This is my first post here. TF, this website is a really great source of information for all PM related topics.
Here's my question: Would PHYS/PSLV act as a good substitute for a gold/silver IRA. Rather than close my current 401k/IRAs and transfer them to one of the many gold backed retirement plans, would PHYS/PSLV work just as well as they are backed by actual physical gold and silver?
What are everyone's thoughts?
Arete, the physical gold/silver ira's which I have looked at carry very high fees and expenses. Holding PSLV and/or PHYS are a very good alternative and much more cost effective. You have to watch the premiums, and if they get outside the normal range, ie about 12-15% for PSLV and 4-6% for PHYS, you should sell and wait for a return to normal or low premiums to buy. Right now PSLV is an excellent buy with low premium and PHYS is at a normal premium level. I hold a significant position in PSLV in my IRA. Keep in mind the danger in IRA's if the government decides all IRA's must be invested in treasury bonds "for our protection". I haved cashed out 80% of my IRA (40% in december and another 40% in january) and will close out the rest in january, 2013. Cheers, Tom
Thanks for the info, Tom.
I'm not yet ready to take that step and cash out my 401k/IRA, but I'm well aware of the danger that you speak of.
I'll watch the premiums and start working into those two funds.
Wouldn't it suck if you no longer had the option to buy precious metals with your traditional or Roth IRA?
How about no longer being able to take a loan against your 401k?
Surely the government will be looking out for our best interests and keep these options available...