American Bullion Review: Legit or Not? (Our Honest Take)

7/10 (Expert Score)
Product is rated as #75 in category Dealers
7Expert Score
American Bullion Inc

Based in Los Angeles, California, this gold IRA provider stands out for its large product selection and robust buyback program.

Trust
6.5
Fees
7
Customer Service
7.5
Reputation
7
Pros
  • Large product selection
  • Simple rollover process
  • Extensive resources
Cons
  • Limited to the US

Investing in precious metals has become increasingly popular recently. Moreover, many people are now using their 401(k) accounts for such investments through gold IRAs.

However, there are many gold IRA providers available in the market.

One company that has established itself in the Californian market is American Bullion Inc.

If you’re wondering whether they are legit or not, this American Bullion Inc review will help you find the answer:

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About American Bullion: Unique Highlights Overview 

Founded in 2009 by industry veterans, American Bullion has been a pioneering firm specializing in helping investors roll over their traditional IRAs and 401(k)s into Gold IRAs. With headquarters in Los Angeles, California, the firm has established itself as a reliable player in the precious metals industry, focusing on educating clients and offering secure options for retirement investment.

The company’s founders saw an opportunity in the market during the economic downturn following the 2008 financial crisis, when many investors began to seek safety in tangible assets like gold. Over time, American Bullion developed a strong reputation for providing seamless Gold IRA rollovers and helping individuals diversify their retirement portfolios with gold, silver, platinum, and palladium.

What Is a Gold IRA?

A Gold IRA is a self-directed IRA that allows investors to hold physical precious metals, such as gold, silver, platinum, and palladium, as opposed to traditional paper-based assets. Gold IRAs function similarly to regular IRAs in terms of tax benefits, contribution limits, and withdrawal rules, but they are more specialized in what types of assets can be included.

The key advantages of a Gold IRA include:

  • Hedge against inflation: Gold has historically been a reliable store of value, particularly during times of economic uncertainty.
  • Portfolio diversification: Holding physical assets like gold helps spread risk across different asset classes.
  • Tangible asset: Unlike stocks or bonds, gold is a physical commodity that investors can hold, and its intrinsic value does not depend on the performance of a company or government.

American Bullion’s Services

Gold IRA Rollover

American Bullion specializes in Gold IRA rollovers, a process that allows investors to move their existing retirement funds into a self-directed Gold IRA. For investors with traditional IRAs, 401(k)s, or other retirement accounts, American Bullion helps facilitate the transfer without incurring any tax penalties, making it an attractive option for those looking to diversify their retirement holdings.

The process typically involves the following steps:

  1. Account Setup: American Bullion assists clients in setting up a self-directed IRA with a qualified custodian, which is required to manage the IRA on behalf of the investor.
  2. Funding the Account: Investors can roll over their existing retirement funds from traditional IRAs, 401(k)s, or other eligible accounts into the new self-directed IRA.
  3. Choosing Metals: Once the account is funded, investors can choose the type of precious metals (gold, silver, platinum, or palladium) to include in their IRA. American Bullion provides guidance on which metals are best suited for the investor’s goals.
  4. Purchasing Metals: After selecting the metals, American Bullion facilitates the purchase and ensures that the assets are securely stored in an IRS-approved depository.

Precious Metals Products

American Bullion offers a range of precious metals products, including gold, silver, platinum, and palladium coins and bars. The most popular choices for Gold IRAs are gold and silver, but the firm offers other options for diversification.

The firm offers investment-grade bullion, which meets the IRS’s strict fineness standards for inclusion in a Gold IRA. Some of the products offered include:

  • Gold American Eagle coins
  • Gold Canadian Maple Leaf coins
  • Silver American Eagle coins
  • Platinum American Eagle coins
  • Palladium bars

These products are highly regarded for their purity and liquidity, making them suitable for long-term investment and easy to sell or trade if needed.

Secure Storage and Custodianship

One of the critical components of a Gold IRA is the secure storage of precious metals. IRS regulations require that the physical metals in a Gold IRA be stored in an approved depository to maintain the tax advantages associated with retirement accounts. American Bullion partners with several IRS-approved depositories that offer high-level security and insurance for investors’ assets.

The company works with trusted custodians such as Delaware Depository and Brinks Global Services, which provide state-of-the-art storage facilities and protection against theft, natural disasters, and other risks. Investors have the option to choose segregated or non-segregated storage, with segregated storage ensuring that their metals are kept separate from those of other investors.

