For far too long, the precious metals industry has been dominated by companies whose intention is to keep consumers in the dark about the True Cost involved in acquiring gold and silver. Instead of disclosing True Cost pricing, these companies instead choose to distract consumers with outlandish offers of thousands of dollars in “free metal" while also pushing them in the direction of excessively overpriced exclusive coins that can only be bought and sold back to that specific company.

Unfortunately, because True Cost pricing is not disclosed, consumers that do business with these companies aren’t aware that the massive markup they are being charged for the precious metals they are buying is how they are supposedly able to receive “free metal." By pulling back the curtain and providing consumers with valuable insight and knowledge, True Gold Republic is committed to changing the industry by leveling the playing field for precious metals buyers. Whether or not you decide to become a True Gold Republic client, we strive to provide you with the best and most accurate information possible so that you can make the most well-informed decision about protecting your future with gold and silver. 

If a company offers you thousands of dollars in "Free Silver," it is coming out of your pocket and not theirs.

So how does it work?

To put it simply, these companies will push you to purchase "Exclusive Coins" which have a markup over their acquisition cost of anywhere from 60% - 130%, sometimes higher. If you decide to transfer your hard earned retirement savings to one of these "Top Rated Gold IRA" companies, your precious metal would have to appreciate over 60 - 130% in order for you to break even on your purchase. Because of the enormous profit they make selling these coins, they are able to make it seem like you're receiving thousands of dollars in "Free Silver" when in actuality you are paying for that metal yourself. The excessive markups these "Top Rated Gold IRA" companies charge provides them with VERY deep pockets and massive marketing budgets. These companies are often promoted by well known spokespersons who also benefit from the exorbitant markups by making a large commission when you purchase your precious metals. The following is an example of how this works:

John Doe decides to transfer $100,000 from his IRA to a gold dealer called "ABL," which claims to be a "Top Rated Gold IRA" company. He heard about ABL through a popular spokesperson he saw on TV. John speaks with an ABL salesperson who pushes him to buy exclusive gold coins without disclosing their True Cost pricing, the "markup" and not the "spread," and tells John he is going to receive $10,000 in "free silver." The salesperson pushes John into these coins not for his benefit, but because they provide the salesperson a larger commission and the company a bigger profit margin. When John asks what he is paying for the gold coins, the salesperson says the company charges a 29% spread, the difference between the current sale price of the coins and what the company says they will pay to reacquire them from clients in the future. This information is only so helpful, because John is not looking to buy and sell that same day. What he really needs to know is the company's markup on these coins, the percentage difference between what the company pays to buy the metal from a Mint or metals distributor before selling it to clients. The salesperson does not know what the markup is, only management does, so he continues referencing the spread. The main reason the salesperson knows the spread of 29%, and not the markup of 100%, is management does not want that information disclosed to potential clients. Unfortunately, John does not realize that the only way he'll receive $10,000 in "free silver" is by paying for it himself through the 100% markup he's charged for the gold coins. In actuality, because of the exorbitant markup, John receives just $50,000 in gold, or 100% less than the amount he transferred. How it's clear the real cost is the 100% markup and not the 29% spread is the fact that the salesperson is paid 8%-10% commission for selling these coins, and the spokesperson that referred John to ABL also receives 8%-10% commission for promoting the company. Right out of the gate, taking everything into account, John loses $16,000-$20,000 of the $100,000 he transferred to commissions alone. If it were true that the true cost is the spread of 29%, the company would be paying more in commissions than it would be making in profit. For example, of the 29% (or $29,000) the salesperson claims the company charges for the gold coins, commissions alone would equal $16,000 - $20,000 with company profit being only $9,000 - $13,000.  

How do you know if the coin is exclusive?

• Can you locate the coin anywhere else?
• Did the salesperson strongly encourage you to purchase this coin?
• How much above the spot price are you paying for this coin?
• Does the company only disclose the "spread" and not the actual "markup" when discussing the coin's pricing?

Important note: If anyone tells you that the "spread" and the "markup" are the same, they are not being truthful. The "spread" is the difference between what they are selling it to you for (the Ask) and the repurchase price (the Bid) they say they will pay to reacquire the metal from you in the future. The "markup," however, is your True Cost because it is the difference between what the company pays for the precious metal from a Mint or metals distributor (i.e., the company's cost of acquisition) before selling it to you.  It's also important to note that the "Bid" price they say they will pay for this "Exclusive Coin" is only potentially valid if the company remains in business. If the company goes out of business, it will be extremely difficult (if not impossible) to sell it to another company for anything close to what you thought you would receive for it.

The good news is your eyes are now open, and you have information that will protect your from are now armed with the information, and won't fall it doesn't have to be like this. We encourage you to keep your guard up when you see these offers.

Whether you decide to do business with True Gold Republic or not, it is important that you know what questions to ask and what information to obtain before buying precious metals from any company.

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