GMRgold Blog

The Gold Digger – Gold vs. Equities

2022-04-26T13:05:00-05:00

The Gold Digger – Gold vs. Equities

Imagine a casino full of slot machines that all guarantee a constant high return. All you need to do is to put in a bit of money and you will get an incredible income stream for life. Well, this is exactly what the stock market is, namely a remarkable slot machine with a continuous flow of guaranteed payouts. No skill is required, and relatively little money. And the wonderful thing is that you don’t even need to be lucky since the machine just continues to spew out money without the need for either a strategy or dexterity.

As an example...
Why should we time the stock market when it works so well for us? Let’s take the example of a stock market investor called Frank who was born at the end of WWII and is now 74 years old. At his birth, his grandparents gave him $100 of stocks in the Dow Jones index and between the parents and grandparents $10 was saved monthly to buy stocks for Frank. All the money went into Dow stocks and dividends were reinvested. By the time Frank was 24, in 1969, he started working and earned a good salary since he had an excellent education. Now he could save $250 per month. Ten years later Frank had done well in his career and could save $2,000 per month until his retirement at 65 in 2010. His investment account had by that time grown to $6.7 million. He continued to be fully invested in the market from 2010 and saved $1,000 per month of his pension until today. Today, Frank has amassed a stock portfolio worth $14 million. Frank had excellent tax advisors so he could avoid capital gains taxes or other taxes on his investments.

The total savings of Frank’s parents, grandparents and his own amounted to around $1 million over a 74-year period which all went into stocks. Most of it was Frank’s own savings from his work. The stock market looked after Frank and his savings very well so that he managed to grow the money invested 14x from $1 million to $14 million. Frank naturally considered himself to be a very talented stock investor, but his luck was that no talent was required nor market timing since Frank only bought the Dow Jones Index.

Staying steady
So far so good. Frank has done extremely well in the stock market in spite of some hair-raising market falls. During this period Frank had to suffer some major paper losses like in 1973-4 when the market lost 40% or in 1987 when the market had a similar fall of 40%. But Frank was never worried since his experience was that stocks always go up.

In 2000-2 Frank suffered a 40% fall and then in 2008-9 came the Great Financial Crisis and Frank had a 60% paper loss. But since markets always go up, Frank had no reason to worry. And again, he was right since the market continued to go to new highs.

Frank is now 74 and he has, thanks to his Grandparents’ and Parents’ wisdom, which was passed onto him, amassed a considerable fortune of $14 million. Frank knows that he is not going to spend all that money so that wealth will transfer over to his children and grandchildren.

Foolproof
Frank has had such a good run so should he now be concerned that he and his family will lose it all? Has he just been lucky or is he a very shrewd investor? He realizes that it is not really his clever investment skills that have got him where he is today. He has never selected a single stock in his life since he has just invested in the index. Nor has he ever analyzed a company or the state of the market. As Frank says: “After all, investing is so simple, you just buy and hold and the market will do all the work for you.” And who can argue with Frank. He started with $100 and now has $14 million.

So Frank will hold on to his wealth in the stock market whatever happens. Frank is not concerned about all the risks in the market. His 74 year old investment career has included many downturns but the market has always recovered.

Frank has never asked himself if he has just been lucky to live during an extraordinary bull market cycle, fueled by credit expansion and money printing.

What Frank doesn’t realize is that the stock market already turned down in real terms in 1999. Between 1999 and 2011, the Dow fell 87% against gold. Since then we have seen a correction up in the ratio and the Dow is now “only” down 55% since 1999. This means that since 1999, gold has outperformed stocks by almost 100%.

But the correction up of the Dow/Gold ratio is likely to finish in 2021-22. In 1980 this ratio was 1 to 1 which means that 1 Dow unit was equal to 1 ounce of gold. They were both around 800 at the time.

The catch...
The next decline of the Dow/Gold ratio is likely to reach 1/2 which means a further fall of 98% from here. If that is correct, Frank will lose 98% of his stock portfolio in real terms which is against gold. Thus 74 years of substantial savings could all disappear in the next 4-6 years. This forecast might seem dramatic, but we must remember (as the graph shows) that since the Fiat money era started in 1913, there have been three major declines between 87% and 96%. And this was during times when the preceding credit expansion was much smaller than today. So a 98% fall from here is certainly not unrealistic.

In summary
It is important to remember that physical gold will not just be substantially revalued as the paper gold market fails and inflation rises, but that it will remain the ultimate form of wealth preservation.

Investors who ignore the importance of gold will see their paper assets decline by up to 98% in real terms. The seemingly unending rise in equities is completely and utterly due to money printing. Just $8 trillion since Covid. Now the Federal reserve is attempting to tighten the belt and raise interest rates. As GMRgold has reported before, many analysts believe this to be an extremely risky proposition at this time as the symptoms of this economic calamity do not match those that were previously treated with monetary tightening.

What will happen is out of the control of the American People. What is not out of the hands of the American People is the ability to take matters into their own hands. The Central Banks globally consider gold a mainstay asset in their portfolios. Be your own central bank and add Gold and Silver Bullion and Numismatic Coins with all urgency to protect yourself from the coming New World Order in World Finance. hare this:

GMRgold's Precious Metals Week in Review - April 24, 2022

2022-04-26T11:40:00-05:00

Week Ending April 24, 2022

Celebrate the opportunity to purchase more bullion and coins
Someone rang the alarm bells alerting institutional investors that Gold was about to take out the key psychological and resistance level of $2,000.00 per ounce resulting in punishing defeat for Gold Bugs last week. Starting the week of trading at $1,973.00 and immediately going straight up to $1,992 on the first day trading, selling began and continued all week until the dust cleared and left the yellow metal closing the week down $61.00 from its Monday high. Without any significant news for the week, there certainly was some profit taking and a larger amount of “shorts” that couldn’t stand a close over $2,000.00. With serious attacks against the $USD, those looking to take advantage of the safe-haven qualities of Gold should celebrate the opportunity to purchase more bullion and coins at current levels before the Bull breaks out for an historic run. If you are an experienced Gold investor, you have seen this scenario time and time again. The $2,000.00 threshold will not go down without a fight. It will fall and a new resistance level will be established. Buy the dips or contact your GMRgold representative for advice an alternative gold plays that will allow you to avoid the roller coaster ride.

Appetite for Physical Silver is more than some dealers can satisfy
Silver mimicked the negative momentum of Gold starting the week at $25.65 and falling nearly 6 ½% to $23.15. While paper Silver investors licked their wounds, physical players continued to buy with both hands at historic premiums exposing the ridiculous truth about the electronic speculation of Silver Bullion. The shorts must cut their losses or be trampled by the stampede of “poor man’s gold” movement. There is still no end in sight for the mint to solve the production problems caused by the planchet shortage. Silver American Eagles hover around $40.00 per coin while other foreign mint products can be acquired for about $5.00 less. As previously mentioned, the appetite for Physical Silver is more than some dealers can satisfy. Attention should be paid to the volume of purchases to understand what is coming soon.

