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Gold continues to climb, great asset

Spot gold prices surged as high as $3,500.05 per ounce on Tuesday, surpassing the $3,500/oz milestone for the first time.

“With all the geopolitical tensions, central banks do want to diversify away from the dollar and have something that won’t be sanctioned … gold is one of those asset classes that could fit the bill,” Marex analyst Edward Meir said.

Source – Reuters

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    Tariff threat opens up transatlantic rift in copper pricing

    U.S. President Donald Trump hasn’t yet imposed import tariffs on copper but the market is already pricing in the likelihood that the red metal will be next on the list after aluminium and steel.

    The arbitrage between the CME and the London Metal Exchange (LME) contracts has blown wider in recent days, with the CME premium exceeding $1,000 per metric ton earlier this week.

    Source – Reuters / Written by Andy Home / Opinion

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    Gold EFTs rise

    The inflow into physically backed gold exchange-traded funds in April was the largest since March, 2022, with China-listed funds leading the move due to the country’s trade war with the U.S., data from the World Gold Council showed on Thursday.

    Gold ETFs saw an inflow of 115.3 metric tons worth $11.2 billion last month, the largest amount since March 2022, when global markets were grappling with the immediate consequences of Russia’s invasion of Ukraine.

    This move raised Gold ETFs’ total holdings by 3.3% to 3,560.8 tons by the end of April

    Source – Reuters

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    Silver Continues to Pressure Upside

    During the trading on Friday, we saw the silver market initially dip, only to turn around and show signs of strength yet again. Because of this, I think the market is likely to continue to be bullish.

    In general, this is a market that’s been in an uptrend for quite some time and if we are in fact going to continue to see inflationary issues, things like silver, commodities and stuff could get a little bit of a bid. We’ll just have to wait and see.

    Source – FXEMPIRE / Written by Christopher Lewis

  • Securing Your Retirement NOW with a Precious Metals IRA

    Did you know that during the 2008 financial crisis, while the S&P 500 dropped by 38.5%, gold prices increased by 5.5%? This stark contrast highlights why more people are turning to precious metals IRAs to diversify their retirement portfolios. There’s never been a more critical time to consider this powerful retirement strategy.

    Let me share something that might surprise you: many people don’t realize that they can hold physical gold, silver, platinum, and palladium in their retirement accounts! Whether you’re worried about inflation, market volatility, or simply want to diversify your retirement savings, a precious metals IRA could be your answer.

    Holding precious metals is what I’m doing to put into an IRA for my future. There are more and more people, of all ages, that are thinking or doing this or are already doing this. It’s never to late and again in these uncertain times so it’s wise to start thinking ahead.

    Let’s dive into everything you need to know about securing your retirement with this unique investment vehicle.

    What Is a Precious Metals IRA?

    A precious metals IRA, also known as a gold IRA, is a specialized individual retirement account that allows you to hold physical precious metals as part of your retirement portfolio. I remember when I first learned about these accounts – I was honestly skeptical! But after seeing how they’ve helped protect peoples wealth during market downturns, I became a true believer.

    • Operates similarly to traditional IRAs but holds physical precious metals
    • Offers the same tax advantages as conventional IRAs
    • Requires a specialized custodian who handles storage and compliance
    • Follows specific IRS regulations regarding metal purity and storage
    • Can be established as traditional or Roth IRA

    Eligible Precious Metals for Your IRA

    Let me tell you about a mistake I realized when I started doing research about gold IRAs. I was looking to purchase some beautiful collectible gold coins for a future IRA, not realizing till later, that it wouldn’t qualify! The IRS has strict requirements about which metals can be included in your precious metals IRA.

    • Gold must be 99.5% pure (except American Gold Eagles)
    • Silver must be 99.9% pure
    • Platinum must be 99.95% pure
    • Palladium must be 99.95% pure

    Approved coins and bullion include:

    • American Eagle coins (gold, silver, platinum)
    • Canadian Maple Leaf coins
    • Austrian Philharmonic coins
    • Australian Kangaroo/Nugget coins
    • Several types of bars and rounds meeting purity requirements

    Setting Up Your Precious Metals IRA

    The setup process is actually simpler than most people think! As I am learning it seems overwhelming but it’s actually quite straightforward when broken down.

