June 2020 - Week 2 Edition
America’s Gold Expert® Says Invest 25% of Your IRA or 401(k) in Gold and Silver – Here’s How
Now that many leading mainstream banks have raised their gold price target and have recommended a significant portion of one’s portfolio to be in gold, it’s time to make sure your regular portfolio and your retirement portfolio are properly balanced in precious metals. A division of BankAmerica, for instance, recommends a 25% position in gold, and Bank of America just raised its year-end 2021 gold price target to $3,000 an ounce, over 50% above gold’s all-time high price and 50% above the bank’s previous target price of $2,000. The bank’s report summarizes its main argument: “The Fed Can’t Print Gold.”
Many investors have taken care of their active portfolio but they have kept their 401(k) or IRA entirely in stocks and bonds, thinking that those were the only options. Maybe their company only provided those two choices. But there are other options. Precious metals can be a part of your retirement portfolio, and our experienced team can make that transition easy for you. We have a team with long-term expertise in that field. Just call and ask for “Team Mike” and we will help you get started on the easy process of opening an account transferring funds (or “rolling over” an IRA or 401(k) account) and funding it with our preferred vehicle for long-term gains: common and rare American Eagles.
Rare American Eagle coins, minted from gold and silver, have shown appreciation in value over time, especially when held for the long-term. They are one of the few assets to offer double play potential. First, from their underlying gold and silver content and secondly, from their growing rarity, as we typically select low-mintage American Eagles that have developed strong collector premiums due to high demand and relatively low survival rates. Many of these hand selected coins have already been locked up long-term in IRAs. All you need to do is sit back and watch your nest egg mature, tax-deferred, in a Precious Metals IRA!
The Volume of New Money Will Soon Make Gold and Silver “More Precious”
You could say that Congress and the Federal Reserve are beginning to “go crazy” with the printing press. The parade of stimulus packages brought forth by the Federal Reserve and Congress are on course to add as much as $10 trillion in new money and new debt when all is said and done. Much of it seems to be a cynical attempt to “buy votes” this November, since they are sending out stimulus checks to people who are still working, while not even asking those businesses and workers to send in their regular taxes yet!
The official estimate for this year’s federal deficit is $3.8 trillion – more than triple the previous record – and it may go much higher than that. The total U.S. debt has risen $2.5 trillion in the first four months of this year, from $23.2 trillion in January to $25.7 trillion in May. The latest “stimulus” bill being pushed through the Senate by spendthrift Democrats is called the Monthly Economic Crisis Support Act. It was introduced by Senators Kamala Harris (D-Calif.); Bernie Sanders (Ind-Vt.); and Ed Markey (D-Mass.) The bill calls for sending $2,000 per month to individuals, $4,000 to couples, plus $2,000 per child up to three children. That’s $10,000 for a family of five, or $120,000 per year, although payments would be reduced for those families earning over $100,000. Have we ever seen such a blatant giveaway before?
At the same time, the Federal Reserve Chairman Jerome Powell is promising total giveaways to banks for loans when he says, “When it comes to lending, we’re not going to run out of ammunition,” adding, “we will provide essentially unlimited lending to support the economy.” That’s a promise of unlimited money.
Although we’re not at war, this situation promises the same kind of runaway inflation we saw in the Revolutionary War, when General George Washington complained that the paper “Continentals” the Congress had issued had become worthless: “A wagonload of continentals can’t buy a wagonload of provisions,” he complained. We saw similar inflations during World War I and II and after Vietnam.
When so much money is printed without backing, the limited amount of gold and silver left in circulation becomes more valuable, as it did in previous wartime inflationary periods.
Avoid Counterfeit Coins from China by Choosing the Right Dealer
For decades, China has been exporting a wide variety of counterfeit products, including bullion coins, rare coins and currency. A part of the problem has been the fact that we have had very little skilled oversight at the federal level. It’s a little-known fact, but under President Barack Obama, there was no nominated and confirmed Mint Director. Only when President Trump took office did he nominate a new Mint Director, David J. Ryder, who had previously served as Mint Director under George H.W. Bush. Bush nominated him for that office in September 1992, and he served until November 1993, the first year under Bill Clinton.
In the 24 years between his two tenures as Director of the Mint, Ryder became an expert in counterfeit detection after he joined Secure Products in 1994. When the Honeywell Corporation acquired Secure Products in 2007, Ryder was Managing Director of Currency for Honeywell, where he developed and launched highly advanced anti-counterfeiting systems for both manual and high-speed authentication of currency, passports, bank checks, and other commercial products. Then, in 2017, President Trump nominated Ryder as Director of the United States Mint and he was confirmed on March 21, 2018.
Mint Director Ryder’s expertise in counterfeit deterrence and detection is the first part of the solution to stopping the counterfeit invasion from China that President Obama did not provide. The second important consideration is that President Trump himself, is the first President who has been tough on China on all fronts, including counterfeit products. China very much wants American voters to defeat Trump.
The third factor in counterfeit protection is the dealer you choose. Some counterfeit coins are still being sold by dealers who are incapable of telling the difference between the real thing and the “near misses” produced by skilled counterfeiters. I taught grading and counterfeit detection for 20 years and am often called to consult with customers about suspicious coins bought from other dealers.
So, if you want to put the odds on your side, stick with David Ryder, Donald Trump and Team Mike.
Important Disclosure Notification: All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Publisher's knowledge at this time. They are not guaranteed in any way by anybody and are subject to change over time. The Publisher disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions. Arbitration: This company strives to handle customer complaint issues directly with customer in an expeditious manner. In the event an amicable resolution cannot be reached, you agree to accept binding arbitration. Any dispute, controversy, claim or disagreement arising out of or relating to transactions between you and this company shall be resolved by binding arbitration pursuant to the Federal Arbitration Act and conducted in Beaumont, Jefferson County, Texas. It is understood that the parties waive any right to a jury trial. Judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. Reproduction or quotation of this newsletter is prohibited without written permission of the Publisher.
Metals Market Report Archive