Lear Capital is a company that helps people buy precious metals such as gold, silver, and platinum, and can assist in investing retirement funds in a precious metals IRA. In this review for 2023, we will examine Lear Capital’s services and whether it’s a suitable choice for your investment needs.
Lear Capital provides a variety of precious metal products, including coins and bullion, and offers the option to invest in a self-directed individual retirement account (SDIRA). While Lear Capital is a legitimate company, it has faced legal scrutiny in recent years, which may raise concerns for some investors. However, the company generally receives positive reviews from its customers.
In this Lear Capital review, we will assess the company’s offerings, fees, and explore alternative investment options that may be beneficial for you.
Quick Summary
Invest in a precious metals IRA to diversify your portfolio
- Begin with a minimum investment of $7,500
- Store your gold, silver, or platinum at an IRS-approved facility
- Get online access to your account
Key takeaways
- Lear Capital offers SDIRA for precious metals investment, but fees may be higher than other options.
- Lear Capital sells gold, silver, and platinum coins at market pricing.
- Flat fee structure and secure holding facility available for purchased precious metals.
- Lear Capital has a 4.9-star rating from Trustpilot reviews.
Lear Capital: Is it worth it?
 | |
| Pros | Cons |
| 1.Allows online order placement 2.May waive its flat fee for up to the first three years, depending on the investment size 30Securely stores your precious metals in an IRS-approved storage facility | 1.Previously sued by the city of Los Angeles and the state of New York 2.Declared Chapter 11 bankruptcy in 2022 to protect against future lawsuits 3.Charges fees on SDIRAs that are typically higher than traditional retirement options |
Precious metals can diversify your portfolio, but SDIRAs have complex tax and legal requirements.
Overall, be aware of the potential challenges before investing in SDIRAs with Lear Capital.
What is Lear Capital?
Precious Metals Buying and Selling
Lear Capital, founded in 1997 by Kevin Demeritt, is a company based in Los Angeles that specializes in buying and selling precious metals such as gold, silver, and platinum.
Customers can choose between two options: purchasing gold, silver, and platinum coins or bars online or over the phone, or investing in precious metals through self-directed individual retirement accounts (SDIRAs).
Since its founding, Lear Capital has completed $3 billion in trusted transactions and has a 4.9 out of 5-star rating on Trustpilot. However, the company has a 3.16 out of 5-star rating from customer reviews with the Better Business Bureau (BBB).
Lawsuits and bankruptcy
In 2019 and 2021, Lear Capital was sued by the City of Los Angeles and the State of New York respectively for allegedly pressuring elderly customers and providing them with deceptive information.
As a result, the company declared Chapter 11 bankruptcy in March 2022 after being ordered to pay settlements in both lawsuits. However, the terms of their bankruptcy filing allow the business to continue operating under court supervision.
How does Lear Capital work?
While Lear Capital is primarily a seller and purchaser of precious metals, such as gold, silver, and platinum, it also offers assistance in setting up a self-directed individual retirement account (SDIRA) for investing in these assets.
Moreover, the company’s website provides various educational resources to help customers learn more about buying and investing in precious metals. These resources include market charts, pricing notifications, and a coin encyclopedia to research rare coins.
Diversifying your investment portfolio with alternative assets such as precious metals can potentially help mitigate stock market volatility and inflation.
Lear Capital provides two options to diversify your investments with precious metals:
- Buying precious metal coins and bars
- Investing in precious metals via an SDIRA
Buying gold, silver, or platinum coins and bars
If you are interested in investing in precious metals or rare coins, Lear Capital can provide you with options to purchase gold, silver, and platinum coins or bars.
The Lear Capital website has a primary focus on gold and silver coins, though a limited selection of platinum options are also available. Some coins can be purchased directly online, while others require a phone call to Lear Capital to inquire about pricing and availability.
As with any investment, pricing for precious metals will fluctuate based on real-time market prices. Once an order is confirmed, the final amount is set, and you will need to complete your checkout within 10 minutes to secure the exact price you were quoted.
