It is the day after the election, and gold and silver have tanked. What should you do? Should you sell, should you buy? Will gold and silver continue to tank? Here are some things to keep in mind.

Trump’s Economic Perception

• Better for the Economy: President Trump is perceived as better for the economy. His policies, which focus on reducing regulations and taxes, are conducive to economic growth.
• Calming Geopolitical Conflicts: Trump has made clear that he intends to lower the temperature of the conflicts around the world, such as in Ukraine and the Middle East. Geopolitical conflicts typically lead to buying gold as a safe haven asset. Demand for gold and silver could lessen which could make the price tank. 
• Cutting Government Waste and Tightening Trade Deficits: His proposed policies aim to reduce government spending and address trade imbalances, which can positively impact the economy.

However, Remember:

• Debt Accumulation: It’s crucial to remember that Trump’s administration added a substantial amount of debt, nearly as much as the current administration has.
• Real Estate Debt: Trump’s real estate  business empire is built significantly on debt.
• Promises and Debt: His promises of tax cuts and increased spending (e.g., no income tax, no tax on Social Security, no tax on tips, lowered corporate and personal tax rates, and military rebuilding) will likely require significant borrowing, potentially increasing national debt.
• Rebuild the Military: Trump has made promises to rebuild our nations military, this also carries an expense.
• China, Japan & the EU: These regions are aggressively expanding their monetary base, printing more money to stimulate their economies. This practice typically leads to inflation, which in turn can drive up the prices of precious metals.

All of this requires money, and it has to come from somewhere! All of that new money, rather than, making gold and silver tank, would lead to an even higher price.

Investment Strategy

Bottom line—today is a day to buy. Gold and silver have tanked. BUY THE DIP! I never say that, but I am saying that today. DON’T GET GREEDY thinking the metals will get cheaper. DON’T be scared to buy. Just buy a little—you don’t have to buy a lot. Gold will be $3500 – $4000, and silver $50 by the end of next year. Global expansion of the M2 money supply is sufficient in itself to drive the metals higher.

Remember, investing is about balancing risk and reward. Diversify your portfolio, stay informed, and make calculated decisions based on the latest economic data.

Fisher Precious Metals Product Pricing

The post Gold & Silver Tank – What Should I Do? appeared first on Fisher Precious Metals.

Gold’s price rise reflects concerns that world bankers, international monetary authorities (and you and I) should know.  Everyone in the know understands this is unsustainable.  The populous is told everything is fine and just continue to put your trust in the central banks. 

Debt is very, very easy to create with fiat currency.  However, the more debt you make, the less valuable is the previous debt you created.  You can not randomly create gold.  It only inflates at about 1.8% per year.  World governments know this, hence their increased gold holdings.

Not only is debt growing but, of course, the interest due on that debt continues to grow. Tell me, is this sustainable?

Gold price will continue to rise and do very well for the balance of 2024 and into 2025.  We could see $3,000 this year and probably $3,500 to $4,000 next year.  Silver should ride its coattails and maybe outperform.

Finally, I know that the gold price seems high. I have been at this for 30 years. It has always seemed high, and it’s going higher. Dollar-cost averaging in modest amounts on a consistent basis is, and always has been, the best approach.

Fisher Precious Metals Product Pricing

The post Gold’s Price Rise and Debt appeared first on Fisher Precious Metals.

These are Year-to-Date charts. Both gold (gold line) and silver (silver line) are outperforming
the S&P Index (blue line). Most of the buying is central banks and large private wealth /
sovereign funds. What do they know that retail doesn’t?

The Charts don’t lie – both Gold and Silver outperforming the S&P

Fisher Precious Metals Product Pricing

The post Gold and Silver outperforming the S&P – The Charts Don’t Lie appeared first on Fisher Precious Metals.

Last week, gold surged significantly after the terrorist attacks from Hamas on Israel, marking its best performance in months. Experts believe it may surpass the $2000 per ounce mark by the end of 2023. 

Several factors may keep driving the price up: 

Economic Uncertainty

The global economy remains unstable due to various factors, such as inflation concerns, market fluctuations, and the many geopolitical tensions that are currently taking place. Investors often do and have been turning to gold because of these economic issues and concerns. 

