CMI Gold & Silver Review

Last Updated on March 16, 2023 by George

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Rare commodities include precious metals. As a result, they are interchangeable, and their values are the same regardless of their source. Typically, items are traded on commodity exchanges.

Contrary to agricultural products like grain, ham, sugar, and so forth, the supply of precious metals is not replenishable. The four primary precious metals are platinum, palladium, silver, and gold.

This evaluation of CMI Gold and Silver, the country’s first bullion dealer, will provide you with all the information you require to make an informed choice.

Before we begin this evaluation:

We know how challenging it is to choose a business you can entrust with your hard-earned savings. They create educational and helpful content, so you have all the knowledge you need to make the best choice.

One of the country’s oldest gold and silver dealers is CMI, located in Phoenix. Arizona was the country’s fifth-largest producer of silver in the early 1970s. CMI was established in 1973 to trade silver, whose supply was running low.

Americans were again permitted to own gold bullion in 1974, and its ownership granted them the right to purchase and sell it for financial gain.

In 1974, CMI entered the trade of gold bullion early after establishing a brokerage firm for silver.

Since its founding, CMI has adopted a purpose to provide our clients and consumers with honest, objective, and direct professional advice regarding purchasing and selling precious metals.

Most importantly, CMI wants you to thoroughly understand the advantages of investing in precious metals.

With over 50 years of experience purchasing and selling the four primary precious metals—gold, silver, platinum, and palladium—CMI has unparalleled professionalism.

Bill Haynes has served as the company’s CEO since 1973. Despite including Bill’s two sons in the management team, they continue to be a family business.

Gold Confiscation History

Every investor in gold and other precious metals should have a basic understanding of the history of gold in the country.

An executive order prohibiting the hoarding of gold coins, gold bullion, and gold certificates within the continental United States was signed by President Roosevelt in 1933.

Hoarding was a concern because it restricted the Federal Reserve’s ability to grow the money supply, which was a crucial tool for boosting the economy during the Great Depression.

The executive decree effectively ended the so-called “gold standard” for American currency. It must pay taxes repeated to those transactions in the U.S. in 1974.

To manipulate the price of precious metals, many dishonest gold and silver sellers, especially telemarketers, are sowing the seeds of anxiety about the reintroduction of limits on private gold ownership. Avoid such swindlers.

Buyer’s Guide

It can indirectly make investments in precious metals through stock in mining companies, mining company certificates, or special mutual funds.

Additionally, you can make a direct investment in actual metal ownership. Selling and buying essential precious metals is CMI’s area of expertise. A great Buyer’s Guide for precious metal investments is available from CMI on our website.

Gold bullion, available in two forms—bullion coins and bars—is the investment that people want to own physically.

Several government mints, notably the U.S. Mint, the Royal Canadian Mint, Australia’s Perth Mint, and the Austrian Mint, make gold coins. Numerous mints and refineries create gold bars worldwide; one ounce is the most common bar size.

The least expensive forms of precious metals that are also the easiest to sell should be purchased when investing in them. Premiums are the price increases that metal goods receive over the value of the precious metals they contain.

American Gold Eagles and Krugerrands are the country’s most regularly exchanged gold coins and hence the easiest to sell. Gold bars typically come with lower premiums than gold coins, nevertheless.

Silver outperforms gold in percentage gains during a prolonged bull market for precious metals. Silver, however, has a lot greater mass and weight than gold. Because of this, silver handling and storage are more problematic than they are for gold.

The most well-known 1-oz. silver coins produced by the government are those from the U.S. Mint. Despite having a $1 nominal face value, they are sold for the value of the silver they contain plus a premium.

Gold Investment Coins

Investment gold coins offer protection from currency devaluation and debasement. They should be distinct from numismatic and collector coins, which some brokers sell at steep premiums over the price of the gold they contain.

The best gold investments are gold coins, sold at modest premiums over the price of the gold they contain. The world’s most popular gold investment bullion coin is the American Gold Eagle. Although they are sold at lower premiums, the Krugerrand is particularly well-liked.

Gold IRAs

Over the years, IRA regulations have changed, leading to the development of the self-directed IRA. The law has mandated that impartial third-party custodians hold IRA assets since the IRA’s creation.

As a fiduciary, the custodian is often limited to investing in money market accounts, low-risk bonds, and stocks.

Due to a change in the law passed in 1997, certain IRAs are now permitted to invest in certain precious metals. Initially restricted to U.S. gold and silver coins, this option has since been expanded to include gold, silver, platinum, and palladium bullion. Self-directed IRAs are how these Gold IRAs are set up.

