Letter Re: Advice on Setting Up a Precious Metals IRA

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Dear Jim:
I am in the process of converting my U.S. Dollar-based Individual Retirement Account (IRA) into a precious metals IRA.

1.) Do you recommend it to be based in silver? Silver bars or Eagles?

2.) Or do you recommend (based on current prices,etc.) it to be in gold? Gold bullion or Eagles?

3.) Or do suggest a combination of both metals? If so what percentages and what types?
Thanks again for you considered opinions. B'Shem Yahshua HaMoshiach Sar Shalom (In the Name of Yahshua the Messiah Prince of Peace) - Dr. Sidney Zweibel

JWR Replies: If the storage fee is not significantly higher, then I strongly recommend getting all silver (or nearly all silver) for your IRA, rather than gold. Silver's long term investment potential is so much greater. (If nothing else because silver gets used up industrially, whereas gold is 99% recycled. See the recent article: "Is silver becoming more rare than gold?") In my estimation, the price of gold may double in the next couple of years, buy silver has the potential to quadruple or more.

The dealer premium on one ounce U.S. Mint Silver Eagles is very steep, so I generally recommend getting silver in 100 ounce increments, such as serialized Engelhard bars. The folks at Swiss America can help you get your precious metals IRA established. OBTW, since they are one of our advertisers, please mention SurvivalBlog when you contact them.

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This page contains a single entry by Jim Rawles published on July 10, 2006 11:00 PM.

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