Inflation Concerns

Speaking of economic concerns, there is the very real issue of inflation. Gold is a traditional hedge against inflation, and the fear of rising prices and currency devaluation attracted investors seeking protection against inflation. The current inflation rate is at 3.7%, an improvement from last year but still higher than people should be comfortable with. People keep flocking to gold to protect their wealth as prices of other items keep climbing.  

Geopolitical Tensions

Ongoing global disputes and conflicts, such as those in Ukraine and Israel, have increased the appeal of gold as a safe-haven asset. The war between Russia and Ukraine has no signs of slowing down, and the conflict in Israel could lead to unrest in the entire Middle East. With the threat of even more violence, people worldwide are turning to gold to protect assets, and this increased demand affects the gold price even here in the United States.’

Conclusion 

In summary, there is plenty of potential for gold to keep climbing as we get closer to the start of 2024. This is far from a guarantee that gold will hit $2000, it is impossible to be sure, however, if it does reach that point again this year, no one should be surprised.

The post Gold Had Its Best Week in Months, But Could It Break $2000?  appeared first on Fisher Precious Metals.

First, will today’s breakout last?  Who knows – no one!  Iran shoots down a drone – is that a flash in the pan or the start of something real?

It is very difficult for many to buy on a breakout.  Shucks, I could have purchased yesterday or last week for considerably less.  And if I do buy, are prices going to retreat next week?

The best advice I can give is to not buy anything today and wait to see if these prices stick.  Futures speculators love volatility and they are getting it in spades today.

What I would strongly encourage you to consider is swapping (trading) a portion of your gold for silver or platinum.  Both metals are as cheap as they have been relative to gold for the last 20 years.  That is not going to last.  This WILL turn around.  No one knows when, but it will.  I have personally swapped a significant amount of my gold holdings into silver and platinum.

As a result I expect to realize a 50 – 100% increase in silver and platinum ounces for the gold I swap.

How does it work?  We will buy your gold and sell you low premium platinum or silver.  We reduce our commissions by 50% on both sides of the trade so as to not double dip.  There are premiums and bid/ask spreads that will consume approximately 5% of the trade but that will quickly disappear as the ratios decline over time.

Here are the charts:

If you would like to discuss this strategy and determine whether it fits your individual situation, we would be happy to visit over the phone with no pressure, no obligation.

Quote:  “The history of paper money is an account of abuse, mismanagement, and financial disaster.”

Richard M. Ebeling

The post The metals have broken out! Should I buy? What should I buy? appeared first on Fisher Precious Metals.

Thank you to our faithful clients and colleagues that took the time to vote for Fisher Precious Metals in the Bullion.Directory 2018 USA Bullion Dealer of the Year voting contest.  You helped us to win out over 4 industry giants and we are truly honored!

Fisher Precious Metals, a national precious metals dealer with tens of thousands of customers nationwide and overseas, was named “Bullion Dealer of the Year” in the U.S. by Bullion.Directory, a top global ratings organization in the precious metals industry.

DEERFIELD BEACH, FL  / March 9, 2018 / In balloting conducted over a two-month period ending on February 23, Fisher Precious Metals topped a field of eligible dealers in the United States. Ultimately, precious metals customers and industry insiders from across the globe cast 7,698 verified votes for the USA Bullion Dealer of the Year.

“With [Fisher Precious Metals] being known for their consistent 5 star reviews across the web – one can tell that their client base is fiercely loyal and recommends them without hesitation,” wrote U.K.-based Bullion.Directory in a press statement last night. Their leadership in a national anti-counterfeiting initiative and their firm’s 100% Authenticity Guarantee create a distinction in their commitment to client satisfaction and protection.  We’re absolutely delighted for Fisher Precious Metals and deeply impressed at the support they garnered both from their clients other precious metals companies – a sure sign that they’re doing something very right in an industry which saw more than its fair of wrong in 2017.”

“We are truly honored to have achieved this recognition in a fiercely competitive industry,” said John Fisher, president of Fisher Precious Metals. “Beginning over 25 years ago as individual investors, we understand and remain committed to providing clients a safe and educational precious metals investing environment.  Competitive pricing, our Authenticity Guarantee, superior service and a commitment to educating clients on effectively buying and selling has allowed us to gain the long-term loyalty of our clients nationwide.”