Take advantage of the current price levels while you can
There is an increase of awareness in the entire precious metals industry. One industry expert recently asked to speak at an investment conference, asked for a show of hands of in a room of about a hundred people, how many of you own any form of Gold at all excluding jewelry. He said less than 10 people raised their hands. And only a few more than that for the same question with Silver as the subject. The lesson to be learned here is there is a red-hot bull market in progress less than 20% of the American investors involved in any form of Precious Metals. When the line forms around your local dealer’s building and the national dealers’ phones ring busy, it will not be too late to buy, but you will pay a lot more for the same thing you can pick up today. Take advantage of the current price levels while you can. The ship you see at the dock today is refueling and taking on passengers. The only question that remains is, are you going to standing there waving at it or are you going to sail away safely with the other Americans that have protected their futures with the only real money? Physical Gold and Silver coins and bullion.

The Gold Digger – Transitory Inflation

2022-04-04T21:11:00-05:00

The Gold Digger – Transitory Inflation

Anyone who has ventured from their Covid sanctuary to buy groceries, peruse a big box retailer, filled a fuel tank or update the closet, surely was not surprised by the announcement this morning that inflation has once again ticked up. How the Consumer Price Index managed only a fraction of a percent increase from last month is yet to be explained, but I am sure the explanation will be creative and colorful. The same agency reported last month that in 2020 wage increases fell short of inflation by 2.5%. So clearly the American consumer is losing ground in their budgets to the hidden tax which is inflation.

When the Federal Reserve Chairman labeled the current round of inflation “transitory” a year ago, he was not wrong. Inflationary periods always end. Since World War II, there have been 7 inflationary periods defined by a CPI reported at more than 5%. Most of these are 1 – 3 years with the single exception being the whopping 9-year period from 1973 – 1982.

Precious Metals play an extremely important role during inflationary periods. Not only because gold is priced in U. S. Dollars worldwide which gives it an inverse relationship with the greenback, but also what higher prices do to other markets. Higher manufacturing costs accompanied by higher labor costs in a competitive environment puts stress on unprepared companies and affect stock prices. Typically, inflation is a negative influence on equities markets making the gold and silver universe an attractive alternative investment. Considering that the precious metals arena is an extremely small cap, it does not take huge movement of capital to cause a substantial increase. In fact, if 1% of Global Investments decided to move into gold, it is a trade that cannot happen.

Gold entered the 9-year inflationary period at $100 per ounce and reached a high of $600 before closing out the longest period of wage and price increases with a 400% gain at $400 per ounce. Numismatic gold coins over the same period outperformed bullion increases by as much as 300%. Without question the period of runaway inflation was a trying time for American households. With mortgage interest rates in the double digits, while inflation was also over 10% percent per year, savvy investors who protected their savings with precious metals faired considerably better than those who just went along for the ride. It is anyone’s guess the extent that this current round of price increases will yield. While a mostly Teflon Dow Jones Industrial Average and the new kid on the block, crypto currency which is making millionaires out of millennials sitting in basements across America are attractive, there is not a portfolio that would not benefit from a component of the only true monies, gold and silver.

GMRgold is committed to designing a unique program for you that will assist you in weathering the storm that has moved from the horizon to overhead. It is never too late to take advantage of the insuring qualities of gold and silver coins. Sometimes are better than others, and we are definitely in one of those better times now. Now is not about greed or profits. We believe the primary focus at this time is the return of your money, rather than the return on your money. Gold and Silver have proven their ability to do just that over time. Especially in times of economic upheaval as we see today. We look forward to helping you with your precious metals purchases. You have insurance on your home, your auto, your health and your life. Isn’t it time you had some insurance on your money?

The Gold Digger – Recession Fears and Precious Metals

2022-03-29T06:49:00-05:00

A recession is when your neighbor loses his house. A depression is when you lose your house. This old adage, while recited tongue in cheek, speaks to the awareness of economic situations occurring around us. There is a multitude of distractions currently to keep our attention away from the most important headline that is missing from the front page of the newspapers. Charges of a stolen election, Covid-19 and its unending parade of brothers and sisters, just as the U. S. Government claims victory over Covid, a humanitarian disaster erupts in Ukraine. How can we possibly keep up with all the news that we are being fed on a daily basis?

Exactly what is not being broadcast with the same zeal includes but is not limited to, Inflation, reported at 7.8%. The experts that came up with this number are not shopping at the same stores the American People do. Saudi Arabi is considering accepting the yuan for payment of oil from China bypassing the Petrodollar. The last dictatorship that announced this measure was Saddam Hussein. It was so unacceptable to the United States that his country was toppled not once but twice. The lack of employees to fill millions of jobs is affecting manufacturing and creating supply chain problems. This while the Federal Reserve is at the ready to raise interest rates. Raising interest rates is designed to cool an overheated economy. With $4.00 per gallon gas, this economy is far from needing cooling down. American citizens are already having to give up some purchases in lieu of filling their fuel tanks, automobile and heating. Until a replacement for Russian petroleum is allowed to occur, $10.00 - $15.00 gasoline will have enough cooling effect.

There is a perfect storm brewing in the World Economy. With the irresponsible fiscal policies piled on top of each other year after year, election cycle after election cycle, there has always been a day of reckoning on the horizon. With the dollar as the reserve currency of the world and the U. S. economy the largest in the world, what happens in the United States of America spreads like a contagion throughout the world. At some point the rest of the world will simply accept the American hegemony as “a nice run” and turn its back on the dollar and the former envied and respected democratic republic. With Saudi Arabia negotiating abandoning the Petrodollar, that day may be sooner than later.

What does history tell us is next up for this economy and the United States. While there are no predictions in this writing, there are history lessons. The first would be the signs and trial balloons being floated currently about recession. A recession in an election year is devastating for the incumbent party. Yet, the Secretary of Treasury admitted yesterday that signs point to a recessionary environment upcoming. A recession in the United States trickles throughout the Western World. And with our retail dependence on China, they will certainly feel the impact as well. The last recession was not televised for a full nine months after statistics clearly showed we were indeed in a sustained and deep recession. In addition, it was deemed to be over about six months earlier than it actually was, statistically. The average length of previous recessions was sixteen months. The fact that the Great Recession of 2008 was to be closer to three years in length, was deemed more than the world’s perception could endure.

In ordinary circumstances, a recession is a natural occurrence in an otherwise healthy economy. Because we have kicked this can down the road as far as we possibly can, our economic situation is hardly ordinary. We are on the verge of at the very least a sustained and deep recession. History and Statistics are starting to show that our inflation may evolve into Stagflation which is a nightmare the world witnessed for most of the 70’s and early 80’s. Analysts warn to be prepared for a major correction in the equities market as this is imminent. Americans are already experiencing the early stages of the storm with the worst inflation in four decades. History shows that precious metals will rise in the inverse relationship they enjoy with the stock market. This is largely due to the safe haven status that gold and silver provide. When times are prosperous and stable, investors seek more aggressive plays with their money. As the instability occurs, the solid aspects of holding Gold and Silver are more attractive.

GMRgold began readying its subscribers and clients about the dangers of inflation a full year before it became a household topic. The only time it is too late to buy homeowners insurance is after the fire. The same rings true for purchasing Precious Metals to protect your future, your money, and your way of life. With the nearly 100 years of combined Portfolio Management experience handling your precious metals portfolio, you can be assured that the advice you receive will be the best available in the Gold and Silver coin and bullion market. The timing has never been more critical than today to pick up the phone and secure your future. We look forward to handling your confidential and secure purchases for diversification in your personal and retirement accounts. Contact your representative today!

