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In an age where financial security is more uncertain than ever, safeguarding your wealth has never been more critical.
Enter Safeguard Metals, a company that promises to be your shield in the volatile world of precious metals investment.
But does it live up to the hype?
In this comprehensive review, we peel back the layers of Safeguard Metals to reveal its strengths, weaknesses, and everything in between.
Whether you're a seasoned investor or just dipping your toes into the market, join us as we explore whether Safeguard Metals truly stands as a bulwark against financial instability.
Read on to discover if this company is the right fit for your portfolio and your peace of mind.
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.
Read the list to see if SafeGuard Metals passed our strict customer service standards to become one of our top recommendations.
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Who Is Safeguard Metals?
Sadly, Safeguard Metals doesn't provide much information about who they are on the About Us page on their website.
However, they claim to be a wealth management company with professional financial staff that have a genuine interest in helping people make the most of their investments.
The company professes to be in strict compliance with IRC Section 408(m)(3) and the U.S. Treasury Department's regulations for precious metals transactions, which demonstrates its commitment to ethical practices in the industry.
They also have an Anti-Money Laundering Compliance Program that is regularly updated to meet "the highest standards of compliance."
Is Safeguard Meals a Scam?
The company seems to provide some services to some customers. In fact, they even have some positive reviews on some websites. But the good ends there.
Safeguard Metals has a rating of F (the lowest rating possible) on the Better Business Bureau and an average rating of 3.3 out of 5 on Trustpilot.
Their accreditation was revoked. Some of their clients say that they don't respond to complaints, have several legal cases filed against them, and that their customer service is terrible.
The company also has a negative history of not delivering on metals orders, charging excessive fees, and generally behaving dishonestly. All these factors add up to make Safeguard Metals an unsafe choice for anyone looking to invest in precious metals.
Legal Issues Surrounding Safeguard Metals
In 2020, the state of Minnesota took legal action against the company for not using proper legal paperwork when selling precious metals.
It's important to note that Minnesota is the only state in the country that has a limit on the amount of precious metals a dealer can sell at a time. Safeguard Metals disregarded that regulation, resulting in legal action from Minnesota.
What they had to do was to register with the Department of Commerce but failed to do so. This resulted in a $10,000 fine and a promise to never violate any other law with the state.
The SEC brought fraud charges against Safeguard Metals and its owner, Jeffery Santulan, in February 2022. According to the SEC (https://www.sec.gov/litigation/litreleases/2022/lr25322.htm), the company has been accused of scamming millions of dollars from individuals who are elderly, retired, or close to retirement throughout 2017 to 2021.
The lawsuit also states that Jeffery Santulan falsely portrayed himself as an investment advisor and convinced people to invest their funds in Safeguard Metals.
The company also claims that the company lied about being a full-service investment firm; lied about its operating size; made false statements about the number of assets it managed; and also lied about its markups and commissions, which were as high as 64% compared to the 4% - 42% that they claimed to charge. Moreover, none of their investment advisors or security agents are licensed; they only work with salespeople.
You should note, however, that this case is still ongoing. It may be helpful for investors to wait until the SEC matter is resolved before making any investments with the company.
What Safeguard Metals Offers
On their website, Safeguard Metals says that they work directly with top mints to provide their clients with the highest quality gold and silver products. Their inventory includes Gold Maple Leafs, Gold American Eagles, Gold Arctic Foxes, Silver Maple Leafs, Silver American Eagle, and more. They claim to have partnered with reputable, nationally recognized delivery services to ship precious metals to their clients.
After a client makes a purchase, Safeguard Metals can take up to 10 business days to verify the transaction. If approved, then the shipping period will depend on your location and the speediness of the company they'll use to deliver your products.
The company also offers precious metal IRA accounts. They claim to offer a full range of services, including setting up the account, helping you purchase and store your precious metals, and providing tax-advantaged investing options.
Moreover, they have various articles on their website that discuss the benefits of investing in gold and silver, as well as how to make sure that you're getting a good deal when buying from them.
How to Buy Precious Metals With Safeguard Metals
An investor that's interested in buying gold or silver from Safeguard Metals will have to call or email them to start the process. One of their representatives will help you decide what type of metal is the best fit for you and suggest a few options. After that, you'll need to provide personal information and then make a payment for your purchase.
According to their account agreement, clients must deliver purchase funds within one business day through wire transfer, cashier's check, or personal check. If a client orders precious metals but refuses to pay within three business days, Safeguard Metals will cancel their transaction and sell their products at a wholesale price.
If the proceeds from that resale are less than what they were to pay, the company will be entitled to recover the difference from that client plus any incidental damages arising from the breach of contract.
And, if the proceeds are higher than the agreed-upon purchase price, Safeguard Metals will be entitled to keep the excess amount as liquidated damages.
As mentioned, the company takes up to ten days to verify the purchase. They alone will determine the appropriate means of delivery and reserve the right to change it.
If the client's products get lost or not delivered, they will have to notify Safeguard Metals in Writing and submit their complaint to their official address, which is in Woodland Hills, California. They will then take a maximum of 60 days to verify the issue and then refund or replace the lost metal.
Gold IRA
Safeguard Metals can also help investors preserve or grow their wealth using precious metals IRA accounts. They will walk you through the entire process and provide you with information about their services, fees, pooling options, and more.
Typically, it takes up to four weeks to set up an account. During that time, Safeguard Metals will help investors open a custodian IRA account and transfer funds from their existing retirement accounts or roll over new deposits into the precious metals IRA.
Once they have all the necessary documents and signatures in place, they'll inform the client of how much money is required to purchase gold or silver coins or bars for their portfolio.
Types of Precious Metal IRA Accounts You Can Create With Safeguard MetalsTypes of Precious Metal IRA Accounts You Can Create With Safeguard Metals
There are two main categories of precious metal accounts that the company offers, i.e., Traditional Gold IRAs and Roth Gold IRAs. A traditional gold IRA is an account that is funded with pretax dollars. Essentially, your income before filing taxes. The contribution limit is currently at $6,500 or $7,500 annually for investors over 50 years.
The client's investment will grow on a tax-deferred basis, and the funds can be taken out as a lump sum or spread across several payments when they reach retirement age. However, the IRS will tax every withdrawal and profit made.
By contrast, with a Roth gold IRA, you're investing post-tax dollars in the account - your money after paying all your taxes. As such, the amount you contribute to your Roth Gold IRA is not tax-deductible. However, the assets held in the account may increase in value over time, and anything withdrawn at retirement will be done so tax-free.
Roth gold IRA contribution limit is also $6,500 annually and has the same rules as a traditional IRA. That is, if you are over 50 years old, you can contribute an extra $1,000 to your Roth account every year.
Our Rating
Safeguard Metals Pros & Cons
Safeguard Metals may be a good company for investors interested in gold IRA. They have rollover options, back up their products with a guarantee, and offer competitive fees for their services.
Takeaway
Overall, we do not think Safeguard Metals is a good option for investors looking to add precious metals to their portfolios.
However, it's important to do your research and compare them with other companies before making a decision, but we think there are much better options available.
Remember to read out list of the Top Gold Companies to see if SafeGuard Metals made the cut.
>> Click HERE to read our Best Precious Metals Investment Companies list <<
Or, if you like what you read about SafeGuard Metals, you can visit their website below.
At Digital Financing Task Force, we provide research and analysis for people that want to take control of their financial future and protect the savings that they have.