“In an unregulated industry such as that of precious metals, trust is critical for investor success.  That is why Fisher Precious Metals has resolutely refused to push or promote “rare coins” and overpriced numismatics on unknowing customers.  While rare coins are suitable for a genuine collector, they have no place in the portfolio of the common investor.  We take time to educate clients and help them to purchase the right mix of low-premium bullion from reputable sovereign and private mints that allows them to acquire the most amount of precious metals for their money, that will also remain highly liquid when they ultimately go to sell.”

Rated “A+” with ZERO complaints, and a long time Accredited Business with the Better Business Bureau, Fisher Precious Metals served their clients with superior pricing and client service.  Offering clients precious metals IRAs, physical bullion purchases and sales, purchasing precious metals with Bitcoin and Bitcoin Cash, and their Monthly Buyers Program, they have earned the business of tens of thousands of clients across the country and overseas.

Founded in 2007, the growing company has become well known for their focus on educating investors and revealing the less than scrupulous sales and marketing tactics of “rare” coin companies and online marketers.  Well established as a trusted dealer and partner over the last decade within the precious metals industry, John Fisher is currently the Vice Chair for the Industry Council for Tangible Assets (ICTA), a key leadership position in the industry.  For over a decade, John Fisher has also been approved to teach Continuing Education courses on precious metals for CPAs, Certified Financial Planners and Investment Advisors in the state of Florida.  Finally, they are accredited members of the following national organizations: PNG, NGC, PCGS, ANA and GIA.

Bullion.Directory’s official announcement is published here:  https://bullion.directory/bullion-dealer-of-the-year-2018/

About Fisher Precious Metals:

Fisher Precious Metals is a nationally reputed precious metals dealer that serves small investors to high net worth individuals and family offices, striving to offer superior client service and education in the buying and selling of physical precious metals.  Having achieved a 5 star client ratings across the internet, they are best known for their friendly service and their 100% Authenticity Guarantee on all products. Their comprehensive service offering includes buying and selling physical bullion, coins and bars, precious metals IRA accounts, secure depository storage, offshore storage and monthly gold and silver savings accounts.  Their full eCommerce site allows you to purchase gold, silver, platinum, palladium and GIA diamonds with varying forms of currency including bank check, bank wire, credit card, Bitcoin and Bitcoin Cash, you can learn more about them by visiting https://FisherPreciousMetals.com.

Contact:

John Fisher
john@fisherpm.com
800-390-8576

Take a moment and see why ourselves and Chard, another family owned business in the UK took the award in both countries over the marketing giants:

https://bullion.directory/bullion-dealer-of-the-year-2018/

The post 2018 US Bullion Dealer of the Year – Bullion.Directory appeared first on Fisher Precious Metals.

By:  Lynn Fisher.   In August of 2013, Nasdaq-listed securities fell offline for just over three hours.  On October 15, 2014 the 10 year Treasury Note experienced an extreme flash crash.  Then on July 9, 2015 there was the Nasdaq’s “Flash Freeze”.  And in the final week of June, gold dumped 1.8 million ounces at 4 a.m., driving the metal below its 200-day moving average.  Flash crashes continue, year after year, and there is ongoing flash crash speculation.

Now add the recent silver flash crash of almost 11% in the overnight market on July 6^th US that moved silver from $16.06 USD down to a bottom of $14.34 USD within a 1 minute interval, a market move that has all of the world speculating on the actual cause.  It is purported to be one of many things, a broker liquidating a massive client position, a genuine algorithm glitch, the Bank of Japan liquidating six thousand contracts,  or an overt manipulation to take gold lower via silver (if so, it worked.)  However, the bulk of speculation via the mainstream media pointed to electronic, or algorithmic trading as the cause of the “Flash Crash”.  Hmmm.

Ironically, the CME has chosen to stay completely silent on the issue, other than stating that their “Velocity Logic” safeguard that paused the market for 10 seconds “worked as designed, allowing liquidity to come back in to the market.”  Nothing like manipulation, as the September and December silver futures were adjusted, in addition to a multitude of mini-futures. As if flash crashes are completely normal events and to be expected in market performance – they are not.

