Precious metals IRAs have been grabbing everyone’s attention lately, so it was only a matter of time before you became interested in them as well. You’ve found out that buying these assets can safeguard your entire portfolio from inflation, as well as that their stability coupled with high liquidity makes them the perfect assets to own. And, of course, you’ve been interested in diversification for a while now. So, you’ve finally found the assets to diversify with.
You’ll complete the diversification with precious metals only if you find a precious metals dealer to work with, as doing this without them is impossible. After all, you can’t buy something without knowing where. The selling, however, is not the only part these dealers will play in the process. They’ll also help you set up the right account, as well as provide you with safe storage. In short, they’ll be your partner through everything.
The Whole Process Comes At Certain Fees
The partnership doesn’t come free of charge, though, and I’m guessing you knew that already. Fees are a normal part of doing any kind of business, including this one. While you’re aware that fees exist, you may not know what they’re precisely charged for. Simply said, you may not know which fees you’ll have to pay, and that’s something you need to learn right away.
1. The Account Set Up Fee
You need these dealers to set up your account, as already explained above. The account is a self-directed one, meaning you’ll have full control of what goes in and out of it. Naturally, the company you’ll choose will charge a fee for the set up process, and that fee will be different from one firm to another. Some companies, including the one reviewed at https://www.investorscircle.net/augusta-precious-metals-fees/, charge a flat $50 fee for the process, but the number could be even higher with some of them. Bottom line – you have to check with the firm you choose.
2. The Custodian Fee
These companies will essentially be the custodians for your account, meaning that you’ll get a representative who will help you manage it. Unsurprisingly, you’ll have to pay a custodian fee as well, and that one is charged on a yearly basis. Most usually, the companies offer a slightly higher rate for the first year, say around $250, and then it decreases for the following years, to about $100 or so. So, you get a better deal staying with the same company than changing it one year after another. That is, of course, if you initially choose a good one.
3. The Shipping Fee
The shipping fees for your orders are also something to keep in mind when making the purchases, as well as when choosing your dealers. Why when choosing the dealers? Well, simply because some of them could be generous enough to offer free shipping, while others will want to earn on that as well. Naturally, free shipping is the more favorable option for you, but don’t use it as the only factor when choosing your dealers, because there are other ones, including other fees, to consider.
4. The Storage Fee
Since you won’t be keeping your precious metals at home, and just as well, because it would be very risky, you’ll have to pay for storage. Fortunately, your storage needs will be met by the dealer you’ll choose, so you won’t have to bother about it alone, and struggle with finding the best option. Instead, all you’ll have to do is pay a storage fee, which is also charged on a yearly, or a monthly basis, depending on the dealer you choose and the deal you make. A $100 fee, for instance, would be reasonable for storage, but do shop around to see the offers.
How To Get The Best Fees
The above has shown you that the fees are unavoidable, but also that they are different from one dealer to another. If you’ve understood the reasons why buying precious metals is a good thing, such as those listed on this page, you’ve also made your peace with the fact that paying fees is inevitable. In fact, you get that it is a small price to pay for what you’ll be receiving. But, of course, you want that small price to be as small as possible. In short, you want to find and get the best fees.
Doing that begins, naturally, with finding and partnering up with the best dealer for you. It’s clear that various companies have found their ways to this market, but it should also be clear that not all of those will get to offer you the perfect deals. Quite on the contrary, some of those will, unfortunately, just try to trick you into buying something at a very high price, or buying something that doesn’t even exist. Those are scams I’m referring to there, and you definitely want to stay clear of them.
So, as explained, the fees will depend on the dealer you’ll choose. Searching the Web will get you acquainted with numerous ones, and some people you know could also have some suggestions to share with you. When you find a few interesting dealers, though, you should proceed towards checking them out in further details and doing as much research as necessary to check if they’re offering good fees and good services overall, as well as to protect yourself against falling for the scams I’ve mentioned. This research could take a while, but it will be worth it.
The main thing to do when doing the research is to find relevant, objective and factual reviews written about the dealers you’re considering. The reviews will tell you everything regarding the legitimacy of the companies, their reputation, their experience in the industry, the quality of their services, and, of course the fees they’re offering. Reading reviews and comparing your findings about certain companies will lead you towards choosing the best one and thus automatically getting the best fees as well.