Gold Buyback Program

American Bullion offers a buyback program that allows investors to sell their precious metals back to the company when they are ready to liquidate their holdings. This program provides liquidity and an easy exit strategy for investors who want to sell their gold or other metals without navigating the complexities of the open market.

The buyback program is straightforward, and American Bullion offers competitive prices based on the current market value of the metals. This feature adds to the convenience and reliability of the firm’s services, ensuring that investors can sell their assets when the time is right for them.

Trustpilot Review: American Bullion

There are 212 reviews from customers, and American Bullion has received 4.9 stars overall.

#1. The procedure that I intended to complete was greatly aided by Mark Haze, who continues to be of great assistance. Through the entirety of the procedure, he maintained personal communication with me. As well as personally ensuring that everything went smoothly with my transaction.

#2. The representative continued to criticize the prior representative, but he apologized excessively for things that were beyond his control, which became aggravating. On the other hand, the proposal does not take into consideration all that was discussed verbally, such as how the cash in my account should be used. Furthermore, it is represented in the invoice that was transferred to the customer.

#3. Agent is frequently busy and difficult to get in touch with. On the other hand, once he became aware that I was attempting to get in touch with him, he scheduled appointments. Within the context of Am Bull, the completion of transactions and the transmission of documentation pertaining to liquidated assets should be accelerated.

#4. The transaction I had was disheartening. I questioned the goods that the sales representative was trying to sell me, and as a result, I was interrupted on multiple occasions during our conversation. In the end, I was able to get what I desired, but the experience was not very satisfying altogether.

#5. Not a team player in COVID world, and doesn’t show respect for others.

Today, during peak of Pandemic in Los Angeles, I was at the office entrance and five employees came out without masks. When I commented, I was told masks are “bull..it” and “just to make you feel better” but they don’t actually make any difference.

Why Choose American Bullion?

American Bullion stands out in the Gold IRA market for several reasons, including its commitment to customer education, transparency, and industry expertise. Below are some of the key factors that make American Bullion an appealing choice for investors:

1. Industry Expertise and Trustworthiness

American Bullion has built a solid reputation for providing reliable Gold IRA services. The company is a U.S. Mint-listed dealer and a member of reputable industry organizations such as the Industry Council for Tangible Assets (ICTA). Its compliance with strict industry standards adds to the firm’s credibility and trustworthiness.

The company’s leadership team has decades of combined experience in the precious metals and investment industries, which has allowed them to create a seamless and secure experience for their clients.

2. Educational Resources

One of the standout features of American Bullion is its focus on educating clients. The company understands that many investors are unfamiliar with Gold IRAs, and it has taken steps to provide valuable resources to help clients make informed decisions.

American Bullion offers a free Gold IRA Guide, which walks potential investors through the benefits of Gold IRAs, the rollover process, and the different types of precious metals available for investment. The firm also provides educational articles, blog posts, and market updates on its website, helping investors stay informed about trends in the precious metals market.

3. Customer Service and Support

Customer service is a top priority for American Bullion, and the firm is known for its personalized approach to working with clients. Each investor is assigned a dedicated account representative who guides them through the entire process, from setting up their IRA to selecting the appropriate metals and completing the rollover.

American Bullion’s representatives are not just salespeople; they are knowledgeable experts who provide tailored advice based on each investor’s financial goals and risk tolerance. This personalized support helps clients feel confident in their investment choices and ensures that they are well-informed every step of the way.

4. Transparency and No Hidden Fees

Transparency is critical in the financial services industry, and American Bullion prides itself on offering clear and straightforward pricing. The company provides detailed fee information upfront, so clients know exactly what to expect in terms of account setup, storage, and annual maintenance fees.

Additionally, American Bullion does not charge hidden fees for its services. Investors can rest assured that they are getting competitive rates without any surprises down the line.

5. Secure and IRS-Compliant Solutions

American Bullion works only with IRS-compliant custodians and depositories, ensuring that investors’ Gold IRAs meet all regulatory requirements. This compliance is essential for maintaining the tax benefits associated with IRAs and avoiding penalties.

The company’s storage solutions are top-notch, with trusted partners like Delaware Depository and Brinks Global Services providing maximum security for precious metals holdings.

