When you’ve made the decision to delve into alternative investments, such as precious metals, it’s important to make sure you’re receiving the correct information about your potential investments. Finding a precious metals broker that is reliable and knowledgeable can be frustrating, especially with the huge number of these companies online that will come up with a simple internet search.
We want to help you find the best precious metals broker for you and your investment needs. That is why today we’re going to take a look at a company that you may have seen on your searches. Before you make a decision on a precious metals company for your IRA, consider this American Bullion Review.
What is a Gold IRA?
If you’re unsure what a gold IRA actually is, we can help.
A gold (or other precious metals) IRA is an individual retirement account that allows the investor to buy and sell physical precious metals, like bullion. Unlike a traditional IRA, fees for a precious metals IRA are typically higher due to upkeep and storage demands.
When you work with a precious metals custodian, you will set up your IRA using either pre-tax money or post-tax money (such as a Roth IRA). Not every gold IRA company has physical products–some companies will trade stock in future endeavors, like mutual funds or mining operations.
The IRS has strict regulations with precious metals retirement funds, including the prevention of contributing more than $6000 if you’re under the age of 50. However, investors are flocking to precious metals because of market turmoil and how stable these metals typically are.
The downfall of investing in precious metals can be the high-dollar minimum investment that some companies require. Even so, it is smart to consider investing in gold and other precious metals.
American Bullion Background
American Bullion began business in 2009 in Los Angeles, California. It was founded by commodity investors Orkan Ozkan and Nevtan Akcora who wanted to make trading in precious metals easy, as well as easy to understand. They prioritized their customer service and allowed investors to begin investing with precious metals in bullion and bars to achieve their long-term financial goals.
American Bullion became the first gold IRA company that accepted Bitcoin transactions in 2013. This was groundbreaking at the time, as Bitcoin was just emerging in the world. This helped the company to rise above the competition and American Bullion became a company that had the most gold IRA accounts worldwide.
Many investors consider American Bullion to be the O.G. in the world of gold IRA’s. They are even partnered with STRATA Trust Company for self-directed IRA’s, and they are experts in helping their customers to roll over paper funds into gold IRA’s.
Of course, just like any other company, American Bullion deals with negative reviews and some business challenges. However, every company has their bumps along the way and professionals still rank American Bullion among the best in the industry.
Minimum Investments
American Bullion has a minimum investment requirement, just like many other gold IRA companies. But, they keep their pricing transparent, so you always know exactly what you’re going to be paying.
New customers must start with a $50 set-up fee for their account. You will also pay a $95 custodial account fee after your first year. A new customer must commit to an investment of at least $50,000 for their first gold IRA.
Yes, this investment is going to be steep for some customers. However, American Bullion allows new customers to transfer that initial investment from their other accounts, and they even offer to waive 12 months of storage fees for new customers.
If you’re a customer with accounts totaling over $100,000 you should expect to pay a yearly fee of $150 in maintenance and administrative costs.
American Bullion Products
The products offered by American Bullion include physical precious metals like gold coins, proof coins, and platinum, specifically, early 20th century U.S. and European currencies. They also offer premium precious metals along with these standard products.
Standard coins include products with high purity levels (around 99% gold), allowing investors to liquidate these items anywhere, as well as retaining values close to the spot price.
Premium bullion also has a high purity level, but investors can sell these items at a higher markup price due to the fact that these items are no longer in circulation. It is advised that newer investors speak with IRA experts before committing to premium bullion.
Unfortunately, American Bullion doesn’t have an online catalog of the products they carry. Instead you will have to contact them directly to learn about what products are available and their pricing.
Some of the IRA-approved products that you can find at American Bullion includes the following:
- Gold (22-karat) American Eagle Coin
- American Gold (24-karat) Buffalo Coin
- Gold (24-karat) Canadian Maple Leaf Coin
- .9999 Pure PAMP Bar
- Union Bank of Switzerland Gold Bar
- Credit Suisse 999.9 Fine Gold Bar
- Silver (99.9%) Austrian Philharmonic Coin
- Silver (99.9%) Canadian Maple Leaf Coin
- Silver (99.9%) American Eagle Coin
- PAMP Suisse (99.9%) Fine Silver Bar
- Johnson Matthey Silver
Storage Options
American Bullion has partnered with STRATA and Delaware Depository, which ensures that investors are receiving reliable product storage. Physical products will be delivered safely to whichever location you choose and will be under constant surveillance and additional security measures.
Some customers report that gold withdrawals are slow. Typically it takes a few weeks for the Delaware Depository to deliver the gold to the storage facility, but once it arrives, you are able to inspect your purchases in person.
Some investors may prefer to store their investments at home. However, this method can be risky. Theft or disaster can result in large economic losses if you keep your investments in your home. However, if you are looking to keep your investments at home where you can keep an eye on them, American Bullion will deliver to your home.
IRA Rollover Process
If you cannot afford to purchase precious metals outright, you can convert your traditional, Roth, or other existing IRA with American Bullion. You must start the rollover process before you can begin purchasing precious metals. American Bullion will provide you a contract with fees, storage options, risks you may face, and more.
Note: you must submit legitimate, personal identification to the Self-Directed IRA Services. Once you have completed this, American Bullion will send you a confirmation of your gold IRA rollover.
Does American Bullion Offer Other IRA Services?
Besides their gold IRA’s, American Bullion provides saving tips, bullion reviews, and even free gold buyer guides. They are serious about providing educational resources to all of their customers.
In fact, American Bullion has a scholarship program, which began in 2014. This program allows students to learn about precious metals and how it can be beneficial for their retirement. Every year American Bullion awards $1,000 to qualifying students.
If you would like to apply for the scholarship, a student must do the following:
- Enroll full-time with an accredited college or university in the United States
- Show valid identification of residency (or a legal visa) in the United States
- Submit an essay up to 1,000 words long on a topic provided by American Bullion
- Be willing to be featured online through American Bullion media
- Submit an essay once a year. (Deadlines for submissions typically fall at the end of October)
American Bullion Reviews
While this review is honest and reliable, there are other places to get reviews of American Bullion. This includes third-party sites like The Better Business Bureau (BBB) and The Business Consumer Alliance (BCA).
BBB
The BBB has given American Bullion a score of A due to the fact that they’ve not had only a single customer complaint against them within the past three years. They resolved the issue quickly and now American Bullion has a four-star customer rating.
BCA
BCA gives American Bullion five stars because of their excellent communication. BCA gave an exemplary AAA rating for their performance, length of service, and reliability.
Trustpilot
American Bullion scores an impressive four-and-a-half star rating with nearly 200 reviews with Trustpilot.
They say American Bullion is an excellent place to begin when investing in precious metals. Some reviews mention that they felt safe completing transactions with agents and trusted their expertise in the investment industry.
Final Verdict: Is it Worth Investing with American Bullion?
If you want to feel safe when investing, you’ll do no better than American Bullion. They provide investors with so many resources that they can feel secure in making decisions in investing with alternative assets. With over a decade of experience handling large transactions and exemplary customer service, you can be assured they can help you with your investment needs. The additional product variety and scholarships for students are an excellent bonus.
While we had to ding them on their high investment requirements, account fees, and slow delivery, we would still recommend that you give American Bullion a try.