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Posts: 991
Reply with quote  #16 
Originally Posted by tboll
JG, what does this mean/imply (under Term #9)...

In purchases of commodities on credit, it is possible for Customer to lose substantially more than his or her initial down payment. In such cases, Customer can lose up to the full amount of the commodities purchased.

In an IRA, who is purchasing the metal on credit?  I thought everything was cash purchase with BD.  And when you are buying something physical and with intrinsic value such as gold, how can you lose the FULL AMOUNT of purchase?  Was BD trying to subtly warn customers that there was a risk to the entire content of their IRA--  not just market risk of gold going down in value when they needed to cash out, but that the gold might not even be be in existence when they go to cash out?

It sounds like they cut-and-paste the IRA terms from one of the futures-like contracts that some companies like Monex offer to customers. You put down 25% on margin, so $10K controls $40K of metal. If spot goes up 25%, you've doubled your money. If it goes down 25%, you've lost everything.

But that is not a product that Bullion Direct ever offered, as far as I know. And certainly could not in a precious metals IRA account.


Senior Member
Posts: 299
Reply with quote  #17 
Could be, it's a viable theory.  Or BD could have used the clause deliberately for something more premeditated or devious.  I'm finding that BD's Terms of Service seemed to be laden with disclaimers and conditions that seem to be strictly for the benefit of the company and not their customers.  I guess lesson learned here is (as nemo advises) everybody better understand the law (esp. contract law) or have a good lawyer when it comes to signing away a significant amount of your assets.

Posts: 43
Reply with quote  #18 
It's clear BD was intentionally deceptive and misleading.  They touted a "safe and secure" investment with precious metals.  If I send money to a commodities broker and he loses all my money trading options and futures, that's a risk I knew about up front.  The trading rules for IRAs are very stringent, and few brokers will allow trading in futures, and even then, extra paperwork is required.  There was no credit involved.  I couldn't order metals until Sterling/Equity forwarded the money I sent them to my BD account.  I ordered metal from BD, and cash was deducted from my BD account balance.  Hey, I understand that my gold and silver could, under a number of circumstances, end up worth nothing more than any base metal you buy by the pound.  That's the risk I accepted.  And as Connell pointed out, Equity Institutional sent me a quarterly statement, as recently as the quarter ending 30 June, saying I had X number of dollars worth of goods in my account.  But I never intended BD to use my metal as leverage on other investments as a traditional investment brokerage or mutual fund manager would.  People were led to believe they had metal in their IRAs, metal they paid for with cash.  If that metal or cash equivalent isn't in each and every IRA investor's account, that is clearly fraud.

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Junior Member
Posts: 3
Reply with quote  #19 
Regarding the IRA Accounts:

Does anyone have any experience with Internal Revenue Code Section 408(m)? I read that this section identifies what types of precious metals are permitted to be purchased using Self Directed IRA's.  I read that this section also states that IRS approved bullion/coins must be held in physical possession of a trustee described under subsection (a).  Does anyone know if this is true and how it would affect the IRA account holders?

Junior Member
Posts: 1
Reply with quote  #20 

A self directed individual retirement account, or IRA, gives its owner the ability to invest in many things other than the usual stocks, bonds, mutual funds and CDs.Some investors think they offer a great opportunity to get a better return on retirement savings, especially in today's low-interest rate environment. But setting one up and following the rules isn't nearly as easy as setting up a conventional IRA.

Most precious metals retirement plans at USAGOLD begin with a rollover. The current law allows for both transfers from IRAs aswell as rollovers from qualified retirement plans, such as 401(k), 401(a), 403(b), 457, Thrift Savings Plan (TSP) and annuities. They also have a  great deal of experience with this process and can help you navigate it with a minimum of brain damage

With a self-directed IRA, you have the flexibility to invest in certain precious metals - including gold and silver American Eagle coins and other gold, silver, and platinum coins and bullion. A Precious Metals IRA offers these advantages:

  • IRA set-up fee of $50 and flat annual IRA fee of $75
  • Annual storage fee of $125 for safekeeping of precious metals
  • No transaction fees for purchases, sales or exchanges of precious metals
  • All metals are safely stored with a nationally recognized depository service 
  • Secure and segregated custody of all gold coins and bars

I have providede some links which can be beneficial for you:

[Link to company that claims to be BBB accredited but is not: removed]

[Affiliate link: removed]

Thank you

"In God We Trust"

Junior Member
Posts: 23
Reply with quote  #21 
We all learned "if you don't hold it, you don't own it".

I'll never trust an online portfolio again whether it be a precious metal IRA or any "storage" program.

My BD online portfolio looked just about like the above example. Now I've got nothing. It was tough lesson learned from the "School of Hard Knocks".

Still hoping the best for all involved.
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