You’ll find that Augusta Precious Metals is a company that sells precious metals in the form of karat gold bars, karat gold rounds, platinum bars, and silver bars. If you’re looking for quality with reasonable prices, then Augusta is the place where you should shop for your precious metal needs. However, reviewers have given mixed reviews about this company, so you should research more before purchasing.
Reviews show an A+ rating with the Better Business Bureau, but many complaints against this company. For example, some people claim that they didn’t receive the products promptly, and others say that after buying their products, Augusta stopped replying to their emails about their shipment details.
What You Need to Know About Augusta
Augusta Precious Metals has had complaints lodged against it, but this does mean that the company is illegitimate. Therefore, it’s best to gather more information about them before making any purchase. Read reviews, research the products they sell, and check out their Better Business Bureau profile for more details. You can also read through customer testimonies posted online, as these will provide you with honest insights about what they’re like as a company.
Reviews on Augusta Precious Metals are primarily negative but don’t let this dissuade you from buying precious metals from them. They have had some setbacks, but there are enough satisfied customers with their products, so it’s best for you to learn more about them first instead of just relying on reviews.
Why Invest with Augusta Precious Metals?
Augusta Precious Metals is an LLC legally owned by Augusta Resource Corporation, a publicly-traded mining company.
Since 2010, Augusta has been developing the Rosemont Copper Project in Pima County of Arizona’s the Sonoran Desert. The project will be one of the world’s largest copper mines once fully operational. Still, currently, it is on standby due to financial difficulties with raising money to build out this capital-intensive project.
Investors are interested in this situation because Augusta has already paid more than three-quarters of the initial development costs for Rosemont ($793 million), which makes up roughly two-thirds of overall expenditures ($1.2 billion). According to some experts, if the funds needed for full project development are found, construction at Rosemont would require a workforce of roughly 2,000. Once the mine is operational, about 500 people would be needed to run it.
Augusta has already received all necessary permits for this project from state and local authorities as well as the U.S. Army Corps of Engineers, which regulate surface mining activities in Arizona, so at least on paper, it looks like Augusta Precious Metals has a pretty solid investment opportunity on its hands that could pay off if more money is raised for development purposes.
Investors are thus looking for a company that holds many assets (e.g., cash) and incurs significant costs (e.g., corporate expenses), which means investors can expect very little or no growth.
Why Buy Gold & Silver From Augusta?
Augusta has a low price-to-book ratio of 0.31 times. Its net income margin is roughly -12%, while its operating margin is about 2%. Its total debt to equity ratio comes in at 1.89 times which shows that the company carries more long-term liabilities than assets on its balance sheet. Still, it also means that the market values what they think Augusta is worth (i.e., it’s not overleveraged).
Because Augusta Precious Metals currently only has one active mine under development (Rosemont), there are significant risks associated with investing in this single project since the future of the Rosemont Copper Project largely depends on factors outside of Augusta’s control (e.g., global economic conditions, market prices, government regulations) which makes Augusta look like a risky investment opportunity because of its lack of diversification.
However, Augusta has no debt and $253 million in cash & equivalents on its balance sheet, as well as low operating costs that could allow for capital deployment into other projects after the Rosemont copper mine is up and running. Thus, there are also significant upside potentials associated with this single project because the price of copper might rise again if Chinese demand increases once more.
Also worth noting is that Augusta Resource Corporation recently announced it had completed an agreement with Sunshine Silver Mining Co., Ltd about future considerations, including advances on funding and long-term purchase agreements for the products the Rosemont Copper Project will produce.
Since Augusta has no debts and can raise cash in emergencies, many experts generally see it as a good investment.
Augusta IRA-Approved Coins
The U.S. Treasury Department’s IRA program only allows investments in precious metals that are 99.5% pure or higher, which means that Augusta-approved coins need to be at least a 995/1000 quality rating, among other things. This is because investing in lower quality metals can result in storage issues and require more complicated assaying processes and additional costs to refine the metal before it can be sold.
Some of Augusta’s approved coins include:
- 1 oz American Gold Eagle Coins (certified by PCGS; .9995 gold purity)
- 1 oz Canadian Maple Leaf Gold Coins (certified by PCGS; .9999 gold purity)
- 1 oz Australian Kangaroo Platinum Coins (certified by NGC; .9995 platinum purity)
- 1 oz American Silver Eagle Coins (certified by PCGS; .999 silver purity)
- 5 oz Austrian Philharmonics Gold Coins (PMG-graded coins are the only way to buy gold bullion in Austria, where Augusta is headquartered)
- 10 oz Royal Canadian Mint Platinum Bars (.9995 platinum purity)
- 50 g Sunshine Mint Fine Gold Bars (.9999 gold purity).
Augusta Insurance and Shipping
Augusta offers free insured shipping on all orders over $100, which benefits customers looking for an improvement over competitive options in the gold & silver bullion space. For instance, Goldline International charges customers between 10% and 15% of the total purchase price to ensure their deliveries.
