One is not permitted to be in physical possession of precious metals that at IRA assets. They must be held in the possession of an IRA custodian that is a bank or IRS-recognized non-bank IRA custodian. If one takes physical possession, it's a distribution from the IRA that is reportable on Form 1099-R, taxable the same as any IRA distribution. The cost basis of the precious metals outside of the IRA would then be the value that they had upon distribution from the IRA.
Receipt of the Form 1099-B related to the precious metals would imply that a sale took place outside of an IRA.
