Dillon Gage launches Closed Loop IRA for dealers and clients
- Published: Mar 17, 2014, 8 PM
Coin dealers can now easily establish self-directed individual retirement accounts (IRAs) for clients with the advent of a new platform by Dillon Gage termed Closed Loop IRA, says Terry Hanlon, president of the Dallas-based Dillon Gage Metals.
With so many participants in the process, including the retail investor, the coin dealer, the account administrator, the wholesaler and the storage facility, Dillon Gage decided to simplify things by launching the Closed Loop IRA on its Digital Metals Platform. Through the system's "visual dashboard," a coin dealer can initiate and track the entire process with his client.
The company has initially partnered with Denver-based New Direction IRA, and GoldStar Trust in Canyon, Texas, both of whom connect with the Digital Metals Platform electronically. Through this system, coin dealers can provide retirement account solutions to their customers who desire to leverage their IRAs to buy coins and store them in secure Dillon Gage storage facilities.
Under Internal Revenue Service rules, coins that can be held in IRAs include American Eagles, Canadian Maple Leafs, Austrian Philharmonics and Australian Kangaroos, along with many other gold, silver, platinum, and palladium coins and bars.
As a coin wholesaler with the electronic capabilities that Digital Metals provides and the owner of two metals depositories, Dillon Gage has the capacity and technology needed to create the Closed Loop IRA, Hanlon explains. "Many investors direct a portion of their net worth to precious metals — including coins — for a balanced portfolio," he says. "But coin dealers tell us that setting up an IRA for a retail investor, knowing when funds are available, and purchasing and storing the coins can be time consuming and confusing."
From the dashboard, a coin dealer starts the procedure for his customer. The retail investor receives an email from his coin dealer with a link to the IRA administrator, New Direction or GoldStar in this case. The other approach will be for the retail customer to initiate the process from a Closed Loop IRA widget embedded in the coin dealer's website. This sets the stage for the self-directed IRA. Funds are sent to the IRA administrator, and the dealer is approved to purchase coins on the Digital Metals Platform for his client. The coins are bought and can be stored at Diamond State Depository in Delaware, or International Depository Services, outside Toronto.
For more information on Dillon Gage Metals, visit www.dillongage.com/metals or telephone 800-375-4653.