Have you been wondering a lot lately if precious metals could be a good investment for you? If so, here are a few important facts to help you decide. First of all, there’s no better inflationary protection than precious metals.
The value of these assets is intrinsic, they're free of credit risk, and they can’t be inflated. In other words, no more can be printed the way paper money can. And, no discussion about precious metals seems complete without the name “Monex Precious Metals” popping up.
Our review of Monex in a few words
Company name: Monex
BBB grade: A+
Summary: In short, our review of this precious metals IRA company shows that Monex may have had a few complaints over the years but overall it has a solid background and positive ratings. Hopefully, it also fills you in on some of the details of precious metals investing and its benefits, as well as its basic pros and cons.
Our rating: 4/5
Table of Contents
- Our review of Monex in a few words
- About Monex
- Monex Today
- Is Monex Precious Metals a Scam?
- Monex Ratings and Reviews
- Have there been any complaints about Monex Precious Metals?
- How is their customer support?
- All About Monex Precious Metals IRAs
- Market Uncertainty
- What About Inflation?
- Precious Metals Investing Benefits
- Precious Metals IRAs vs. Traditional IRAs
- What a Difficult Decade!
- 21st Century Wealth Protection
- Monex Precious Metals Pros and Cons
- Conclusion to our Monex's analysis
The Carabani family opened Monex after running their father's company for 20 years and Monex was officially incorporated in 1987. At that point, the family had closely held the company for three generations at this point. In addition, they've had better than half of their staff on the payroll for more than ten years now.
Monex was started when the United States changed the way that they made coinage in the country. At that time, the Monex founders recognized an opportunity, purchased $1,000 worth of silver quarters, and started their operation in the city of Long Beach.
Over the course of more than 50 years, Monex and its team of employees have established a reputation for reliable precious metals buy and sell prices. There’s a very large and dedicated team of professionals at Monex that’s dedicated to providing precious metals investments to American investors.
And, there are currently three generations of the Carabini family working at Monex, including Louis' son Michael, as well as Cristina, and Anna Maria, Michael's daughters. Newport Beach, CA, still remains the headquarters of the company and more than 25 people have worked for Monex for over 25 years.
Every quarter, the Monex Live Prices page has been visited by several million users over the past ten years. In addition, more than $60 billion in customer transactions have been processed.
Is Monex Precious Metals a Scam?
Many online forums have been devoted to trying to say that Monex Precious Metals is a scam. So, is it? That's a very good question, so we looked into the subject, and here's what we came up with:
1. What Customers Say
Over one thousand Monex customers have given them a rating of “Excellent” on Trustpilot. That’s undoubtedly why so many investors turn to Monex for all of their precious metals investing needs.
2. The Monex Story
Monex is a leading precious metals company that has been in business since 1987. Their services include gold, silver IRAs, platinum, and palladium sourcing and they also offer a wide variety of financial products currently.
3. Monex Products & Services
There’s a lot that they can offer you in terms of precious metals and coinage, so you can store your investments in metallic coins from them as a stable alternative. IRA funds can also be used as investment funds through their program. The best way to invest in precious metals is through one of their custodians.
4. Transaction Handling & Fees
Metals transactions are handled explicitly by Monex while another company will be overseeing the IRA part of your accounts. Remember, working with someone who can set you up on a fixed fee schedule is best most of the time. Why?
Because In the long run, sliding fee structures tend to be more expensive, especially for large accounts sliding fee structures tend to cost more in the long run, especially on larger accounts.
Monex Ratings and Reviews
In order to find anything out there about Monex, we’ve searched all of the relevant sources. And, of course, if you want to research corporate track records, the Better Business Bureau (BBB) is a great place to start.
In addition to what they said about them, we also looked at some of their other ratings and reviews. A list of well-known rating agencies and websites was compiled, but we only included those with Monex data. So, let’s start with the BBB:
Unlike A+ rated precious metals companies like Advantage Gold or American Bullion They gave Monex an overall A- rating because they had one complaint filed during the last three years. When that expires, they'll automatically qualify for an A+ rating with the BBB.
Business Consumer Alliance awarded Monex its highest rating. In the last three years, we didn't find any complaints against Monex on the BCA website.
According to Facebook, Monex's performance was a bit better. It looked like they had a 3.5 total when we checked where they were. Facebook reviews about them are few and far between, however.
A company's reliability is rated by Trustlink so that you can decide if they are trustworthy or not. Monex actually received a 4.2 out of 5 on the Trustlink platform, which is based on an average of 40 reviews in total.
Yelp critics are notorious for their brutality, as you've probably seen on other review sites. However, the Monex Yelp score never went below 2.5 out of 5. And, it's likely they'll have a higher score once a few more reviews have been posted.
Have there been any complaints about Monex Precious Metals?
In 2017, Monex was accused by Federal regulators of defrauding thousands of customers out of more than $290 million+. They were allegedly involved in an illegal scheme using high-pressure sales tactics that left numerous elderly clients with no more life savings.
They also alleged that some of them lost more than $100,000 each. The case involved approximately 12,000 account holders between July 2011 and March 2017. The U.S. Supreme Court refused to hear the case in 2020 and in 2022, the case was settled out of court.
As far as Monex and the Carabinis are concerned, this is not their first legal battle. There were actually two very old complaints as well. In 2004, Monex faced a class-action lawsuit alleging it misled its customers, resulting in a $150,000 settlement.