Risks and Considerations of Gold IRAs

While Gold IRAs offer significant benefits, it is essential to recognize that they also come with risks and considerations. Below are some factors that investors should keep in mind before deciding to invest in a Gold IRA:

1. Price Volatility

Gold and other precious metals can experience price fluctuations based on various factors, including changes in interest rates, inflation, geopolitical events, and currency value. While gold has historically been a safe-haven asset, it is not immune to market volatility. Investors should be prepared for potential short-term price swings, even if gold is considered a long-term store of value.

2. Liquidity

Although gold is a highly liquid asset, selling physical gold may take more time compared to selling stocks or bonds. Investors who need immediate access to cash may find it more challenging to liquidate their gold holdings quickly, particularly if they are held in a Gold IRA.

However, American Bullion’s buyback program helps mitigate this issue by providing a convenient way to sell back gold and other metals when the need arises.

3. Storage and Insurance Costs

Unlike traditional paper-based assets, gold requires secure physical storage. This necessity adds additional costs to maintaining a Gold IRA, including storage fees and insurance premiums. While these fees are generally minimal, they should be considered when evaluating the overall cost of a Gold IRA.

4. Long-Term Commitment

Investing in a Gold IRA is typically considered a long-term strategy, and it may not be suitable for investors seeking short-term gains. Precious metals are often held as a hedge against economic instability or inflation, which means their true benefits tend to manifest over a more extended period. Investors should be aware that it could take several years to see the full advantages of diversifying with physical gold and other metals.

For individuals who prefer more liquid and immediate investments, other options like traditional stock IRAs or mutual funds might be a better fit. However, those focused on long-term financial security and protection against market volatility will find that a Gold IRA can be a valuable addition to their retirement planning.

IRS Rules and Regulations for Gold IRAs

One of the most important aspects of setting up a Gold IRA is ensuring compliance with IRS rules and regulations. These rules dictate which types of metals are eligible for investment and the conditions under which they must be stored. American Bullion assists investors in navigating these regulations to ensure that their Gold IRAs remain in good standing.

Here are some of the key IRS guidelines:

Eligible Metals for Gold IRAs

The IRS only allows certain types of precious metals to be included in a Gold IRA. These metals must meet strict purity requirements:

  • Gold: Must have a minimum fineness of 99.5%. Examples of eligible gold products include the American Gold Eagle, Canadian Gold Maple Leaf, and gold bars from approved refiners.
  • Silver: Must have a fineness of 99.9%. Eligible silver products include the American Silver Eagle and Canadian Silver Maple Leaf.
  • Platinum and Palladium: These metals must have a minimum fineness of 99.95%. The American Platinum Eagle and certain palladium bars are examples of qualifying products.

Coins and bars that meet these standards can be held within a Gold IRA. However, collectible coins or numismatic items are typically not eligible due to their variable value beyond the intrinsic metal content.

Custodian and Storage Requirements

To maintain the tax-deferred or tax-free status of a Gold IRA, the IRS mandates that the physical metals must be held in a custodian’s possession. Investors cannot store the gold at home or in a personal safe; doing so would violate IRS regulations and result in penalties and taxes.

American Bullion works with approved custodians who specialize in self-directed IRAs and offer insured, secure storage in IRS-approved depositories. These facilities are designed to protect investors’ metals against theft, damage, or loss, ensuring that the retirement assets are safe for the long term.

Contribution Limits and Withdrawals

Like traditional and Roth IRAs, Gold IRAs are subject to annual contribution limits. As of 2024, individuals under the age of 50 can contribute up to $6,500 per year, while those over 50 can contribute an additional $1,000 in catch-up contributions. These limits are subject to change based on IRS guidelines, and American Bullion ensures that clients are informed of any updates to these regulations.

Withdrawals from a Gold IRA follow the same rules as traditional IRAs. Investors cannot begin taking penalty-free distributions until they reach the age of 59½. If they withdraw before this age, they could face a 10% early withdrawal penalty, in addition to income taxes on the distribution. Upon reaching the age of 73, investors are required to start taking Required Minimum Distributions (RMDs), which applies to most retirement accounts, including Gold IRAs.

American Bullion, Inc. was involved in a lawsuit against Regal Assets, LLC, where they alleged that Regal Assets and its affiliates falsely accused American Bullion of engaging in a “precious metals scam” and a “Ponzi like scheme.” American Bullion contended that these claims were unfounded and damaging to their reputation. The lawsuit centered around false and misleading advertising, unfair business practices, trade libel, defamation, and intentional interference with prospective economic advantage under both the Lanham Act and state law.

