Scott R. Hillford
Author & Founder Gold Is Money 2
Disclaimer: Some or all of the companies reported here may provide compensation to us, at no cost to our readers. This is how we keep our reporting free for readers. Compensation and detailed analysis are what determines how companies appear on this website.
Precious metals investments present investors with a risk-free investment that isn’t impacted by the US dollar or inflation rates. Gold, silver, and platinum increase in value over time, and investors can purchase these metals to generate funds for the future or set up a gold IRA.
Calculating how much they need for retirement helps determine how much they should spend on precious metals to achieve their financial goals.
Prior reading further, it is important to acknowledge that investing your savings is a not easy. When it comes to incorporating precious metals into your investment portfolio, how can you tell which companies are reliable?
After devoting extensive time and effort, we have conducted thorough research within the precious metals industry and compiled a selection of the most trustworthy companies.
Take a moment to read our list and determine if American Bullion has what it takes to make the list this year!
This lets you to quickly compare the leading companies in this field and select the one that aligns with your specific requirements and investment objectives.
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In addition to diversifying their investment portfolio, precious metals could give them a new source of financial support for their heirs after the investor dies.
However, to get started, investors must find the most appropriate gold company that offers the precious metals the clients want, and IRA accounts for saving for later. Reviewing American Bullion Inc helps investors determine if the company suits their precious metals needs.
Who is American Bullion Inc.?
American Bullion Inc. opened its doors in 2009, offering gold IRAs and purchasing precious metals. They provide services in-person and via phone.
The company is in Los Angeles, California, and has been accredited by the Better Business Bureau since 2011 with a 4.5-star rating. As of 2023, there was only one customer complaint on the BBB within the last three years. In addition, the company has a five-star rating on Trustlink.
Opening an Account
To open an American Bullion Inc. account, customers complete the online account application. Once they submit their application and are approved, an American Bullion, Inc customer service representative contacts the client.
American Bullion Inc requires all investors to set up a customer account to track transactions, including IRAs, precious metals acquisitions, and buyback sales. A customer account simplifies buyback options and helps customer service representatives to verify the types of precious metals and quantities that customers buy or own through an IRA.
What to Do to Open an IRA
To open a gold IRA, the customer must complete a shipping and transaction agreement, a self-directed IRA application, a transfer request form for their existing IRA, and submit a deposit coupon once their custodian sends the IRA funds to the new gold IRA account.
American Bullion Inc doesn’t require clients to use their custodian, so investors can hire their IRS-approved custodian to manage and create their gold IRA account. The investor must complete the abovementioned forms and sign a contract with their custodian to get started. Next, the custodian contacts the IRA provider for the client to arrange the transfer into the new IRA account.
Remember that all transfers from an existing IRA into a new gold IRA must be completed within sixty days, or the account holder faces tax penalties for early withdrawals. Choosing a trusted custodian is paramount to avoiding these extra costs and liabilities.
The IRA account holder must determine how much money they want to transfer to the gold IRA. Then, they can roll over a portion or the entire balance into the new IRA account. However, when making contributions in the future, the owner must avoid exceeding the IRS contribution restrictions.
As of 2023, IRA owners under 59 can contribute up to $6,000 into retirement funds. If they are 60 or older, the account holder can transfer up to $7,000 annually. Careful investment planning helps clients balance their contributions to their retirement funds without facing penalties, and they can add more precious metals to their gold IRA starting the year after they establish the account.
According to IRS regulations, all precious metals related to an IRA must remain in a depository that meets all IRS requirements. Therefore, the account owner cannot store these precious metals at their home or have physical possession of the metals.
Buying Precious Metals
American Bullion Inc sells precious metals specifically for a gold IRA account. Unfortunately, their products don’t appear on their website, and customers must get approved for a gold IRA before the company provides a product list.
Since their precious metals are designated for IRAs, the investor must work with their custodian to complete any purchases through the gold company. However, American Bullion Inc makes some exceptions for investors who want to generate a coin collection to secure their financial future.
Product lists are only available by contacting the gold seller directly. Customers cannot purchase any precious metals via their website.
To ensure the investor gets a fair and reasonable price quote, they should review the current market price for all precious metals. All gold companies apply a markup to generate a profit from their precious metals sales. However, comparing the markup percentage helps the investors determine what seller provides precious metals at a price the investors can afford.
Selling Your Precious Metals
To sell precious metals to American Bullion Inc, customers must disclose their holdings to a customer service representative. Once the customer service representative has a list of these precious metals, they provide a price quote for liquidating some or all the gold IRA. Finally, the representative contacts the client’s custodian to complete the paperwork for the sale.
The client decides how to receive the proceeds from the liquidation. They can get distributions from the account, a lump sum, roll over the funds into a new IRA account, or purchase different assets with the proceeds.
If the account holder is under 59, they must pay taxes on the money if it isn’t deposited into a new IRA, and any distributions they receive before reaching 65 require a 10% early distribution penalty. The account holder pays the early distribution penalty at the end of the tax year they received the funds.
