Some folks invest in silver or gold and get just a document claiming they own some silver. These "ownership" accounts may even become a part of an IRA if you wish. Pretty good idea... except for the FACT you bought paper with your paper! Go ahead and do this, if you trust them to actually hold onto some silver someplace with a little "sold" tag with your name on it. I am not claiming they are crooks but just to beware!
My guess is that, as the banks do with fractional reserve, these companies can keep a fraction of what holdings they are supposed to retain. When the dollar crashes we shall find out how much they have held, and if it is even available to the buyer at that time.
My guess is that, as the banks do with fractional reserve, these companies can keep a fraction of what holdings they are supposed to retain. When the dollar crashes we shall find out how much they have held, and if it is even available to the buyer at that time.
Also remember that if you invest this way, it is on record that you 'possess' the item(s). So if you don't want a paper trail of your holdings for some reason, you may not want to invest this way.
However, there are some benefits to buying this way. If you direct the silver/gold to go into an IRA it becomes a tax advantage or write-off to you for now. And if everything goes well, one day you may want to withdraw your savings and pay taxes at that time based upon your retirement income, which will probably be much smaller and give you an advantage at that time. Of course, if the tax rates increase between now and then it may not be an advantage. We simply cannot know for sure.
I don't know if a Roth IRA is available to use for precious metals. If you are interested consult a financial expert.
As for me, I follow the words in the meme above.
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| USA = just 5% of the world's silver production. |