Silvertowne Review: Trusted Precious Metals Source or Overhyped Dealer?
Is SilverTowne the right choice for your precious metal investments? This no-nonsense silvertowne review examines the reliability, pricing, and customer experiences at one of the well-known dealers in the industry. Get an unbiased look at what to expect when doing business with SilverTowne.
Key Takeaways
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SilverTowne has grown from a small coin business to one of the largest and most reputable dealers in silver, gold, and numismatics in the United States, expanding into manufacturing and offering an array of products and services, including IRA-approved collectibles.
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SilverTowne provides comprehensive support for self-directed Precious Metals IRAs, offering customers educational resources, help in selecting custodians and depositories, and a seamless process for including precious metals in their retirement plans.
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The company prioritizes transparency in pricing with competitive premiums over spot price, provides educational resources for investors, and maintains a strong customer service focus, as reflected in their A+ BBB rating and positive customer testimonials.
Unveiling SilverTowne: A Comprehensive Overview
Founded in 1949 by Leon Hendrickson, SilverTowne began as a coin business, with transactions conducted out of a cigar box under a lunch counter. From these humble beginnings, Hendrickson’s dedication and entrepreneurial spirit saw the business grow, moving from the cigar box to his basement in 1958, and eventually into a 12,000 square foot building by 1982.
SilverTowne expanded its operations to include manufacturing and custom minting by 1985, leveraging its ventures in farming and a skating rink business. Today, SilverTowne stands as one of the largest and most reliable silver, gold, and numismatics dealers in the United States.
The Genesis of SilverTowne
The story of SilverTowne is rooted in the values of integrity and honesty. Leon Hendrickson believed that a simple handshake was a symbol of trust and commitment in business dealings. This ethos of trust, reflected in every transaction, laid the cornerstone of SilverTowne’s operations and fueled its growth.
SilverTowne evolved from a modest coin business operating out of a cigar box to a nationally recognized precious metals dealer, demonstrating the impact of trust in business growth.
SilverTowne’s Product Spectrum
Diversity is at the heart of SilverTowne’s product offerings. From bullion in the form of bars, rounds, and coins to IRA-approved collectibles and unique items such as gifts and jewelry, SilverTowne offers a wide spectrum of precious metals products. The silver bullion selection includes .999 fine silver items minted by their own facility in Winchester, Indiana, along with unique and collectible bullion from national and world mints. These include the popular American Silver Eagle and custom minted trademark bars exclusive to SilverTowne.
SilverTowne caters to numismatics enthusiasts by offering a certified coin exchange service where you can sell coins. They have an assortment of U.S. coins, including rare coins, gold coins, Flying Eagles, Indian Heads, Wheat Pennies, and Liberty Head nickels.
The expansive online selection has earned positive reviews from customers who also commend the responsive customer service and free shipping for many items.
Analyzing SilverTowne’s Precious Metals IRA Services
Beyond being a precious metals dealer, SilverTowne provides services to facilitate investors in setting up self-directed Individual Retirement Accounts (IRAs) that include precious metals. With a precious metals IRA, investors can diversify their investment portfolio and potentially pursue higher returns through alternative investments. SilverTowne assists customers in choosing trusted custodians and depositories for IRA management, ensuring the physical assets in an IRA are stored in compliance with IRS guidelines. Additionally, SilverTowne can help investors buy precious metals for their IRA.
The contribution limit for a SilverTowne IRA is set at $6000, or $7000 for those aged 50 or older, with an additional catch-up contribution. Investors can withdraw assets either partially or fully from depository storage. However, to avoid penalties and taxes, early physical possession must be rolled over properly.
Navigating Your Precious Metal IRA Setup with SilverTowne
The process of establishing a Precious Metal IRA with SilverTowne is uncomplicated. SilverTowne assists customers in finding a reputable custodian such as New Direction Trust Company, The Entrust Group, Millennium Trust Company, and Madison Trust for self-directed IRAs. Customers can choose from IRS-approved depositories including CNT Depository, Inc., IDS OF DELAWARE, and IDS OF CANADA for the safekeeping of their precious metals in IRAs.
