What you should know
before you buy.
Who we are, and are not
Winfield Scott Metals is a precious metals dealer based in Atlanta, Georgia. We are not a bank, a custodian, a trustee, a broker-dealer, or a registered investment adviser. Nothing on this website, and nothing said to you by anyone at this firm, is investment, tax or legal advice. We do not manage accounts and we do not exercise discretion over anyone's holdings.
Price risk
The price of gold, silver, platinum and palladium fluctuates, sometimes sharply and sometimes for extended periods. You can lose money, including a substantial portion of the amount invested. Metals have historically gone through multi-year stretches of flat or falling prices. Past performance does not indicate future results, and no one at this firm can tell you where prices are going.
No income
Physical metals produce no dividend, interest or other yield. The entire return, positive or negative, comes from the change in price, less the costs of acquiring and holding the metal.
Costs and the spread
Metals are bought at a premium above the quoted spot price and sold at or near a bid price that is typically below spot. That difference — the spread — is a real cost, and it means the metal price must move in your favour before a position is at break-even. In addition there is an annual custodian fee and an annual storage and insurance fee. All applicable costs are disclosed in writing before any purchase.
Liquidity
Physical metal is liquid and we can lock in a price to sell at a moment’s notice.
IRA rules
Metals held inside an IRA must be held by an approved trustee or depository. Taking personal possession of IRA metal may be treated as a distribution, with tax and possible penalties. Required minimum distributions, contribution limits, and early withdrawal rules apply to a metals IRA as they do to any other IRA. Confirm the position for your own account with your tax professional.
Not FDIC insured
Precious metals are not deposits, are not insured by the FDIC or any other federal agency, and are not guaranteed by any bank or government. Depository insurance covers loss of the physical metal in storage; it does not protect against a fall in value.
Suitability
A precious metals allocation is not appropriate for everyone. It should generally be considered only as part of a diversified position, with money you can leave invested for a period of years. If, having spoken with you, we do not believe it is right for your circumstances, we will tell you so.
