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Generally, there are three sets of fees charged with a gold IRA. The first is the acquisition fee for the gold. The second is the storage fee for storing your gold in a depository, and the third is the annual maintenance fee.
The acquisition fee varies from one dealer to another and will depend on what kind of gold you are looking to invest in and its quality. Storage fees are a flat $3-$5 per year, while administrative fees typically range from 0-2% of the worth of your total holdings per year (note: some firms offer low-cost accounts with no annual charge). When choosing a gold IRA account, the most important thing to consider is to pick one where you are not charged sales commissions.
Most gold dealers that offer this service charge commissions of 5%, in addition to the standard 3% commission on physical bullion. Instead, opt for a dealer that charges annual storage fees only, with no hidden fee. In other words, choose a dealer that charges you only the price of gold plus storage fees, not sales commissions.
That way, you keep all the profits and can invest in more gold or cash when it suits your needs. For example, if the market price of 1 troy ounce (31.1035 grams) of gold is $1,000, and you buy physical gold with a 5% sales commission, the dealer would have to pay you $950.
The same holds if you are selling an ounce of gold. The dealer would have to reimburse you $990 for selling the 1 oz of gold at a 5% sales commission.
A 10% increase in price would leave a gap of $50 between the market price and what the client receives in return. This is why it is essential to check the dealer's fee structure so you can find a good fit for your specific financial needs. To calculate the total fees associated with your gold IRA account, first, you have to know the commission rate (the rate charged by the dealer for each purchase or sale) and then add the storage fees (the annual fee charged by a depository).
For example, if you buy physical gold at a 5% sales commission and store it in a depository that charges $3 per year, your total fee will be 5%+$3, which equals 8%. If instead, you choose a no-commission dealer who charges $3 per year for storage, your total fees would be 3%+$3, which equals 6%.
It is important to note that the prices of gold and silver fluctuate from market to market, but they typically increase over time. Part of the fees you pay is used to secure your metal at the lowest prices on the market, while part is used for storage and management. When investing in gold IRAs, make sure those fees are reasonable based on current market conditions.
In addition, one of the main benefits of investing in precious metals via a self-directed IRA is that you can take possession of your metals by moving them to a safe deposit box or home safe if there is extra room available.
The gold and silver you purchase will remain your property. Therefore, if the gold IRA dealer goes out of business or decides to close their doors, you can take your metals to a new dealer without any problems.
You can buy gold through a gold IRA account with a minimum of $1,000 of precious metals. The price of the coins and bars are standard on most dealers' websites, but they may differ slightly by location. When making your purchase, you must pay for it in full.
For example, if the price is $1,200 an ounce, there will be a minimum charge of $1,000 to buy one ounce of gold bullion. If you choose to sell your gold, you can request a check, bank wire transfer, or cash for the price of your gold plus a 3% commission. The value of all investments is subject to market volatility and the risks associated with investing in precious physical metals.
Many gold dealers charge a service fee of at least 10%, typically used to cover the cost of transfers from one dealer to another or from one country to another. This can be avoided by using a dealer that provides storage without additional fees (which is rare and should be opted for if possible). Consult with an adviser before making your choice.
This article recommends the top three companies you can trust to ensure you only incur a few costs while investing in a gold IRA.
Top 3 Companies: Investing in a Gold IRA
#1. Goldco
Goldco offers a low-cost account of $1,500 to buy and sell gold. Goldco is certified by the Better Business Bureau as a 5-Star company. It offers five different types of accounts: Individual, Joint Member, Retirement, Trust, and Dynasty. Each of these accounts has a minimum investment of $100 and offers different benefits to the individual account holder, such as lower fees on withdrawals or pay-outs.
Goldco also provides a clear breakdown of all costs on their website with each account type so that investors can better understand how fees and purchase times will impact the total value they receive for their purchase and sale prices.
The set-up fee Goldco charges is a one-time fee of $50 and a one-time wire fee of $30. The company charges $80 for annual maintenance, and the storage fee is $150 for segregated or $100 for non-segregated storage.
Goldco offers $50 in free gold to new accounts and $20 for referring others to their company.
In addition, Goldco offers free shipping on all orders over $500.
Pros & Cons of Goldco
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Setting up a gold IRA with Augusta Precious Metals costs $50. There are two annual fees, a $100 custodian maintenance fee, and a $100 storage fee. Augusta charges $50 for a check, $35 for a wire transfer, and $300 for cash.
Augusta also charges pricing fees of 3% for gold and silver bullion, 4% for gold coins, 4% on silver bars, 5% on platinum coins, and 6% on platinum bars.
Augusta's customer service is excellent. The staff is always helpful and tends to help customers as quickly as possible. They also offer a great promotion on top of their already-low fees and shipping costs.
Augusta also guarantees you will get the lowest price on all products by paying the lowest price or getting the difference back. This means that investors can rest assured that they will not be overpaying for their items, which can become a concern when investing in precious metals.
The company is A+ rated and accredited by the Better Business Bureau. The company also has a AAA rating from the Business Consumer Alliance.
Pros & Cons of Augusta Precious Metals
Pros
Cons
American Hartford Gold allows you to invest in gold without a minimum amount. The set-up fee is $50, and the annual maintenance fee is $100.
American Hartford Gold charges $65 for a wire transfer and $800 for cash. The company also charges a 1% sales tax for all clients in Texas and a 5% sales tax on foreign transactions.
American Hartford Gold accepts IRAs with custodian Fidelity or Regal Funds and allows you to use your gold as collateral for your IRA account. They also offer a loan program for investors who want to purchase gold bars.
American Hartford Gold's customer service is excellent, and their staff is always willing to help you. They offer a guarantee on their lower prices and will pay the difference if there is any price difference for better pricing from any other company you choose. This means that if you buy from American Hartford Gold, you know that the company will give you the best price possible on your purchase.
The company provides resources and information about gold and silver investments on its website. The company also offers a wealth of learning information about the precious metals market and makes wise choices when it comes to investing.
The company agents work alongside investors to ensure that the account is fully understood. They will offer any assistance as long as it does not put the customer in a position that requires an immediate response.
American Hartford Gold is a reliable and trusted company. The company's excellent customer service and the staff are always willing to help you.
American Hartford Gold has lower charges for shipping than most gold IRA companies, which makes it an excellent option for investors who want to keep their costs low. They also offer an extensive loan program to cover your purchase of gold bars or coins.
The company offers gold and silver bars and coins at a lower price than other companies, which means you are getting a great deal. It also offers 100% of your metal value in gold and silver bars or coins. American Hartford Gold also offers a unique service that will consolidate your metals into a smaller, easy-to-handle size.
Pros & Cons of American Hartford Gold
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Final Thoughts
The amount of money you need to start a gold IRA depends on several factors. One of the most important is the amount of money you have to invest. Another factor is whether or not you want to buy physical gold and silver bullion bars or coins, which are different from gold and silver ETFs.
If you would like to start a gold IRA at an affordable price, Goldco is a great place to start. The company's fees are lower than most companies, it charges less for shipping, and it has lower minimums than other companies. It also offers an extensive loan program so that if you need help to afford a significant investment at once, there is still an option that could fit your budget.