GMRgold's Precious Metals Week in Review - March 20, 2022

2022-03-29T06:29:00-05:00

Week Ending March 20, 2022

Entering New Phases With Gold
Gold traded in a tight range between $1,926.00 and $1,952.00 per ounce on the spot market last week. It would appear that the Ukrainian War is priced into the yellow metal. With the Federal Reserve board of Governors raising interest rates by ¼ point on Wednesday, both stocks and metals yawned. The first of the well announced increases was a given in the minds of most investors, the decision to continue at the aggressive rate which calls for 5 or 6 additional rate hikes in 2022 are murkier and should have more impact. With gold maintaining firmly above the $1,900.00 per ounce level, it has entered a new consolidation phase in advance of another leg upward. The new all time over $2,000.00 was clearly too much too quickly and represented knee jerk reactions to the Ukrainian conflict. Profit taking pulled prices back to a generous and needed move to begin the next phase of trading. Once the distraction of geopolitical events in Europe is behind us, investor attention will certainly return to the most important economic issue on the minds of all Americans, runaway inflation.

Silver Dependent on Headlines and Effects of Gold
Silver had an unusual trading week but still in the $24.50 and $25.00 range. The real story in Silver remains the physical demand and the physical price thereof. Random years of Silver American Eagles continue to retail for over $42.00. The blank planchette shortage is taking a toll on all newly minted sources. Bars and Rounds still offer the best premiums averaging $30 each on the retail internet stage. As news calms, silver does the same. As gold runs, silver runs as well. Silver is completely dependent on headlines and the coat tail effects of gold. In order to leverage silver, numismatic areas should be researched for portfolios of all sizes. The Morgan and Peace Dollar arenas remain strong and are still considered to be bargains.

GMR Has the Right Experience
The numismatic gold and silver market is stronger than perhaps anytime in history. With bid prices continually increasing and shortages of the finite market and individual specimens, dealers are forced to compete against each other for quality inventory and competitive prices. It is Important in times like these to have a dealer with the experience and contacts in the industry to provide its clients with the best available offerings. GMRgold is one of those companies with our management team combine for nearly a century of experience in the precious metals and numismatic markets. Our portfolio team tirelessly scours the market and typically is aware of packages and deals before they are common knowledge with competing institutions. Our buying power allows our clients to feel confident that they are adding the best coins at the best price to their portfolios. Many times, our portfolio managers learn from our clients that they are not comfortable with numismatics because they do not understand the market. Our Account Managers will not only help you with your bullion purchases but educate you in the exciting arena of rare gold and silver coins. The current market mirrors markets in the 1970’s and 1980’s when the rare coin index increased as much as 1,175 percent in a short 3 year period. Those markets were responding to double digit inflation as we are headed towards today. It is very early in this market and while we do not recommend putting all your eggs in one basket, there is a place in everyone’s portfolio for numismatics.

Be prepared for wild swings in all the markets as the midterm elections get closer. Positive headlines and negative rebuttals will litter the summer as the incumbent party attempts to cling to its razor thin advantage. Buy the dips if you are a bullion customer, if you are a numismatic enthusiast continue to accumulate.

GMRgold's Precious Metals Week in Review - March 13, 2022

2022-03-16T06:34:00-05:00

Week Ending March 13, 2022

Gold is Not About Day Trading

Gold took the markets on a roller coaster ride last week with prices ranging from a high of $2,060.00 per ounce to a low of $1,950.00 causing independent investors to re-think their positions. Stand firm! It must be noted that the very same institutions that made money on the rise from $1,750.00 to the recent record high close, are the same institutions that pocketed profits as the spot price fell $100 per ounce last week through short positions. Even in times of war and a country on the brink of economic storms, large investor greed can and will affect the markets and make it confusing for the novice participant. Regardless of the times that we live in, segmented views of charts can give day traders conflicted information. Our portfolio managers many times hear, “Yeah, but gold was down $26 yesterday.” “Yes sir, you are correct. Did you realize that Gold is up 14% in the last quarter?” Gold is not about day trading, it is about protecting the other assets you have from geo-political, and economic pressures. Gold is the tortoise in the race. There are ways to take the volatility out of your Gold positions. Ask your GMRgold representative how this can be done.

Silver Numismatics Markets Experiencing a Tightening in Supply Not Seen in Decades

Silver did what Silver does over the past week packed with news and uncertainty. It tracked with gold exactly. The charts can almost be laid on top of each other. With a high of $26.40 per ounce to a low of $24.80 per ounce the mirror image of gold gives the middle-class investor a less expensive alternative to participate in the frenzy. This volatility is certain to continue until Europe settles down and “the powers that be” at home find a way to get control of inflation. The United States Mint announced suspension of some Silver programs until they can prioritize how to allocate what “blanks” they have available. Blaming Covid for the supply shortages, the mint offered no solution to the supply chain problems, only a rationing plan. Numismatic Silver markets are experiencing a tightening in supply not seen in two decades. This coupled with increasing demand contributes to the physical vs. spot price separation. Large internet dealers are near $43 for a common date of their choice Silver American Eagle. Once the physical demand is translated into the electronic speculative spot price, expect mind boggling prices for spot Silver and exponential increase in Numismatic Silver and Gold.

Word of the Week – Recession……….A common definition is "two consecutive quarters of decline in GDP," but this isn’t necessary for the economy to be in a recession. A recession just needs to be a contraction of the economy, featuring shrinking production and consumption, higher unemployment, and (sometimes) lower price levels.

With the Dow Jones Industrial Average down 10% from its January high we are halfway to equities being labeled a bear market. Inflation is causing families to choose between fuel and eating out, medicine and beef, or new car or auto parts store. If the United States economy does not enter a recession, it will be paramount to the Dallas Cowboys winning a playoff game. Prepare now. The line at your Precious Metals dealer is growing and after the announcement will be around the building.

GMRgold's Precious Metals Week in Review - March 6, 2022

2022-03-08T08:15:00-06:00

Week of March 6, 2022

Selling in Equities Finding its Way to the Safe Haven of Precious Metals

The war in Ukraine continues to dominate the headlines and drive markets across the board. Gold is now threatening to topple the all time high while knocking on the $2,000.00 per ounce door. All this while the Dow Jones Industrial Average is down 4,000 points from its 52-week high and oil tops $130 per barrel for the first time since 2008. Clearly some of the selling in the equities market is finding its way to the safe haven of precious metals. While there is clearly support for Gold because of the war, the driving force before the conflict was inflation at home and abroad. More so than any other commodity, Oil prices affect the price of consumer goods, manufacturing and services across the board. Gasoline prices at the pump increased by 45 cents per gallon nationwide in just the last week. Inflation is not transitory as the Federal Reserve Chairman indicated over a year ago. And one should get the popcorn ready when the next Board of Governors meeting convenes and the excuses for delaying rate hikes start flying. The floor for the yellow metal appears to be in safely above $1,900.00 and could be providing a once in a lifetime opportunity as we speak.

Physical Silver Acquisition is Soaring

Silver is not as strong as gold firmly in the mid-$25 range on the spot market, but physical acquisition is soaring. While $2,000.00 is out of reach for some middle-class investors, $40 for a Silver American Eagle is still considered affordable and is the consensus price with major internet dealers. The spread between the physical price and the spot price continues to grow as demand continues to drive. Silver will “coat tail” Gold as dealers report first time a larger number of first-time precious metals customers is on the increase. Silver serves as an entry point to the market as the educational process steers first timers toward Gold.

