As the cost of living gets higher, the demand for gold IRAs also goes up. People are attracted to precious metals because they retain their value in a way that the dollar doesn't. They're an ideal hedge against inflation, and they also perform well during times that the stock market goes under.
Monetary Gold is a precious metals dealer that offers tons of different services. They are also a direct dealer for the US Mint, so they skip the middleman. But being an authorized US Mint dealer doesn't always mean that a company is the best in the industry.
So what should you know about Monetary Gold? Is this company actually trustworthy, and if so, do they manage to outcompete the other industry leaders?
About Monetary Gold
Monetary Gold is a precious metals dealer offering a huge range of inventory and services to people throughout the US. One of the services that they offer is gold IRAs. They'll help you fill out paperwork and connect to a custodian, then send precious metals to a secure depository. A lot of people don't have enough savings to invest in gold, but they do have a portion of their retirement funds that they can use instead.
Monetary Gold was first founded in 2000 and has since grown to become one of the most prestigious firms in the nation. Though there are only a few dozen reviews online, there are thousands of customers all over the US.
One of the big advantages of Monetary Gold is the Direct Dealer designation. Only a few companies have been given this honor. They are able to trade directly with the US Mint, acquiring freshly minted coins in bulk. Because of this, they don't have to source their inventory from wholesalers. Since they buy the coins at their exact price, they don't need huge markups to turn a profit.
Another big advantage is how diverse the inventory is. There are gold, silver, platinum, and palladium options for coins and investment bullion. All of these things can be held in an IRA, provided they meet the right purity standards.
There are also parts of the inventory that cannot be used with an IRA. You can buy semi-numismatic coins, foreign coins, and other memorabilia. Numismatic collectibles aren't allowed in an IRA because their value is largely speculative. But they can be bought with your savings. While they're a risky investment, they do also have more potential for growth than pure bullion, due to the speculative nature of the pricing.
There's not a lot of information available about Monetary Gold's management. The owner of the company has not been disclosed in public. Their Linkedin page shows six employees, and their official company paperwork lists Andrea Powers as the primary contact. She is a principal partner. The company's headquarters can be found in Westlake Village in California.
Home Delivery Options
If you buy precious metals with cash, you are not subject to the same regulations that you would be if you used your retirement funds. You can store the metals in a depository if you want, but you can also have them shipped directly to your home. Home storage is risky, but some investors prefer it.
It might also be possible to create a home storage IRA. But this is not advised. The IRS regulations indicate that you must store precious metals in a depository. To get around this, people create a "checkbook" IRA, which involves placing a shell LLC inside the account. This shell company is then given a checkbook. You can write checks to pay for precious metals using the account's assets, and they might not be technically subject to the same regulations.
But this is a way of wiggling around the rules, and it could get you in trouble with the IRS. Besides, the IRS regulations exist for a reason. A storage depository has 24/7 security, excellent insurance, and regular auditing. Your safe at home doesn't have nearly the same level of protection. It's best to just use a depository.
If you do have your precious metals delivered to your home after buying them with cash, you'll need to sign for them. The package will be fully insured. The private delivery services are available to customers throughout the US for a flat fee of $30, regardless of how heavy or bulky the package is.
Storage Options
You might be wondering what your storage options are if you do open an IRA with Monetary Gold. What depositories have they partnered with?
According to the company's website, they partner with just one depository: the Delaware Depository located in Wilmington, Delaware. This is one of the most popular depository choices for gold IRAs. It is the largest depository in the US and has been in operation for over 200 years.
While people outside the East Coast might want depository options closer to their region, there are multiple advantages to the location of the Delaware Depository. Delaware is one of the best states for bullion sales because it has no personal property tax, no sales tax, no inventory tax, and no taxes on depository storage. New York, by contrast, charges taxes on depository storage.
The depository itself is also one of the most secure in the world. It is monitored by guards on a 24/7 basis and constantly filmed. Each vault is fully insured by Lloyds of London, so even if something were to happen, you could recoup your losses. The accounts are also frequently audited by third parties to make sure that there aren't any discrepancies between the statements and what's actually there.
Online Workshops
Education is a major focus of Monetary Gold. Unethical gold dealers will try to confuse and bait customers into overpaying for their items. They might mislead customers about the value of the products, or they might add commission fees without being honest about it. Monetary Gold doesn't do these things, and they believe that customers should be able to look out for themselves.
