Daily Precious Metal Update

October 30, 2009 – American investors have lost an average of 35% in their retirement accounts in the last three years, and their losses currently total more than $2 trillion. This number was significantly higher before the third quarter, because our “benevolent” government decided to issue handouts to seemingly any and all troubled institutions. While their “philanthropy” was appreciated by the millions of investors with retirement accounts, our government’s unprecedented measures may be too little, too late.

Many investors have converted their IRA, 401K, and 403B plans to a precious metal IRA. Unlike traditional retirement accounts that allow silver stocks or gold exchange traded funds (ETFs), a precious metal IRA permits physical gold, silver, and platinum to be stored through Sterling Trust and GoldStar Trust. These are the two government-approved precious metal depositories, but these entities do not provide financial advice for IRA investors. Two types of metal are permitted for IRAs: bullion products and certified coins.

Bullion should be utilized for a precious metal IRA if the owner plans on liquidating the metals within 14 months. Bullion fluctuates very rapidly, and it can be confiscated from the depositories at any time by our government. Investors who plan on a long-term play are wise to consider the American Eagle Proof, which is produced in limited quantities by the US Mint. Gold and silver Proof Eagles have been deemed non-confiscatable by IRS regulations; this is why the coins are so much more expensive than their bullion counterparts. These cons have almost doubled in value in the last year, but the inherent privacy of these investments is what many investors appreciate. If government officials were to walk into the IRA depository, with their sticky hands and money bags at the ready, the Proof eagles could be exempt from their bullion-confiscating good time. Investors who have retirement accounts that have underperformed may require the diversification that a precious metal IRA provides; contact the Certified Gold Exchange for more information

Daily Updates Archive

Danny Burns

Senior Staff Writer - Precious-Metal.org