Investing in a Lear Capital precious metals IRA
Traditional brokerage firms enable investing in standard options such as stocks and index funds. Additionally, you can invest in a retirement fund such as a Roth or traditional IRA.
Lear Capital offers a somewhat-similar retirement account known as a self-directed IRA (SDIRA). These accounts allow you to invest in precious metals, real estate, commodities, or other items if it’s within the IRS guidelines.
If you decide to invest in precious metals through Lear Capital, the company will assist you with setting up a new SDIRA and rolling over funds from a traditional retirement account. However, your SDIRA legally requires a custodian, which is a person or an organization that manages the account on your behalf.
Lear Capital uses Self Directed IRA Services, Inc. as the custodian for their SDIRAs, which will provide quarterly statements and online account access so you can track your investment.
Precious metals IRA rules and limitations
Investing in precious metals can be done through self-directed IRAs (SDIRAs) offered by Lear Capital. Similar to traditional brokerage firms, SDIRAs allow you to invest in a range of assets, including precious metals, real estate, and commodities, as long as they comply with IRS guidelines.
To get started with Lear Capital’s SDIRAs, you can set up a new account and roll over funds from a traditional retirement account. The company uses Self Directed IRA Services, Inc. as a custodian, which manages the account on your behalf and provides quarterly statements and online access for tracking your investment.
The contribution limits and withdrawal penalties for SDIRAs are similar to those for traditional and Roth IRAs. Taxes are also due upon selling your holdings, and minimum distributions are required when you reach age 72.
When you’re ready to sell your precious metals, you must contact Lear Capital, which can either send you the physical metals or liquidate them into dollars and issue a check or wire transfer. Given the intricacies of precious metal IRAs, consulting a financial advisor can help you understand how they fit into your retirement plans.
Precious metals IRA fees
If you choose to establish an SDIRA account with Lear Capital, you will be charged an annual flat fee. The first year’s fee is $280 and covers storage fees, insurance policies to safeguard your precious metals, online account access, and quarterly financial statements. After the first year, the fee is $200 annually, and it may be tax-deductible, reducing the overall cost.
If you invest a significant amount of money with Lear Capital, they may cover a portion of your annual fees.
If you invest:
- More than $10,000: a $50 setup fee is covered.
- From $25,000 to $50,000: Your first-year fee is free, but you need to pay it upfront and then receive a reimbursement check.
- From $50,000 to $75,000: Your first- and second-year fees are covered by Lear Capital.
- More than $75,000: Your fees for the first three years are covered.
Precious metals IRA’s storage and Security
When you purchase precious metals for your SDIRA through Lear Capital, they are securely held in an IRS-approved private storage facility in the Delaware Depository vault. This storage facility is insured and underwritten by Lloyd’s of London, one of the oldest insurance providers in the world. This provides an additional layer of protection for your assets.
Lear Capital’s website uses a secure socket layer (SSL) encryption to protect your data when you use an SSL-compliant browser. This helps to ensure that your personal and financial information remains confidential and secure.
While these security measures can offer a good level of protection for your assets, it’s important to note that they do not fully eliminate the risk of password theft or hacks. It’s important to take additional steps, such as regularly updating your passwords and keeping your computer’s security software up to date, to further reduce these risks.
How much can you earn with Lear Capital?
Investing in precious metals through Lear Capital comes with the risk of tying your account balance to the fluctuating price of gold, silver, or platinum. While investing in precious metals may act as a hedge against inflation, as they are limited in supply and are not tied to the U.S. Dollar, it’s important to note that there is no guarantee that precious metals will increase in price. Just like the stock market, their value can fluctuate dramatically.
It’s also worth noting that buying physical metals like gold involves markups due to manufacturing, distribution, shipping, and storage costs. This is unlike investing in gold stocks, which typically include shares of publicly traded royalty and mining companies and may be compiled into gold exchange-traded funds (ETFs) that don’t carry these markups.
Lear Capital’s purchasing agreement recommends considering precious metals as a long-term investment and holding them for at least five to 10 years. The company also emphasizes that there is no guarantee that you will be able to sell your investment for more than you paid for it. While Lear Capital provides secure storage options through an IRS-approved private storage facility in the Delaware Depository vault, it’s important to remember that no security measure can fully eliminate the risk of password theft or hacks.