Sanctions Have Nothing to do With Kremlin Exports

As mentioned above, Oil is approaching all time highs and shows no signs of slowing. Following the crippling policies of the current administration on the oil industry and specifically production, stateside refineries were forced to seek offshore suppliers to keep production and employment going. The United States imports over 600,000 barrels of oil per day from Russia. With all the sanctions that have been levied on the Kremlin following the invasion of Ukraine, none have anything to do with energy exports which account for over 50% of the income Vladimir Putin relies on to fund his aggression. The same amount of oil is required daily to meet demand. Does it really matter where the supply comes from? Lawmakers are calling on the White House to release the restrictions placed on domestic oil to further deter Russian aggression by allowing U. S. producers to satisfy domestic demand and assist Europe in weening from Russian energy purchases. Until this policy reversal, enjoy the ride to $10 gasoline.

Oil Prices, War, and Inflation are Driving Commodities to New Heights

All precious metals dealers are experiencing increases in sales as the “perfect storm” of soaring oil prices, war, and inflation drive commodities to new heights. GMRgold has taken measure to ensure that your needs are met with our expert team of portfolio managers and support staff. There has clearly never been a more important time to diversify your investments with the insuring qualities of Gold and Silver. There are no needs too small or too large. You will be comfortable with the educational experience offered to the first-time purchaser as well as the seasoned precious metals investors. Reach out to your representative today at 877-795-9585 to begin the process.

GMRgold's Precious Metals Week in Review - February 27, 2022

2022-03-01T14:56:00-06:00

Week of February 27, 2022

An Eye on the Immediate Future

Gold Investors must have felt like Dallas Cowboy fans entering the playoffs last week as gold looked like it would head to the moon only to fall back to the comfort of its most recent foothold. After threatening the $2,000.00 per ounce spot price, Gold retreated to its safe zone near the $1,900.00 level that it has now set as the new level of support. We can safely expect two things. $1,900.00 looks to be a firm intermediate basis point from which to build and the war frenzy is cooked into the price already. The ceasefire for talks with Ukrainian leaders gives NATO time to decide what their role is in this conflict. Europe surely must be uneasy as to whether the Russian Premier is simply regrouping to analyze current target achievements and future plans for new sorties. New bombings would seemingly affect the spot price positively as Putin’s true intentions would become much clearer. Many analysts are fearful for the possible “Lehman Situation” which could occur by the locking out of Russian Banks from SWIFT and sanctioning all transactions with the Russian Central Bank. One must remember almost a year ago Russia completely divested their strategic reserve fund of US Dollars for Euros, Yuan, and Gold.

Stay Strategic for Now

Silver followed the yellow metal in lock step with a low for the week of $23.77 per ounce, a high of over $25.00, and then settling back to the mid $24’s. With the extended consolidation period silver has been in, when a breakout occurs, it will be decisive and swift. Silver bugs must be diligent in finding the best premiums in bullion and balancing with low population numismatic varieties for insurance on their plays.

Platinum is Attractive Because of its Resilience in COVID Fallout

Our clients are asking a lot of questions about platinum. It must be noted that platinum has never been considered a safe haven area. While 50% of platinum’s demand comes from catalytic converter manufacturing, it is surprising that platinum has not suffered more with the problems in the auto industry worldwide. There are some emerging market demands that are increasing and holding speculation where it is. Platinum demand is clearly driven by manufacturing beyond the automobile industry. With manufacturing still recovering, platinum is attractive because of its resilience against the covid fall out. The only question is how long will the recovery take?

Numismatics Very Much Back in Action

Numismatic gold and silver coins remain an extremely hot market as the Coin Shows reopen and Auctions are setting all-time records in individual coins and session totals. The Ultra Rare specimens are bringing unheard of bids creating a gap between that level and Key Dated Coins. Key Dated Coins are moving to close the gap which points to the Better Date Coins as an excellent value. Contact your GMRgold representative for portfolio opportunities in the antique and modern numismatic markets.

World Outlook

We do not know what the aggression by Russia and the ensuing unprecedented sanctions against Putin’s regime will cause to the macroeconomic landscape. One thing looms predictable. Twenty years from now when we look back on these times that we have created we will realize two things. We were truly living in historic economic and geo-political times, and “I wish I would have bought more gold.”

GMRgold's Precious Metals Week in Review - February 20, 2022

2022-02-22T13:07:00-06:00

Week Ending February 20, 2022

Gold is Up - Here's How and Why

Gold added to the belief that this current strength in the spot market price is not just a “fluke run” but a firm “leg up”. Spending tireless months battling against the $1,800.00 level of resistance, gold took up residence in a new neighborhood well above that key psychological level. Currently knocking on the door to a new street above $1,900.00 gold seems to have its sights set much higher. The largest internet precious metals dealers are still hovering around a 10% premium above spot for the physical metal. While this is down from the physical premium peak of 2021, it is still north off the normal which buyers once enjoyed in the 3 – 5% range. While some analysts claim that gold’s place in the spotlight is a result of the Global Unrest with Russia about to invade Ukraine, the United States and all its assets are at war stateside against inflation. Inflation is the primary catalyst when it comes to the gold price. Gold is priced in dollars around the globe. Weakening dollars simply translate into a stronger gold price. It is important to note that gold does not go up or down. The dollar goes up or down resulting in gold costing more or less.

What's Going On With Silver and American Eagles

Silver languishes in the $23’s on the spot board while it is a very different story on the physical side. While bars and rounds carry the least premiums, a roll of 2022 Silver American Eagles carries a whopping 49% premium above spot at the major internet dealers. Know this about the price of Silver Eagles. The United States Mint has not increased the price to its Authorized Purchasers per ounce of Silver American Eagles. The retail level dealer that many Americans utilize either at a local storefront or on the phone for 10-day delivery is not making the profit between the Mint and the consumer. It is at the wholesale level that buys directly from the Mint. As long as they are able to add $8 - $10 to the price they pay the mint, they will continue to do so. When individual investors realize that the most they can realize on that $36 silver eagle is $26 or $27 from a reputable dealer, and $22 to $23 from a pawn shop, demand will drop and the crazy profits will contract to a more palatable level.

Numismatics Are Less Dependent on Market Manipulations

Numismatic Gold and Silver offer tremendous advantages when premiums on bullion inflate to the points that we see today. The premium on rare silver and gold is calculated differently but the same as with bullion. It is easy to see the premium between the spot price and the buy price with bullion. At the end of the day, the difference between what you can buy it for, and what you can sell it for is the actual premium for both bullion and numismatics. In more and more cases, you are much better off selecting a numismatic product that has three influences on its price. The intrinsic value of the metal, and the rarity and condition of the specimen. This type of purchase is less dependent on market manipulations and offers an alternative to unreasonably high premiums.

GMRgold’s Precious Metals Week in Review - February 13, 2022

2022-02-18T09:49:00-06:00

Week Ending February 13, 2022

Things Are Looking Up for Gold

There is reason for optimism in the gold sector with spot prices bumping $1,900.00/ounce up nearly $100 since the beginning of 2022. If the trend continues, the psychological level of $2,000.00 could be breached within 6 – 8 weeks. JP Morgan sets the intermediate breakout point at $2,280.00 in 2022. Goldman Sachs recently revised estimates upward to $2,300.00 as well as Bloomberg Intelligence’s opinion that “Gold will steal the show” in 2022. The perfect storm behind the current euphoria is trifold. Global unrest in the face of a Russian invasion of Ukraine, runaway inflation levels not seen in over 40 years, and institutional investors giving up the long fought, good fight to suppress the spot price in favor of naked short positions. The current trend is certainly vulnerable to profit taking which may shake some of the weaker hands, but the consensus is towards tangible assets lead by the precious metals sector. Do not be scared away by a slip in the daily posted spot price.