Upon purchasing precious metals for an IRA, SilverTowne works with the customer’s custodian to use IRA funds for payment and ensures metals are sent to the selected secure depository. This process simplifies the inclusion of precious metals in IRAs for customers, making SilverTowne an attractive option for investors.
The Benefits of Including Precious Metals in Your Retirement Plan
There are numerous benefits to incorporating precious metal investments, such as physical precious metals, into your retirement plan. Here are some of them:
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Diversifying with a precious metals IRA balances the investment portfolio, reducing the risk associated with having all assets in a single class, like stocks or bonds.
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Historically, the value of gold and other precious metals tends to move inversely to stocks, offering a hedge against market downturns and preserving purchasing power during inflationary periods.
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Precious metals have also been shown to increase in value during periods of economic instability, offering the potential for a greater return compared to some other asset classes like short-term government bonds.
With the historical price of silver showing a significant increase from $5 per ounce in 1998 to about $24 per ounce in 2023, it demonstrates its potential as a long-term investment for those looking to buy silver.
Pricing Transparency and Fees at SilverTowne
SilverTowne ensures a high degree of transparency in its pricing structure. The precious metal prices, which include a premium over the spot price, reflect the current market rate and change regularly. This premium aims to cover the company’s costs and sustain its business operation. The typical premium range customers can expect when purchasing precious metals from SilverTowne is between 1-3% over the spot price, ensuring that investors receive a fair deal.
For those looking to make bulk purchases, SilverTowne offers lower premiums over the spot price due to decreased per-unit costs and efficiencies in dealing with larger quantities.
Competitive Prices and Premiums
SilverTowne’s pricing of silver bullion products is competitive and reflects market fluctuations. By producing its own bullion, SilverTowne can control costs and consequently offer more competitive prices to their customers. Furthermore, customers purchasing in bulk from SilverTowne can reduce the premium over the spot price substantially, with decreases from over $3.00 to as little as $0.89 per ounce for large quantities.
These competitive premiums, coupled with the company’s commitment to transparency, ensure that SilverTowne offers value for investors.
Understanding IRA Fees and Charges
While SilverTowne does not charge any direct fees for its IRA products, it’s important to note that fees are dependent on the chosen custodian and the size of the IRA account. Reputable precious metal IRA accounts can have fees as low as $75 per year, offering a cost-effective option for retirement savings. SilverTowne partners with preferred custodians like New Direction IRA, but customers have a choice and can select other custodians such as The Entrust Group, Millennium Trust Company, or Madison Trust Company, which may have different fee structures.
Customer-Centric Features and Services
SilverTowne focuses not only on precious metals but also on the individuals who invest in them. The company is known for its outstanding customer service and product quality, which often exceeds advertised expectations. This commitment to customer satisfaction extends to SilverTowne’s educational initiatives.
The company offers The SilverTowne Academy, a platform that provides free educational resources and customer support to educate their investors.
Hassle-Free Shipping and Returns
SilverTowne’s shipping policy is a key aspect of its customer-focused approach that sets it apart. The company provides complimentary shipping for orders over $99 to addresses within the continental United States. This offer is only valid for deliveries within the continental United States. While some customers have reported longer shipping times compared to other precious metals dealers, long-term customers have praised SilverTowne for the quick and accurate delivery of their orders.
For locations outside the continental U.S., such as Alaska, Hawaii, Puerto Rico, or Canada, SilverTowne charges shipping fees ranging from $9.95 to $60.00.
Empowering Investors Through Education
SilverTowne’s customer-focused approach places a strong emphasis on education. The company leverages its numismatic expertise to provide professional coin grading services, enhancing investor education on coin quality and investment value.