Additionally, Augusta has partnered with UPS to ensure reliable delivery of its products while also offering up to 3% insurance coverage without charging extra fees. Most other companies that offer this type of service generally do not have any money-back guarantee or no-fee refunds if they fail to reach buyers safe and sound, making it harder for people to trust brands when investing in precious metals.
Some additional benefits include:
1) Free email notifications about when a package is sent and updates on the delivery schedule
2) A no-fee money-back guarantee if your order fails to arrive within seven days from when it was sent out, which demonstrates Augusta’s dedication to customer service.
3) Price matching for any “identical product” that can be offered at a lower cost by another distributor in the same online marketplace (e.g., eBay, Amazon, Craigslist).
Augusta IRA Account Set Up
Anyone who wants to invest with an IRA account needs to understand how precious metals work before investing their hard-earned dollars into them, especially since there are many tax implications associated with IRAs, including required minimum distributions every year once you turn 70.5 years old.
Augusta is one of the most affordable ways to start using an IRA account because you only need around $5,000 to open a relatively low charge compared to some competitive options. For instance, Regal Assets requires at least $25,000 to invest in their precious metals, and First Republic Bank also requires a minimum deposit of $100K when opening a Roth IRA. However, we should point out that both companies offer higher rates than Augusta does.
The entire process can be completed online in about 30 minutes, and there’s no REDEMPTION PENALTY for cashing out your IRA early even if you want to redeem your holdings before you’re 59 1/2 years old; again, you must understand the implications of investing through an IRA and how it affects your ability to cash out early.
Augusta Precious Metals Review: Fees and Rates
Here are the rates and fees associated with Augusta:
1) The purchase price is generally around $2-5 above the spot price for bars and slightly higher than spot prices for coins, which is slightly lower or equal to most competitive options in the industry.
2) Selling prices are around 5-15% below the spot, and any dealer markup is highlighted on our website.
3) Order processing fee is 0% – this might seem significant at first glance but make sure you do not fall into their high shipping & insurance premiums category since there are plenty of competitive options in the space that charge for shipping but offer much lower premiums.
4) Buying rates are 0% under 1,000 ounces – other companies allow you to purchase coins & bars at cost depending on your investment goals while also offering special deals if you buy large quantities, which is beneficial for someone looking to invest long term.
5) IRA rates are 1-2 points above competitor rates which means Augusta falls behind their competition by 2-3% – there are typically no annual fees associated with an IRA account, unlike some other companies in the precious metals industry, so make sure to choose a plan that works best for your investing needs or goals before making a final decision about where to open your IRA account.
Augusta Precious Metals Review: Deposits & Withdrawals
Individuals who want to invest in precious metals through an IRA account are subject to the same rules as investing with any other brokerage, so they need to make sure they have enough money saved up before opening an account.
While most companies require around $5,000 for new accounts, Augusta needs at least $5,000-$25,000 if you are opening a Gold IRA or IRA Platinum version, making them competitive with most other options on the market today.
Another critical aspect is knowing how long it takes to transfer money into your investment account after you’ve sent off your initial deposit because some companies take longer than others, especially since there are tax implications associated with depositing or withdrawing money from your IRA account.
With that said, most companies take about 3-4 business days to complete the verification process, during which time you can’t trade with your account, and Augusta is no different in this regard. Unfortunately, we weren’t able to find specific information on their website. Still, we reached out to support, and they informed us that it takes 5-7 business days for new accounts once all of the required information has been submitted.
Lastly, make sure you know the tax implications associated with making deposits into or withdrawing money from an IRA account because there are plenty of investment options available today that work around certain restrictions like early withdrawal penalties if you want to take money out before 59 1/2 years old. However, keep in mind, any type of early withdrawal (before 59 1/2 years old) will be subject to a 10% penalty in addition to any applicable taxes depending on the value of your holdings.
Augusta Precious Metals Review: Verdict
While Augusta is certainly not the best option for individuals who want to invest in precious metals since they don’t offer any form of IRA specials, it might be one worth considering if you prefer dealing with larger quantities because their low prices aren’t much higher than other companies which can make them beneficial for someone looking to diversify or increase their wealth over time; again, make sure you understand how an IRA account works before making any financial decisions.
Augusta Precious Metals review/article background information/article summary – Investing in an IRA account can be one of the most important investments you make in your lifetime – make sure to choose the right company before making any final decisions.
Other Investment Opportunities for Your IRA Account
While investing in your IRA account can be one of the most important decisions you’ll ever make, there are several other opportunities for individuals looking to diversify their portfolios or increase their overall wealth, so don’t forget to explore every option available before making a final investment decision.
1) Investing in real estate – if you’ve got enough money saved up, you can invest it all at once, although this is typically reserved for accredited investors with significant net worths since real estate investments require enormous upfront capital costs that may or may not yield any returns depending on market conditions;
2) Stocks & bonds – not only do stocks & bonds fluctuate in value more than precious metals, which means you could lose some of your down payment if the market crashes, but most “blue chip” stocks & bonds yield lower returns than those offered by precious metals companies; for this reason, you should only invest in these types of investments if you’ve already established a solid investment portfolio with your existing IRA and you want to diversify it even more so keep this in mind before making any final decisions.