Table of Contents
The Birch Gold Group is a company that specializes in investing in precious metals and acts as a dealer. Founded in Burbank, California, back in 2003, it has grown significantly and now serves over 10,000 clients both across the United States and internationally.
The company is highly regarded in the industry, earning a strong reputation for providing a range of services including gold IRAs and other precious metals IRAs to its target market. Customer feedback online is predominantly positive, with hundreds of reviews attesting to their service. They hold an A+ rating from the Better Business Bureau, an AAA rating from the Business Consumer Alliance, and are highly rated on various review platforms like Consumer Affairs and GoldDealerReviews.com.
Many people recognize Birch Gold Group from their appearances on conservative commentator Ben Shapiro’s program. However, their real acclaim comes from nearly twenty years of consistently fulfilling promises and delivering value to their clients. This review aims to help you understand everything you need to know if you’re considering investing with Birch Gold Group. By the end, you’ll be equipped to decide if this company aligns with your investment goals. Keep reading to explore more details.
Why is investing in physical precious metals such as gold important? Many financial experts suggest diversifying investments with gold and other metals for many reasons. One significant reason is to hedge against inflation. The Federal Reserve was established in 1913 to maintain currency stability, but over time, the dollar has lost more than 95% of its original value since then. A dollar in 1913 could purchase over 26 times the goods and services compared to today, yet gold has kept much of its purchasing power. Since President Nixon removed the dollar from the gold standard in 1971, the dollar has depreciated by over 84%, while gold’s price has increased fifty times over, maintaining its buying power over the centuries.
Investing in precious metals can also protect against market volatility. Metals like gold, silver, platinum, and palladium tend to have a low correlation with the stock market. During stock downturns, investors often turn to precious metals as a safe haven, which can sometimes push prices upward even as equities decline. Although gold is not an impervious hedge and metal prices fluctuate, over long periods, precious metals offer a valuable counterbalance to stocks and help preserve the value of your savings.
Another reason to consider precious metals is their ability to serve as a safeguard during times of geopolitical unrest. Historically, gold and silver have maintained value even when countries or economies collapse. An ounce of gold in ancient Rome, for example, holds its worth even today. Additionally, owning physical gold bullion can help protect your financial privacy—unlike bank or brokerage accounts, physical precious metals are not easily discovered or seized by governments or creditors, helping you keep your wealth private.
Moving on to the products and services offered, Birch Gold Group provides a broad selection of physical gold bullion, proof, and collectible coins, as well as silver, platinum, and palladium bullion. Some of these products are suitable for inclusion in IRAs and other retirement plans. Their inventory includes IRA-approved bullion and proof coins, which are listed separately on their website. They also offer insights into popular bullion options for IRA investments. Recognized for having one of the largest inventories of precious metals in the country, Birch Gold was named in 2022 by the San Francisco Gate as the company offering the best variety of precious metals in America.
In addition to selling physical metals, Birch Gold assists clients in establishing specialized self-directed retirement accounts, such as gold IRAs, silver IRAs, and Roth IRAs. They also facilitate rollovers from existing retirement plans into precious metals IRAs, simplifying the process of diversifying your retirement savings with physical assets. Their product offerings include gold, silver, platinum, and palladium in various formats and weights.
For more detailed information, you can download Birch Gold’s free 22-page resource kit. This guide explains how gold can hedge against inflation and market volatility, provides a basic overview of how a precious metals IRA operates, and guides you through the process of transferring funds into a gold IRA. This resource is an excellent starting point for anyone considering investing in precious metals and looking for a thorough introduction to the process.
Birch Gold Group stands out for its focus on educating investors and providing exceptional customer service.
Firstly, the company has built a comprehensive collection of educational resources to assist clients in making informed decisions.
Online reviews of Birch Gold Group are overwhelmingly positive across major platforms.
For example:
- On ConsumerAffairs.com, customers rate Birch Gold at 4.8 out of 5 stars based on 114 reviews.
- TrustLink.com users give a perfect 5-star score across 126 reviews.
- TrustPilot reviewers rate the company at 4.8 stars out of 5 from 119 opinions.
Moreover, Birch Gold has earned a “AAA” rating from the Business Consumer Alliance.
Many positive reviews highlight friendly interactions with sales teams and attentive customer support.
Customers frequently commend their representatives and dedicated account managers, and overall feedback is highly favorable. Negative comments often mention higher costs or specific concerns like suggestions to purchase proof coins for IRAs.
However, these issues can typically be addressed by comparing prices for identical coins in similar conditions across different precious metals firms, and by focusing on standard bullion rather than proof coins for IRA holdings.
Proof coins usually carry premiums higher than regular bullion. While they are legally acceptable if meeting IRS standards for purity and fineness, holding proof coins in IRAs offers little to no advantage over regular coins, and may involve unnecessary costs.
