- 21 Aug 2021
- Precious Metals
- Comments: 0
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OneGold is one of the most popular online precious metals dealers in the United States. With over twenty years in business and thousands of prior customers, they're often a go-to for people wanting to invest in precious metals for the first time. But are they actually a legitimate dealer?
Some companies are so small that they barely have any customer reviews. That's not the case for OneGold. It's pretty easy to see what experiences people have had in the past. Let's compare the reviews to the company's policies and see whether they match up.
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OneGold is a company that sells precious metals through its online marketplace. The company's goal is to be a place that you can go to invest in the precious metals industry both digitally and physically.
OneGold is a combination effort put together by two partner companies. It leverages the resources, experience, and industry knowledge of Sprott and APMEX.
APMEX has been in business since Scott Thomas founded the company in 1999. The current headquarters is located in Oklahoma City. The company's global consumer base includes more than 1.5 million people, making it one of the furthest-reaching international precious metals dealerships.
APMEX has also sold more than 10 billion dollars in precious metals since getting started, with an average of over 500 million in sales per year. The company has a strong industry reputation that allows them to remain on the cutting edge of the competition.
There are multiple different products available through APMEX. In addition, the company has a variety of services to help customers who are getting started with the precious metals industry.
Sprott, on the other hand, specializes in alternative investments. While precious metals are a type of alternative asset, they aren't the only focus of the company. This company's main specialty is in the acquisition and holding of real assets like real estate and precious metals.
Sprott was founded by Eric Sprott in 1981. The company manages about seven million dollars of consumer assets, and they have 200,000 clients all over the globe. Subsidiaries of the company are located mainly in Canada, the United States, and parts of Asia.
The marketplace has a variety of products available. For those in the United States, you can purchase platinum, gold, and silver. The products in the US marketplace are developed through the APMEX house team.
There are several US partners with OneGold, including Brinks, APMEX, and Loomis. You can use these companies to make sure that your items are secure and stored properly after you purchase them. The right vault partner for you will vary depending on your preferred location and storage needs.
No matter which vault partner you choose, the items will be segregated. Every customer is given an insurance policy through Lloyd's of London, which is one of the foremost global insurers of precious metals.
Vaultchain is a digital product offered through OneGold. It was first developed by the company TradeWind. This product allows people to hold digital and physical assets. By using Vaultchain, you can purchase physical gold and keep it in a digital vault.
Every asset purchased with the Vaultchain platform is vaulted with the Royal Canadian Mint. Unlike some other digital metals platforms, this program allows you to have your physical metals delivered to you if you decide you want to stop using the service.
There aren't any administrative or management fees for using Vaultchain. You can purchase both gold and silver. The app will tell you about the value of your holdings, your past transactions, and the growth of your investment over time. You can use the platform to gain valuable insights about how your precious metals are performing.
The other products offered by the company include Canadian, United Kingdom, and Switzerland products. These include investment grade physical precious metals. You own a fractional part of a pooled number of assets like gold and silver bars.
When you purchase these products, you are getting them directly from a wholesaler. Therefore, you don't have to deal with the premiums that come from small gold sellers.
How the Process Works
The first step to getting started with the OneGold marketplace is to create an account with the website. You'll make a profile and a unique login. This will give you access to the trading platform.
Once you do this, you can browse the products available online. You'll be able to choose bars and coins of silver and gold. You'll also choose where you want your items stored, whether that's in the US or Canada.
The company allows people to use a variety of payment methods to purchase items. You can also fund your account prior to finalizing a purchase, so you have the money ready to go when you do settle on your ideal precious metals.
You can choose to take part in an automatic investment program as well. This will purchase a certain number of precious metals automatically on your behalf every month. If you intend to keep acquiring precious metals over time, this automated process takes a lot of time and hassle out of the deal.
There are two options for the automated investment program. You can choose a quantity of precious metals to invest in, such as several grams of silver or gold. Or you can choose to spend a preset amount on precious metals, regardless of the market value. You can also choose how often to make automatic investments.
Once you've purchased your precious metals, they will be stored in secure vaults either in the US or internationally. You'll have your choice of several different depository partners. Every account will be fully insured, so you can get your money back if there's ever loss or damage to your metals.
As you continue acquiring more precious metals, you can see the contents of your vault online. Your account dashboard will tell you about the value of your holdings, the change in investment over time, and what you need to know about the future of your precious metals.
Your items will be held digitally. But when you want to trade them in for physical precious metals, you can do so using the online redemption tool. The physical items you purchase will be mailed to your doorstep in insured packaging. Alternatively, you can sell your digital holdings for liquid cash.
The company has recently developed a mobile app, with the goal of giving people access to the precious metals marketplace wherever they go. With the app, you can view your account dashboard on your phone to keep updated on your holdings.
