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Old 11-18-2009, 10:56 AM
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Default Question about converting IRA/Mutual funds over to gold and silver certificates



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I should preface this post with the disclaimer that I am an ignorant moron when it comes to money management and my wife typically handles this stuff.

That being said:

I read somewhere in a random comments post on WSJ.com a while back that you can convert funds that you have in your IRA's or MuFunds into gold or silver certificates without any penalty. I cannot seem to find any info on this, and I'd like to educate myself on it before I call my broker and he tries to upsell me on something due to my ignorance.

Anyone have any info on this, or where I can go to read up? Please keep it in laymans terms if possible, remember I'm slow.
Old 11-18-2009, 10:59 AM
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http://www.cmi-gold-silver.com/gold-silver-ira.html

..I dont know if I would hold 'certificates' if you expect a SHTF scenario....may be hard to get your real silver or gold and you may end up with just a bunch of paper...my two/cents
Old 11-22-2009, 02:33 PM
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I would want my safe filled with silver not silver certificates
Old 11-22-2009, 02:48 PM
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Wasn't there just something recently about a company that sold more certificates than they had gold to cover?
Found it: http://silverstockreport.com/2008/perth7.html

Some say the reports are unfounded. But hey research it and make your own decision. It's your money.

Last edited by vicdotcom; 11-22-2009 at 02:57 PM..
Old 11-22-2009, 02:50 PM
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Never heard of this. If you are converting to physical gold, if you have the gold or silver delivered to your house you have "cashed in" your IRA and are subject to big penalties by the IRS, starting with 40% early withdrawal penalty. If you are converting to "gold or silver mining stocks" that's different, you can still keep the stocks as part of your IRA. Possibly same thing with "gold or silver certificates" except you get paper, instead of gold.
Old 11-22-2009, 03:58 PM
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From the book by Mr Hyatt.

http://pdhomes.net/books/agnes/tencommandments.pdf

Hey moderators... This links not copy infringment, Right?

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Old 11-22-2009, 05:34 PM
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I wouldn't want certificates either. I am past the point of buying into IRA's or stocks. Invest your money yourself. Buy property. Buy guns, invest in a business. But for God's sake don't let the vultures on wall street have your money. They'll just waste it for you.
In fact if you want an investment. I'll pay you 6% interest on your money. I need @$80,000 to buy cattle for my ranch. That's a safer investment than wa;; street. Or if you have a larger amount to invest. There is some farm land for sale for $500 an acre. There is a cash payment @$36 an acre per year on the land. That's a 7 % return on your money. Less real estate taxes.
Old 11-22-2009, 06:23 PM
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Repeat after me: If you don't hold it you don't own it.
Old 11-22-2009, 06:31 PM
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Don't know about the conversion over to certificates for IRAs & Mutual Funds, but do know that I'd want the physical asset if I thought the bottom might fall out and the sides fall down. You may want to weigh how the penalties and IRS cut would be vs. how much you feel you might lose worst case. If they're just mutual funds, there should be any penalties, only cap gain taxes, unless it's tied to your IRA or 401K and depending on your age.
I watched fellow employees who do not watch, monitor or actively manage their 401Ks, take a beating, a serious beating by allowing their accounts to ride that roller coaster down, sustaining 50-60% losses, some twice in the last 20years. I caught mine and held it at around 25-30% loss and managed to build it back within the year. Point being, IMO, brokers make money when you contribute, when you win, when you lose and when you do nothing, so you may want to consider if a withdrawal loss might be less than what you think you could lose in the coming months or years.

Don't know how much you're considering to deal with, but in the early 80s I had some experiences w/ folks that dealt in gold & silver bullion & coins. I'm a big fan of silver and have been since then. I personally feel that silver is either too low or gold is too high. For hundreds of years (if not longer) the spread between the two was around 20:1. In the last half century, it has moved to around 50:1 spread on average. I translate that as silver being under priced or gold overpriced. (I'm no broker or commodities agent, I just play one on TV).

That said, something I always recommend to preppers or anyone that wants the physical item, is to consider what's called 'junk' 90% silver U.S. coins. A 'bag' is $1,000. face value, breaking down to approx. 715 troy oz. That's roughly $13,241.80 cost at Friday's close of $18.52/oz plus whatever the dealer markup/commission is. Buying any precious metals, coins, ingots, etc. carry a surcharge/commission that is the dealers cut, based upon the denominational or weight size of the product you buy. In other words, a 100oz bar costs less per oz commission than ten 10oz bars of the same metal. Same rule for the demonimational items. Commision for a 1oz coin is less per oz than a number of 1/2 or 1/10 oz coins.
I like the circulated 'junk' U.S. because it is recognized through the U.S. and doesn't require the scrutiny that 10,000 difference bar producers might generate, plus a mixed bad is multi-denominational with dimes, quarters and halves, which makes for easier use if needed.

Of note, but I don't know how it will factor in, China just granted approval for their citizens/subjects to own silver and silver is more widely used today in industry than ever before.

I'll send you a bill once you make your exchange or you can just send me a few coins.

Just for reference, have had no dealings w/ these people -
http://www.apmex.com/Category/17/90_...lls__Bags.aspx
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