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The_Case_For_Gold_In_Your_IRA

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									The Case For Gold In Your IRA
                                                                           In 1971 the U.S. dollar was worth 1/35th of an ounce of
Of all the precious metals - gold, silver, platinum, palladium - gold      gold. Today the dollar is only worth 1/1000th of an ounce
is the only one which is actual “money” and a concrete store of            (assuming a price of U.S. $1000 per ounce). In fact, gold
value. e other metals are primarily purchased for their industrial         stands alone as the only asset which can protect us from
and manufacturing uses. Gold is purchased and held in huge                 ruinous government actions and calamitous world events.
volumes all over the world by central banks of many major
nations, thousands of large and small institutions and millions of
private individuals, precisely because gold is money. But more than     One of the reasons that so many individuals and large institutions
that, gold is simply the ultimate store of value and safety.            hold at least some physical gold is that stock market investing over
                                                                        the last few decades has proven to be little safer than gambling in
                                                                        Las Vegas. By late November, 2008, the stock market was back to
  “For all the reasons given on this page, the price of gold in
                                                                        where it was in 2003, wiping out $8.4 trillion in U.S. stock value.
  dollars is highly likely to see dramatic price increases far
                                                                           rough the end of April, 2009, the 10-year annualized return on
  into the future.”
                                                                        the S&P 500 stock index was a negative 2.5% according to
                                                                        Standard & Poor's (the huge securities ratings rm). By some
Gold has held this position for thousands of years, long before         important measures the stock market has underperformed for the
there was paper money. Gold has steadfastly protected the wealth        last 40 years in spite of all the hype you hear from Wall Street,
of peoples, institutions and governments throughout all the chaos       investment advisors, brokers, etc.
and turmoil associated with paper money, in ation and de ation,
other economic shifts, wars, revolutions and natural disasters.         Other issues which are driving gold prices are limited supplies and
Governments cannot debase gold as the ultimate store of value as        soaring demand. “ ere is demand for double or triple what the
they can with paper money, and they generally cannot con scate          U.S. Mint is able to produce” said Michael Kramer, President of
or tax it.                                                              MTB of New York, one of the four U.S. gold dealers which is
                                                                        authorized to purchase coins directly from the Mint *. e U.S.
Gold is one of the only true stores of value and it has signi cant      mint sold more gold coins in the rst seven weeks of 2009 than it
advantages over other property or assets, such as real estate, which    did in the entire year of 2007 *. e Rand Re nery in Johannes-
to some degree also represent a store of value. An ounce of gold has    burg, So. Africa, (which produces the Krugerrand) said demand
held its value and has remained incredibly stable throughout            was above its maximum capacity, even though they had doubled
history. Physical assets, goods or property which cost an ounce of      production from 10,000 to 20,000 ounces per week, and they
gold one hundred years or twenty years ago still cost about one         didn’t believe that even 30,000 ounces per week would supply the
ounce today (or maybe even less than an ounce). Whatever                demand. e New Zealand Mint recently stated that it was doing
variations there have been in gold’s value, those variations are        as much business in gold per day as it used to do in an entire
vastly less damaging and risky than paper money. It is paper            month*.
money which is tremendously unstable and a serious risk to one’s
wealth. For example, in 1971 a U.S. dollar was worth 1/35th of an           e worldwide economic turmoil which began in late 2007, which
ounce of gold, but today it is only worth 1/1000th of an ounce of       led to vast amounts of highly in ationary cash being pumped into
gold (assuming a price of U.S. $1000 per ounce). Another way to         the economy by the Federal Reserve and U.S. Treasury, along with
illustrate the debasement of the dollar vs. gold is to consider that    the threats from radical Islamists and other major political instabil-
the dollar has lost about 95% of its purchasing power over the last     ity, the numerous wars that keep popping up, the potential spread
hundred years, and it can never regain that power.                      of nuclear weapons into unsafe hands, global climate change, the
                                                                        ever diminishing supply of oil and threats of disruption in the
From a historical perspective the only question about the stability     supply of oil, etc., these issues guarantee that gold will become
of the U.S. dollar and most all other paper money is how quickly        much more important as the ultimate store of value and for paper
the paper money will lose value, not whether it will continue to        money to become even more unstable, in ated and debased.
lose value. e U.S. Federal Reserve purposely targets an in ation
