What To Expect After Investing in A Precious Metals Investment Dealer
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Precious metals present a great option for diversification, as they hold their value and provide numerous benefits over other conventional investments methods. The best part is: investing in them is easier than you’d think.
But before you dive into the precious metals market and open your IRA account, here are three things you should expect when going for a precious metals investment dealer:
What to expect after you invest
Changes in valuation
You should expect an increase in the value of your precious metals after you invest. This is why it’s very important that you know the market value of your investment. Your IRA statement is a reliable way to learn about the value of your precious metals.
The value can either be based on the spot price of your precious metals or an estimated bid made on your investment. However, please understand that this excludes commissions, discounts, and mark-ups that you need to pay to your dealer.
There are various online sources that can help you learn about the prices of your precious metals. That being said, the best way to estimate the price of your investment is using the website of your dealer, as it’s likely to contain accurate and up-to-date prices.
You’ll have to pay annual IRA, storage, transaction, and wiring fees
Typically, there are four types of fee that you might expect to pay to your IRA custodians, which include:
Annual account fee: IRA custodians take care of all the administrative and bookkeeping work, charging you an annual service fee in return. This fee is disclosed in their information packets. If you have a large account, you’re likely to qualify for a discount.
Transaction fees: IRA custodians charge a transactional fee on every sale or purchase transaction within the account. Usually, the amount is fixed.
Storage fees: The approved depository charges a fee to keep your gold, silver, and other precious metals safe and secure. Typically, the charge the fees based on a percentage—roughly around 0.5% to 1%—of the value of your precious metals.
Wiring fees: You will also have to pay a wiring fee to your IRA custodian, in case you’re wiring money from your account; say to make a payment to the dealer. Each wire transaction can cost around 25–30 US dollars.
You can make a withdrawal any time you want
You can take possession of your precious metals at any time you want. This can be particularly useful if you’re facing a financial crisis and urgently require cash.
But remember, precious metal investments comes under the umbrella of taxable distribution, which means that withdrawal from your IRA will be subjected to applicable taxes and, in some cases, penalties.
Bottom Line
Investing in precious metals using an IRA account is a safe and reliable way to diversify your retirement portfolio. However, you need to ensure that you work with a company that knows the ins and outs of investing in precious metals to ensure that your investment remains safe and secured.
Looking to invest in precious metals? Orion Metal Exchange can help. We’re a Los Angeles-based Precious Metals IRA dealer that provides reliable and smart precious metal investment solutions. Aside from helping you choose the right precious metals investment, we also offer gold and silver storage to make sure that your investment is safe. Give us a call at 1-800-559-0088 or visit our website for more information.