Though the app is still relatively new, it has garnered praise for its clean design and ease of use. You can access information about the marketplace, browse different products for sale, and see how your own holdings are performing.
The company does offer precious metals IRA services. If you want to open a self-directed IRA and fund it with precious metals, you can do so using the online marketplace. There are two preferred custodians that the company works with: Preferred Trust Company and Strata Trust.
Different custodians have different maintenance fees for opening an account. You'll need to compare Strata and Preferred Trust to determine which fee structure works best for you.
To use the IRA services, you will need to follow these steps:
Are These the Best IRA Services?
OneGold's IRA services leave something to be desired. They simply aren't as streamlined or as easy to use as some of the competition. If you want to open a precious metals IRA, it's better to use a company that specializes in this.
When a company specializes, they'll be able to help you through the entire process. They can also contact your custodian and get your paperwork in order for you. There's a lot less fuss and hassle than when you use OneGold.
In fact, there are even some companies with in-house IRA teams of experts.
Pricing and Fees
You'll need to take the prices of the products into consideration when you buy, as well as the cost of storage.
Pricing of the products on the OneGold marketplace varies depending on the market value of gold and silver. It's important to check their prices against the competition so you know whether you're actually getting the best deal.
The company claims that they can offer lower prices than their competitors because they purchase from wholesalers. Wholesalers offer large volumes of precious metals at lower prices than regular dealers. OneGold uses your money to cover a portion of one of these large purchases.
But you can't see the trading value of different precious metals until you create an account and access the marketplace. Some other companies will show you transparent pricing right on their website without any account required.
When you purchase precious metals to hold digitally, you'll have several storage options. The fees are based on a percentage of your holdings. This can be a potential drawback, since it means that the more you add to your account, the more you pay in fees.
Some companies have flat annual storage fees instead. With these, you always know exactly how much you can expect to pay every year.
One helpful tool on OneGold's site is the fee calculator. By inputting your investments, the calculator gives you a realistic expectation of what you'll pay for storage and other fees. This ensures that you aren't hit with any surprise or hidden fees, which more predatory companies tend to use.
If you intend to store gold, you'll pay 0.12 percent of your holdings per year. For both silver and platinum, that rate increases to 0.30 percent of your holdings. Silver is more expensive because it takes up more room, while platinum is pricey because it's more difficult to acquire than gold.
The company has also published a table that shows you how much you can expect to pay in fees over time. When you hit a certain dollar amount, you may be eligible for reduced annual fees.
Switch and Save
Some people might benefit from the Switch and Save program. When you purchase a US product from the OneGold marketplace, you can use this to get reimbursed up to 250 dollars per transaction. That helps keep you from getting frustrated with switching your existing gold accounts.
This feature exists for people who already have precious metals holdings stored in the US. You just have to give the company a call or send them an email to tell them that you want to switch to their dealership.
You'll then sell your existing assets, withdraw the funds you make, and fund your OneGold account. Upon sending the company your bill, you'll be given an account credit for your purchases of US products.
Is OneGold a Scam?
OneGold is not a scam. The company has been in business for 21 years and has been accredited with the Better Business Bureau since 2018. They hold an A+ rating. On the BBB website, they have 18 customer reviews with an average of 4.28 out of 5 stars, indicating that most people are satisfied with their experience.
Similarly, the company has solid reviews on the third party website Shopper Approved. There are more than 7,000 reviews with an average star rating of 4.8 out of 5.
Some people have raised concerns that some of the Shopper Approved ads might be fake, due to customers only having one company review in total. However, there are enough positive verifiable reviews that this concern seems negligible.
As with any company that has this many reviews, there are a few complaints here and there. Let's take a look at some of the negative feedback, along with the positive things customers had to say.
The negative reviews of a company often give you important information. They can let you know why people are unsatisfied and whether there are any patterns or red flags you should be concerned about.
On Shopper Approved, there are 5,895 five-star reviews and just 17 one-star reviews.
One of the poor reviews said that the website layout was confusing. The customer was also disgruntled about a waiting period on precious metals transfers. The company said that they've reached out and are waiting for a response.
Another poor review said the person reported a redemption issue and had to wait for ages to be contacted by a rep.
But many of the good reviews seem to refute these, so they might be flukes. For example, many people say that the company has made it easy to get started with precious metals investing. The quick customer service team response has also been praised.
Pros & Cons of OneGold
OneGold is a solid place to purchase precious metals. The digital holdings are convenient, but you can cash out easily at any time.
Just keep in mind that when it comes to IRA investment, it's easier to work with a company that specializes instead.
Although we do think that OneGold is a solid company, we believe that there are better companies out there to make your investment with for most people.
You can get a free gold investment kit from our #1 recommended precious metals investment company above, or you can checkout our top 5 recommended companies below...
===> See our top 5 recommended companies here (for IRAs AND non IRAs)
Or, continue with OneGold...