Pacific Precious Metals Review

Pacific Precious Metals Review

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Pacific Precious Metals (PPM) is a dealer of precious metals in Northern California. It specializes in administering and managing gold and silver IRAs for American investors.

It sources gold and silver products from a range of locations including the United States and Canada.

The company also has expertise in the strategic buying and selling of precious metals and optimizes the proportion of minted coins to bullion to give its investors the best returns.

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Pacific Precious Metals Background


ppm homepage

Whenever you purchase any kind of precious metal, you always want to work with a reputable dealer whom you trust. A premier bullion dealer is Pacific Precious Metals.

The company offers clients a physical location where you can safely and comfortably engage in your precious metals transactions, whether it is the selling or buying of gold, silver, platinum, or palladium bars and coins.

They update the spot prices each minute, and their pricing is always transparent. They currently operate three San Francisco Bay Area locations, and they are planning to expand.

If you have been searching for a precious metals dealer, this company would be a good choice.

Services Offered by Pacific Precious Metals


  • Testing by X-Ray Fluorescence

The company is an authority in assaying services. Clients often desire to find out exactly what kinds of metals and the proportion of each metal in their item. To get this data, the company conducts an advanced metal analysis using x-ray fluorescence.

It does not matter whether you are buying or selling gold or silver. Either way, you want to understand the true value of a piece of jewelry or validate the precious metal content of certain pieces in your possession.

Pacific Precious Metals can help you get that information.

  • Testing by Specific Gravity

Another way to confirm the results of the x-ray fluorescence analysis is by testing the specific gravity, or density, of the metal. The results from this test represent the average density of the metals found in the item.

  • Testing by Ultrasound

For items that have at least two sides that are flat and parallel to each other, the company can use ultrasonic testing to confirm the results of the x-ray fluorescence test to see if the metal at the core of the item is the same as what was found through the x-ray fluorescence analysis.

  • Test Results are Documented in Writing

PPM can provide a written report of all of the results from their testing. This report is written on the company's official letterhead. They can also include an image of the item that was tested to make the documentation as clear as possible.

Storage of Bullion


Pacific Precious Metals offers storage options in the United States as well as in international locations.

A common concern among precious metal investors is finding a trusted place to store their physical metal. Pacific Precious Metal has this covered. Their storage options all comply with the highest industry standards in security.

The metal is protected by double insurance. Two independent audits are conducted. The vault storage is segregated, and you are ensured complete confidentiality. Their customer support is consistently rated 5 stars.

With their stellar client services combined with their trusted reputation and solid expertise, you can rest assured that your investment is in good hands.

What is a Precious Metals IRA?


two gold coins, three silver coins, and two gold bars

Most IRAs invest in traditional paper assets such as stocks, bonds, and cash products. You can also invest in precious metals, but that must be done in a self-directed IRA by following the tax codes. 

With that said, however, only certain kinds of precious metals qualify for an IRA under the tax code.

The products that are acceptable in precious metals IRAs include certain types of gold, silver, and platinum coins and gold, silver platinum, and palladium bars that meet a certain standard of purity.   

Other items that contain precious metals such as jewelry and collectible coins do not qualify for precious metal IRAs. 

If you want to set up an IRA for precious metals, you must find a custodian who will let you hold the metal, like gold, in the IRA. You also must specify a depository for your metal because it must be securely stored outside of your home.

After these steps are done, you can look for a dealer in the gold, silver, platinum, and palladium products that are approved. When the metal is purchased, this is transferred to the approved depository under the management of the custodian.

Some examples of precious metal products that are acceptable are most platinum bars, the PAMP Suisse gold bars, the silver and gold Canadian Maple Leaf and the American Eagle coins, and the Austrian Philharmonic coin.

Should You Choose a Traditional or Roth Precious Metals IRA?


The traditional and Roth IRAs have their respective tax advantages and disadvantages. These apply to the precious metals IRAs as well. SEPs, Simplified Employee Pension accounts, and SIMPLE IRAs can also contain precious metals. 

When choosing between a traditional or Roth, keep in mind that traditional IRAs let you deduct pre-tax contributions and have tax-deferred growth. Roth IRAs use your post-tax dollars and distributions are tax-free.

What is a Self-Directed IRA?


A self-directed IRA lets you hold other types of investments that a traditional IRA does not allow. These types of alternative investments include real estate, precious metals, and others.