This legal action highlights the intense competition in the precious metals industry and the lengths companies may go to protect their reputation and business interests. The details of the case shed light on the challenges businesses face in the digital age, where misinformation can spread widely and quickly, potentially causing significant harm to companies and their stakeholders.

For more in-depth information on the case proceedings and allegations, resources like Justia and Casetext provide comprehensive legal documentation and commentary.

Here are some tips on how to look into a gold IRA company’s legal history:

Tip #1: Check Their Regulatory Compliance and Accreditation

Check for proper licensing and registration with relevant financial regulatory bodies such as the Securities and Exchange Commission (SEC) or Financial Industry Regulatory Authority (FINRA).

Verify the company’s accreditation with industry organizations like the Professional Coin Grading Service (PCGS) or the Numismatic Guaranty Corporation (NGC).

It will help you check how credible they are.

Tip #2: Look into The Company’s Background

  1. Research the company’s history, including years in business and any name changes.
  2. Examine the Better Business Bureau (BBB) rating and accreditation status.
  3. Review customer feedback on reputable third-party review sites like Trustpilot or Consumer Affairs.

Tip #3: Does the Company Offer Good Resources?

  1. Assess the clarity of information provided about fees, storage options, and buyback policies.
  2. Evaluate the quality and depth of educational resources offered to investors.
  3. Verify that the company provides clear information about IRS regulations regarding precious metals IRAs.

Tip #4: What are Their Product Offerings and Pricing?

  1. Ensure the company offers IRS-approved precious metals for IRA investments.
  2. Compare pricing with other reputable dealers to ensure competitiveness.
  3. Be wary of companies pushing numismatic or collectible coins over bullion for IRA investments.

Tip #5: Confirm the Storage and Custodian Partnerships

Verify that the company works with IRS-approved custodians and secure storage facilities. According to IRS’ regulations, you cannot store your gold IRA’s precious metals at your home.

You’ll need a certified third-party storage provider.

Check the company’s storage and custodian partner to ensure you’re working with a reliable firm. Moreover, ensure they offer segregated storage options for your precious metals.

Segregated storage means your owned precious metals products will be stored separately from other investors’ possessions. Similarly, non-segregated storage means your products will be stored along with others.

Keep in mind that storage providers charge extra for segregated storage.

Some popular custodians include Equity Trust and Goldstar Trust.

Red Flags to Watch For in Gold IRA Companies

  1. Promises of guaranteed returns or claims of “secret” investment strategies.
  2. Pressure to act immediately or make large investments without proper consideration.
  3. Lack of physical address or unclear company ownership structure.
  4. Unwillingness to provide detailed information about fees or policies in writing.

By thoroughly evaluating these aspects, investors can make an informed decision about the legitimacy and reliability of a gold IRA company. It’s crucial to conduct due diligence and, if necessary, consult with a financial advisor before making any investment decisions.

American Bullion’s Competitive Edge

American Bullion has emerged as a leader in the Gold IRA industry for several reasons. Its success can be attributed to a combination of excellent customer service, strong industry credentials, and a deep understanding of the precious metals market. Here’s why American Bullion continues to thrive and remains a top choice for investors:

1. A Strong Reputation

American Bullion has consistently received high praise from both customers and industry experts. The company holds an A+ rating with the Better Business Bureau (BBB), and numerous customer reviews highlight the firm’s commitment to transparency, efficient processing, and high-quality customer service. These reviews are a testament to the company’s dedication to providing a seamless experience for investors looking to secure their financial future.

In addition to its BBB rating, American Bullion is a member of the Business Consumer Alliance (BCA), where it has also earned top marks. Such recognition serves as a valuable indicator of the firm’s reliability and trustworthiness.

2. Simplified Rollover Process

One of the key challenges for investors is the complexity of rolling over an existing retirement account into a Gold IRA. American Bullion has streamlined this process, making it easier for clients to transition their retirement savings into precious metals without incurring tax penalties or other issues. The firm’s representatives handle the logistics of contacting the investor’s current custodian, ensuring a smooth and tax-free rollover.

By simplifying this often intimidating process, American Bullion enables investors to make the shift to physical assets confidently and efficiently. The company’s ability to expedite rollovers sets it apart from competitors that may not provide the same level of hands-on support.

3. Comprehensive Gold IRA Knowledge

American Bullion’s team of experts is well-versed in the intricacies of Gold IRAs, making them a valuable resource for anyone looking to learn more about this retirement option. The firm’s educational approach means that potential clients receive detailed information about the benefits, risks, and technicalities of investing in precious metals.

