Dear Jim:
Per your suggestions, I have been doing a lot of research into the American Church Trust Precious-Metals IRA [offered through Swiss America]. However, I have several questions that I would like to ask. [JWR’s replies are in-line, in bold.]
1.) I noticed in a recent post of yours on this subject that you have your IRA backed by Gold American Eagles. Could you explain why you chose gold instead of silver?
Because of the much higher “per ounce/per dollar” purchase premium on U.S. Mint Silver Eagles, I prefer U.S. Mint Gold Eagles, in this case. (At the time those were my only two options. I’m not certain what they currently offer.)
2.) Are you concerned about the USG ability to confiscate gold as they did in 1933 since the law to do so is still on the books?
IMO, the chance of another gold confiscation is fairly slim. (And almost nil for silver.) I can’t predict how any confiscation executive order might be worded. However, there is the chance that it would exempt both numismatics and U.S. Mint American Eagles.
3.) And if this did happen, what would be the effect, if any, on a gold-backed IRA?
Anything that is held in a well-documented IRA or kept in a bank safe deposit box could conceivably be subject to confiscation. It is a gamble, but in my estimation the odds are a lot better than leaving you IRA or 401(k) in dollar-denominated investments, which are almost certain losers in the event of mass inflation.
4.) What precious metals do you recommend for the Church Trust IRA today?
Since the spot price of silver has recently greatly out-paced gold–leaving gold temporarily relatively under-valued–I think that gold American Eagles would currently be your best bet.
5.) Are you continuing to make contributions to your IRA presently or are you moving in a different direction?
I am no longer adding to that account. I only created it originally because at the time I had a 401(k) from a corporate job that I needed to roll over. All of the gold and silver that I’ve bought in the past five years ave been physical metals (primarily silver), which are held in a private vault. BTW, I recommend Swiss America for those purchases, too. Be sure to shop around. You might get a slightly better rate at your local coin shop, coin show, or gun show.
I appreciate your informed opinions. B’shem Yahshua HaMoshiach, – Dr. Sidney Zweibel