Physical Silver Stronger Than Spot

Silver reluctantly followed the strength of gold topping the $24.00/ounce mark before retreating into the mid $23.00 range. Physical silver remains decidedly stronger than the spot price would indicate which adds to the constant hope of Silver Bugs around the globe. A recent article on Zero Hedge chronicled the same “crush” that gold experiences minutes after the New York Open daily. Citing actual beat downs at the beginning of U. S. trading over the past 5 years, the research showed that without the daily attacks, silver would go over $150 per ounce. This is not hard to wrap one’s mind around when you see the growth in physical and numismatic gold and silver coins over the past 24 – 36 months.

Stay Ahead of the Trend With GMR

The numismatic market is becoming increasingly thin with the wholesale level dealers scrambling and competing for inventory which creates higher and higher bid pricing. With the trend showing no signs of slowing, local store front dealers and “Mom and Pops” will need to get more and more creative or find themselves with only Mercury Dimes and Walking Liberty Halves to offer to the increasing public appetite. GMRgold, with its extensive industry reach and buying power, keeps our clients ahead of macro and micro trends that local dealers are unable to offer.

Economics at a Glance

Rightfully so, all eyes have been on the Federal Reserve Bank and their inability to act on the crippling effects of Inflation. Announcing an emergency closed door meeting for Valentines Day, there were no love offerings for the concerned masses. With no action taken in the dramatic assembly of the Governors, the only consensus taken was that “something needs to be done”. As they have been doing for nearly 3 years now, the United States Central Bank is “threatening” to raise interest rates as much as 7 times in 2022 in .25% increments. They also threaten to start divesting themselves of their tremendously “off balance” sheet of bond purchases which now stands at over $9T. $9T. Meeting after meeting, press conference after press conference, the need is spelled out, but the action is missing. It is this author’s opinion that a political cloud hangs over the decision-making process as 7 quarter percent increases will cost jobs as it always does. When interest rates were increased in 2000, the job loss spanned over 3 years. Unemployed Americans do not vote for the incumbents based on the simple question, “Are you better off today than you were when they were elected?” I think this is an election year.

This inflationary environment is not transitory. Inflation directly and dramatically affects the precious metals universe. There is never a bad time to increase or begin your accumulation of precious metals and coins. But some times are better than others. This is the best time I have ever seen!

GMRgold’s Precious Metals Week in Review - February 6, 2022

2022-02-10T19:20:00-06:00

Week Ending February 6, 2022

In Summary

Gold began the frigid month of February much like the Winter Storm that swept across the nation from Texas to Maine. FROZEN! Stuck in a tight range between $1,796.00/oz and $1,811.00/oz all week. The week was slow as far as economic reports and news is concerned, except for the jobs report that blew away the loftiest of expectations by more than double. Click here to see the autopsy of this report that shows traders have been making decisions based on fake news the entire year of 2021.

A Bright and Shiny Future

Wells Fargo has modified their expectation of Gold’s performance to join other prognosticators in expecting the yellow metal to shine around $2,100.00/oz by the end of the year. Despite all of the visible and obvious manipulation of the precious metals, they, especially gold, have been the tortoise in the long race. Accumulation today will show prudence tomorrow. If the illegal tactics are stopped, the Gold Bugs will control their own future. Utilize all physical opportunities in Gold, namely antique, certified, pre-1933 rare gold, and specific certified low population modern Gold Eagles. This arena is stronger than it has been in over a decade.

Opportunity in Bullion

Silver decided to sleep through the first week of February much like its umbrella partner Gold starting the week at $22.48 reaching a high of $22.84 and settling out the week at $22.51. Not much going on here except an opportunity for accumulation. There are extremely strong areas of numismatic silver while the bullion slumbers. Check out Morgan and Peace certified Dollars in all groups, common, better date and key dates. All show strong pressure holding bid prices and moving the wholesale market. I personally am paying attention to meaningful certified Signed Silver American Eagles with low populations.

Get it Now...

Make no mistake who is in the Oval Office, and who is behind the decisions coming out of the White House. Then remember who is in control of Congress. The economic outlook would be bleak if there were not two Democrat Senators that have some sense of sound conservative economic principles. But that is a thin line of resistance. After a year of the Biden Administration, it is clear the attack on the oil industry is specifically to make it expensive to own gas burning vehicles making electric cars look more attractive. Throw in the “chip shortage” which has car lots across the nation littered with very few new units and full of pre-owned vehicles at astronomical premiums just to keep the doors open. What this means is sticker price plus 30 – 40% on the new cars. Two things here, why not make the sticker 30% - 40% higher. Well then, you would not see how much more the gas burning engine is costing you. Further closing the gap between gas and electric vehicular power costs. There are no accidents in politics. This inflation is not transitory. It will drive commodity prices much, much higher. Get Gold!

GMRgold’s Precious Metals Week in Review - January 30, 2022

2022-02-10T08:19:00-06:00

Week Ending January 30, 2022

What's Really Going On

Gold started the week well over $1,800 - reaching a high during the week of $1,851.00 only to succumb to the bears and institutional investors who still are holding on to naked shorts by ending the week at $1,782.00. Clearly the weak hands have not covered their negative positions on the yellow metal even in the face of more and more evidence that the economy is hanging on by a thread. To understand how dire the economy is and how deadly it is to the political party in charge, just consider the statements by White House Press Secretary on Monday who lambasted Fox News for reporting on the dangers of a growing inflation instead of reporting on “what she considers to be the news of the day.” As someone who has had a voracious appetite for news for nearly three decades, I would point all who read this to pay attention not so much what the news “says” as to pay attention to what is going on which the news. Pay attention to Liberal news outlets starting to report on not so flattering information for this administration. Do not pay attention to the distractions that are paraded in front of you daily to keep you from watching your money. The world is on the edge of a major correction. The big picture reminds me of how the new world colonist must have felt prior to the issuance of The Declaration of Independence from Great Britain.

Silver Bargains

As disappointing as the results for Gold were, Silver Bugs are either celebrating a fire sale or wondering what the heck is going on. Silver started the week over $24.00 and closed nearly 10% down from that number at $22.00 and change. Silver at anything around $22.00 is a bargain and someday, when the reality of economics overwhelms the euphoria of crypto currency, and an ever up Dow Jones Industrial Average, it'll pay off.

Much Needed Change

The Federal Reserve Board of Governors continued to show signs of easing the purchasing of assets and preparing for interest rate hikes beginning as soon as March in their scheduled meeting last week. The housing market is already predicting the slow down that could occur when money gets more expensive to borrow. There are dozens of examples of inflation and hyperinflation and how to not to proceed. Turkey just fired their Statistical Director when the annual inflation rate for that country for 2021 came in at 46%. Calculate the increase in food and fuel, which by the way are not included in the Consumer Price Index, and you can start to see that 46% is not out of the question for our homeland. Incidentally, while on this point - one might wonder why the CPI does not include these two incredibly important components of the economy. It is estimated that if they were included, Social Security payments would be 45% higher today than they are.