rate of around 2% by printing enough money to maintain that             Finally, gold is the ultimate hedge and disaster protection plan.
level. But even a 2% annual currency debasement will wipe out a         Whether there is severe in ation or de ation, a collapse of the
huge amount of savings over a 20 or 30 year time period. A 3%           dollar or the economy, bank failures that are too big for the
in ation rate will reduce the buying power of your savings by 50%       government to bailout, natural or man made disasters, massive
over 20 years. And, often events have gotten out of hand where          civil unrest, a governmental collapse, or revolution or war – gold
in ation soared to much higher rates. Whatever the in ation rate        will survive and allow you to do the same. History has proven that
that the Fed targets or gets caught up in from events beyond their      thousands of times over.
immediate control, gold is the ultimate hedge to maintain               * As reported in Financial Times, February 26, 2009, in an article entitled, “Gold Coin Shortage
purchasing power for the long haul.                                     As Demand Soars”
Summary Of The Benefits
And Uses Of Gold
As The Ultimate Store Of Value
                                                              Gold In Your IRA
1. Gold has tremendous upside pricing potential due
to the factors stated above, with little downside risk.
                                                              Federal tax laws allow an
2. Gold is both an inflation and a deflation hedge.
                                                              array of precious metals
Generally gold’s value rises in line with or faster than
                                                              coins which are deemed to “legal tender” and which
inflation, and gold holds its value better than other
                                                              meet minimum fineness or purity standards to be
assets in times of deflation.
                                                              held in an IRA, along with bullion rounds and bars
3. Gold is highly liquid, it can be either exchanged          (see following pages for specific coins and bullion
directly for other property or cashed in easily.              which are legal). We do not suggest that all of one’s
                                                              IRA funds be invested in gold or any other precious
4. Gold is universally recognized as money everywhere         metal. If your IRA is rather small, say $25,000 or less
in the world, there are no exchange rate issues.              in value, then placing all of it in precious metals
5. Gold and other precious metals can be held in both         would probably be fine. But if your IRA is much
Roth and Traditional IRAs.                                    larger it may very well be a good idea to diversify
                                                              your investments and put only a portion of your
6. Physical gold holdings are not subject to IRS report-      funds in metals. e exact amount that you would
ing or taxes (with some exceptions in an IRA, see the         invest in metals as part of a larger and diversified
later Q&A section for more info).                             investment portfolio is a matter for you and any
7. Gold is a great diversifier in a balanced investment        financial advisor you may have to decide on.
portfolio.
                                                              As a business practice, very few IRA custodians allow
8. Gold is highly portable - $100,000 of gold coins           IRAs to own precious metals and most of those who
weighs only 6.25 pounds (at $1,000 per ounce).                do have very expensive storage and IRA fees, compli-
9. Gold is easy to store - it takes up little room, it does   cated purchase and storage procedures, often with
not physically degrade over time and it will readily          mistakes, hassles and delays. American Estate &
survive a wide variety of temperatures, storage condi-        Trust (AE-Trust) provides the IRA industry's
tions and natural disasters.                                  simplest and best precious metals program. AE-Trust
                                                              is your IRA custodian, not a precious metals dealer.
10. Gold can be purchased and sold or exchanged in a          Our IRA and precious metals storage fees are among
wide variety of denominations, weights and configura-          the industry's lowest, if not the lowest, while provid-
tions - numerous coin sizes and denominations,                ing you with the most flexibility in coin and bullion
numerous issuing countries, various bullion sizes -           selection and precious metals dealer choice, all in a
which make it easy to purchase or liquidate specific           one-stop shop. You provide AE-Trust with your
amounts at readily known values.                              precious metals purchase request, identify your
                                                              dealer (or let us refer you to one), and we handle the
11. Gold, unlike paper money, cannot be devalued by
                                                              whole process from there. is lets you completely
government action and any government intervention
                                                              avoid the high costs, complications, hassles and
in gold markets would quickly lose its effect.
                                                              mistake prone service which other precious metals
12. Gold held in a private or secret stash is highly          IRA programs burden you with.
secure and protected from government actions of all
kinds, lawsuits and other legal issues and most any
other threat or risk against the holder of the stash.
What Precious Metals Can Be Held In Your IRA?

