“The white metal may get squeezed, as recovering Asian demand absorbs recent inventory builds in the aftermath of the Chinese slowdown and the base metal concentrate processing capacity increases,”
“We project the metal to average $36/oz in the final months of next year, making it a commodity outperformer as the XAU/XAG ratio challenges yearly lows.”
“With its low correlation to traditional assets such as equities and bonds, silver offers powerful diversification benefits,” Silver Institute said. “Historically, silver has proven its value during times of economic and geopolitical crises, serving as a reliable hedge against inflation, currency devaluation, and systemic financial instability. In the context of the modern global landscape, this role has become even more pronounced.”
This is revolving a bit around politics but hey we need to stay with the times when we look at our investments and retirement interests. Our investments DO revolve around what the world is going through and we need to base our decisions on real life real world problems. This is an important part of investing and paying attention to trends if you are so inclined to invest or use or investments in the direction you feel it needs to go.
Let’s stay in tune with what’s going on and learn about today’s topic.
Well, this news happened a couple days ago but it’s still relevant today as things change before we know it!
News!
Currently in Florida, there is an open House seat in District 1. Trump backed candidate Jimmy Patronis wants the Sunshine State to adopt gold and silver as legal tender and has called for a study on the issue.
“Gold and silver have been trusted assets for thousands of years, and it makes perfect sense to use them as legal tender. I’m launching this study to determine the best way to get it done,” Patronis said in a statement included in a press release earlier this week.
Currently there are 11 states that use gold and silver coins as legal tender Utah being the first state to do so in 2011. This is a great shift we may see as states are either moving towards it or in talks of doing this. The positive for those who live in these states is the capital gains taxes would be eliminated on sales of gold and silver.
“I’m basing this whole forecast on the fact that the Fed is going to be wrong,” Hemke stated, emphasizing his belief that the current economic strength is overstated.
NASA scientists estimate that there are almost 20 million tons of gold dissolved in the water of the seas and oceans.
Estimates suggest that nearly 20 million tons of gold are dissolved in seawater. However, the concentration of this metal is extremely dilute across a vast volume of water, making its extraction highly complex.
Under this agreement, Hudbay will subscribe for 11,852,064 common shares of Arizona Sonoran at C$1.68 per share.
Arizona Sonoran president and CEO George Ogilvie said: “We are pleased and appreciative to welcome this further endorsement of our project and the go-forward plan by the team at Hudbay. It is the company’s objective to develop Cactus to be a significant producer of copper cathodes for direct use by industry in the state of Arizona and the larger US supply chain.
“We welcome Hudbay, a mid-tier base metal producer with decades of base metal successes in the Americas and a strong existing footprint in Arizona, as a larger and increasingly engaged shareholder, able to lend its experience and expertise as we advance and develop Cactus.”
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!
IMPORTANT DISCLOSURE
This article is for informational and educational purposes only. I am not a financial advisor, investment advisor, or registered broker. The content provided here reflects personal research and opinion and should not be considered professional financial advice.
Any investment decisions you make should be based on your own research or consultation with a qualified financial professional who can review your personal situation, goals, and risk tolerance. Investment in precious metals, including gold, carries risk and past performance does not guarantee future results.
Examples, statistics, and scenarios mentioned in this article are for illustration purposes only. Your actual investment needs and suitable portfolio allocations may differ significantly based on your individual circumstances.
Always conduct thorough due diligence and consult with licensed financial, investment, tax, and legal professionals before making any investment decisions. This is especially important for retirement planning and precious metals investments.
By reading this article, you acknowledge that any actions you take based on this information are at your own risk.
“The precious metal pushed back above $2,600/oz, suggesting the market saw the selloff as overdone,” ANZ Research analysts said in a note to clients. “Nevertheless, the market will take some time to adjust to the pivot the Fed appears to have taken on rates.”