By providing real-time precious metal price tracking and market trends data for the past decade, SilverTowne empowers investors with the knowledge they need to make informed investment decisions.
Payment Methods and Security Measures
When it comes to payments, SilverTowne provides both flexibility and security. The company accepts various payment methods, including wire transfers, check payments, and money orders, catering to different customer preferences. To ensure transaction security, SilverTowne uses third-party services for payment processing and does not directly store or collect payment card details.
While SilverTowne prioritizes the security of personal data, they acknowledge that no method of electronic storage or Internet transmission is entirely impenetrable. However, the company maintains that personal data is secured in accordance with their privacy policy and complies with legal requirements, even when data crosses international borders and jurisdictions with varying laws.
Diverse Payment Options for Convenient Purchases
For customer convenience, SilverTowne provides a 3% discount on the retail/list price when payments are made via wire transfer, physical check, or money order. Customers must authorize a 10% credit card hold when paying by check or money order to secure the items in their order. Full payment via check or money order is required within 10 business days of order confirmation.
Ensuring Safekeeping of Your Investments
When it comes to investment security, SilverTowne partners with high-security depositories like CNT Depository, Inc., and International Depository Services of Delaware or Canada to protect physical bullion in precious metals IRAs. Due to IRS regulations, precious metals in IRAs cannot be held by investors directly and must be secured at a third-party depository. SilverTowne assists customers in establishing relationships with their recommended third-party storage providers for safekeeping investments.
Evaluating Customer Satisfaction: Ratings and Testimonials
Just like any other business, SilverTowne’s credibility can be assessed through customer feedback, which plays a critical role. The company has an A+ rating from the Better Business Bureau (BBB) and a ‘Great’ rating on Trustpilot with 4.1 / 5 stars. Positive customer testimonials often compliment the beauty and packaging of SilverTowne’s coins, along with their quick delivery service.
SilverTowne also enjoys positive feedback on Facebook, with a rating of 4.1 out of 5 stars from users.
Positive Feedback and Repeat Customer Experiences
Customers have praised SilverTowne for:
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the assortment and quality of their coins
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finding the premiums to be competitive in the market
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quick responses from customer service
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satisfaction with product delivery and quality
Repeat customers have provided positive testimonials, often highlighting good customer service.
SilverTowne, one of the respected precious metal companies, has a longstanding history of positive customer interactions, emphasizing their commitment to customer satisfaction and quality service in the precious metals market.
Addressing SilverTowne Complaints
While SilverTowne generally receives positive feedback, it’s important to note that some customers have reported issues. Complaints on Yelp, Trustpilot, and Facebook indicate a mixture of experiences among customers. Some customers have encountered long processing and shipping times, with reports of up to three weeks to receive orders after payment. There have also been reports of dissatisfaction with communication and refunds in the case of order cancellations due to stock issues.
A few customers have also reported issues with product and service quality, including receiving damaged or oxidized items and a price error on a New Year’s offer that was not rectified to the customer’s satisfaction.
Comparing SilverTowne to Other Precious Metals Dealers
How does SilverTowne fare in the realm of precious metals dealers? Customers often find SilverTowne’s prices to be more competitive than other dealers. This, coupled with positive customer service experiences, makes it an attractive option for investors.
Testimonials highlight that SilverTowne typically offers quicker shipping times compared to some other precious metals companies, enhancing customer satisfaction. SilverTowne maintains competitive shipping costs by offering free shipping on orders that exceed a certain value, aligning with the industry’s standard practices.
Market Position and Unique Selling Propositions
SilverTowne’s product offerings constitute one of its unique selling points. Apart from the typical bullion products, SilverTowne offers custom engraved silver rounds and silver bars, alongside distinctive items like silver bullet and Buffalo rounds replicas. These unique offerings cater to both collectors and those looking for special occasion gifting options.