They follow the same contribution and distribution guidelines as a regular or Roth IRA. Investors who are interested in self-directed IRAs have a desire to have more control in how they invest their retirement funds in the hope of getting higher returns.

Although the account holder gets more freedom, they are also subject to more complications if they are unfamiliar with the investment products.

Therefore, it is essential to work with a trusted expert in these types of accounts to minimize these risks.

How to Open a Precious Metals IRA


  • Find a Reliable Custodian

A lot of brokers and custodians that deal with traditional IRAs cannot manage self-directed IRAs, which include gold IRAs.

So, the first thing to do is to find a reliable and trusted custodian that manages gold IRAs. There might not be as many of these experts as the ones for traditional IRAs, but they are out there.

  • Move the Funds

The gold IRA can be funded by your annual allowable IRA contribution: If you are younger than 50, you can contribute up to $6,000; if you are older than 50, you can contribute up to $7,000.

You can also rollover funds from your traditional IRA or your 401(k) into your gold IRA. The usual rollover rules for traditional and Roth IRAs apply. For instance, if you roll over pre-tax dollars into a Roth IRA, these funds are taxed before they fund the Roth IRA. 

Post-tax funds are not taxed. If you roll over pre-tax dollars into a traditional IRA, the tax on the fund remains deferred.

  • Purchase Precious Metals that are IRA Approved

The IRS is very strict about what kind of gold and precious metals can be held in an IRA. The approved metal includes gold bars that have 99.5% purity, silver with 99.9% purity, and platinum and palladium with 99.95% purity.

  • Identify an Approved Storage Facility

Your precious metal cannot be stored in just any secure place. It must be a depository that is approved by the IRS for this specific purpose. Investors absolutely cannot store their gold at home. 

A few examples of facilities that are approved by the IRS include HSBC, Delaware Depository Service Company, JPMorgan Chase and CNT Depository, and others.

Is a Precious Metals IRA Right for You?


The value of gold has been solid for thousands of years. Investors ranging from the average American to entire nations are investing in gold at a rapid pace.

With this popularity, you might ask yourself if investing in gold and precious metals is the right approach for you.

If you are looking at precious metals as a way to diversify your investment portfolio, here are some questions you can ask yourself:

  • Do you worry that a downturn in the stock market will destroy your retirement?
  • Do you worry that a weak dollar will make your portfolio worth less?
  • Are you concerned that our country is heading toward inflationary times because of our huge national debt?

If the above is a concern to you, then you should strongly consider diversifying your investments with gold and precious metal. Gold holds its value independent of market conditions.

It does not matter what the economy looks like; gold will always hold its worth. During the stock market crash of 2008, many people lost their retirements, but those who had gold in their portfolios came out ahead.

Their retirement was protected.

Cost of Shipping


When Pacific Precious Metals ships your bullion, there are shipping costs. The fees are determined by the total value of the shipment because it is connected to the weight and the insurance coverage.

It covers the cost of packing, shipping, and insurance. Around 95% of their packages cost around $15 to $40 to ship. You can pay an additional fee for faster shipping.

How are Precious Metal Products Shipped to You?


Pacific Precious Metals will choose a carrier to ship your bullion and coins. The shipment will be insured and will require a signature. If something happens to the shipment during its transit to you, their insurance will cover it.

However, if you left instructions with the carrier service that they can leave the package at the door without your signature, then PPM will not accept responsibility for any loss.

If you instructed the carrier to leave the package with another person, or if you provide a delivery address that is not your residence, PPM will not cover your package.

Conclusion

Pacific Precious Metals would be a solid company to go with if you want to diversify your retirement investments into precious metals and even diamonds.

The company can help you with opening your gold IRA and assist with buying and selling the metals.

The company earned high marks on several fronts. They provide investors with another way to purchase metals. The spot prices are reasonable, and their market updates every minute to keep investors apprised of their investment performance.

Pacific Precious Metals is a decent company, they are not a scam, they have serviced customers in the California Bay Area for many years, but we do not recommend them because they are not the best option for individual purchases of gold and silver.

And they are definitely not the best option for investors that want to protect their wealth from the ravages of inflation with a precious metals IRA.  

There are much better options, especially our #1 recommendation on our list of the best gold companies to work with.  

You can get a Free Gold Investors Guide from our top gold and precious metals company recommendation by clicking the link above or you can read our article of the top companies we reviewed this year:

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