Gold IRAs are more popular now than ever before because people are worried about legal tender issues and government deficits. Whether a person fears another world war or likes the idea of diversifying their portfolios with gold bullion, it’s important to understand where to go to get gold or silver.
Monetary Gold is an IRA specialist firm that handles precious metals and other things. Though investing in anything can carry risk, fiat currencies and gold are seen as better than paper money nowadays.
IMPORTANT – before we get too far in this review, we’d like you to know we’ve vetted quite a few companies in this space.
We know that selecting a company to work with is a major financial decision and something not to take lightly. InvestingInGold.com has put in extensive research spanning many years in order to compile a list of the 5 highest recommended companies for this year.
We urge you to view the links to see where Monetary Gold stacks up against the competition.
Overview of Monetary Gold
Monetary Gold is considered a precious metals firm that specializes in IRAs (Gold IRAs). It opened in 2000, which means it’s been in business for over two decades. Now, it’s one of the best providers for gold-backed retirement funds.
Precious metals are a competitive industry, but this company has an advantage because it’s a direct dealer and uses the de facto gold standard. Therefore, the value of the exchange uses a fixed price. This market price is what everyone pays, regardless of its future performance results.
The classical gold standard is ideal for the global economy where other currencies and government policies might change the fixed rate. In fact, many countries and central banks now use gold in place of paper money for international trade.
Pros and Cons for Monetary Gold
- Direct dealer for gold IRAs
- Low markups on IRS-approved metals
- Uses the Delaware depository
- Easy to set up an account
- Secure storage with low fees
- Private storage options available but not recommended by the company
- Can purchase precious metals outright
- Processing begins immediately and is completed in 48 to 72 hours
- Low minimum openings
- Rollover portfolios with no fees or tax penalties
- Company covers five years for client custodial fees
- Versatile gold IRA holds silver, gold, palladium, platinum, bonds, stocks, and more
- Dedicated support staff
- BBB-accredited with A+ rating
- Hosts public monthly workshops
- Free precious metals guide on the website
- Private storage options have regulatory risks
- No palladium or platinum in stock because of market demand
- No prices shown online
What’s a Gold IRA?
Gold IRAs combine traditional tax advantages for retirement accounts with ownership of physical precious metals. The special tax vehicles make it easy for a person to diversify their portfolio with gold and silver that belong to them.
Since the gold supply isn’t set in stone, prices can fluctuate, making it a great investment based on the metal content.
Having a precious metals IRA means that the person owns the gold and can place it in secure storage or hold it themselves.
The foreign exchange markets set the price, but Monetary Gold holds to them and has low markups compared to other companies.
The Case for the Monetary Gold IRA
Monetary Gold offers a wide metal selection for direct investments at great prices. Plus, people can still dabble in the stock market.
The Monetary Gold IRA can also hold bonds, stocks, and other approved assets, so all of the holdings are under one roof.
When a person has an existing qualified IRA and opens a Gold IRA to buy precious metals, they can receive them with in-home delivery or store them at the depository.
The fees at Monetary Gold are quite low, giving the client enough purchasing power to get a large nest egg started. However, the person’s own personal circumstances determine if there is little risk. It’s best to have a clear understanding of the gold standard and other metals before opening an account online. Be aware that it’s possible to lose money from one’s own investment.
Physical Gold vs. Gold ETF
Gold ETFs are a popular choice for retail investors who want to own gold. However, they have downsides though they are easy to trade and liquid.
Typically, gold ETFs negate the benefits associated with directly owning gold. Most notably, the funds don’t hedge against the US dollar’s volatility. Therefore, currency shock might wipe out the fund.
The person’s safe harbor investment then turns into a money pit. Plus, some funds get leveraged at high ratios. This means that a real crisis could doom the investment if it’s leveraged high.
Plus, the gold ETF shares are not redeemable for the physical gold. Most people aren’t sure of the amount of physical gold holdings they own.