In our humble opinion, the overt manipulation is clear.  Add up the key factors to determine means and motive.  Note that the trades were executed after the US market closed and upon the Tokyo open.  This was done specifically so that the orders did not have to be filled with physical COMEX silver.  No physical metal inventory moved, it was a complicit paper move, executed with extreme precision.  That was the means, now what about the motive?  The government is desperate to drive investors out of physical gold and silver and in to fiat currency, plain and simple.  By instilling fear via perceived volatility, they hope to decrease investment in the real money of precious metals and increase the purchase of national currencies.

Keep in mind, if you are of the manipulation mindset, be encouraged that the bullion banks would not be cycling out of massive numbers of short positions if they thought the price was going to go down significantly.  One can then rest on the rationale that prices are about to go up.

Here is what we DO know for sure.  Market manipulations always fail… eventually.  The paper markets continue to separate from the physical metals.  The backwardation that exists in the metals market has only been furthered by these flash crashes.  And remember that patience is a virtue that is rewarded in the physical metals market.

I’ll take this opportunity to add silver (still the buy based on the current gold:silver ratio) to my holdings.

Finally, stop reading the ongoing flash crash speculation and gain further education on the physical precious metals market manipulation from our friend and colleague Chris Powell via the GATA.org site.

The post Ongoing Flash Crash Speculation appeared first on Fisher Precious Metals.

An analysis by the team at Comstock Funds demonstrates that we might be headed for a recession and that asset bubbles caused by Central Banks may burst.

Comstock Partners, Inc. is similar to a modern day hedge fund in their overall business model.  They consistently analyze financial and economic conditions with a long term macroeconomic perspective.  They are also responsive and modify based on shorter term cyclical conditions.  The firm utilizes currencies, bonds, derivatives and domestic and foreign stocks in their investment approach.

*****************************************

The following article was written  by the team at Comstock Funds and was originally titled “A Recession May be Coming”.  Comstock Partners, Inc. analyzes economic and financial conditions from a long-term macro-economic perspective and makes adjustments based on cyclical and shorter-term considerations. In pursuit of its goals, the firm invests in various asset classes including domestic and foreign stocks, bonds, currencies and derivatives including indices and options. For the Capital Value Fund, Comstock Partners can buy or sell short and make use of leverage in order to maximize returns under various market conditions.

The Wall Street Journal recently published an article by Greg Ip entitled “Why Soaring Assets and Low Unemployment Mean It’s Time to Start Worrying”. While Mr. Ip stops short of predicting a recession or its timing, he details a list of preconditions for recession, all which exist now. These include a labor market at full strength, frothy asset prices, tightening by central banks, and a pervasive sense of calm, as illustrated by the very low levels of the VIX Index.

At the same time, the Fed, led by Janet Yellen, continues the narrative that they will normalize interest rates while slowly reducing the Fed balance sheet. This follows what we believe was an insane monetary experiment beginning with the bursting of the “Housing Bubble” in 2008 and lasting until the present day. The Fed would have you believe that its policies, after helping the economy avoid an outright collapse, have helped the economy grow at a moderate rate with low inflation. In our view, the word moderate is a gross overstatement. We think the better description is “anemic”, because no recovery since the Great Depression has been as slow as this one.

As the situation now stands, the trailing 12 month (TTM) P/E ratio of the S&P 500 based on GAAP (Generally Accepted Accounting Principles) earnings stands at just over 24X, which is among the most expensive in history. A casual observer might think, therefore, that a TTM P/E of 24X means that the stock market is expecting growth to accelerate. After all, there is no shortage of television commentators and portfolio managers that think we are on the path to an accelerating economy. All one needs to do is tune into any of the financial news networks to confirm that observation.

We at do not agree with that assessment, and to no surprise, neither does the bond market. One of the most telling indicators of what the bond market “sees” as prospects for economic growth is the spread between 30 year and 10 year US Government Bonds. The steeper the slope of the yield curve, the more the bond market sees growth, and visa versa. So for the month ending 6/30/17 the 10 year to 30 year spread closed at 53 basis points. To find a lower monthly close for that series, one has to go all the way back to December of 2008, just as the effects of the bursting of the “Housing Bubble” were hitting with full force. So while the stock market “sees” prospects for growth as strong, as evidenced by the 24X TTM P/E, the bond market is just the opposite. Not only is the yield curve relatively flat, but the absolute level of bond yields are also very low. It should be also noted that an inversion in the yield curve, should that occur, would be a clear alarm bell as it pertains to the possibility of a recession.

