Lexi Capital is a precious bullion dealer based in North Carolina. Their main specialty is in precious metals IRAs. But they're far from the only company to offer these services. How do they compare to the competition? Are their practices actually legitimate?
We've put together a list of everything you should know before you get invested in Lexi Capital.
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About Lexi Capital
Lexi Capital focuses mainly on providing gold and silver IRAs to customers located throughout the United States. Their headquarters is based in Raleigh, North Carolina. They have partnered with a depository and a trusted custodian to help streamline the IRA setup process.
Lexi Capital aims to set itself apart from the competition with unique programs like the Gold Assurance Plan. Clients who are part of this plan have protection against market losses with gold for six months following their purchase. That's an unprecedented policy in today's market, and it has attracted many investors to them.
Lexi Capital came into being just two years after the 2008 financial crisis. The founders had lost their faith in the idea that retirement could be achieved through traditional means. They encouraged people to invest in precious metals to have protection against future stock market crashes.
Lexi Capital had another office located in Westlake, California for a time. This is the address on their Better Business Bureau file. But they do not appear to operate this location anymore.
The company was actually conceptualized by two graduating seniors at UCLA. They wanted to create a business plan for a company that sold gold and silver, while giving investors the same protections that Wall Street moguls get. They were able to crowdfund and launch the company with the Gold Assurance Plan as their flagship product.
The CEO of Lexi Capital is Chris Mitchell, who has been in the role for several years. He has stated that his main priority is to help clients feel supported and satisfied with the services they receive. He is also active on social media, promoting various alternative assets as ways for Americans to diversify their retirement in a changing economy.
At the start of his career, Chris worked in real estate. Then he became a senior portfolio manager at a major firm, allowing him to garner more than a decade of precious metals experience. He then became the CEO of Lexi Capital. He is also the founder of the Bitcoin Advizers corporation, which creates cryptocurrency IRAs and operates alongside Lexi Capital.
IRA Signup Steps
The steps to sign up for an IRA are relatively simple. There is an IRA form provided on the website. You can download and fill it out with information about your current retirement accounts, contact info, and Social Security info. Then you can call the company to talk about your investment options.
Once you've decided on the investments over the phone, Lexi Capital will send the funds to your custodian. They will be securely stored in the Delaware Depository, which is IRS-approved and compliant with all modern security measures.
One major drawback, though, is that Lexi Capital hasn't published information about its inventory. Most online precious metals dealers will let you see what they have in stock, even if they don't list the prices. But with Lexi Capital, you're expected to call and accept the salesperson's suggestions.
This might be a hostile setup to people who want to choose their own investments. It's also not the most convenient. There are plenty of other gold dealerships that not only publish their inventory, but also post their prices. You can create algorithms to adjust pricing in real time based on the shifting market prices.
If there were more customer reviews, it wouldn't be a big deal. But it's been difficult to find third party ratings online. Those we have found are positive, but there isn't a big sample size. That makes it even more difficult to determine whether their pricing is fair.
But they do have the Gold Assurance Plan. Thanks to that, you are protected against market losses for six months. Whether that includes losses based on potential price markups is difficult to say.
It's important to note that there are strict IRS regulations regarding which precious metals you can place in an IRA. They have to meet certain purity standards. In the case of precious metals coins, they must be specific models from specific mints.
So if you're not sure where to start, you might appreciate the advice of a Lexi Capital employee. But there are other companies that will let you browse IRA-eligible products all in the same section, so you don't have to worry about making a mistake.
The Gold Assurance Plan
The Gold Assurance Plan was the key component that Lexi Capital was built on, and the company stands by it. This is one of the most unique setups in the entire industry. There are Wall Street brokers that are protected against sudden market crashes -- so why shouldn't individual investors be protected, too?
That's the philosophy behind the plan. And the little customer feedback that exists does praise the setup extensively.
Imagine that you buy $5,000 worth of gold. But then after a month, that price has dropped to $4,500. That's a tenth of your entire investment wiped clean off the map. If you wanted to liquidate, you'd be selling at a loss. In order to make any gains, you'd have to wait for ages for the price to go back up.
Lexi Gold's goal is to support their buyers so that they have some protection in their investments. Every ounce of gold is protected at up to $500 for a full six months. They do note that not every gold coin is eligible for the plan. If you want to know more, a company representative will explain which coins are eligible when you make a purchase.