"When a government is dependent upon bankers for money, they, and not the leaders of the government, control the situation, since the hand that gives is above the hand that takes. Money has no motherland. Financiers are without patriotism and without decency. Their sole object is gain."
………Napoleon Bonaparte (1769-1821)

GMRgold's Precious Metals Week in Review

2022-01-13T08:00:00-06:00

Week Ending January 8, 2022

Global Reserve Revealing

There is still huge resistance at the $1,800.00 per ounce of gold level through the first full week of 2022. Expect a tight range of trading +/-$50 of this critical technical barrier until the large institutional investors have cleared their naked short positions and whomever wants the US Dollar to appear stronger than it actually is pulls the curtain back for the world to see. With gold priced globally in the USD, a strong move to the upside would signal weakness in the Global Reserve Currency.

Mining Operations Support Silver Supply vs. Demand

Silver remains camped out in $22 land with the lack of positive manufacturing data. It is in times like these that knowing a basic fact of silver supply and demand. According to the Silver Institute, who reports on silver and does not trade silver, has reported that 85% of the global annual demand for silver is satisfied through the tailings of other mining operations. While several lessons can be learned from this, the primary knowledge should be that there is no shortage of silver. When silver spot price drops below the Price to Produce mines are closed. When above ground silver dwindles, prices increase and remain strong until the mines reopen and solve the supply vs. demand temporary problem. Call your representative today to learn how to use certified and graded silver coins to leverage a sleepy market.

Platinum Could Be a Bargain Right Now

The Platinum Group of metals joined in other metals in extending the holiday season. Again, the same principle as silver is dealing with affects this family. Eventually the supply of usable platinum and palladium will dwindle and prices must respond via the basic law of economics. This could be a bargain price we are looking at today as the world struggles to find employees willing to grab a pair of boots and a shovel.

This is a huge week for economic reports with the CPI, PPI, Import Numbers, Wholesale Inventories, Federal Budget, and Retail Sales Reports. Expect some fireworks as Wall Street digests the results and the markets react.

How Far Will Biden Be Pushed?

Geopolitical news is once again pushed from the headlines by more important distractions, while Russia rattles it sword on a second possible front on the border with Kazakhstan. With Russia announcing in 2021 that would divest to zero their US Dollar holdings in the strategic reserve and accomplishing that within 120 days, one must ponder how far Putin will push President Biden, and far President Biden will allow Putin to push.

Getting Creative

When the metals are flat and bumping into technical barriers, die hard gold and silver investors must get creative by choosing leverageable avenues. GMRgold does the hard work for you, scouring the market to choose the top recommendations for especially these times. Ask your representative about products that have consistently outperformed the spot prices for the shiny metals. You don’t wait to buy Gold and Silver Coins, You buy Gold and Silver Coins and wait!

GMRgold’s Precious Metals Week in Review

2022-01-06T08:00:00-06:00

Week Ending January 1, 2022

GMRgold.com - the precious metals leading gold, silver, platinum and palladium experts, provides a weekly update in the precious metals market.

Gold: It is apparent that the Bears took a more extended vacation than the Bulls as is evident with the moves in Gold over the Holiday week. With the battle line firmly drawn at the psychological level of $1,800.00 per ounce for months, the yellow metal managed to close above this milestone each of the five trading days the last week of the year, only to find its way back to $1,799.52 on the first day of business in 2022.

There is a clear consolidation occurring at the $1,800.00 mark and given the length and breadth of the skirmishes one should realize the breakout will be something to behold when the Bulls do indeed win this battle.

Silver: Silver still struggles to find any direction following its discouraging collapse in the second half of 2021. Trading for almost the entire 4th quarter in a tight range around $22.00 per ounce, the shiny metal could use some positive manufacturing news to offer some assistance in another rally towards $30.00.

With an administration hell bent on feeding rather than defeating inflation, one might expect Silver to react as fundamentals would dictate. We all wait with bated breath. Until then, expect more of the same with trading languishing between $22 and $25 for the next two quarters.

Platinum: The platinum family of metals offer no distraction to the snoozer which is Silver. They too look for some sort of twinkle of a signal that the Covid labor shortage will cure itself and global production of any kind will show signs of recovery over the relentless headlines.

The Dow Jones Industrial Average continues its march towards 40,000 while turning a blind eye to fundamentals. The uneducated investor is oblivious to the fact that the DJIA is a measure of 30 stocks representing some 2,800 companies traded on the New York Stock Exchange.

It is hard not to enjoy the euphoria which is an unending uptrend in stocks defying all odds, but just like the children’s birthday party game, when the music stops playing, there will be fewer chairs than investors.

This is a slow week for economic indicators to be released which typically puts the markets in state of suspended animation. Next week, however, is a busy week for releases and expect fireworks in every index.

Geopolitical news is dominated still by the show of strength on the Ukrainian border by Russia. The ball is in NATOs court with the possibility of extending membership to Ukraine. Vladimir Putin is counting on more non-action from the United States and more fear from NATO. It is wintertime in the region, it should be clear, the 100,000 Russian troops battle ready on the border are not simply an exercise. This could affect all markets worldwide with flights to safety.

Insure your portfolio with tangible assets lead by Gold and Silver Coins and Bullion. In every previous economic downturn, those that followed this practice survived the pain better than those who did not.

WORD OF THE WEEK – Stagflation - Stagflation is a period when slow economic growth and joblessness coincide with rising inflation. As the global economy reopens, growth has picked up in the world’s big economies. The worry is that higher prices on everything from a gallon of gasoline to an hour of labor could slow that recovery. Those price increases, in turn, could force central banks to raise borrowing costs at a faster clip to rein in inflation, placing even more drag on GDP.

Contact us today to discuss your precious metals portfolio. We stand ready to answer your questions and provide insightful guidance to help you exceed your financial goals.

Precious Metals IRA Investing for Beginners

2021-10-21T17:01:00-05:00

A Precious Metals IRA is an IRA account that contains physical gold, silver, platinum or palladium. You must keep it in a vault at an approved secure storage facility. You contribute to it just as you would to an IRA containing stocks. How do you begin? First, you need to understand the principles of Precious Metals IRA investing. Then, find the best gold IRA company to help you along the way. The best gold or silver IRA company can help you manage this investment. They can help you buy and sell precious metals to maximize your long-term earnings, too.

These PM IRAs give you the same tax advantage as any IRA, so you don’t pay taxes on them until you take disbursement at retirement time. Or, you can use after-tax dollars to buy precious metals, add them to a Roth IRA, and avoid paying taxes on the entire amount at disbursal time. In addition to the tax benefits, Precious Metals IRA investing is a good idea for many reasons. First, this type of IRA is self-directed. You make the choices for each addition to your portfolio. You choose how to take your disbursement, whether that is to buy or sell the precious metals and take away cash or to take physical possession of your precious metals and hold them wherever you choose.

Precious metals also offer a safe haven during difficult or uncertain economic times and times of national and global unrest. Because gold, silver, platinum and palladium retain their value over time and increase over the long term, they provide a superior hedge against inflation. And, they allow you to diversify your portfolio to provide you with more financial security.

