Owning and investing in gold is one of the safest ways to store your wealth. Gold is a physical commodity and can its value not be lost the way stocks, bonds, or currencies can. It is also protected against the inflation that all currencies experience, and holds value very well in times of crisis. In addition to security, the value of gold has more than tripled in the last two decades. For these reasons, there is a large demand for gold based financial assets. To meet this demand, there are a vast number of companies servicing investors, and new ones starting up all the time. To pick the best, safest ones from the pack, use these tips when selecting a precious metals ira custodian.
Background Check: Qualifications And Customer Satisfaction
The first place to check when considering a gold custodian is the Better Business Bureau website, and other customer review sites. Any formal complaints and scam reports will be reported there. If a company is particularly successful at pleasing their customers, this will also be evident by the number and quality of reviews. On the BBB site, you should also verify that the company is licensed by the IRS and insured by the FDIC. Because of the influx of new companies, it is better to choose one that has been established for at least three years.
Allocated Vs Unallocated Depository
It is preferable to use a custodian that services an allocated depository. This means that your precise holdings are held separately from other precious metals. It is very much like having a safe deposit box at a bank. Unallocated accounts have the metals mixed, and your holdings are merely denoted in your account information. There is always a risk that your metals will be mixed with those of lesser quality with these types of accounts.
Customer Support Should Always Be Available
Your custodian should offer ongoing contact support for you to manage and check on your investments. Make sure this is part of the deal with any custodian you considering using.
Speak to any prospective custodian personally on the phone to see if they are knowledgeable and professional. A good custodian will listen carefully to your needs and desires, and never try to hard sell you to invest in any particular metal.