When you have cash in an IRA account prior to purchasing precious metals with it, the funds might be Federal Deposit Insurance Corporation (FDIC) insured, depending on the custodian. However, as soon as your money is exchanged for precious metals, that investment is no longer FDIC insured. Stocks, real estate, and other physical assets are also not FDIC insured. The FDIC exists to protect consumers from bank failures, but it can only extend its protection to cash deposits, not investments.