You can only invest in IRA-approved silver, gold, platinum or palladium coins, rounds and bars. Some of the options for Precious Metals Investing include Gold American Eagles, Silver American Eagles, Gold Buffalos and Silver and Gold Canadian Maple Leafs. Other choices are Austrian Philharmonics, Gold Pandas, Sunshine Mint Rounds, PAMP Suisse, Credit Suisse or PAMP Suisse gold bars. To make sure you get coins, bars and rounds that are IRA-approved, your best bet is to work with a Precious Metals Investing Company to buy IRA Gold coins, rounds and bars, as well as other precious metals.

Choosing the best gold IRA company begins with a basic understanding of this type of investment account. Once you understand how the process works, you have a basis for judging the capabilities of a gold or silver IRA company.

GMRgold.com can help you invest in Precious Metals IRA Investing any time you are ready to begin a new IRA or add to an existing one. For more information or to begin right away, contact GMRgold at 1 (877) 795-9585. Our Precious Metals experts can help you purchase your IRA account, fund it, and choose your investments. We are happy to guide you on your journey toward financial independence and long-term security.

Learn everything you need to know about investing in precious metals in the form of a Precious Metals IRA, and how to take full advantage of the benefits of this type of IRA by downloading our ebook "Protect Your IRA With Gold."

Knowing When to Sell Your Silver

2021-10-10T00:00:00-05:00

Trying to Figure Out When to Sell Your Silver? Our Top Insider Tips

Knowing when to sell your silver is important, and good judgment must be made when making such an important decision.

Currently the value of silver is increasing weekly and it is a great time to buy silver, not sell. Of course this is at the filming of this video. Things change. Call us or email us at gmrgold.com for up to the minute analysis on this topic.

When to sell silver should really not be dependent on the value of silver, but on your need to convert it into cash. It is a good idea to own a nice selection of silver. Owning silver coins and some smaller bars gives you a choice to buy or sell large or small quantities.

Take special precautions when selling your silver coins as sometimes they are hard to replace due to limited mintage or rarity.

You should also consider who you are selling to. Coin collectors clubs or reputable dealers are a good choice. Both can provide good outlets to sell silver. Advertising in newspapers or auctioning on eBay are other avenues. Make sure, in these instances, you know and can trust the buyer, especially if the value you are selling is high.

It is really better to never sell your silver asset unless you really need to and then only sell enough silver to convert to what you actually need.

It is very important knowing when to sell silver, just as it is important knowing when to buy silver.

Remember, "Take care of your money and your money will take care of you."

We stand ready to serve you - call or email us today to start a conversation.

Top Tips for Selling Silver

2021-10-03T00:00:00-05:00

Our Experts Advice to Clients on Getting Top Value for Selling Silver Coins and Bars

Silver has been on a steady uptrend in value for some time and the question is often asked, when should one be selling their silver?

It is difficult to say when or if silver will stop rising in value. Silver is currently in short supply around the world and although the use of it has dropped in photographic paper due to the prolific increase in digital photography around the world, demand from China and other Asian nations has increased markedly over the past few years.

The increasing demand for silver affects all holdings of silver.

As the value of silver rises so does the value of silver bullion in the form of bars and coins.

It seems unlikely that the long term uptrend in the price of silver will slow down or even fall slightly anytime soon.

Our experts predict the price of silver will continue to climb, making many silver coin collectors around the world overjoyed to say the least.

In the 1980s, the value of silver peaked at around 20 US dollars per ounce. This was a one off and the value dropped after that. What we see now is a slow steady increase and looks set to reach new heights soon.

Selling silver would seem, at this time, not to be the best option. Our experts are advising clients to hold on to their silver for many years to come.

Remember, "Take care of your money and your money will take care of you."

We stand ready to serve you - call or email us today to start a conversation.

Can I Open A New IRA With A Contribution?

2021-10-03T00:00:00-05:00

Welcome back to GMRgold’s series on Precious Metals "self directed" IRA’s - A short series of videos that will explain everything you need to know on precious metals self directed IRA’s.

Make sure you catch all the videos in this series to get a full understanding of precious metals self directed IRA’s. This is the last of the videos in this particular series. We have more series on other important precious metals topics on our website, as well on our video channels.

Let’s continue…

Can I open a new IRA with a contribution?

Yes, you can open a new IRA with a contribution. Your annual contribution limit will remain the same.

Who holds the precious metals in my IRA?

Your GMRgold private advisor will help you select an IRS approved precious metals custodian that will manage your physical precious metals at a designated depository. At your direction, an IRS-approved precious metals custodian manages your physical precious metals. The custodian will provide you with consistent reporting on your precious metals IRA and earnings.

What’s the difference in Precious Metals ETFs vs. Precious Metals IRAs?

A precious metals ETF is best suited for investors and traders that desire to move in and out of markets quickly. ETFs are a paper instrument with counter party risks, and do not allow you to take physical possession of your gold and silver. On the other hand, owning physical precious metals is better suited to individuals that want to buy gold and silver and hold it longer term. If you own the physical precious metals within your self-directed IRA, you always have the option of taking physical possession of the actual gold and silver.

Thank you for joining us for the final video in our series on precious metals IRA’s. The link to the other videos in this series is in the link description below. Feel free to visit our website at your convenience for more information on this important topic, as well as many other topics on diversifying into precious metals.

We are here to answer any questions you may have about moving into the precious metals markets. Thank you for joining us in this series on precious metals IRA’s.

What Types of IRAs are Eligible to Transfer or Roll Over?

2021-10-03T00:00:00-05:00

Welcome back to GMRgold’s series on Precious Metals "self directed" IRA’s - A short series of videos that will explain what precious metals self directed IRA’s are, what’s involved in moving into a precious metals self directed IRA, what contributions are required, and much more! Make sure you catch all the videos in this series to get a full understanding of precious metals self directed IRA’s.

Let’s continue…

Can I add or contribute coins or bullion that I already own to my precious metals IRA?

Basically, No. The exception being the scenario of transfers or rollovers with all contributions being made in cash. The physical precious metals that you select for your precious metals IRA will be shipped directly to a depository and maintained there on behalf of your IRA account.

Can I transfer money from an existing IRA account to fund my Precious Metals IRA, and if I do so, will I incur any tax penalty?

Yes, you can transfer. If you have an existing IRA or 401(k), the simplest way to set up a new Precious Metal IRA is via a metal transfer. You would simply transfer the amount you want to invest in the new IRA. Of course consult your own CPA, but generally there will not be any tax penalties for a transfer. The IRA custodian is an expert in transfers and will assist you in facilitating this process.

What types of IRAs are eligible to transfer or roll over?

All IRAs, including Traditional, Roth, SEP, SIMPLE and Solo are eligible for direct rollover. Inquire with your IRA custodian for specific plan details or any plan limitations, or visit our website at GMRgold.com for more information. Our advisors are standing by if you’d like to call as they can answer any questions you have.

Thank you for joining us for video two in our series on precious metals IRA’s. The link to the other videos in this series is in the link description below. Feel free to visit our website at your convenience for more information on this important topic, as well as many other topics on diversifying into precious metals.

What is a Precious Metals Self-Directed IRA?

2021-10-03T00:00:00-05:00

Welcome to GMRgold’s series on Precious Metals "self directed" IRA’s - A short series of videos that will explain what precious metals self directed IRA’s are, what’s involved in moving into a precious metals self directed IRA, what contributions are required, and much more! Make sure you catch all the videos in this series to get a full understanding of precious metals self directed IRA’s.

Let’s start…

So, what exactly is a precious metals "self-directed" IRA?