In our view, the Fed, European Central Bank (ECB) and Bank of Japan (BOJ) all recognize that the main result of the massive money printing, and the low to negative interest rates of the last several years have done little more than increase the value of financial assets rather than generating solid economic growth. We, and others, have said as much for quite some time now. We also believe the central banks are “between a rock and a hard place”. They realize the need to not burst the “bubble”, but on the other hand, they do not want to negatively affect the already anemic economic growth rates of their respective economies. So the Fed continues on the path to “normalization”, speaking of one more rate increase this year and three each in 2018 and 2019. We agree with the Fed Funds market, which is calling the Fed’s bluff. The futures market on Fed Funds is priced for one increase this year and only one each in the next two.

The Fed is, of course, fully aware of the fact that of the thirteen tightening cycles since the Great Depression, ten of those were followed by recession. So the odds are not good, as we see them. We think the bond market will prove to be right and the stock market will prove to be wrong. As we have written in the past, the economy is swimming against a stream of rising debt, unfunded federal, state and local liabilities, low productivity growth, and negative labor force demographics. At the same time, the booming stock market has been partially fueled both by stock buybacks (that strip equity from shareholders, as in the money stock options are exercised by corporate managements) and “yield chasing” by return starved investors around the world.

Whether the Fed tightens aggressively or not remains to be seen. But in our view the damage has already been done by its policies and those of the other major central banks. Years of artificially low interest rates have resulted in mal investment and asset bubbles. When the market does start down in earnest, our view is that the move will be large, rapid, and long lasting.

The post Asset Bubbles Caused by Central Banks May Burst appeared first on Fisher Precious Metals.

Dealers and wholesalers around the country are reporting extremely slow physical bullion sales.  Wholesalers are carrying excessive levels of secondary market coins and bars, the products that have been sold back to them by dealers.  This is resulting in the lowering of their bid price, the price they will pay dealers relative to the spot price.  Lowering bid prices are occurring almost weekly.   The physical precious metals market is on life support right now, for a multitude of reasons.

By “life support” we mean the overall declining sales as measured through the market maker wholesale chain.  Some examples that will define the decreasing sales and burgeoning inventory status within the wholesale chain:
1.  The bid for common date American Gold Eagles has dropped almost 2%, or $25 per coin since the beginning of 2017.  Wholesalers have more Gold Eagles on hand than they know what to do with, and dealers are not buying them.  Dealers are not acquiring wholesale Eagles because the public is simply not buying them at their usual pace, and their existing inventory turnover is decreasing.

2.  The market for 90% Pre-1965 Silver coins (aka “junk silver”) is even worse.  Wholesalers are paying 1 to 2% below spot.  There have been times in the past when 90% Silver has sold for as much as 35% over spot.  Wholesalers (and dealers) are choking on 90% Silver inventory.  We buy 90% Silver from clients and the public almost every day, and are currently selling much less than we usually would.  Our inventory continues to grow, with decreasing buying interest from the public.
Why is the physical precious metals market so quiet right now, and what does all of this mean?  Let’s look at three charts and I’ll expound at the end.

Brent Crude and Gold

This is a 20-year chart of Brent Crude (black) and Gold.  Note how they have largely mirrored each other (the 2008 mania spike in oil being an exception.)  Starting in 2015 a divergence began with oil weakening and gold strengthening.

US Dollar and Gold

This is a 20-year chart of the U.S. Dollar Index (green) and Gold.  Historically there has been a dance between gold and the dollar.  When the dollar is strong, gold is weak and vice versa.  We are not at a confluence – almost a battle or showdown.

S&P 500 and Gold

Finally, a 20-year chart of the S&P 500 (blue) and Gold.  Gold did well while the broad market struggled – until 2013, when the S&P regained its highs of 2000 and 2008.  Since then gold has basically been trading sideways for the last four years in a channel between $1,380 and $1,050.

What does this all mean and how does one find relevance in these quiet times in precious metals?