Likewise, some own gold futures, which are promises for future gold deliveries. They continue rolling over expiring contracts and maintain the holdings.
Overall, the industry is opaque, and there aren’t many auditing standards. With that, custodial fees go unnoticed because most companies factor them into the fund’s price. Generally, they work well for short-term gold movements but not for retirement savings.
Physical Precious Metals and Physical Gold and Silver Coins
Owning gold gives a person direct control of their retirement assets. If they are an independent investor, they can get silver and gold coins directly shipped to their home from the dealer.
When a person takes possession of their precious metals, they know exactly what they have and can liquidate or add to the portfolio as needed.
Generally, coins aren’t reportable, so there’s no need to tell the IRS. However, it’s best to work with legal advisers to ensure that this is accurate for each individual.
With the gold and silver in hand, there’s no need to worry about accessing the wealth if the economy falters. It’s stored outside of the world’s financial system and is protected from fallout during a disaster.
Is Monetary Gold Legitimate?
Other Gold IRA companies might have questionable track records, but that’s not the case for Monetary Gold. It is 100 percent legitimate. Former clients and various consumer advocacy groups give it high ratings for its past performance.
In fact, the Better Business Bureau shows Monetary Gold as being an accredited business with an A+ rating. There have been many positive Monetary Gold reviews listed on the website, and most people claim that they are happy with their accounts.
Overall, it’s safe to recommend Monetary Gold for people who want other precious metal IRAs that include gold or silver, bonds, stocks, and all the rest.
Who Owns It?
Monetary Gold is a privately-held company, so it doesn’t publicly disclose ownership. It’s hard to find precise information on its shareholders. However, some data is available online.
Overall, Monetary Gold is chartered in California (Westlake Village) and is a US-based company. Its primary contact information is shown as Andrea Powers, who is the principal partner here. There are 37 employees, and it holds regular office hours Monday through Friday.
Though no one knows who actually owns Monetary Gold, this is true for many legitimate companies, so there should be no issue with using it as the IRA custodian.
Services and Features
Monetary Gold focuses primarily on gold IRAs, but it offers a vast selection of IRA and precious metals services. New clients and current ones have access to:
- A top-rated IRA staff
- Available home delivery that includes free shipping
- Direct buyer of gold
- Certified-graded gold coins and bullion
- Secure storage
- Free online workshops
It’s always best to get precious metals from the original source or as close as possible. With more middlemen, the prices go higher.
As a direct buyer of gold, Monetary Gold is very close to the source. It offers better pricing than most of the competition. Plus, it allows people to get collectible foreign coins, such as:
- Gold Canadian Maple Leaf
- American Gold Buffalo
- Gold Austrian Philharmonic
- American Gold Eagle
Monetary Gold Representative and Staff
When a person works with Monetary Gold, they are assigned a representative to work with. That person answers any questions and helps the client set up their retirement account.
People have commented on how well the team works together, and the staff is available Monday through Friday to talk about any issues.
Minimum Investments for Monetary Gold
It’s easy to get started with Monetary Gold, and investors only need a minimum investment of between $5,000 and $10,000. This depends on the custodian selected. When the IRA account is opened, it’s possible to buy the precious metals on the company’s website. Opening the gold IRA isn’t the only choice, either. People can open IRAs for silver, palladium, and platinum.
Overall, Monetary Gold purchases its metals directly and doesn’t use a middleman. Therefore, it can pass the savings onto the clients. That’s the primary reason it offers the best prices out there on bullion, certified graded coins, and others.
When a person buys their metals, they can have them delivered to their home for free or store them safely in the Delaware Depository at a reasonable annual price.
The best thing is that people aren’t limited to precious metals. The gold IRA may contain treasury securities, bonds, stocks, annuities, and other investments. Therefore, all assets are stored in a single portfolio.
Annual insurance and storage costs range from $100 to $100,000, depending on the worth of the assets. If the account holds more, it costs $1 for each additional $1,000 within storage.