Moreover, all the way back in 1974, the Securities and Exchange Commission (SEC) accused Louis Carabini of deceptively selling silver coins on margin for a total of $1 billion.
Our rating: 4/5
How is their customer support?
Similar to Gold Alliance, another reputable precious metals dealer, thanks to the quality of their service, nearly three-quarters of their business comes from repeat customers. And that, in itself, says a lot about the company and its customer support. In fact, their reputation in the financial community is built on providing expert customer service.
All About Monex Precious Metals IRAs
For starters, Individual Retirement Accounts (IRAs) are tax-advantaged investment funds. What that means for you is that they're exceptionally tax-efficient when it comes to investing money in them. As a result, investing with pre-tax dollars can result in greater returns.
When you work with them, you can use a self-directed account. As an added benefit, you can start by investing a portion of your funds in precious metals without ever having to withdraw them from your account.
If you work with many IRAs, you’ll be told that only paper investments are allowed. But, not Monex, and here’s how to get started:
- Contact one of the custodians listed on Monex's website to open an account. In the setup process, be sure to specify Monex as your preferred dealer.
- Then, you should transfer your funds from your typical IRA to your custodial account. Please note that it could take a couple of days before they're available to trade. And, they won't be available until after they've passed all of the Monex clearance checks.
- Get in touch with them next to learn more about precious metal investments. They have representatives standing by to assist you with any and all investments that you'd like to make.
- The representative should give your custodian the details once you're done talking. To execute any new transaction, however, your custodian must actually view the details of the purchase. The precious metals will be shipped to your custodian once your transaction is finalized and the payment clears.
It’s no secret that the world's financial markets are experiencing unprecedented change these days. Stocks, bonds, currency, and commodity prices change throughout every single trading day.
And periodically, unpredictable and extremely volatile market conditions can end up causing those changes to be really dramatic. A diversified portfolio can protect investors from the full effects of unanticipated market movements, like stock market crashes, which can be devastating.
What About Inflation?
The U.S. government is attempting to avoid a recession by increasing spending and easing monetary policy. When inflation rates reached double-digits back in the 1970s, precious metal prices skyrocketed, demonstrating that precious metals can offer not only profit potential but also inflation protection.
Currently, billions of dollars are being spent on interest payments each month due to our increasing national debt. And, If history is any guide, this debt may cause inflation to surge.
Precious Metals Investing Benefits
Did you know that numerous experts believe that the stock markets, and the mutual funds that invest in them, are currently overvalued, and could face corrections similar to those seen in 1929, 1987, and 2000, as well as 2008?
It’s true and that’s why it’s so important to consider real precious metals as a way to balance your market risk if you’re investing in the stock market. That means not just investing in gold stocks, which can have both business risks and market risks.
It's also a fact that physical gold has historically been one of the most desirable financial assets during times of market turmoil. However, among the financial asset classes, precious metals are the only ones that are not simultaneously a liability to others.
Precious Metals IRAs vs. Traditional IRAs
Traditional IRAs mostly focus on investments in stocks and bonds. And, physical precious metals can’t be added to an individual's portfolio because of IRS restrictions.
In 1997, Congress passed legislation permitting precious metals to be used as securities. Since then, precious metals IRA products have been added to the portfolio of services offered by financial institutions that offer more creative IRA solutions.
At first, these products weren't widely accepted as a retirement account option. In recent years, however, precious metal IRAs have gained popularity and are now more viable than ever.
What a Difficult Decade!
In terms of investing and retirement planning, the past decade has been particularly difficult. Due to the financial crisis and unstable stock market trends, as well as unforeseen events like the COVID-19 pandemic and its profound economic effects, alternatives to traditional IRAs have become increasingly popular.
It’s clear that savvy investors are actively seeking more secure and stable account types for their retirement investments. That’s why, as many investors seek to diversify their portfolios, precious metals IRAs are becoming more desirable financial vehicles.
21st Century Wealth Protection
Some of today’s investors’ real concerns include:
- Increasing levels of both international and domestic strife
- The threat of war
- The declining U.S. Dollar value
- The increased possibilities of:
- A Depression
- A Recession
Ever-increasing tougher times for the very near future. Throughout history, physical precious metals have served as a solid, long-term asset to hold wealth, regardless of economic conditions.
Precious metals have an intrinsic value that cannot be eroded by inflation like paper investments (including stocks and bonds) can. That’s why investing in precious metals just makes sense in an uncertain environment like we’re currently experiencing worldwide.
Monex Precious Metals Pros and Cons
As you know, all things in life have their ups and downs, especially in the world of finance. So, here are a few of the pros and cons of Monex precious metals IRAs:
- You can invest your pre-tax dollars in silver and gold
- You can work with a licensed broker who will handle everything for you
- They offer fantastic customer service
- You'll be diversifying your portfolio
- You won't have access to your gold
- You have to work with your approved custodian
- You also have to purchase your precious metals through them
Conclusion to our Monex's analysis
Hopefully, this review has helped you to decide if a Monex Precious Metals IRA is something that's right for you and your money. After all, it could deliver substantial tax savings while also protecting your wealth.
If so, you might want to consider contacting a Monex account representative for the purpose of discussing further why precious metals investing could be a good fit for you.
Our rating: 4/5