Here are my thoughts:

1. There is always a lull before a storm. We are experiencing the quietest time in the metals market in my 21 years in the precious metals industry.
2. When things are the quietest – when there is little if any interest in an asset class – prices are usually at, or near, their lowest point.
3. Cryptocurrencies are at all-time highs and are garnering increasing investment interest. With hundreds of cryptocurrencies available, they are likely a game changer for the future of all currencies. While revolutionary in nature, they are highly volatile and speculative.  What they are NOT, is a store of value or a safe haven investment.
4. Crude oil will probably go lower as the Trump administration seeks even greater energy independence and has less concern for the EPA, Paris Accord, pro-pipelines, selling a portion of the strategic energy reserve, promoting coal, etc. Will gold go higher?
5. The dollar and gold are battling for favor. My take is that the dollar is going to trend lower.  Why?  Several reasons.  We are losing our place and position as the sole/primary reserve currency (and this pace is accelerating).  Trump will use significantly greater amounts of debt to fund infrastructure projects.  There is talk of a debt default in October (this is a long shot but it is making dollar holders uneasy).  Balance of trade and deficit concerns are increasing.
6. Finally, everyone is enamored with the stock market. And why not?  Consider the wealth that has been generated.  300% plus in eight years!  Many are greedy for more.  Others are scared to get in, but an even greater number are scared of missing out.  All of the volume and action is in the stock market (and real estate to an extent – although it is consistently beginning to wane).  And this market may go even higher.  While frothy, we have yet to experience the mania “blow-off the top” that typically occurs, but it will come.

While the physical precious metals industry appears to be on “life support” we are posed with a straightforward opportunity.

What to personally do in precious metals?

1. Remember why you bought gold, silver and platinum in the first place. Diversification, privacy, tangible in nature, insurance and profit (as profit is often what is in last place for many buyers’ motivations.)
2. Accumulate a minimum 10% holding in physical metals held in your private possession.
3. Overweight in silver based on the prevailing gold-to-silver ratio. Also consider platinum which is currently trading $325 below gold, as it has historically traded above the price gold.
4. Don’t lose faith. Don’t be deterred.  Gold has been desired for thousands of years and it has never defaulted.
5. This is the buying opportunity that many of us have waited for. Our truly seasoned clients are buying, typically every 2 to 4 weeks to dollar cost average and gain from this quiet season in precious metals.

The post Physical Precious Metals Market on Life Support – Opportunity! appeared first on Fisher Precious Metals.

Beware of Home Storage IRAs

Considering a precious metals IRA?  Buyer beware of home storage IRAs!  Gold and silver prices are edging back up and the unethical tactics in the precious metals industry are in full play.  We have seen unethical precious metals dealers surface repeatedly over the last couple of decades, and recently a number of these firms have begun marketing a potentially disastrous precious metals IRA scheme known as, “Home Storage IRAs”, “Self Storage IRAs” or “Checkbook IRAs”.

Their marketing pitch appeals to the prudent investor that wants to own and hold their own physical bullion, and they also know that millions of Americans have significant savings in their IRAs and 401ks.  As a result, they want to tap your IRA savings by appealing to your desire to have “privacy” and “full control” of your physical precious metals, in your own home or nearby.  While we recommend physical precious metals for the valid reasons of privacy and control, we do NOT recommend the use of IRA funds for home storage.  There is a correct way to establish a precious metals IRA, but home storage is not the way to do it.

If you do a quick Google search on the dangers of home storage precious metals IRAs you will find numerous articles aptly warning you to steer clear of them.  These articles can be found in the Wall Street Journal, on PRWeb and others.

May we caution you to stop and think this marketing scheme through.  No one wants the IRS pursuing their IRA account funds, and this is an open door for potential future IRS problems.

Little Known Facts About LLC Precious Metals IRAs

A quick look through the following list should raise a multitude of red flags if you had considered a home storage gold IRA.

Things you need to know:

• Firstly, the IRS is notified annually that your specific IRA owns the LLC. No additional privacy there.
• You, as the owner must supply the IRA provider with actual third party confirmation of the value of the LLC. This means that you have to report the exact value of your precious metals and any cash in your LLC.  No additional privacy there.
• Your precious metals choices are limited to only US minted Eagles. The hucksters out there will try and talk you in to Proof Eagles, read our article why you should never own proof coins in an IRA.
• You cannot reasonably insure your precious metals that are stored at home – the insurance cost is astronomical. Remember that if your metals are stolen or lost, you will have a taxable withdrawal cost on top of your physical metals loss value.
• Safe Deposit box storage is not insured via any bank. Also, many banks will not allow the storage of bullion in safe deposit banks, beginning with JPMorgan Chase.
• All bookkeeping for the LLC must be maintained by the IRA owner.
• If the IRS asserts that a prohibited transaction occurred, the burden of proof is on the taxpayer. You must prove that you did not receive a personal benefit.  Worse yet, you will be presumed guilty in tax court until you prove otherwise.
• If asked, you need to provide proof of the “chain of possession” ensuring that the metals have not been tampered with.
• All prospective fees are the responsibility of the LLC potentially including, but not limited to: legal fees, bookkeeping fees, annual reporting and state filing fees.

You are Ultimately Responsible

At the end of the day, if the IRS decides to pursue IRA holdings that they feel do not meet their defined storage requirements or otherwise, the IRA individual will be responsible.  These unethical dealers know and understand that they are simply fulfilling your precious metals order.  They are not responsible for establishing your LLC (even though they direct and guide you to the attorney that establishes the LLC.)  The attorney is not responsible for how you choose to “fund” and store your IRA items, they simply established your LLC, to be used in whatever fashion you choose.  You are ultimately responsible for the use and legality of your IRA funds.  Period.

First, a little background on the IRA structure. The IRS requires the assets in your retirement account to be held by a third party.

The intent is to stop account holders from using or accessing IRA assets for personal benefit because doing so would be tantamount to a fully taxable distribution. There are also a number of prohibited transactions and disqualified persons.

The unethical dealers promoting home storage IRAs provide you with a referral to an attorney to establish a stand alone LLC company and infer that by you, the investor, taking possession of the metals, the IRS custodial and third party requirements have been met.  You need to take a harder look at the IRS details.

What Does the IRS Say?

The bottom line is that the IRS clearly defines that all IRA assets, whether it be cash, stock, ETFs, real estate, a business or physical metals be held by a third party.  Why?  Simply to prevent individuals from accessing their IRA assets for personal use before the defined distribution timeframes – simply because if you do so it is a significant taxable event.  And the IRS is in the business of collecting taxes.

On September 30th, the IRS added this new FAQ to its IRA investment site:

“If my IRA invests in gold or other bullion, can I store the bullion in my home?”

“Gold and other bullion are ‘collectibles’ under the IRA statutes, and the law discourages the holding of collectibles in IRAs. There is an exception for certain highly refined bullion provided it is in the physical possession of a bank or an IRS-approved non-bank trustee. This rule also applies to an indirect acquisition, such as having an IRA-owned Limited Liability Company (LLC) buy the bullion. IRA investments in other unconventional assets, such as closely held companies and real estate, run the risk of disqualifying the IRA because of the prohibited transaction rules against self-dealing.”

What does all of this mean?  Quite simply, IRS rules state that IRA assets cannot be comingled with other property, and there are prohibited transactions against self-dealing.  The IRS has signaled it will disqualify “Home Storage IRAs” and that taxes and penalties may ensue.  We know this because our reputable IRA Custodians for Self-Directed IRAs have been in communication with the IRS and know this to be true.

An IRA owner should only invest into precious metals that meet the statutory requirements of IRC § 408(m)(3).  Bullion coins should always be stored in the actual physical custody of a precious metals depository or company that meets the Internal Revenue Code’s definition of a “bank”.

Worth the risk?  We think not.

Safe and Secure Precious Metals IRAs

There really is only one proper way to own physical metals in your IRA or your 401k rollover account, and that is through a self-directed IRA.  A self-directed IRA can be easily set up through

3 Simple Steps:

   Open a self-directed IRA (SDIRA) with the custodian of your choice

   Fund your precious metals IRA directly or via a rollover

   Work with us to select your preferred IRA approved precious metals

At Fisher Precious Metals, our team helps you to establish safe and legal Gold and Silver IRAs every week of the year.  We will help you to maximize your precious metals IRA holdings by selecting low premium IRA approved precious metals.  You can safely store your IRA metals in Delaware, Canada or Grand Cayman.

We work hard to protect you from deceptive marketing practices in the precious metal industry.  Feel free to call us at (800) 390-8576 to discuss any precious metals IRA questions you might have.

The post Beware of Home Storage IRAs appeared first on Fisher Precious Metals.