Augusta Gold IRA Review | Augusta Precious Metals Reputation

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Who is Augusta Precious Metals?

Augusta Precious Metals is a precious metals dealer that specializes in the sale of gold and silver for the private investor, especially for retirement funds. What sets them apart from their competitors is that Augusta focuses on educating their clients and building long term relationships as opposed to a transaction based model that permeates the industry. 

Augusta Precious Metals

Preparing for Retirement

You might think that retirement is a long ways away and not something you need to worry about just yet. Or perhaps you have been procrastinating and realize it is right around the corner and you are not yet prepared for it. For younger people there is no better time than right now to prepare, the sooner the better. If you are one of the many who have been waiting and now think it may be too late, do not worry, a lot of progress can be made in a short period of time if you take action.

You may have a 401k or IRA with some mutual funds and think that is all you need or that is all that is available. There are in fact many different types of assets you can hold in your retirement account, and every expert will tell you it is always best to diversify.

Gold Bars stacked

The current political and economic environment has been, and will continue to be, a catalyst to get people to consider alternatives to the mutual funds that most people use to save and invest for retirement.

Inflation, political crisis, and massive technological advances can all cause your traditional investments to plummet. Inflation eats away at your savings, and what is lesser known is that it also eats away at the future profits of your favorite stocks, thus causing them to lose value as well. In addition, companies that seem strong today can and do go bankrupt when they fail to adapt quickly enough to technological change. You need something not only impervious to these threats, but something that will gain in value when these things happen.

Get Your FREE Gold IRA Guide Here!

Why are Gold and Silver Good Investments?

Gold and silver have intrinsic value, meaning they will always be worth something. Unlike most of the assets in a retirement account, usually stocks and mutual funds, precious metals are not tied to the U.S. Dollar, nor are they tied to the profitability of the companies they are tied to.  They offer the perfect hedge against inflation and recessions. Simply put, everyone should have some of their savings in gold and silver, especially as they get nearer to retirement.

What makes gold and silver especially important to have in your retirement portfolio is that it increases in value the most when everything else tends to decrease the most. Recessions are associated with increasing gold prices, right when you will not want to sell your mutual funds to pay your living expenses while you are retired. 

401(k) Rollover

What is 'Intrinsic Value' Anyway?

Any conversation about gold and silver as an asset will eventually lead to a conversation about intrinsic value. Paper money and stocks have extrinsic value, meaning they derive their value from outside factors, such as the “full faith and credit of the U.S. Government” or the companies that are printed on the stock certificates.

Items with intrinsic value, such as physical gold and silver bars, or even things such as works by famous artists, derive their value from their own properties. Gold, for example, has been used for centuries as currency because of its relative scarcity and resistance to corrosion.

When Would I Use Gold in My Retirement Account?

Like all assets, such as stocks, bonds, or real estate, their value will move up and down based on a number of factors. We know that roughly every seven to ten years, we have a recession. Most people will experience at least two or three recessions just in their retirement years alone. When this happens, most people will see their retirement account values dip. What makes gold and silver so special, is that when everything else declines in value, that is when they typically increase in value, just when you need it most. You can look at precious metals as a type of insurance policy in your 401k. Retirees who are owners of gold and silver do not have to sell their stocks while they are lowest in value.

Precious metals gain in value when most other assets decrease in value. When recessions inevitably occur, that is often when people run to buy gold, which causes the price to go up. You want to buy gold before it goes up, while the price is still low, so you can sell it at its peak, just when everything else is down in your portfolio.

Why Use Augusta Precious Metals?

Augusta is guided by three core principles: total transparency, simplicity, and a customized portfolio for each client. Unlike many firms, Augusta is very clear about their fee structure and their current price of the commodities. They continually communicate with clients during the buying process and each client has a dedicated agent assigned to them.

5 Star

In addition, they make the buying process easy and seamless. Their agents will fill out all required paperwork from your current 401k or IRA provider for an easy and effortless rollover.

Their agents are extremely knowledgeable in all aspects of the industry. They will educate clients and provide advice for a customized portfolio that fits their specific circumstances. 