SilverTowne also attracts customers with special offers through daily deals and ‘The Vault’, where they display unique products not commonly found among industry leaders. These unique features, combined with SilverTowne’s reputation as a humble, trustworthy, and reliable precious metals company, bolster its market position.
Direct Comparison with Industry Leaders
SilverTowne competes well when placed head-to-head with industry leaders. The company offers competitive buyback rates that are comparable with some industry leaders, attracting customers who are looking to sell their precious metals. The ease of initiating a buyback with SilverTowne is noted to be straightforward and customer-friendly, similar to the streamlined processes provided by leading dealers in the market.
SilverTowne provides:
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A selection of IRA-approved precious metals
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Partnerships with a variety of custodians, offering flexibility similar to major industry players
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Information and guidance to help customers set up their precious metals IRA, paralleling the level of service offered by top dealers
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Advice on choosing secure and reliable storage options, positioning them alongside prominent dealers that emphasize investment security.
SilverTowne in Action: Real-World Transaction Scenarios
We can gain insights into SilverTowne’s operations by examining some real-world transaction scenarios. Whether you’re a first-time buyer or looking to sell back your precious metals, SilverTowne has a process in place that’s easy to follow. Understanding these processes can help ensure a smooth transaction and give you a better idea of what to expect when dealing with SilverTowne.
Making Your First Purchase
The process of making your first purchase with SilverTowne is straightforward. Here are the steps to follow:
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Create an account on their e-commerce website and specify whether you’re a buyer or seller.
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Once you’re logged in, browse through the range of precious metal products offered and add your selections to the shopping cart.
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After adding items to your cart, proceed to checkout.
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Choose a payment method to complete the purchase.
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For any products that require further inquiry on price, contact SilverTowne directly for information.
From Buying to Selling: The Buyback Process
There’s also a process in place if you wish to sell your precious metals back to SilverTowne. To initiate a buyback, you’ll need to:
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Contact SilverTowne’s customer service to receive a quote.
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Any incurred shipping fees will be at your expense.
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The buyback price quoted by SilverTowne is contingent on the open market’s current spot price of the precious metal, and includes a small fee deducted for associated costs.
It’s important to note that SilverTowne requires customers to present a valid receipt, ensure the product is undamaged and in its original packaging, and meet a minimum quantity of 1oz for buyback eligibility. To initiate a sale back to SilverTowne, a customer must reach out through customer service to begin the buyback process.
Summary
In the realm of precious metals dealers, SilverTowne has established a reputation as a trusted source that offers competitive pricing, a diverse product range, excellent customer service, and comprehensive educational resources. While there are some areas for improvement, such as the long shipping times noted by some customers, the overall feedback is overwhelmingly positive. Whether you’re an investor looking to diversify your portfolio with precious metals or a collector seeking unique items, SilverTowne presents an attractive option. Remember, investing in precious metals is not just about buying silver bars; it’s about understanding the market, making informed decisions, and ensuring the safekeeping of your hard-earned wealth.
Frequently Asked Questions
Is SilverTowne reputable?
Yes, SilverTowne is reputable and widely trusted for their high quality silver bullion products, with a long-standing history dating back to 1973.
Is SilverTowne Mint still in business?
Yes, SilverTowne Mint is still in business and is one of the largest private mints in North America. It has been servicing both wholesale and retail markets for over 40 years.
What is the best website to buy silver?
Money Metals Exchange is considered the best website to buy silver, offering a unique package called the “bargain bin” that provides a mix of pure silver coins, silver rounds, and different silver bar sizes at a great deal. Check it out for a variety of silver purchasing options.
Who owns SilverTowne Mint?
A-Mark Precious Metals owns a majority stake in SilverTowne Mint, which is based in Winchester.
What type of products does SilverTowne offer?
SilverTowne offers a wide range of precious metal products, including bullion bars, rounds, coins, IRA-approved collectibles, and unique gifts and jewelry. These products cater to various investment and personal preferences.