For precious metals coins to be in an IRA they must be both legal tender and meet minimum fineness requirements (the pureness
of the basic metal). One exception to the fineness rule is the American Gold Eagle coin which is allowed even though its fineness
is only 0.9167. Bullion bars and rounds which meet standards listed in footnote² below are also allowed in IRAs.

In the table of unacceptable metals at the bottom of this page, note these 3 exclusions which are not allowed in an IRA:                                       e
South African Krugerrand, rare or collectible coins, and old U.S. 90% gold and silver coins.


Below Is A List Of Precious Metals Coins And Bullion
Which Are Acceptable For IRA Accounts:

Gold
                                                                                     Platinum
 • American Eagle coins¹
                                                                                      • American Eagle coins¹
 • Australian Kangaroo/Nugget coins
                                                                                      • Australian Koala coins
 • Austrian Philharmonic coins
                                                                                      • Canadian Maple Leaf coins
 • Canadian Maple Leaf coins
                                                                                      • Isle of Man Noble coins
 • Credit Suisse - Pamp Suisse Bars .999
                                                                                      • Bars and rounds meeting standards in the footnote below ²
 • U.S. Buffalo Gold Uncirculated coins (no Proofs)
 • Bars and rounds meeting standards in the footnote below ²
                                                                                     Palladium
                                                                                      • Bars and rounds meeting standards in the footnote below ²
Silver
 • American Eagle coins¹
 • Australian Kookaburra coins
 • Canadian Maple Leaf coins                                                                     See photographs of the most common coins
 • Mexican Libertad coins                                                                        which are IRA legal on a following page.
 • Bars and rounds meeting standards in the footnote below ²




                                       The Minimum Fineness Standards For Coins:
                                        • Gold Coins - .995+                          • Platinum Coins - .9995+
                                        • Silver Coins - .999+                        • Palladium Coins - .9995+



Examples Of Unacceptable Precious Metals In IRAs

  Austrian Corona and Ducat                             Mexican Peso and Ounza                                Belgian Franc
  French Franc                                          South African Krugerrand                              British Sovereign and Britannia
  German Mark                                           Swiss Franc                                           Hungarian Korona
  Columbian Peso                                        Italian Lira                                          Dutch Guilder
  Chilean Peso
  Old U.S. 90% gold and silver coins                                                    Rare and/or Collectible Coins

    Footnotes:
    ¹"Slabbed" coins are not permitted in an IRA.

    ²Gold, Silver, Platinum, & Palladium bars and rounds must have .995 fineness or better and be fabricated by NYMEX or COMEX approved refiners or a national
    government mint.
                         Examples of Common IRA Legal Coins
                              Shown In 1 oz., But Other Sizes Are Acceptable




          American Buffalo Gold                                   American Eagle Silver
(The First 24-Karat Gold Coin Struck by the U.S. Mint)




           American Eagle Gold                                  American Eagle Platinum




       Canadian Maple Leaf Gold                                Canadian Maple Leaf Silver




       Australian Kangaroo Gold                              Canadian Maple Leaf Platinum




          Australian Koala Gold                                 Mexican Liberated Silver
    Deal Directly With The Custodian,
    Not The Precious Metals Dealer
       A high percentage of precious metals IRA offerings on the internet are actually just
       precious metals dealers, and are not IRA custodians. Many of these charge high markups
       on metals purchases and all of them have to shuffle you off to a third party custodian, off
       to another party for storage, and then delays, hassles, mistakes and communication errors
       start piling up. With an IRA from American Estate & Trust you will deal with just one
       party for everything. Choose your own metals dealer, or we will recommend one, but
       either way we will handle the ordering, shipping, storage and IRA custodial services. We
       are the custodian. Our expertise and A to Z system for handling precious metals IRAs
       assures you a smooth process without the problems common with the many dysfunc-
       tional plans on the internet.



    Frequently Asked Questions                                         Q: What is the cost for setting up a precious metals IRA
                                                                       with American Estate & Trust?
    Q: How are my IRA precious metals held and stored?
                                                                       A:
    A: Tax law requires that an IRS qualified custodian hold             • $35 one-time account setup fee
    precious metals for your IRA. All bullion or coin purchases         • $150 annual account fee
    for your IRA with American Estate & Trust (AE-Trust) will           • $100 annual storage fee (regardless of your quan-
    be shipped to and stored at a depository. e depository                  tity of precious metals)
    furnishes your IRA account at AE-Trust with a certificate of         • No charge for rollovers from an existing IRA to your
    receipt which accurately details the bullion or coin items             AE-Trust IRA
    they received and stored for your IRA. Your precious metals         • 6 free transactions for the life of the account
    are held securely in a storage vault which is dedicated to            (“transaction” primarily being purchases or sales of assets
    AE-Trust and which holds only the coins and bullion of                or investments and distributions). $35 per transaction
    AE-Trust's clients. e special storage at the depository is            after 6.
    not only in a highly secured facility, but it is also bonded and    • 12 free contributions per year to your AE-Trust IRA. $35
    insured for added protection.                                         each after 12 in a given year.
                                                                        • Minimum required cash balance in your IRA of $397 (to
    Q: Are there taxes on my precious metals in an IRA?                   cover future ongoing fees)

