Owning gold and silver in a ROTH, backed by, and convertible, into bullion

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h2oBoy's picture
h2oBoy
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Joined: Jun 18 2009
Posts: 52
Owning gold and silver in a ROTH, backed by, and convertible, into bullion

I'm ready to convert a significant amount of my PM miners profits into "bullion". I feel I have two choices. Central Fund of Canada or Sprott Physical Gold Trust. It appears to me that CFC stores gold and silver per my purchase of their stock, but do not offer a conversion into bullion at my request.. Sprott does offer conversion for a small % of my investment.

Converting some ROTH profits into "bullion" offers me a diversity out of some miners' stocks and protects against a drop in their values when the overall market crashes, I also maintain my ROTH protection and avoid being taxed on future appreciation. I know the sentiment in this group is to take possession of PMs, yet, my question is: Is the CFC paper purchase, more literally, backed by bullion better that US ETFs, or should I just go with Sprott and be able to convert into bullion.

Both companies are in Canada and will give me a currency exchange pop as well as PM ownership.

Thanks.

the navigator's picture
the navigator
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Joined: May 20 2008
Posts: 30
hi waterboy david, in

hi waterboy david,

in nov/dec of last year, i sold all stocks that i held in my ira, converted it to a roth, and moved it from fidelity to interactive brokers.  i will owe 25% in taxes when the bill hits (prbly about $28,000) and i can pay that debt over two years.  once the money had settled in place, i bought pslv.  it has now appreciated enough that i could easily pull out the tax debt without touching the original deposit.  i'm fine with that move, and i like owning pslv, mostly because sprott seems like a good guy and it is the closest i could get to physical silver in an ira.

that's what we did.

lanni

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
PSLV
lannij wrote:

hi waterboy david,

in nov/dec of last year, i sold all stocks that i held in my ira, converted it to a roth, and moved it from fidelity to interactive brokers.  i will owe 25% in taxes when the bill hits (prbly about $28,000) and i can pay that debt over two years.  once the money had settled in place, i bought pslv.  it has now appreciated enough that i could easily pull out the tax debt without touching the original deposit.  i'm fine with that move, and i like owning pslv, mostly because sprott seems like a good guy and it is the closest i could get to physical silver in an ira.

that's what we did.

lanni

Doesn't PSLV sell at a high premium over NAV?  Why not just own physical silver in an IRA directly?  Also, personally, I'd never own a fund because the portfolio manager seems like a good guy. 

h2oBoy's picture
h2oBoy
Status: Bronze Member (Offline)
Joined: Jun 18 2009
Posts: 52
Physical silver in an IRA

Doesn't PSLV sell at a high premium over NAV?  Why not just own physical silver in an IRA directly?Undecided

It's my understanding that physical bullion is not allowed in an IRA.

I'm yearly moving all my assets from my traditional IRA to my Roth, offsetting my tax liabilities with various tax deductions, paying no taxes on the conversions. My plan, completed, next year, is to have everything in my ROTH, including whatever I hold Sprott or CDC , protecting my appreciation from higher and higher tax liabilities in the future.

Thanks for your thoughts.

Doug's picture
Doug
Status: Diamond Member (Online)
Joined: Oct 1 2008
Posts: 3200
Quote:It's my understanding
Quote:

It's my understanding that physical bullion is not allowed in an IRA.

Sure it is.  This is one company you can do it through, there are others.

http://www.sterling-trust.com/

You cannot, however, have physical possession of the metal while it is in the IRA.

Doug

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ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
yes you can
h2oBoy wrote:

It's my understanding that physical bullion is not allowed in an IRA.

I'm yearly moving all my assets from my traditional IRA to my Roth, offsetting my tax liabilities with various tax deductions, paying no taxes on the conversions. My plan, completed, next year, is to have everything in my ROTH, including whatever I hold Sprott or CDC , protecting my appreciation from higher and higher tax liabilities in the future.

See what Doug said.  I'd recommend Sterling over others like Goldstar.  I've had 'em both. 

And the only way to truly protect against higher tax liabilities in the future is to withdraw your money now.  Rules regarding Roths can and, most likely, will change in the future.

You didn't think they were just going to let you walk out of there with that money, did you?;-)

 

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