Gold Gate Capital, located in Los Angeles, is a gold and silver boutique dealer. It also provides IRA services, helping clients set up self-directed individual retirement accounts to protect their savings.
Investing your hard-earned money is a serious financial decision, and it’s even more nerve-racking to consider moving away from traditional assets, such as stocks and bonds, to precious metals.
If you’ve decided to open up a precious metals IRA, there are many companies providing such services, which can make it challenging to choose the right one for you.
Fortunately, we’re here to help you decide, and in this article, we will review Gold Gate Capital and go over everything you need to know about the company.
Before you read this review:
We feel that rocky markets are ahead and that many of you are making financial decisions aimed at keeping your hard earned savings intact.
We also know the difficulty that goes into choosing a company you can put your trust in when buying precious metals. This is why we performed years of research to help investors make an informed decision.
The below link shows our findings on the most highly trusted and recommended investment companies to make your investing choices easier.
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What Will I Learn?
- What Is a Self-directed IRA?
- Historical Performance of Precious Metals
- Why Should You Consider Setting up Precious Metals IRAs?
- About Gold Gate Capital
- How Gold Gate Capital Works
- Does Gold Gate Capital Offer Secure Storage?
- Gold Gate Capital Pricing
- Does Gold Gate Capital Allow You to Keep Precious Metals at Your Home?
- Is Gold Gate Capital a Scam?
- Conclusion: Should You Open an Account with Gold Gate Capital?
- Frequently Asked Questions
What Is a Self-directed IRA?
A self-directed individual retirement account (IRA) allows investors to hold a wide range of non-traditional assets beyond stocks, bonds, and mutual funds permitted in a regular IRA.
Individuals with self-directed IRAs can purchase alternative assets such as cryptocurrencies, real estate, private equity, and precious metals, including gold, silver, platinum, and palladium.
Investors who have set up self-directed IRAs have more control over their investments as they get to choose the type of asset to purchase for their retirement account.
However, with that comes a certain level of risk. Individuals must carry out their own due diligence in selecting and managing investments or discuss with an experienced financial consultant for guidance.
Historical Performance of Precious Metals
Since 1970, the gold-to-S&P 500 ratio has increased every two years when the yield on long-term bonds falls below the yield on short-term bonds. This means that when the economy is under stress, gold tends to outperform the S&P 500.
We also saw how the gold-to-S&P 500 ratios rose during the stagflationary crisis of 1973 and 1974. It was almost twice as strong as during other periods.
Over the last 50 years, there have been spikes between the S&P 500 index and gold, followed by drastic falls. During the 1970s stagflationary period, those holding stocks and shorting gold would have lost 93% of their money, while investors holding gold as a long-term investment saw a return of 1.685%.
Between the 1990s and early 2000s, the S&P 500 saw serious gains (around 450%) due to the dot-com bubble. However, when it burst, the S&P 500 to gold ratio plummeted, suggesting that investors were moving away from the stock market and purchasing gold. The same happened following the 2008 financial crisis.
During tough economic times and recessionary periods, silver also proved that it could stand strong. Between 2008 and 2012, silver rose by almost 450%. In general terms, there is a historically significant relationship between the price of gold and silver. When the price of gold increases or decreases, silver prices also follow.
Economic uncertainty, inflation, and the depreciation of the US dollar are some factors that affect the prices of precious metals. When the US economy is going through a rough period, many investors lose confidence in the stock market and pursue investments in gold, silver, platinum, or palladium to safeguard their savings.
Why Should You Consider Setting up Precious Metals IRAs?
Setting up a precious metals IRA and investing in gold, silver, platinum, or palladium has several benefits, including the following:
It Allows You to Diversify Your Investment Portfolio
Regular IRAs allow investors to only invest in traditional assets, such as stocks, bonds, and mutual funds. In case of recession or economic uncertainty, if the investor has all their money invested in one basket, they risk losing their savings.
It’s best to spread your risk by diversifying your investments. Historically, precious metals have shown that they hold their value or even increase during times when the market is performing poorly. Investing in precious metals can protect one’s savings, reducing the overall risk.
It’s a Great Hedge Against Inflation
During inflationary periods, the US dollar loses value, which negatively affects an individual’s buying power. As the value of the US currency decreases, the demand for precious metals increases, and so does its value, making it a great hedge against inflation.
It Provides Tax Benefits
A precious metals IRA offers tax benefits to account holders, allowing investors to enjoy long-term growth without the implication of taxes.
About Gold Gate Capital
Founded in 2008, Gold Gate Capital provides precious metals and gold IRA services and has over a decade of experience buying and selling gold and silver.
How Gold Gate Capital Works
This company’s gold IRAs operate in the same way as 401(k), Roth IRA, or other traditional retirement accounts. However, instead of investing in stocks or bonds, Gold Gate Capital allows investors to make physical gold and silver purchases.
Opening up a gold IRA with Gold Gate Capital is a simple three-step process, which includes the following:
Talking to an Expert
If you’re looking to set up a gold IRA with Gold Gate Capital, it is best to contact one of its representatives for guidance. They will help you open a self-directed retirement account by handling the paperwork.
Funding Your New IRA
You can fund your new gold IRA in several ways, including moving funds from your existing IRA. The following are two options to help you do that:
Individuals can transfer or rollover their existing IRA funds without incurring tax penalties. Accounts eligible for a rollover include traditional IRAs, SEP IRAs, Simple IRAs, Roth IRAs, 401(k), 403(b), 457, and TSP.