Whether investors have questions about the tax implications of Gold IRAs, the mechanics of the rollover process, or how to select the best type of precious metals, American Bullion offers knowledgeable and clear answers. This educational support is crucial for first-time investors, many of whom may be unfamiliar with the precious metals market.

4. Security and Compliance

American Bullion takes security seriously, ensuring that all client transactions are conducted in full compliance with federal regulations. The company works exclusively with IRS-approved custodians and storage facilities, giving investors peace of mind that their assets are held by the law.

Additionally, American Bullion provides insurance coverage for the precious metals stored in its partner depositories. This coverage protects against loss or theft, further underscoring the firm’s commitment to safeguarding its clients’ assets.

5. No Pressure Sales Tactics

Many investors appreciate American Bullion’s no-pressure sales approach. The company’s goal is to educate and inform potential clients, allowing them to make well-reasoned decisions about their retirement strategy. Instead of focusing on aggressive sales tactics, American Bullion emphasizes building long-term relationships with clients based on trust and transparency.

This approach contrasts with some competitors in the industry that may push clients into hasty decisions. By prioritizing client education over immediate sales, American Bullion creates an environment where investors can feel confident in their choices.

Alternatives to Gold IRAs

While Gold IRAs offer significant benefits for many investors, it’s important to recognize that they may not be the best fit for everyone. Some individuals may prefer to diversify their portfolios through alternative methods. Here are a few options for those who are not ready to commit to a Gold IRA but still want exposure to gold or other metals:

1. Gold ETFs and Mutual Funds

For investors who prefer not to hold physical gold, Gold ETFs (Exchange-Traded Funds) and mutual funds offer an alternative way to gain exposure to the precious metals market. These funds allow investors to buy shares in a diversified portfolio of gold assets without the need for physical storage.

While ETFs and mutual funds provide liquidity and ease of trading, they lack the tangible security that physical gold provides. They also do not offer the same level of protection against inflation and economic instability that physical gold can offer.

2. Precious Metals Stocks

Another option for investors seeking exposure to precious metals is investing in mining stocks. Companies involved in the exploration, extraction, and production of gold and other metals can be a profitable investment, especially during times of rising gold prices.

However, mining stocks carry additional risks, as the profitability of these companies is influenced by factors such as production costs, geopolitical risks, and market demand. These stocks are generally considered more volatile than holding physical gold or gold-backed ETFs.

3. Traditional IRAs with Precious Metals Exposure

Investors who wish to maintain a traditional IRA but want some exposure to precious metals can do so through certain mutual funds or ETFs that focus on commodities or metals-related industries. This allows for diversification without the need for a self-directed IRA or physical storage.

However, it’s worth noting that these investments still carry the risks associated with paper assets and do not provide the tangible security that comes with holding physical gold.

The Future of Gold IRAs and American Bullion

As global economic uncertainty continues, the demand for safe-haven assets like gold is likely to remain strong. Gold IRAs provide an effective means of protecting retirement savings from inflation, currency devaluation, and market volatility. For investors who seek long-term stability and the security of physical assets, Gold IRAs offer a compelling option.

American Bullion is well-positioned to continue thriving in this market. Its focus on customer education, secure storage solutions, and industry expertise makes it a trusted partner for investors looking to safeguard their retirement savings. The firm’s ability to adapt to market changes, combined with its transparent and customer-friendly approach, ensures that it will remain a leader in the Gold IRA space for years to come.

American Bullion Review: Conclusion

American Bullion offers a compelling solution for investors looking to diversify their retirement portfolios with the security of precious metals. Its streamlined approach to Gold IRA rollovers, combined with a commitment to education, transparency, and customer service, makes it an ideal choice for both novice and experienced investors.

With over a decade of experience in the industry, American Bullion has earned its place as a leading provider of Gold IRAs, helping thousands of investors safeguard their financial futures. The company’s emphasis on compliance with IRS regulations, secure storage options, and personalized support ensures that clients can confidently navigate the process of including physical gold in their retirement planning.

For anyone considering the benefits of a Gold IRA, American Bullion provides the expertise, resources, and trustworthiness needed to make a well-informed and secure investment. In an increasingly uncertain economic landscape, gold remains a valuable asset, and American Bullion continues to be a trusted partner in helping investors achieve peace of mind and long-term financial security through the power of precious metals.

American Bullion Review: Legit or Not? (Our Honest Take)
American Bullion Review: Legit or Not? (Our Honest Take)

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