The more you understand about the precious metals business, the easier it is to make the right decisions for your future. To this end, Monetary Gold hosts free monthly workshops. You don't even need to be a paying client to join up. They're available to anyone who's interested. All you have to do is put your name on the list to get email updates about the schedule.
The workshops typically go over a variety of different topics. You might talk about things related to the precious metals industry, like the differences between gold and silver investments, and how the economy affects the price of gold. You might talk about retirement and planning for the future and what you should know about diversifying your portfolio. You might talk about current events like central banking changes, inflation, and other issues.
These webinars are also a great opportunity to get comfortable with the Monetary Gold staff. You can ask questions and take notes. It helps to be reassured that the people behind the company truly know what they're talking about.
There are also free one-on-one consultations available for people who think they might want to invest in an IRA, but aren't completely sure. You can talk to a staff member about your worries, available options, and whether precious metals are a good fit for your needs. There's no obligation to make a purchase, but if you decide to, then your company rep can walk you through it.
Costs and Fees
Monetary Gold doesn't charge any setup fees to help you open a precious metals IRA. But they do have a minimum investment requirement of either $5,000 or $10,000. It depends on which custodian you choose to work with. As long as you complete all of the transfer and rollover paperwork within 60 days of making your account, you won't have any tax penalties, either.
If you use the Delaware Depository to store your IRA, you will pay an annual fee to keep your vault open. The fee is just $100 for $100,000 worth of precious metals or less. You'll pay the same amount every year and have your vault totally covered by insurance.
As with any precious metals dealer, you can expect there to be a small markup on products beyond the spot price. But because Monetary Gold sources their products directly from the US Mint, their markups are much smaller than the industry average. Several customers have left reviews noting that they got the lowest price quote with Monetary Gold compared to several top competitors.
You will also need to pay a maintenance fee to your custodian. According to the Monetary Gold website, they have not partnered with any particular custodian. But they have listed several companies that they frequently work with. Since you have a range of custodians to choose from, you can research their fee structures and costs. That way, you'll pick the one that's most affordable based on your unique circumstances.
Some examples of potential custodians are Kingdom Trust, Equity Trust, and Gold Star Trust Company.
Is Monetary Gold a Scam?
Monetary Gold is not a scam. The company has been in business for over 20 years without running into any issues. The BBB has accredited them and gives them an A+. There have been no complaints in the past year, and only one complaint in the past three years. That complaint is no longer available to view on the website, indicating that the company resolved it and the customer asked for it to be removed.
There are far more positive consumer reviews than complaints. The BBB average is 5 stars with 37 reviews. Other sites also show positive feedback from the prior customers. While there isn't as much feedback as you might find with giant corporations, there are 11 reviews on Trustlink, all of which give 5 out of 5 stars.
The company encourages people to call their number and talk to one of their specialists. This is a person who answers questions about the investment process and the available products. They can also answer questions about the company policies. According to customer reviews, these people tend to be extremely helpful and transparent.
Monetary Gold is also one of the only Direct Dealers in the country. This means that they are able to source their inventory directly from the US Mint. That means there's no middle man, which means they are able to keep their prices lower in turn. Whether clients are purchasing gold with cash or with their retirement funds, they report having a simple and calming experience.
Pros & Cons of Monetary Gold
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Final Thoughts
Overall, Monetary Gold is an extremely solid company. It has been in the business since 2000, boasting over two decades of ongoing experience. Customers have written positive reviews, and there are very few negative comments. The one complaint against the company has been resolved and isn't even available to view online anymore.
On top of maintaining an A+ accreditation with the BBB, Monetary Gold is a Direct Dealer for the US Mint. This is a prestigious designation, and companies only get it when they're extremely trustworthy. The ability to acquire items directly from the source means that they can be sold for much lower markups, while still turning a profit.
All in all, this is a pretty good company to do business with. But you should keep a few points in mind. First, it's not a good idea to use a private storage IRA. Precious metals are supposed to be stored in a licensed depository, and using regulatory loopholes doesn't change that. Depositories are also safer and more secure, especially because each vault is fully insured.
The IRA services in general might also not be as thorough as you want. If you're looking for a company that fully manages every single aspect of the account setup and money transfer process, then you might want to work with an industry expert like Goldco.