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The current turbulent and unstable economy is only encouraging investors to seek different methods to protect their assets from threats such as hyperinflation and the dying US dollar. A highly recommended method is opening a gold IRA.
In this review, we are going to discuss a company called Wholesale Direct Metals to see what they can offer us, and whether we should make them a part of our investment strategy.
Wholesale Direct Metals Services
Wholesale Direct Metals is another company that sells precious metals. They offer an impressive selection of investment metals and concentrate on helping you build up an IRA, which I think is better than most average precious metals brokers out there.
Despite all the information on their website about IRAs and how they work, Wholesale Direct Metals, unfortunately, do not tell us much about their role in the process of setting up your IRA. They do include a gold IRA application form on one of their pages, but say nothing about what happens when you fill out the form.
After some careful research, I found that Wholesale Direct Metals is NOT an official IRA custodian. Instead, they just refer you to Delaware Depository with Sterling Trust as a custodian.
NOTE: The custodian Sterling Trust has their fair share of controversy, including various accusations of fraud, scams, cover-ups and more. They also receive a pretty low rating on Trustlink: a 2/5. Check out my separate review of Sterling Trust for more information.
On their homepage, Wholesale Direct Metals has a blog containing a wide range of political/investment type content, although most of it appears to be over the top and borderline feat mongering with the only intention of encouraging you to choose their investment kit.
In this part, as usual, we will go through several reviews written by Wholesale Direct Metals’ past customers to understand better the way they do business.
The first customer apparently had a pleasant experience:
“I spent a long while discussing with the two sales reps at WDM before I decided to purchase from them a junk bag of silver half-dollar coins. The representative working with me to finalize the purchase is Randy Ashburn. I paid by wire transfer and waited for my coins to be delivered. I decided to have the order delivered at work so that I could tale personal possession. The purchased was finalized on mid-afternoon on Friday, and the package is expected to reach me on Wed, but it was delivered on Tuesday and signed for by the receptionist.
When the receptionist called me to receive my package, I found that the package had been apparently tampered with, because both outside seams were totally split, and the canvas bag was hanging out. When I examined the package that evening at home, I noticed the top of the bag was secured with clear packing tape. On counting the coins I realized that 81 of them were missing. Therefore, I concluded that the package was tampered with while it was still held by the USPS.
Unfortunately, the receptionist at my office unknowingly voided the insurance by signing for the package. I called Randy and explained what happened, and he purchased and sent me the missing coins within a week of the original shipment. I was very satisfied. Randy was such a man of high character, and he earned my respect both as a businessman and a person. You can put your trust on Randy, who would treat you fairly and deal in good faith with a high degree of integrity.” – Donald
This customer, on the other hand, claims that the representative working with him was rude, and thinks that the minimum order requirements were too high:
“I called Wholesale Direct Metals today. Spot price for gold was at $1,186 oz. – silver at $18.38 oz.
I spoke with a nice gentleman to ask for the prices. I told him I only cared for gold and silver eagles, and I have always bought from Apmex and Midas over the years. The prices he quoted me were $1,240.50 oz. for gold and $20.19 oz. for silver.
I thought the prices were great, and tried placing my usual monthly order (2 – 1 oz.gold eagles and 100 – 1 oz. silver eagles) hoping to save a few bucks while at the same time supporting patriot radio. Before I could ask him about shipping, time etc. he told me that he only deals with orders that are over $10.000. “Oh, o.k. sir, I understand.” Before I could say thanks for your time and have a good evening he cut me off and said in that elitist vocal tone these exact words…
“We only deal with people who are serious investors…we are trying to get some real money around here!”” – Cristiano
This customer was not satisfied with the quality of his order:
“This post is IMHO.
I bought from WDM numismatic gold British sovereign coins, in BRILLIANT UNCIRCULATED (BU) condition. The representative I spoke to, Justin Boiles, told me that they would be individually sleeved for better protection. The package came in a plastic coin tube, all rubbing together. Some were smuggled from the vibration of shipping. I tried taking five coins to a local coin dealer and he claimed that they were not BU coins.
I also bought MORGAN/PEACE silver dollars in GOOD TO EXTRA FINE condition. And when the package arrived, 80% of them were so worn that only a shadow of the original image was left.
I was tremendously unhappy with my order, so I would not recommend WDM for purchases of precious metals. 35b0778” – by Athony
I managed to find some few ratings that Wholesale Direct Metals received:
A+ – BBB
5/5 – Trustlink
AAA – BCA
Wholesale Direct Metals has both good and not-so-good points. The overall feedback is quite positive, though there are still several reports here and there such as on pissedconsumer.com, where you can find some serious accusations on the company.
Putting all that aside, there is still one thing about Wholesale Direct Metals that makes me uncomfortable: they set up your IRA with Sterling Trust as a custodian. After everything I’ve learned about this company, I highly suggest that you should NOT do business with Sterling Trust because of all the controversies around them.
I decided that my final rating for Wholesale Direct Metals should be: 2/10
The low score can be explained by the association between Wholesale Direct Metals and Sterling Trust. In my review of Sterling Trust, they received a 2/10, and I don’t think Wholesale Direct Metals deserves a better rating if they are going to start your IRA through a company with such a bad reputation.