The term "self-directed" simply means that you, the individual, has complete control over selecting and directing your individual retirement account investments. You are empowered to make all of the decisions regarding your investments within the self-directed IRA.

Self-directed IRAs offer a multitude of alternative investments for retirement savings such as precious metals IRAs, real estate, horses, oil and gas LPs, private mortgages, private company stock, and intellectual property.

There are four parties involved with a precious metals IRA. These four parties are you, the precious metals dealer, the IRA custodian/administrator and the precious metals depository.

What criteria is used for precious metals IRA products?

All products involved with precious metals IRAs must meet minimum fineness requirements set by the Internal Revenue Service. The Gold American Eagle is the only exception.

Any products falling outside of these certain ranges, excluding American Gold Eagles, are not approved for precious metals IRAs. A few examples of non-approved precious metals products include Krugerrands, 90% silver and any collectible, graded or certified coins.

You can see a complete list of IRA approved precious metals on our website at GMRgold.com.

Is there a minimum amount required to open a precious metals IRA?

We are one of the few national precious metals firms that has no minimum requirement for precious metals IRA. However, we do recommend that you allow us to help you assess the startup costs and annual custodian fees in order to determine what minimum investment will profitably offset the custodian fee structure.

Thank you for joining us for video one in our series on precious metals IRA’s. The link to video two is in the link description below. Feel free to visit our website at your convenience for more information on this important topic, as well as many other topics on diversifying into precious metals.

Can I Take Delivery of The Metals In My IRA?

2021-10-03T00:00:00-05:00

In this series we will discuss the most frequently asked questions we get on a regular basis from our clients regarding Precious Metals IRA’s. This is the fourth video in this series. Please make sure you watch the remaining videos in this series - they should help answer some of your questions about diversifying into the precious metals markets.

Can I take delivery of the metals in my IRA to satisfy an RMD?

Yes. You can always take direct delivery of the precious metals in your IRA at any time for any reason including to satisfy your RMD requirement.

How do I pay my annual Precious Metals IRA fees?

You can pay your annual Precious Metals IRA fees via check or credit card. Alternatively, you may elect to pay your fees out of any cash that you have in your account. All fees paid out-of-pocket for your IRA are always 100% tax-deductible.

What happens if I miss my annual IRA fee payment?

If you miss your Precious Metals IRA payment, you will be charged a late fee. If you fall significantly behind in your payments, your custodian may actually be able to sell some of the precious metals in your account in order to pay delinquent fees.

Do I receive statements for my Precious Metals IRA?

Yes. You will receive quarterly statements of your IRA account from your custodian.

Can I see the precious metals in my Gold IRA?

Yes. Depending on what storage facility you select, you can generally make an appointment to actually view your precious metals.

Thank you for watching this video in our series on Precious Metals IRA’s. We hope you found it informative. Please make sure you watch the remaining videos in this series - they should help answer some of your questions about diversifying into the precious metals markets. You can always find more information on this topic, as well as other important information on the precious metals markets by visiting our website linked in the description below.

Where Are The Precious Metals IRAs Stored?

2021-10-03T00:00:00-05:00

Where are the storage facilities for my Precious Metals IRA?

Various custodians use different storage facilities for the secure storage of your precious metals. Some custodians use multiple facilities and give you the option of choosing between different facilities. Most reputable precious metals firms keep an active list of available storage options through various custodians here. Some of the most popular facilities include:

Delaware Depository Service Company (DDSC), Wilmington, DE
Brink’s Global Service, Los Angeles, CA, Salt Lake City, UT, and Springfield Gardens, NY
International Depository Services (IDS), New Castle, DE, Toronto, Canada, and Ontario, Canada
First State Depository, Wilmington, DE
CNT Depository, Bridgewater, MA

Will my Precious Metals IRA be stored safely and are my metals insured?

The depositories used by the major self-directed IRA custodians use state-of-the-art security systems, armed security, and surveillance. The facilities carry excess insurance policies from major global insurers like Travelers and Lloyd's of London. Some policies are in the billions of dollars. When you choose a reputable custodian and reputable storage, you can rest assured of the safety of your IRA precious metals.

Can I change storage facilities?

Yes. If you are unsatisfied with your storage facility or the fees charged, you may move your precious metals to another storage facility. If your custodian does not offer the storage facility you desire, you may need to change IRA custodians.

Can I Add To My Precious Metals IRA?

2021-10-03T00:00:00-05:00

Can I add to my Precious Metals IRA or make more transfers?

Yes. You may always add to your Precious Metals IRA. You may add to it by transferring funds from another IRA or retirement plan. You can also make annual contributions to your IRA based on the limits set by your category of IRA and your age.

Can I change metals within my Gold IRA?

Yes. You are allowed to trade, transfer, swap or sell the precious metals in your IRA at any time without any tax implications.

How Do I Liquidate My Precious Metals IRA?

2021-10-03T00:00:00-05:00

What if I need to liquidate my Precious Metals IRA?

You can sell the gold or precious metals in your IRA at any time without any taxes or penalties, provided you do not take the cash out of your IRA. If you take the cash out of your IRA you will need to pay taxes on the cash unless it is a ROTH IRA.

What happens to my Gold IRA if I die?

In the event you pass away, your IRA and its assets will be transferred to your IRA beneficiary or beneficiaries. You can name the beneficiaries to your IRA when you establish the account and you may change the beneficiaries at any time.

Can I leave my Precious Metals IRA to my church or charity?

Yes. You may name your church or any charity as the beneficiary of your IRA and its assets.

How Do RMDs Work For A Gold IRA?

2021-10-03T00:00:00-05:00

Can I store my IRA precious metals myself?

The IRS requires that precious metals owned by an IRA be stored in the possession of a trustee or custodian. The IRS code also states that "The trustee or custodian must be a bank, a federally insured credit union, a savings and loan association, or an entity approved by the IRS to act as trustee or custodian." However, many IRA holders use what they believe is a "loophole" in the US Tax Code that allows the account holder to self-store the metals using a "checkbook control IRA", "LLC IRA", or "Home Storage IRA". Storing your IRA metals at home may expose the IRA account holder to a material risk of IRS penalties. Custodians who offer a Checkbook IRA structure mostly recommend that clients hold the IRA metals in a bank safety deposit box.

How do RMDs work for a Gold IRA?

IRA holders must take Required Minimum Distributions (RMDs) beginning at age 70 ½. With a Gold IRA, you can take your RMDs “in kind” meaning that you have the physical precious metals sent directly to you.

Alternatively, you may sell the precious metals and take distributions in cash.

Do I pay taxes when I transfer into a Gold IRA?

No. When you properly move your funds from an IRA or retirement account to a Gold IRA, there are no tax implications.

Are there any metals not allowed in a Precious Metals IRA?

Yes. The only precious metals permitted in a Precious Metals IRA are:

Gold: Gold American Eagles (Proof or Uncirculated) in 1 ounce, ½ ounce, ¼ ounce, and 1/10 ounce sizes as well as other gold coins or bars with a minimum purity of 99.5%.
Silver: Coins or bars with a minimum purity of 99.9%
Platinum: Coins or bars with a minimum purity of 99.95%
Palladium: Coins or bars with a minimum purity of 99.95%

Can I also have silver in my Gold IRA?

Yes. Many Gold IRA holders own silver in their IRA in addition to gold.