. Retirees over 59 and a half with no near-term liquidity need can hold a larger slice comfortably.
- Personal conviction about inflation and currency risk. A retiree who expects a long inflation cycle, or who wants insurance against a currency stress event, sits at the higher end of the 5 to 15 percent range. A retiree who views gold as one asset among many, without a strong directional view, sits toward the lower end.
Score each input on a five-point scale. A total of 15 or lower usually points to a 5 to 8 percent allocation. A total near 20 points to 10 to 12 percent. A total of 22 or higher supports 13 to 15 percent, with 20 percent as an absolute personal ceiling.
Worked example: a Fort Worth 240,000 dollar IRA
Texas details that shape the allocation
Two Texas-specific facts nudge the allocation math slightly, without changing the core 5 percent to 15 percent range. Both are grounded in state law and public records rather than marketing.
No state personal income tax on the eventual distribution
Article 8, Section 24 of the Texas Constitution prohibits a state personal income tax. Any taxable IRA distribution is taxed at the federal level only, whether the trigger is a required minimum distribution at age 73 or 75 under SECURE 2.0, an early withdrawal before age 59 and a half, or a Roth conversion. A retiree relocating from California, New York, or Oregon into Texas gains state tax savings on every future distribution.
This does not raise the sensible gold allocation directly. It raises the after-tax value of every dollar in the IRA equally, whether that dollar is invested in stocks, bonds, or gold. The practical effect is that a Texas retiree can size the gold slice on the raw plan needs, without any state-tax friction pulling the number down.
The Texas Bullion Depository as an in-state storage option
The Texas Bullion Depository is an agency of the State of Texas, authorized by House Bill 483 of the 84th Legislature and signed by Governor Greg Abbott on June 12, 2015. It began operations in 2017 with Lone Star Tangible Assets LP as the depository operator. The purpose-built facility sits on a roughly 10-acre campus in Leander, north of Austin.
For IRA metal, the IRS requires custody by a bank or an IRS-approved non-bank trustee. Lone Star Tangible Assets received IRS approval as a non-bank trustee in 2023, which opened the door for the Texas Bullion Depository to hold IRA metal directly through its operator. The practical arrangement runs through your self-directed IRA custodian.
For a Texas resident choosing physical bullion inside the IRA, an in-state, state-audited depository can be a small preference. It does not change the fee floor, but it may lift the personal ceiling for a retiree who values in-state custody. Confirm current process and fees directly with the depository before signing. Source: texasbulliondepository.gov IRA Storage Services page, checked June 2026.
What sets the personal ceiling
The lower bound is set by fees and by allocation size that is too small to matter. The upper bound is set by concentration risk. Four factors pull the ceiling down from a theoretical maximum toward the 20 percent line most planners hold at.
| Factor | Why it caps the allocation | Where the ceiling usually lands |
|---|---|---|
| No dividend, no coupon, no rent | Gold generates no internal cash flow. Retirees who draw from the account cannot rely on gold for the income leg. | Under 20 percent so the income assets have room to work. |
| Fee stack runs whether the price moves or not | Custodian and storage fees hit annually regardless of price direction. Concentration in a fee-heavy asset compounds against you. | Under 15 percent for balances below 250,000 dollars. |
| Tracking error against a mainstream plan | A 25 to 30 percent gold plan diverges sharply from a 60/40 stock and bond mix and behaves like a directional bet. | Under 20 percent to keep the plan close to a mainstream reference. |
| Concentrated single-asset risk | A large gold slice ties the plan to a single price series. Any prolonged flat period in the metal drags on the whole plan. | Under 20 percent unless a clear multi-year thesis justifies it. |
Framework built from IRS Publications 590-A and 590-B, IRC Sections 408 and 1(h), and general portfolio construction principles. Public fee schedules from Equity Trust Company, STRATA Trust Company, GoldStar Trust Company, and Delaware Depository. Checked June 2026.
A retiree who scores at the top of every one of the five allocation inputs, and who has no other inflation-sensitive assets in the plan, might justify pushing to the 15 percent to 20 percent zone. Past 20 percent, the plan is betting on gold, not hedging with it. That call belongs with a fiduciary advisor who has your full plan on the table.
Estimate the fee drag on the gold portion
The calculator below estimates the annual fee drag on the dollar amount you would allocate to a gold IRA. Use it as a floor test: if the drag is above 1 percent per year on the gold portion, either raise the dollar amount you would allocate or switch that slice to a gold ETF inside a regular IRA.
Texas gold IRA fee-drag calculator
Texas gold IRAs charge mostly flat dollar fees (setup, annual custodian, storage). Flat fees take a much bigger bite out of a small account than a large one. Enter your numbers to see the drag.
Estimate only. Fee amounts vary by provider and are often not published; enter figures you confirm in writing. This tool ignores metal price changes and the dealer spread, which also affect returns. Not financial advice.
Picking a company that explains every fee up front is the first step. Get the free gold IRA company checklist.
When the allocation should be very small or zero
A gold allocation is not right for every retirement plan. The situations below are common cases where zero, or a very small position through an ETF, fits better than a self-directed gold IRA. No call-to-action is attached to this section.