Prepare for Market Volatility by Diversifying with Gold
How to get started with Lear Capital
To open an account with Lear Capital, you must meet two requirements. First, you must be at least 18 years old. Second, if you want to open a precious metals IRA, you need to have at least $7,500 to invest.
If you want to purchase silver, platinum, or gold coins:
1. Visit the Lear Capital website and browse its available options.
2. Add your selected coins or bars to your cart and complete the checkout process within 10 minutes.
To set up a Lear Capital self-directed IRA:
1.Visit the Lear Capital website and select Open or Rollover an IRA Account.
*Fill out the form with your name, email address, phone number, and mailing address. An account representative will contact you and assist you with filling out an application.
*To set up an account with Lear Capital, you can submit your application through fax, email, or U.S. postal service. According to Lear Capital, most accounts are typically set up within 24 hours after they receive the application.
*When rolling over funds from a traditional retirement account, Lear Capital will initiate the transfer by reaching out to your current account custodian. The transfer process may take up to five business days.
*After the funds are deposited into your account, you’ll have the opportunity to select your investment options.
Alternatives to Lear Capital
If you’re not interested in numismatic coins or don’t feel comfortable with precious metals investments, then Lear Capital may not be the best fit for you.
However, if you’re interested in diversifying your portfolio with precious metals, there are other companies that can help you open an SDIRA. Additionally, you can consider investing in gold stocks and ETFs as an alternative.
| Lear Capital | Gold Alliance | Stash | |
| Assets | .Gold .Silver .Platinum | .Gold .Silver .Platinum .Palladium | .Stocks .ETFs (including gold ETFs) .Bonds .Cryptocurrencies |
| Account fees | .$280 for the first year .$200 for every year after .Fees may be waived based on the amount you invest | Varies based on the IRA custodian | $3 or $9 per month, depending on the plan you choose |
| Minimum investment | $7,500 | Varies based on the IRA custodian | $0 to $1 |
Gold Alliance
Gold Alliance is a precious metals company that provides services similar to Lear Capital, such as buying and selling gold, silver, and platinum, as well as helping you open an SDIRA. With Gold Alliance, you have the option of selecting from three custodians to manage your SDIRA, but you must contact Gold Alliance directly to inquire about their fees and pricing.
Stash
Stash is a popular investment app that provides access to various types of investments, including stocks, ETFs, and cryptocurrency. While it doesn’t offer SDIRAs like Lear Capital, it can help you invest in commodity ETFs, such as gold ETFs. Additionally, Stash charges a lower monthly fee than Lear Capital, and there is no minimum deposit required to open an account, making it a more accessible option for those who are just starting out with investing.
FAQs about Lear Capital
Is Lear Capital a reputable company?
Lear Capital is a legitimate company with a long-standing presence in the precious metals market. While the company has a high rating on Trustpilot, it also faced legal issues between 2019 and 2022. When choosing a precious metals company, it’s important to do your own research, compare prices and fees, and read reviews from multiple sources. Regardless of the company you choose, it’s important to understand the implications of buying gold or investing in precious metals through a self-directed IRA (SDIRA), and to work with a financial advisor to ensure you understand any tax or legal implications.
How does Lear Capital make money?
Here’s a revised version: “Lear Capital generates revenue by selling precious metals to customers. Additionally, they may earn profits from helping customers open SDIRAs and serving as intermediaries for individuals purchasing and storing gold, silver, or platinum bullion and coins.”
Is Lear Capital going out of business?
No, Lear Capital is not going out of business. Lear Capital is allowed to continue operating while restructuring its debt.
Lear Capital review: Bottom line
Lear Capital offers services such as buying and selling precious metals, as well as facilitating SDIRAs for investing in gold, silver, and platinum. While the company is legitimate, it has faced legal issues in recent years which some may find concerning. If you’re interested in investing in alternative assets, it’s recommended to work with a financial advisor to develop a strategy that suits your needs. You may also want to consider asking essential questions before hiring a financial advisor.