The custodian at Gold Gate Capital will help guide you through the entire process. They do recommend funding the new gold IRA with at least $10,000.
Also Read: Bold Precious Metals Review
Purchasing Your Precious Metals
One of the greatest advantages and disadvantages of opening a gold IRA account is the level of control you have when purchasing precious metals. Investors can choose any IRS-eligible precious metal for their gold IRA, but it is crucial that they do their research or due diligence before investing their hard-earned money.
If you’re unsure what to purchase, it’s best to speak to a precious metals specialist at Gold Gate Capital. They can guide you by providing recommendations according to your retirement goals to help you make an informed decision. The company offers an extensive range of gold and silver bullion and coins for investors to diversify their retirement portfolio.
Once you choose the precious metals you want to buy, Gold Gate Capital will purchase them on your behalf and send them to a secure storage facility for safekeeping.
The company will be responsible for handling the paperwork, managing your account, keeping track of your precious metal assets, and providing you with updates on your portfolio.
Does Gold Gate Capital Offer Secure Storage?
Gold Gate holds precious metals in several IRS-approved facilities including the following:
Delaware Depository: Located in Wilmington, Delaware, the Delaware Depository is a privately held precious metals custody and distribution center.
Brink’s Global Service: Brink’s Global Services specializes in the secure transportation and handling of valuable goods, including precious metals. The company uses armored vehicles and armed security officials to transport these items to secure warehouses for safekeeping.
It is important to speak to the company’s representative to learn which option would be best for you. Gold Gate Capital is also currently providing free stealth safes that have a one-hour fire rating, UL-approved electronic lock, RSC burglary rating, and 1-inch steel locking bolts.
You can provide your name, phone number, and email address on the company’s website to determine if you’re eligible for the free safe.
Gold Gate Capital Pricing
Although the company is relatively small compared to other non-traditional IRA providers in the country, they use their size to their advantage by offering the best prices. According to its website, it does not spend money on monster ads, which allows it to provide its customers with competitive pricing.
However, pricing information is not available on the company’s website, and if you wish to learn more about the prices of certain products, you will have to reach out to one of the representatives.
Does Gold Gate Capital Allow You to Keep Precious Metals at Your Home?
After going through its website, we didn’t find any information about the company allowing investors to keep their precious metals at home. While you may find this a bit strange since many other companies, including Augusta Precious Metals, advertise home deliveries, there is a reason for it.
Under IRS guidelines, you cannot have precious metals in your IRA delivered to your home. If you do, it will count as a distribution, and you will have to pay penalties and may face an audit. Although there are ways to avoid IRS scrutiny for keeping precious metals at home by forming an LLC, we wouldn’t recommend that.
Gold Gate Capital mentions on its website that if you become 59.5 years old, you are eligible for withdrawals without facing any penalties. In that case, you can take the distribution as physical precious metals or a cash payment.
Is Gold Gate Capital a Scam?
Gold Gate Capital is not a scam. The company has 18 reviews with the Better Business Bureau, with an average rating of five out of five stars. It has a 4.9 rating out of five on Google, with a total of 49 reviews.
The company also has 40 reviews on Trust Link, with most praising the exceptional services Gold Gate Capital offers. To offer custodial services, the business works with Kingdom Trust, an independent qualified custodian under the Investment Advisers Act of 1940.
Conclusion: Should You Open an Account with Gold Gate Capital?
Although Gold Gate Capital reviews are positive, and they have an A+ Better Business Bureau rating, we do not recommend it as there are many other options available that are better.
One of the major issues with precious metals IRAs is the lack of education available to potential customers. Many people don’t know where to start, what to invest in, and how precious metals can help them. They may also have many more queries and concerns that need addressing.
A gold IRA provider should educate its customers on precious metals, and its website should have enough educational resources and guides to help potential investors make an informed decision.
In this Gold Gate Capital review, we found that the company does not provide much information on its website, and it does not have a transparent fee policy.
There are many other companies out there that have a better reputation, offer educational resources, and have a transparent fee structure. Investing in precious metals is a big financial decision, which is why it is important to do your research before choosing a precious metal IRA company.
Frequently Asked Questions
Do Precious Metal Investments Come with Any Risk?
Whether you’re investing with Gold Gate Capital or any other gold IRA provider, it is essential to note that even though precious metals are relatively stable, they come with some risks. The price of gold, silver, and other precious metals fluctuate, some more than others, depending on the market performance.
Another thing to remember is that precious metals do not produce income, unlike corporate stocks that pay out dividends or bonds that provide their holders with interest.
Does Gold Gate Capital Provide Financial Advice?
Representatives at Gold Gate Capital are not licensed, certified, nor qualified financial advisors, meaning they cannot provide you with any financial advice. They can only provide you with general information pertaining to precious metals or guide you through the process of setting up an account.
Does Gold Gate Capital Provide Tax Advice?
You may have tax-related questions pertaining to your gold IRA. Unfortunately, you would need to consult with an experienced tax advisor, as Gold Gate Capital cannot provide tax or legal advice.
The top way to safeguard your retirement is to open a precious metals IRA. Check out the below providers and request a free kit.
Best Overall Rating (Where I Invested)
#2 American Hartford Gold
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#4 Noble Gold
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