    A: Holding precious metals is no different than any other           Q: Are there any minimum purchase quantities required
    investment held in your IRA. Any growth or gains in the            for precious metals?
    metals are tax deferred in Traditional IRAs until you start
    taking distributions from the account. Roth IRAs never             A: Depending on who the metals are purchased from can
    incur taxes on any assets or investments in the account, even      determine the minimum quantities. Generally speaking
    when you begin distributions.                                      $5,000 is a typical minimum. However, let AE-Trust
                                                                       simplify these and all other issues for you by contacting us
    Q: Are there any penalties for holding precious metals in          first.
    an IRA?
                                                                       Q: Can my annual IRA contribution be bullion or coins
    A: ere are no penalties when it comes to buying and hold-          that I personally own?
    ing precious metals in your IRA as long as you hold metals
    which are allowed under tax law. See an earlier page for a         A: No. Any Roth or Traditional IRA contribution made by
    complete list of legal metals.                                     you personally must be in the form of cash. However,
                                                                       rollovers and transfers of/from existing IRAs are not
                                                                       required to be in the form of cash.

5
Q: Can I take distributions of the physical metal from my             e self directed IRA does not limit you to the investment
IRA instead of taking cash?                                        options which a non-self directed custodian does. For
                                                                   example, in one self directed IRA you could have precious
A: Yes. Distributions from an IRA can be cash or non-cash          metals, a brokerage account, mutual funds, real estate,
assets.    e only issue will be that the distribution will         private placements, and other investments – all controlled
usually be taxable to you (except for a Roth IRA), which           and chosen to a great degree by you.
would mean that you would either have to liquidate enough
metals to pay the taxes or you would have to use cash from         Q: What is the process to set up an American Estate &
your personal funds to pay the taxes. Also, if you plan to take    Trust precious metals IRA?
direct metals distributions you should consider holding
plenty of smaller coins, like the 1/10th ounce size, and hold      A:
both gold and silver so that you have maximum flexibility in        1. With our generous support as needed, you fill out the
metals denominations (current price per piece) in order to         appropriate IRA application and forward it to us.
best match the exact dollar value which your distributions
require.                                                           2. We setup your IRA account, getting all documentation
                                                                   and data entry completed within 24 hours.

Q: My current IRA custodian does not charge me annual              3. We forward an IRA transfer request to your current
fees. Why do you have an annual fee?                               custodian. We include bank wire transfer and mail instruc-
                                                                   tions with the transfer request.
A: Your current custodian will charge annual fees if you hold
precious metals in that IRA. e free annual fees are only           4. Your custodian sends us the money and/or other assets
allowed in IRAs which are limited to some combination of           which are in your current IRA (please note that if your
cash, securities, money funds, CDs or insurance company            custodian sends us a check it will take 5 business days to
products. In those IRAs the custodian makes money off the           clear).
funds you contribute to that IRA. ey keep some or most
of the interest earned on your cash and they receive fees or       5. We invest your cash as you direct us to, in precious
commissions when you place your funds in an investment,            metals and/or any other investment choices you select. e
CD or fund which they provide. However, the interest, fees         investment direction form contained in our IRA applica-
and commissions they earn will directly reduce your princi-        tion is used by you to select and direct the investment(s).
pal and will reduce the earnings you could otherwise receive.
And, custodians like yours have very limited investment            Q: How do I get started with a precious metals IRA at
options compared to those which we allow you to select in a        AE-Trust?
self directed plan. For example, it is highly unlikely they will
allow you to hold precious metals in that account. American        A: e first step is very simple, just call or email us (see
Estate & Trust, LC does not earn fees or commissions when          below). We will answer all your questions and walk you
you purchase an investment with an IRA we hold for you, so         through the process with absolutely no obligations or
none of your principal is lost. We earn our money from             pressure on you:
modest annual fees. And, you can have a free account with
AE-Trust (after paying the first year’s fees) by leaving a mini-
mum of $25,000 in a cash account with us, and you will
earn above market rates of interest on that cash to boot.
                                                                   For more info:
                                                                   Toll Free: 1-866-654-6111 Ext. 3
Q: What is a Self Directed IRA?
                                                                   Email: goldsilver@TrusteeAmerica.com
A: A Self Directed IRA is legally the same as any other IRA.
                                                                   Or, go to www.IRAcentral.com and select “Gold and Sliver
   e functional difference is that you have the widest possible
                                                                   IRA” at the top right hand side of the page.
variety of asset types or investment options to choose from,
and you get to have much more control over investment
management. -


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