Total IRA under 50,000 dollars. A 10 percent allocation is 5,000 dollars, which sits far below the practical fee floor. The self-directed structure costs more than the benefits deliver. Use a gold ETF at 0.25 percent inside your existing IRA if you want the exposure.
Retirement plan built around annuity income. If most of your monthly income already flows from a pension, Social Security, or a life annuity, the IRA is a smaller share of the picture. A large gold slice inside a small IRA does very little for the total plan.
You need cash flow from the IRA soon. Gold pays no dividend, no coupon, no rent. If your plan pulls monthly income from the account, keep the gold slice under 5 percent and leave room for the income assets.
You already carry heavy real-asset exposure. A paid-off Texas home, rental property, farm land, or a commodity-linked business gives you inflation-sensitive assets outside the IRA. Adding a large gold slice duplicates that hedge. Keep it under 8 percent.
Short time horizon before withdrawals begin. Under three years to first withdrawal, the metal's short-term price swings can hit right at the moment you need cash. Prefer a smaller allocation and hold the rest in short-duration Treasury bills or high-quality bonds.
A dealer is pushing a large allocation as a fix-all. Any pitch that starts at 25 percent gold or higher is not a plan; it is a sale. Independent financial planners rarely recommend allocations above 15 percent, and almost never above 20 percent.
Home storage is being marketed to you as compliant. Any "home storage gold IRA" pitch is a red flag. The 2021 United States Tax Court decision in McNulty v. Commissioner ruled that a couple who kept their IRA gold at home had taken a full taxable distribution. IRA metal must sit at a bank or IRS-approved non-bank trustee.
Frequently asked questions
What percentage of my IRA should be in gold?
Between 5 percent and 15 percent of total IRA assets is the range most independent planners cite for a retirement portfolio that already holds stocks, bonds, and cash. Twenty percent is the personal ceiling most advisors hold at. The right point inside the range depends on your age, existing inflation-responsive assets, pension coverage, cash-flow needs, and personal conviction on inflation.
Is a 20 percent gold allocation too much?
Twenty percent sits at the outer edge of what independent planners will recommend. Past that line, the plan is betting on gold rather than hedging with it, and tracking error against a mainstream 60/40 portfolio widens sharply. A 20 percent slice can be defensible for a retiree with strong reasons; going beyond it usually requires a full-plan discussion with a fiduciary advisor.
How much gold should a retiree hold?
Retirees between 60 and 75 typically land at 10 percent to 15 percent of IRA assets in gold when the plan already covers essential expenses through a pension or Social Security. Retirees who draw most of their monthly income from the IRA usually stay closer to 5 percent to 10 percent so the income assets have room to work.
What is the minimum dollar amount that makes a gold IRA work?
The dollar floor sits near 25,000 dollars of gold in the account. Below that, a flat annual fee stack of about 350 dollars for custodian and storage runs above 1.4 percent of the gold portion, which is a heavy drag. Above roughly 35,000 dollars, the same fee stack drops under 1 percent.
Can I put 100 percent of my IRA in gold?
The IRS does not cap the allocation. A traditional or Roth IRA can legally hold up to 100 percent gold if the metal meets the IRC Section 408(m)(3) fineness standards. Whether it is a sensible retirement plan is a separate question, and every mainstream planner would push back on a fully concentrated single-asset IRA.
What does the World Gold Council recommend?
The World Gold Council's institutional portfolio studies point to gold allocations between 2 percent and 10 percent for a balanced portfolio, with the higher end appropriate for more risk-averse or inflation-sensitive investors. Its research is publicly available and treats gold as a diversifier rather than a growth asset.
Should Texas residents hold more gold than retirees in other states?
Not because of the metal itself. The Texas advantages are on the after-tax side: no state personal income tax on IRA distributions under Article 8, Section 24 of the Texas Constitution, and an in-state depository option through the Texas Bullion Depository in Leander. Those advantages lift the value of every dollar in the account equally, not just the gold slice.
How does the gold allocation affect my RMD?
Required minimum distributions from a traditional IRA are calculated on the total account value, not on any single asset. A larger gold slice means a larger share of the RMD is satisfied by selling metal, which the custodian handles by selling to the dealer at a spread. Roth IRAs have no lifetime RMD for the original owner.
Sources
- Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
- Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
- Internal Revenue Service. Retirement Topics: Required Minimum Distributions (RMDs). irs.gov/retirement-plans. Checked June 2026.
- Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. Office of the Law Revision Counsel. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 1(h). Capital gains tax brackets, including the collectibles rate. uscode.house.gov. Checked June 2026.
- World Gold Council. Gold in a portfolio: strategic and tactical allocation research. gold.org/goldhub/research. Checked June 2026.
- Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov/ira-storage. Checked June 2026.
- Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
- Texas Legislature. House Bill 483, 84th Regular Session (2015), Texas Bullion Depository Act. capitol.texas.gov. Checked June 2026.
- United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA treated as a full taxable distribution.
- Texas Constitution, Article 8, Section 24. State personal income tax prohibition. statutes.capitol.texas.gov. Checked June 2026.
- Teacher Retirement System of Texas. Refunding your account and rollover options. trs.texas.gov. Checked June 2026.
- iShares. iShares Gold Trust (IAU) fund summary, expense ratio 0.25 percent as of the fund summary page. ishares.com. Checked June 2026.