Due Diligence When Choosing a Precious Metals Dealer

Not all dealers operate with the same transparency or integrity. When selecting a company to supply metals for your IRA, take time to perform careful due diligence:

• Verify licensing and reputation.
  Check with industry associations, and online reviews. Look for a solid track record and clear, verifiable credentials.

• Ask for written price breakdowns.
  A reputable dealer will clearly disclose spot price, premium, and mark-up for each product. Avoid anyone unwilling to provide these details in writing.

• Compare pricing across multiple sources.
  Market prices for metals change daily. Comparing rates with at least two or three dealers helps ensure you’re paying a fair premium, not an inflated one.

• Beware of “special” or “exclusive” coins.
  Some companies market coins as “IRA-approved specials” or “limited editions” and charge huge mark-ups far above spot price. These are typically collectible coins, which may not qualify for IRAs and often carry inflated valuations not supported by the metals market.

• Avoid pressure tactics.
  High-pressure sales or promises of guaranteed returns are red flags. Metals markets fluctuate—no reputable dealer can predict performance or guarantee profits.

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Understanding Spot Price and Mark-Ups

The spot price is the current market price for one ounce of metal in its purest form. Dealers charge a mark-up, or premium, above spot to cover refining, minting, and distribution costs.

Typical mark-ups for IRA-eligible bullion range from 3% to 10%, depending on the product and market conditions. If you are quoted prices 20% to 50% higher than spot, especially for so-called “special edition” coins, that’s a strong warning sign to walk away. ‍

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Staying IRS-Compliant

Your Self-Directed IRA must hold metals in an IRS-approved depository, not at home or in a personal safe. Mountain West IRA works with trusted custodians and storage partners to ensure your assets are safely stored and compliant with IRS rules. ‍

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Final Thoughts

Precious metals can play a valuable role in a diversified retirement portfolio, providing stability and a hedge against inflation. But as with any investment, due diligence and compliance are key. Understand the rules, know your dealer, and never rush into a purchase that feels unclear or overly “special.” ‍

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Ready to Explore Self-Directed IRAs?

Mountain West IRA can help you open a Self-Directed IRA or Solo 401(k) and guide you through the process of adding your choice of precious metals or many other alternative assets.

📞 Call us: 866-377-3311

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