    Choose a Custodian

    • Research reputation and track record
    • Compare fees and services
    • Check customer reviews and ratings
    • Verify IRS approval status

    Fund Your Account

    • Roll over existing retirement accounts
    • Make new contributions
    • Transfer from another IRA
    • Consider contribution limits

    Select Your Metals

    • Work with approved dealers
    • Choose eligible products
    • Consider diversification strategy
    • Review premium over spot prices

    Storage Requirements and Options

    Here’s something that will surprise many of us – you can’t keep your IRA-held precious metals in your home safe! The IRS requires specific storage arrangements, and getting this wrong can result in painful tax consequences.

    • Must use IRS-approved depositories
    • Segregated or non-segregated storage options
    • Regular auditing and insurance requirements
    • Geographic location considerations
    • Security and access protocols

    Tax Benefits and Considerations

    One aspect I have grown to like about precious metals IRAs is their tax advantages. Just like traditional IRAs, they offer powerful tax benefits that can help accelerate your wealth building.

    • Tax-deferred growth potential
    • Possible tax deductions for contributions
    • Roth IRA options available
    • Required Minimum Distribution (RMD) rules
    • Early withdrawal penalties and exceptions

    Costs and Fees to Consider

    Let’s talk money – because understanding the full cost structure is crucial for making an informed decision. I encourage everyone to look beyond just the obvious fees. *these may or may not be subject to change*

    • Setup fees ($50-$300)
    • Annual custodian fees ($75-$300)
    • Storage fees (0.5-1% of assets annually)
    • Transaction fees for buying/selling
    • Insurance costs
    • Dealer premiums over spot prices

    Investment Strategies and Portfolio Allocation

    Through research, I’ve learned that successful precious metals IRA investing isn’t just about buying gold – it’s about strategic allocation and understanding your goals.

    • Recommended allocation percentages (typically 5-15% of portfolio)
    • Rebalancing strategies
    • Market timing considerations
    • Long-term vs. short-term planning
    • Risk management techniques

    Conclusion

    Securing your retirement with a precious metals IRA can be a smart move in today’s uncertain economic environment. Whether you’re looking to protect against inflation, diversify your portfolio, or simply add a tangible asset to your retirement savings, a precious metals IRA offers unique advantages worth considering.

    Remember, the key to success is working with reputable custodians, understanding the rules and requirements, and maintaining a balanced approach to your overall retirement strategy.

    Consider speaking with a financial advisor to determine if a precious metals IRA aligns with your retirement goals and risk tolerance. It never hurts to ask questions it will only benefit you.

    Ready to take the next step? Start by researching IRS-approved custodians and comparing their services and fees.

    Your future self might thank you for taking this important step toward securing your retirement!


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    Gold Is Close to Revisiting Its Record High

    The most active futures on gold are currently trading at $2745.10, up $27.30 or 1% from a day earlier. That level is just about 2% shy of its all-time settlement high of $2800.80 marked on Oct. 30. If the contract closes at current levels, it would be the highest close since last month, according to the Dow Jones Market Data.

    “Gold remains the consummate hedge for investors worried about inflation or growth,” wrote Jared Woodard and the team from BofA securities on Tuesday. Gold was labeled as BofA’s “highest conviction investment ideas for 2025.”

    Source – BARRON’S

    BofA securities – Bank of America Inc., previously Bank of America Merrill Lynch (BAML) is an American multinational investment banking division under the auspices of Bank of America.

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    Gold prices keep getting higher

    The price of gold rose 1.4% to $2,941 per troy ounce in trading Tuesday, putting it 0.2% off its record high notched last week, according to Dow Jones Market Data.

    “After missing several (brief/ shallow) buying opportunities in 2024, investors are likely wary of repeating the same patterns and may want to take advantage of corrections sooner this time around,” analysts wrote.

    Source – Barron’s