IRA Investor Alert
Are you worried that you may have overpaid for Proof Silver Eagles in your IRA?
We have been contacted recently by a growing number of individuals who have dealt with firms, many of whom are no longer in business, that encouraged them to purchase Proof Silver Eagles within their IRA or other retirement plan. The consistent story we hear is that they paid one price for the coins from their broker, only to receive their statement from the IRA company showing a value substantially lower than what they paid. A call to their broker would result in a response along the lines of, “The IRA company isn’t valuing the product correctly, as they aren’t including the rarity premium. These are a great investment, and they are only going to get rarer!”
The bad news is that your IRA custodian is likely closer to being correct. The only Proof Silver Eagles that carry meaningful premiums were produced in the 1990’s, when mintages were much lower, before interest in silver took off after Y2K. As it stands now, all coins dated 2001 or later are considered common, and are unlikely to see growth in rarity or premium value anytime soon. Even today, a 2001 Proof Silver Eagle is valued identically to a 2012 dated coin.
In fact, when studying price performance over the past decade, the unfortunate reality is that, generally speaking, premiums on proof silver eagles actually tend to decline as the price rises. For example, one could liquidate a Proof Silver Eagle at roughly $30 in premium to spot silver right now, but as recently as 2012, when silver traded at $35 per ounce, Proof Silver Eagles fetched only $55 (a $20 premium). Even when silver exploded to just shy of $50 per ounce in 2011, they were only valued at $65 and at only a $15 premium!
Note: For what it’s worth, USAGOLD has never once placed a single proof Gold or Silver American Eagle in a client IRA.
The bottom line, depending on what you paid, you may be waiting a long time just to break even. And even if you’re already at or near break even, you may be similarly limiting your future profit potential.
But there is some good news in all of this.
At USAGOLD, we have developed a workable, straightforward strategy that could shorten your recovery time and reduce the amount silver would need to rise in order for you to break even and maximize your profit potential moving forward. To review whether or not this strategy can work in your particular situation, we invite you to contact us. Time is of the essence. For those that act now, break even could be as close as $35 silver depending on your original entry cost. But ironically, for those who wait for $35 silver to employ this strategy, break even could be pushed out to $55 silver or higher.
“The broker for my IRA recently folded their tent and departed. Alarmed, I contacted USAGOLD with whom I had found great satisfaction over the past several decades in various metal sales and purchases. Their staff assumed the brokerage for the IRA account, made sound suggestions for restructuring its investments and have given me great peace of mind.” — H. E. A, M.D. / Meridian, Idaho
Please contact us for further information.
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