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Buying gold and silver for investment purposes is a clever way to diversify a portfolio. Choosing a reputable precious metals dealer, however, is the next challenge. Investors may have heard about APMEX and Kitco through their online research, for example.
Comparing these two businesses is the next logical step. Take a close look at both APMEX and Kitco today for a solid investment decision tomorrow.
Before we get started, investing your savings is a serious task. When it comes to adding precious metals to your portfolio, how do you know which companies to trust?
That is why we have researched every company in the industry and selected the very few with the highest customer service standards.
This way you can easily compare the best companies in the business, and choose one that fits your needs and investment goals.
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Learn About APMEX
APMEX is a precious metals dealer that's been in business for more than 20 years. It offers a mixture of gold, silver, palladium, platinum, rare coins, and other products. APMEX grew from a family's love of coin collecting. The grandparents dealt with coins in the 1970s and 1980s.
They had an inventory stocked in their basement after the grandfather passed, which is how APMEX grew into a sales force in the industry. This business is based out of Oklahoma. The founder, Scott Thomas, continues to live and give back to the community through volunteering and helping the hungry in his community.
It's refreshing to see a face to a business name in the precious metals industry. So many companies don't reach out to the community, which shows a level of caring for people in general.
Learn About Kitco
Kitco is a distinct presence in the precious metals industry because they do much more than just sell gold, silver, platinum, palladium, and rhodium. They also refine metals and offer media platforms for precious metals reporting.
Their homepage is so crowded with information, it's often difficult to find what investors need at first. As a solution, Kitco offers a gold tab to direct investors to their precious metals page. In addition, Kitco is a global company with two offices in Montreal and Hong Kong.
It began as just a scrap precious metals company in 1977. Through the years, it has evolved into a corporation to serve nearly every aspect of the precious metals industry.
Read Reviews About APMEX
As investors look at reviews about this company, APMEX appears to have many complaints and poor reviews on the Better Business Bureau website. Many of the reviews and complaints revolve around poor shipping practices, questionable return turnaround times, or bait-and-switch strategies.
It appears that an item might be shipped and lost, for instance. The customer waits for a replacement, but he or she must pay a higher replacement price now that the cost has risen. There are multiple complaints with similar patterns, so investors may want to consider this fact before purchasing products.
It's important to note that APMEX is BBB accredited with an A+ rating since 2004. Reading over the reviews and looking at other websites for insights would be a good course of action for this particular company.
Analyze Reviews About Kitco
Investors should be quick to note that Kitco has far fewer negative reviews compared to APMEX. If investors consider Kitco's decades of experience in the industry, it would be understandable to have more complaints than APMEX but they don't.
The negative reviews mostly revolve around confusion about payment schedules, shipment mishaps, and product pricing. In response to nearly all complaints, Kitco offers a solution to the issue. Mistakes can happen in any business, which Kitco takes in stride.
Although Kitco originated in 1977, it was just recently accredited by the BBB in 2021. It also has an A+ rating. It's unclear why they weren't accredited before 2021, however.
Know About APMEX Products
For fans of the precious metals industry, APMEX has an extraordinary inventory. It's laid out across the top of the homepage. Investors can click on each precious metals tab for subcategories that offer a look at some of the most popular items.
Each item falls under its particular manufacturer, such as the United States Mint, so that any products are easy to find. Discover rare coins and even currency here too. There's a "Deals" tab that tempts investors to visit regularly. Unusual items might appear here too, which creates a treasure hunt during every visit.
APMEX does offer a gold IRA or Individual Retirement Account page for investors. They don't offer custodial or storage for gold IRAs, however, but they do work with some of the industry's finest associates. Investors can look over IRA-approved precious metals on the website as well. Click on the "Best Sellers" tab for more information.
Look Through Kitco Products
Kitco has an extensive inventory of its own, including coins, bars, and rounds. Discover a mixture of IRA-approved products along with collectors' favorites. Their precious metals retail page has clear subcategories so that investors can narrow down their search.
Scroll a bit further to find buyback prospects, refining services, and even storage options. Kitco serves several different customers, so take some time to explore the pages.
All products have spot pricing for single and bulk purchases. In addition, every product's price also depends on payment type. Generally, investors will get more for their investment when cash or bank wires are used.
Research APMEX Shipping and Storage Fees
Every day orders from APMEX have free shipping when they equal $199 or more. A $9.95 shipping charge occurs with smaller orders. APMEX customers are automatically allowed to have a complimentary Citadel account along with their purchase. Citadel is APMEX's storage affiliate, which is necessary for gold IRA accounts.
When investors purchase items from APMEX and ship them directly to Citadel, there's no charge for amounts over $500. Investors should expect a $9.95 shipping charge for orders smaller than $500.
Storage fees through Citadel cost 55 basis points or 0.55 percent each year. Keep in mind that Citadel acts as a middleman for the IRS-approved storage facility. There may be other fees, so investors should ask for written terms before agreeing to the purchase.
Uncover Kitco Shipping and Storage Fees
Kitco advertises shipping charges of $15 for orders of $5,000 or less. Shipping is free for orders above the $5,000 mark. Additionally, any insurance on the shipment is 0.65 percent of the metals' value. For example, $1,000 of precious metals incurs an insurance charge of $6.50.
This company does lay out its policies when it comes to lost or stolen shipments. Investors should read over these rules for future reference. There have been a few complaints about Kitco when it comes to shipment issues.
Because Kitco doesn't perform any gold IRA services, there are no fees noted on the website. They do mention their preferred custodians, however. This list can be found under the company's "FAQ" tab.
Pros and Cons of APMEX
Pros and Cons of Kitco
Frequently Asked Questions
a. Can Investors Hold Precious Metals at Home?
Investors are welcome to secure any precious metals they desire at home, such as in a safe. However, investors won't be able to take advantage of a gold IRA's tax benefits unless the precious metals reside in an IRS-approved depository.
b. Why are There so Many Prices for a Single Precious Metals Product?
Gold, silver, and other precious metals have spot prices that change throughout the trading day. Dealers must keep up with these changes, which is why pricing is fluid until a product's cost is locked in during purchase.
c. Are There a Lot Of Scams in the Precious Metals Industry?
There are questionable dealers in the industry, which is why investors must research their chosen seller. Reputable companies have transparent policies, good reviews, and many years in the precious metals industry.
d. How Much Gold Should be Part of an Average Retirement Portfolio?
Ideally, reserve five to 10 percent of the portfolio for precious metals investments. Precious metals purchased from a trustworthy dealer is the best way to fund a gold IRA or other investment choice. Look at the facts, trust in business ethics, and create an investment strategy that takes investors' wealth to the highest point possible.
Choose the Proper Dealer
Both APMEX and Kitco offer similar products and services. APMEX appears to stay stateside, whereas Kitco has a more global flair. For investors who're interested in precious metals from around the globe and potential storage in another country, Kitco is the smart choice. Basic investing in precious metals and the possible use of a gold IRA are best achieved with APMEX.
However, investors should always consider the company's reviews. APMEX seems to have had a lot of trouble with consumers in the past few years. Alternatively, Kitco may offer an enhanced customer experience in the end.
Remember to read our list of the Top Gold Companies.
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