Therefore, if the gold IRA has a balance of $150,000, the client pays $150 to keep it fully insured and secure in storage. This is a competitive price model and the reason why investors don’t mind the fees associated with Monetary Gold.
Delaware’s depository also offers investor-friendly policies. People never pay sales tax, inventory tax, personal property tax, or a commercial net worth tax like they do at other depositories.
Plus, there is no tax associated with the payment of the storage fees like in New York. Therefore, the tax costs are much lower here than anywhere else. In fact, people tend to pay more to insure and secure their precious metals stored in their homes than they do with Monetary Gold.
In-home storage requires the best security system, and that might not even be enough. Determined burglars can defeat alarms and cameras if they’re persistent and get to know the situation. Plus, homeowners must pay higher premiums for home insurance, and some insurance companies don’t cover direct gold ownership.
Monetary Gold does offer private storage options for IRA-held precious metals, but it doesn’t recommend that people do this.
In fact, private storage is a gray area in the legal industry. The IRS has not approved of it, but it also didn’t disapprove of it. Overall, it’s allowed right now, but the rules could change at any given time.
Overall, the IRS doesn’t approve of private storage because it creates significant issues down the road. People might be forced to move their metals to an approved storage depository or liquidate them forcefully.
Though this is speculation, no one knows what might happen. It’s generally better to use a depository that’s secure. With that, Monetary Gold claims that it is not liable for stolen precious metals. Therefore, if the person decides to store them in their home, they cannot sue the company if the metals are lost or stolen.
It’s best to consult with an attorney or other trusted advisors before choosing private storage. However, it is available if people want this.
It’s possible to have the metals delivered to the house for a flat rate of $30 and store them at home, at the bank, in a safety deposit box, or anywhere else the person chooses.
Right now, the company is offering free shipping, so there’s no fee on the first transaction.
It doesn’t cost anything to open the gold IRA through Monetary Gold. However, there is the minimal investment price of $5,000 to $10,000, which depends on the custodian. With that, the investor isn’t charged early withdrawal penalties because the IRS views this as a transfer of funds. In a sense, the assets are moving from one custodian to the other.
Since it’s easier to transfer funds instead of having possession of the gold or silver, this is the best option. Just remember that there could be finer points to think about. In general, though, it’s possible to avoid tax penalties when rolling over the assets.
If a person decides to store the precious metals in the depository, they only pay the annual fee for that. This could be anywhere from $100 to $100,000, depending on the amount in the account. This fee also covers insurance.
There is a small markup price on the purchase of precious metals. However, that’s a standard operating procedure for all companies in the industry. The good news is the markup for Monetary Gold is small compared to others because it’s a direct dealer.
Monetary Gold is a great choice for investors who like the idea of direct gold ownership. Those who are worried about the stock market crash may benefit from having a gold IRA.
Remember, the gold reserves are plentiful, and gold production is on the rise. They are also freely convertible into cash if that is something the investor might like later.
Overall, these people can benefit from the company:
- Inflation Hawks – Those worried about a currency crisis can’t go wrong with gold or silver ownership. However, publicly traded trusts and ETFs don’t offer direct ownership. The gold IRA is the best route to insulate investments from the dollar, and the account may hold traditional assets, too.
- Preppers – Many people worry about the future, and gold can withstand a disaster scenario. Owning physical gold might protect a portfolio from meltdown and offers a safety cushion.
- Retirement Investors – People who want to cushion their retirement portfolios with diversified funds can enjoy gold as a way to do that.
- Smart Shoppers – As a direct dealer, the company offers great and competitive prices. Since it gets the gold from the source, the money saved is passed to the consumer.
Many people recommend Monetary Gold as a way to buy precious metals outright or open gold IRAs. This company has a high level of service with a low cost. Because it’s a direct dealer, there is no middleman, so investors may purchase gold for less money.