Augusta Precious Metals

How Does an IRA Work?

Augusta excels in the area of putting gold and silver in a retirement account. Your 401k or IRA are taxed in a unique way to maximize savings for retirement. All taxes are deferred until the money is actually pulled out of the account in retirement. This tax deferment saves the average tens of thousands in taxes over their lifetime. 

As most people get close to retirement, it is advisable to start buying gold and silver as a hedge against inflation and recessions. Usually current assets, such as mutual funds, will have to be sold first. Augusta will handle all of the required paperwork to complete the transaction. 

Get Your FREE Gold IRA Guide Here!

Can I Buy Outside of an IRA?

You can also make a cash purchase to hold your gold or silver outside of an IRA. It serves the same purpose and has the same advantages. Almost everyone saving for the future has a need for the safety and security that precious metals provide in a portfolio.

What Happens to my Gold When I Buy It?

When you buy gold with Augusta, the actual physical gold that you own is kept in a secure location with cutting edge security and full insurance. It is impossible for your gold to be lost, stolen or taken away.

Secure gold storage

Is Now a Good Time to Buy Gold?

Right now is an especially good time to buy gold. If you are nearing retirement and you do not own any gold, it is always a good idea to start buying, but right now may be an especially ideal time. We are experiencing extremely high inflation in 2021, and while many economic experts predicted high inflation as the pandemic continues into its third year, many thought it would be transient, or a very short period of inflation. 

Experts now concede that was wrong and almost everyone agrees that high inflation will be here for a very long time. Simply put, the value of the US Dollar is going to plummet, while the value of gold will remain the same and perhaps increase. There may never be a better time than right now to buy gold. 

gold vs inflation

What Makes Augusta Precious Metals Unique?

Each client or potential client is assigned to one specific specially trained agent. Through an initial consultation, the agent will assess the client’s portfolio and goals. A big part of the process is also education. The agent will educate the client on how precious metals could fit into their portfolio and the benefits that the client would see. 

Augusta happy client

Is Augusta Precious Metals Trustworthy?

Yes, Augusta is one of the most respected financial firms out there. They have been around for a long time and have an impeccable reputation. In addition their team of experts will always give you guidance on exactly how to structure your portfolio to maximize both safety and gains.

How do I get started buying gold and silver?

In our experience, there is no better firm out there than Augusta. Visit their website and read or watch the educational articles and videos they have posted to give you a feel for how they work. Set up a phone call with one of their agents and they will walk you through the process.

They will look at your current portfolio, ask about your future goals and retirement plans, and customize a personal recommendation based on your current situation. 

In addition, they make it very easy to complete the transaction. They have worked with and have long standing relationships with every 401K and IRA broker out there. Any rollover paperwork that has to be completed will be efficiently and quickly handled by them. 

Gold and silver bars

Once the transaction is complete, that isn’t the end of the relationship though. In fact it is just the beginning. Your agent will follow up with you as your retirement date gets closer and also while you are in retirement. There will likely be times when you will want to add more gold and silver to your portfolio as you continue to earn an income, and also they can advise you on the best time to sell your gold and silver based on your financial needs and current market prices. 

After working with Augusta, it is our belief they they can help anyone who is serious about creating a bulletproof retirement plan. 

Augusta Precious Metals

Frequently Asked Questions (FAQ)

A Gold IRA is an example of a Self-Directed IRA. Self-Directed IRA’s were designed to give individuals more freedom in the selection of investments that they could hold in their retirement account. A Gold IRA is unique to precious metals, where the investor/individual has the ability to hold gold, silver, and other precious metals such a platinum and palladium in their account rather than being limited to traditional stocks and bonds.

By holding precious metal investments in a Gold IRA, this gives the ability for individuals to make their portfolio more diverse and prepare themselves for future financial success. Having a diversified portfolio makes for a better chance to survive a stock market crash and still have some of your funds held in other categories, such as gold.

There are various options when it comes to investing in gold. One option is to purchase gold coins or bars from a local retail shop or gold investment company. You may then hold the metals until you are satisfied with their growth, ready for retirement, or need them for another expense. 