The buyer or broker with American Bullion Inc completes tax form 1099-B if the transaction generates a high cash value according to IRS guidelines. The investor is not responsible for sending the 1099-B at the time of the sale; however, they must report the amount on their tax return for the year they sold or liquidated their precious metals.
When shipping precious metals to American Bullion, customers must follow detailed instructions from the gold buyer. Discreet packaging is a requirement, and the client must wait until their package arrives to determine if they will receive the quoted price.
If, for any reason, the precious metals don’t meet all inspection requirements, American Bullion Inc can reduce the payment. Customers should specify if they want their precious metals returned if the metals don’t meet American Bullion Inc’s requirements. Cancellation of the sale could lead to return shipping fees that the customer must pay when their returned precious metals arrive.
Storing Precious Metals for an IRA
American Bullion Inc requires all new gold IRA owners to deposit their precious metals into the Delaware Depository. Investors cannot use any other depository and must pay storage fees when setting up their IRA account through American Bullion Inc.
Understanding Costs and Fees for IRAs
When an investor hires a custodian, they must pay service fees for documentation production, coordinating IRA funds transfers, and management of the precious metals purchases. Administrative and clerical fees apply to all custodian services, and the investor must pay these fees upfront.
In addition, unless they transfer their account to a new custodian, they must pay costs related to maintaining the IRA account, including report generation for value updates and recent transactions in which the investor added more precious metals to their IRA account.
Next, the investor must pay storage fees to the depository where they store their precious metals. Finally, depending on the depository’s requirements, the account holder may pay an annual service fee or monthly installments.
Before anyone invests in a gold IRA, they should get a comprehensive estimate for all these charges to ensure they have the capital to pay related expenses.
Price Locks and Commitments to Buying
American Bullion Inc offers price locks for customers committing to buy precious metals from them. Once a price lock is in place, the customer must follow through with the transaction or provide a market loss penalty if their precious metals decrease in value during the waiting period.
Customers must sign a contract with American Bullion Inc for the precious metals purchase when they receive a price lock. Clients must read the fine print on the contract to avoid mistakes.
If American Bullion Inc incurs a market loss because of an order cancellation, the customer must pay the difference in price lost by the company. A failure to comply could lead to collection efforts.
How Long Should Investors Keep Their Precious Metals?
Most gold companies, including American Bullion Inc, recommend holding the precious metals for ten years. However, some investors may see a significant increase in the value of their precious metals within five years, depending on the volume of precious metals they buy.
Investors who set up a gold IRA must hold their accounts until they are at least 65 years old. After that, they can transfer the funds to a new account without tax penalties. But the investors cannot get distributions early without high tax implications and penalties.
Verification of Purity Levels and IRS Approval
IRS-approved custodians must assess the precious metals products to ensure they meet all IRS requirements. For example, the purity level for gold and silver determines their eligibility for a gold IRA account. In addition, American Bullion Inc must send authenticity documentation to the custodian for all precious metals deposited into a gold IRA.
Minimum Purchase Requirements
As of 2023, American Bullion Inc’s minimum purchase requirement is $10,000. Therefore, investors who want to start an IRA must transfer at least $10,000 from an existing IRA account or use the capital they already have to fund the account.
Coin collectors cannot purchase coins via American Bullion Inc with a limited investment as they cater to investors who want to generate a high return on their investment. Therefore, there are better choices than American Bullion Inc for coin collectors with limited IRA balances or investment capital.
Shipment Tracking for Precious Metals
Although account holders don’t get direct tracking information about their precious metals shipments, their custodian can track the shipment from American Bullion Inc to Delaware Depository. In addition, the custodian can provide shipment updates for their client to give the investor peace of mind.
Estate Planning for the Gold IRA
In the documentation for the gold IRA, the account holder must list a beneficiary. However, an estate plan could ensure that the remaining balance in the IRA goes to the correct heir. Therefore, the account holder should include their gold IRA in their estate plan and designate multiple beneficiaries to plan for the unexpected.
An inherited IRA offers access to the funds for an heir, and the heir receives distributions after the owner dies. Many IRA owners transfer their accounts to a trust instead of keeping them in their estate. An irrevocable or revocable trust helps them assign ownership to a successor through documentation.
Investor Resources on Their Website
Under the “Investors Resources” tab, visitors find the American Bullion blog offering helpful investing advice. In addition, they’ll find details about precious metals, such as investment advice and IRS reporting requirements.
The complete IRA information guide helps investors choose and understand the differences between traditional, ROTH, and self-directed IRAs. Visitors also find investment guides and articles on retirement and other savings plans for retirement.
American Bullion Inc offers precious metals for investors who want to set up a gold IRA or purchase coins to secure their financial future. However, since they require a high minimum purchase amount, the gold company isn’t the best for investors with modest capital.
In addition, the company requires all IRA owners to use their preferred depository to store precious metals, and the account holder must pay fees based on Delaware Depository’s rates.
Based on the documentation requirements, American Bullion Inc requires customer commitment before they discuss the products. In addition, their precious metals products aren’t on the company’s website to allow investors to browse and select independently.
But, overall, American Bullion Inc seems like a good company. Still, wise investors may want to compare them and their services to other gold dealers before setting up an IRA or buying metals.
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