Gold Bars

Because gold bars have smaller premiums than gold coins, they are a trendy investment choice.

1-oz, 10-oz, kilo, and 100-gram gold bars are available. They are 99.99% pure and offered up only 1-0z and 10-0z bars until recently. Large investors frequently purchase kilo bars these days.

Products and Fees

Gold, silver, platinum, and palladium are all traded through CMIGS. Platinum and palladium are not considered precious metals; they should be stated and are primarily intended for usage in the industry.

Additionally, trading in platinum and palladium requires particular thought. We advise investors to only concentrate on gold and silver trades if they have extensive expertise and experience in selling platinum and palladium.

The standard fees for carrying out gold and silver trades can change depending on the gold or silver form and the transaction specifics. But they are in line with accepted business procedures.

According to the Professional Numismatists Guild, the average retail commission for one-ounce American Eagle or Maple Leaf gold coins is between five and six percent.

We’ll discuss the gold IRAs that CMI Gold & Silver provides below. Their prices are reasonable compared to industry norms, including startup fees, transaction fees, annual storage fees, and administrative fees.

CMIGS’s Self-Directed IRA

Congress passed the Individual Retirement Arrangement (IRA) law in 1974. An income can grow tax-free in a qualified IRA, subject to yearly contribution caps.

Contributions to “Traditional IRAs” are now tax deductible, and earnings are not subject to income tax. Even though withdrawals are taxed, they typically only happen in retirement because the tax rates are generally lower.

The current annual donation cap is $6,000 per person. Over 50 and a half-year-old taxpayers can make an additional $1,000 contribution.

Traditional IRA owners delegate investment decisions to the IRA custodian so long as they fall under approved low-risk investments. Because they are reasonably easy to manage, custodians were pleased to restrict their assets in this way.

Custodians are not mandated by law to choose investments, nevertheless. An IRA owner may occasionally be more aware of his preferred investment strategies and objectives than the custodian. It led to the creation of the self-directed IRA, but self-directed investment choices are still subject to the fiduciary custodian’s veto.

A self-directed IRA allows the owner to decide how the funds will be invested. They have the authority to order money to be invested in places where independent custodians with fiduciary obligations might be reluctant.

IRA Eligible Precious Metals

With the development of the self-directed IRA, IRA regulations have changed over time. Because of legal requirements, separate third-party custodians have always had to hold IRA funds.

Because they are fiduciaries, custodians are often only allowed to invest in money market accounts, low-risk bonds, and stocks.

Since a legislation change in 1997, certain IRAs have been permitted to invest in certain precious metals, initially limited to U.S. gold and silver coins and then expanded to include gold, silver, platinum, and palladium bullion. As self-directed IRAs, these Gold IRAs are set up.

GoldStar Trust Company Precious Metals IRAs

Since IRAs’ inception, the law has mandated that a neutral third-party custodian keep their assets. As a fiduciary, that custodian is only permitted to invest in a diverse portfolio of stocks, bonds, and money market accounts.

Banks, federally insured credit unions, savings and loan associations, and organizations recognized by the IRS are additional examples of eligible custodians.

CMI affiliate GoldStar Trust Company is an IRS-approved custodian of Gold IRAs offered by CMI. GoldStar will only act in the interests of CMI customers, who are IRA owners while adhering to its fiduciary obligations.

Typically, GoldStar Trust Company acts as the custodian, and CMIGS executes the buy/sell trades.

The fees levied by GoldStar Trust Company are as follows:

  • The annual administrative fee is equal to.08% of the fair market value of the assets kept in the account. The minimum payment is $50, but the maximum is $250.
  • 1 percent of the fair market value of the assets kept in the account as the annual storage fee
  • Setup Fee: $25 one-time fee
  • Per buy/sell transaction into or out of the account, there is a $40 transaction fee.

Reviews of CMI Gold and Silver

Numerous reviewers have evaluated CMI. We are proud that the Better Business Bureau has given us an A+ rating.

“True professionals. I have introduced to CMI about two years ago and have had the best experiences. In addition to a great value, they always go the extra step to further my education so I can make the best trades. Cannot thank these guys enough!” – Barbara H.

Final Thoughts – CMI Gold & Silver Review

For investment purposes, owning precious physical metals can result in significant rewards. Precious metals are regarded as an effective inflation hedge and portfolio diversifier.

Gold is frequently used as a secure store of value during the unrest. Gold prices move in the opposite direction from diminishing rates of return in stocks, bonds, and real estate.

The market for precious metals, however, can be unpredictable. CMI is aware of both the downsides and benefits of investing in precious metals.

Given its unique investment objectives and situations, CMI advises its clients and consumers on these issues.

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