Another option to invest in gold is by setting up a Gold IRA. These are a form of a Self-Directed IRA, only your funds can be held in gold rather than stocks and bonds. This is a good way to invest in precious metals without worrying as much about taxes.

The value of a gold coin increases as the value of spot gold increases. The number that is printed on each gold coin (known as the face-value) is not an accurate reflection of its true valuation. In fact, its value is likely much higher than the face-value based on the current price of gold today.

Depending on your age, current financial position, and personal preferences, the answer to this question will vary per person. If you are coming up on retirement, you’ll want to take fewer investment risks and may not want a large portion of your money in gold. If you’re still young and have more time to take greater investment risks, you may want a larger percentage of your portfolio invested into gold. 

Like many investments, it is optimal to buy at a low value. Generally speaking, when the stock market is over-performing, the value of gold is at a much lower amount. Gold also follows some trends such as a decrease in certain months of the year, including January, March, and April.

It is always a good idea to seek out a financial advisor to help discuss the best options for your current situation. This way you can shift your investments based on what makes the most sense for your financial goals, and the current economy.

Your current plan may not give you the option to invest in gold, but there are numerous other plans that allow gold investments. Keep in mind that there are specific rules set out by the IRS regarding how gold can be bought and stored. Because of these rules, it’s important to find a reputable company to work with.

You are legally allowed to do a 401(k) rollover and avoid paying taxes and penalties, but to do this you must follow the correct process. Start by contacting your current 401(k) plan and explain your situation. The rollover may take several weeks or months to complete, so it’s best to begin as soon as possible.

Traditional 401(k) plans and IRA’s are tax-deferred savings accounts, meaning you do not need to pay any taxes on your contributions. Once you retire and eventually withdraw your funds, you will pay taxes on those withdrawals. You will not get any tax breaks if you purchase gold for personal ownership. Right now, the only way to avoid paying taxes on gold is by purchasing it through your 401(k) plan or IRA.

Although this process is a bit tricky, you absolutely can purchase physical gold in your 401(k) plan. Since your IRA cannot be the seller and holder of the gold, they will need to store the physical gold with a third party. You are also not personally allowed to hold the gold. You may only keep gold and silver in a plan of this type if someone else is storing it, according to the IRS. While you will not be allowed to have physical control over the gold, you may still be allowed to access the storage facility.

Yes, any gains made on the gold held in a Gold IRA are subject to capital gains taxes. Additionally, if you take a distribution from the Gold IRA before you reach the age of 59 and a half, you may be subject to income taxes and a 10% early withdrawal penalty. Things may differ depending on whether you have a traditional IRA or Roth IRA.

No. You are not allowed to take physical possession of the gold or other precious metals held in an IRA account. 

No. Home storage is not allowed and could have serious tax implications if you are found to be taking physical possession of the gold held in your IRA. You must store the gold with an IRS-approved custodian. Any company that promotes home storage is not providing sound advice and should be avoided. 

No. The IRS does not allow precious metals to be stored in a safe deposit box. The custodian/depository must always maintain possession of the gold.

This is a tricky question. 

Mostly, no. For most folks, it’s impossible to take physical possession of their gold without paying severe fees.

There is however a workaround for very (VERY) few individuals. 

A “Checkbook IRA” allows the IRA owner to have more control over their investments. They can use an LLC to make investment decisions and hold assets on behalf of the IRA. The LLC is owned by the IRA and managed by the IRA owner or someone else. The assets, including precious metals, can be stored in a place chosen by the LLC, like a storage facility or the IRA owner’s home as long as it’s secure and insured. Though, the IRS has strict rules for using a Checkbook IRA and storing IRA-owned assets. 

Some of these rules include:

  • A minimum net worth of $250,000.
  • Must have a corporate legal counsel.
  • Ownership must be shared among multiple individuals.
  • And much more

Keep in mind that this loophole is not recommended. There is a possibility that you will be penalized and even possibly disallowed from future investments. It’s not worth the risk, even if you do meet all these requirements. 

Remember that your specific situation and goals should always be discussed with your tax advisor.