Minimum Purchase Requirement
Currently, Birch Gold Group requires a minimum investment of $10,000 to open a new account, which is relatively modest within the industry.
Gold IRA Custodial Services
When investing in gold or other precious metals within an IRA, choosing a knowledgeable custodian is essential.
Having the right custodian helps prevent common issues such as violating prohibited transaction rules applicable to self-directed IRAs. Your IRA custodian, an IRS-approved bank trust or financial institution, manages your transactions—rollovers, contributions, purchases, sales, and distributions—and ensures they comply with IRS laws. They also handle all necessary reporting and paperwork.
Birch Gold regularly partners with two leading IRA custodians: Equity Trust and STRATA Trust Group.
Custodial Fees
Most custodians working with Birch Gold charge an initial setup fee, usually between $30 and $50, plus an annual maintenance fee averaging around $180.
For accounts of $50,000 or more, the first year’s custodial fees are often waived. Additional costs may include transaction fees, statements, document filings, and other administrative charges, listed in their fee schedules.
Storage and Delivery Options for Precious Metals
Customers have two primary options for receiving their metals:
- Physically taking possession of their gold and having it shipped directly to them.
- Storing their metals at secure facilities or vaults, typically for IRA holdings.
An assortment of Canadian Maple Leaf and Austrian Philharmonic coins.
Precious Metals IRA Storage Options
Depending on the chosen custodian, Birch Gold customers may have the opportunity to store their metals at facilities such as Brink’s Global Services locations in Los Angeles, New York City, or Salt Lake City.
These vaults are approved by organizations like the Chicago Mercantile Exchange (CME) and Intercontinental Exchange (ICE) and accept a variety of IRA-approved metals, including American Eagles, Gold American Buffalos, Canadian Maples, Austrian Philharmonics, Australian Kookaburra coins, Chinese Pandas, and others.
All shipments are meticulously documented upon arrival, and assets are stored separately from other clients’ holdings. Regular inventories are conducted to ensure security and accuracy.
Storage Fees
The cost to store gold in a secure facility typically depends on the amount stored, with annual fees generally ranging from $50 to $300.
Overall Fees and Expenses
Owning physical gold and precious metals involves some costs, but these often compare favorably to the expense of paying a 1% annual fee on assets under management for a gold ETF or precious metals mutual fund.
For example, if you have $1 million invested, the annual costs of secure storage and management of physical metals can be quite reasonable and transparent in comparison.If you’re investing in assets and want to allocate about 10% of your retirement portfolio to precious metals, it’s important to understand the associated costs. For example, a 1% assets under management (AUM) fee on $100,000 invested in a gold ETF would amount to $1,000 annually in fees. Similarly, holding the same $1,000 in gold bullion within a gold IRA could incur yearly fees ranging from $100 to $400, with similar overall returns on your investment.
The biggest variable in these costs is the premium or markup you pay to Birch Gold Group when purchasing your gold at retail prices—just above the spot price—and the potential discount upon liquidation years later. Most Wall Street financial advisors don’t highlight owning physical gold, silver, platinum, or palladium as part of an investment portfolio because they can’t generate income directly from these holdings.
In contrast, Birch Gold Group does not charge any fees for investments, expense ratios, commissions, or assets under management. Shipping your physical gold is also free. Their revenue relies on the spread between retail and wholesale prices, not on buyback fees. To get started, you can visit Birch Gold Group for more information.
Be cautious of Gold IRA ‘Home Storage’ scams. While you’re free to store non-IRA physical gold and precious metals at home, the law prohibits IRA owners from personally possessing bullion held within their retirement accounts. Some dealers run misleading ads showing elderly people at kitchen tables with stacks of gold coins, implying you can own IRA gold in your own home. However, a recent court decision confirms it’s illegal to keep IRA-owned bullion in personal possession. If the IRS discovers that you’ve stored your IRA gold, silver, palladium, or platinum in your home or safe deposit box instead of with a licensed custodian, your entire IRA can be disallowed, forcing you to take an immediate distribution that could trigger taxes and penalties.
Fortunately, Birch Gold Group warns investors about this issue on their website, ensuring you won’t encounter these problems when working with them.
Advantages and disadvantages of Birch Gold Group include:
– Outstanding customer support
– Knowledgeable sales team
– Wide selection of IRA-eligible and non-IRA coins and bars
– Reasonable minimum purchase of $10,000
– Free shipping when taking physical possession
On the downside, their in-house educational resources are somewhat limited, and they may not be the cheapest option available.
Contact details for Birch Gold Group are as follows:
– 3500 W Olive Ave #300
– Burbank, CA 91505-4652
– Phone: (800) 355-2116
To start your investment journey, visit Birch Gold Group and request a free informational kit.
For further insights, check out my detailed post on what a gold IRA is to ensure you’re well-informed before making any decisions. If you’re interested in rolling over a 401(k) into a gold IRA, there’s also a helpful gold IRA rollover guide available for your review.