Whether you purchase a precious metals IRA or not, there are storage options available through the Delaware Depository. The Delaware Depository is one of the largest depositories in the entire United States. It is well known for having excellent storage rates, account options, and a high level of transparency.
You can choose from two vaults. One is located in Delaware, while the other is located in Nevada. Both of these vaults have full IRS approval to store your IRA. Every account with these depositories is also completely insured through Lloyds of London up to a total of $1 billion.
Lexi Capital has partnered with Strata Trust Company as their main IRA custodian. When you open a self-directed IRA, you need a custodian to take care of it. Not every investment manager is licensed to manage a self-directed IRA. So you have to pick a custodian that specializes in these alternative assets.
Strata Trust Company does have an excellent reputation in the precious metals industry. The only potential drawback is that Lexi Capital hasn't partnered with multiple custodians. When companies work with multiple custodians, you can compare and contrast their fee schedules to decide which one really is best for you.
If you have a different custodian in mind, Lexi Capital will likely be able to work with them. But it's nice to have some variety when you're just starting to look for the first time.
At the Delaware Depository, you can choose between segregated and commingled storage. Commingled storage works great for those who want to keep their storage fees low, while segregated storage is ideal for people who want a higher level of privacy and security.
With commingled storage, your bullion is stored alongside everyone else's. The same gold coin you put in might not be the same gold coin you take out. However, it will be equal in value. Delaware Depository has such strong security measures and auditing that it would be extremely difficult to deceive them.
Segregated storage is pricier. With this type of storage, your holdings are kept separate from everyone else's. The exact contents that you put in are the ones that you take out. In addition, nobody except you and your custodian has access to the vault. This appeals to people who want their holdings to be more private.
Lexi Capital Fees
Lexi Capital charges a variety of different fees, some of which are charged through their partner companies.
For example, if you store your items in the Delaware Depository, you'll pay $100 annually for commingled storage. If you want a segregated vault, that number increases up to $150.
People who invest more than $50,000 in a precious metals IRA don't have to pay any fees for IRA management through Lexi Capital. But for investments lower than that, you'll pay a flat management fee of $285 during the first year, followed by $180 for every year after that.
If you choose to have non-IRA precious metals shipped to you, there is a flat fee of $14.95, no matter how big the order. However, the shipping fee is discounted 3% if you pay for your orders using cash, wire payments, or a check.
When it comes to returns and exchanges, they are possible... as long as you contact Lexi Capital within three days of receiving the package. There are also cancellation fees of $45 plus any potential market losses.
If you want to invest with Lexi Capital, you need to have a minimum of $1,500. This can be slightly frustrating to people who don't want to meet an investment minimum. However, it is significantly less than the suggested minimum at a lot of the top competitors. That means that Lexi Capital might appeal to younger investors who want to buy precious metals but don't have a lot of money to spend.
According to the rules and regulations put out by the IRS, you can put $6,000 into an IRA every year until you reach the age of 50. Once you're past the age of 50, that number increases to $7,000 per year.
Is Lexi Capital a Scam?
Lexi Capital is not a scam. The company has been in business for over a decade, though they only received their BBB accreditation in 2021. The BBB does give them an A+, indicating that they perform with the highest rate of customer trust. The Business Consumer Alliance gives similarly high marks.
It is oddly difficult to find customer reviews online, however. There haven't been any ratings or complaints filed with the BBB website. On Trustlink, there have been just three reviews filed, though all of them give the company 5 stars.
All in all, Lexi Capital seems like a company with a good business plan. And their $1,500 investment minimum makes it much easier for the average person to get into gold IRAs. But it's hard to judge the company's pricing or products without being able to see them on the website.
Pros & Cons of Lexi Capital
Lexi Capital is a legitimate business that has been operating out of North Carolina for more than a decade. They have partnered with two of the most trusted companies in the industry, Strata Trust and Delaware Depository, to provide precious metals IRAs.
The company's low minimum investment threshold makes them an attractive option for people creating IRAs. And there are also non-IRA products available for purchase in a regular portfolio.
But it's difficult to find customer feedback online. Though what we've found has been positive, there isn't a lot of detail. On top of that, Lexi Capital doesn't publish its inventory or pricing on the website. That's a pretty big inconvenience, especially considering how many other competitors have pricing updated in real time.
Ultimately, if you can afford the minimum investment threshold of one of the competitors, we recommend doing that instead. There are companies that have a stronger overall establishment with more robust consumer feedback. When you're not sure what the price will be, customer reviews are a must.
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