The Advantages Of Adding Precious Metals to Your IRA or 401K

Whether you're a seasoned investor or you're just starting out, you have worked diligently to secure your financial future. However, there are various financial conditions that can affect the stability of your investments. Regardless of where you live, the U.S. or abroad, the economy can wreck havoc on your retirement income, pension plan and other financial investments. According to financial experts, an investor should have 20 percent of his/her portfolio in precious metals with the current economic climate.

If the weakening of the U.S. Dollar and the unpredictability of the stock market is having you wonder about the security of your financial future -- you're definitely not alone. More and more people have become concerned about their financial future. Don't let these frightening factors place your hard-earned money at risk.

Why Precious Metals?

Regardless of the time period in history, precious metals have always remained a hard asset - unlike stocks and many other investments.  Unlike other investment options, precious metals, such as gold, silver, palladium and platinum are considered an excellent guard against value erosion. Regardless of whether an economy is experiencing inflation or financial instability, precious metals have stood the test of time.

Gold, silver, palladium, platinum and bullion have helped sustain people’s savings against the harmful effects against unpredictable market events. This is why precious metals are considered a sound investment. These valuable precious metals can serve the same function for your 401k and IRA.

Types of Precious Metals to Place in a 401k or IRA

A precious metal must be recognized by a national mint in order to have precious metals placed in a 401k or IRA. Below include the types of metals that qualify:

Gold. Gold bars from an assortment of qualified refiners, Austrian Philharmonic coins,Canadian Maple Leaf coins and  American Eagle coins.

Silver. Silver bars from an array  of qualified refiners, Austrian Philharmonic coins ,Canadian Maple Leaf coins and American Eagle coins.

Palladium. Canadian Maple Leaf coins and Palladium bars from various qualified refiners.

Platinum. Isle of Man Noble Coins, American Eagle coins, Canadian Maple Leaf coins and Platinum bars from qualified refiners.

How it Works?

All you have to do is move your IRA to precious metals by transferring your existing IRA to a qualified precious metals IRA custodian. You can also rollover your 401k as well. The next step would be to talk with a precious metals specialist.

Advantages of Placing Precious Metals in an IRA

Buying gold, bullion, silver, palladium and platinum allows you to diversify your traditional IRA or Roth IRA.  Best of all, you can even transfer your existing IRA to a qualified precious metal IRA without accumulating fees or taxes. You can also take possession of bars, coins and sell them in the future or you can cash out on your metal holdings. The bottom line is, precious metals allows you to have a more flexible and balanced portfolio.

Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.

Benefits of Investing in Precious Metals

Why would I invest in gold instead of other investment options?  Gold is a tangible investment and it’s one of the few investments you can actually hold in the palm of your hand. For decades, streetwise investors have acknowledged that gold plays a major role in having a diversified portfolio. Plus, it has been recognized (for decades) as a safe haven asset in this unstable economy with true value.

Gold has also experienced a series of consecutive successes, for example, in September, gold sky-rocketed. According to analyst, it has had the longest “winning streak” since the 20s. Gold is expected to climb to $2,000 an ounce by the end of 2011. By the end of 2012, it will rise to $2,300 an ounce. You can’t go wrong when investing in precious metals.

Many investors are also placing their IRAs into precious metals.  More and more people are investing in gold, silver and bullion coins like never before.  Here are a few more good reasons to invest in precious metals like gold:


Gold & silver guards against inflation.

While other investments are losing money left and right, gold and silver are doing just the opposite. Precious metals are the ideal investment because when inflation is on the rise, the value of gold and silver increases.

Precious metals are marketable and liquid.

Gold is an excellent way to increase the marketability and liquidity of your portfolio.  This is mainly because of the high demand the precious metals market has been experiencing over the past few years.  

Precious metals are a tangible investment.

As mentioned previously, you can hold precious metals in the palm of your hand.  Unlike stocks and mutual funds, you can take possession of your investment and keep it safe and secure in a safe deposit box.

Choose from a variety of precious metals.

You can choose to invest in an assortment of precious metals like platinum, gold, silver, etc.  Another reason why many investors love precious metals is because it offers flexibility.  You can customize your investment strategy according to your investment needs.  You can even choose precious metal funds which allow you to invest in multiple metals.

Precious metals are world-wide currency.

For hundreds of years, precious metals have been used globally as currency.  If you own precious metals, you can exchange it for currency anywhere in the world. Keep in mind, that you can use it as currency only if you actually have it in your possession. This doesn’t apply to stocks or precious metal funds.

Diversify your portfolio with a precious metal investment.

Having a diversified investment portfolio is crucial in these tough economic times.  When you invest in precious metals, you’re diversifying your portfolio.  As a result, you’re maximizing your returns and reducing risks. You can actually add these investments to decrease the trading volatility and boost the trading stability.  

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

Do you want more information or have questions about investing in gold and silver? Feel free to contact me using the form below and I'll get back to you ASAP!

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Gold is More Expensive Than Platinum?!?!?!

It seems like everyday we reach a new record high in Gold.  Today was an interesting new high as Gold prices reached and then continued to soar above the price of Platinum.  This jump in price came after Standard and Poors downgraded the US Credit Rating from "AAA" to "AA+"...Wow!  The Dow also fell over 634 points for the largest one-day decline since 2008.  We pretty much saw RED across the board today, except with precious metals.  I think it's time to really consider where your retirement money is.  I know mine is in precious metals and I highly recommend putting your IRAs and 401k into precious metals.  If not all of your retirement money, than at least a large chunk of it.  Obviously, the market agrees with me as prices and demand continue to increase!  My recommendation is to buy gold, silver and palladium...diversify within precious metals.

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

Isn't it too late to Buy Gold or Buy Silver?

I get this question more than any other question and the absolute answer is 100% NO.  People have been asking me this question for 2 years now when gold was half the price and silver was even less.  Just because gold and silver prices are high, all indicators point to an increase in pricing for precious metals, just like the did 2 years ago.  Every analyst will tell you that this economy is not getting better anytime soon AND that means one thing: Invest in hard assets!!!

Analysts used to say that 5%-20%of your total portfolio should be in precious metals.  The analysts that I personally know have now changed that number to somewhere around 40%-50% and they have followed these statements with their own money.  I have analysts transferring their entire IRA and 401k rollovers into gold and silver.

Believe me...it's not too late!!!

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

Leverage...like a glass of wine

Many people looking at leverage as a bad thing because many people have negative experiences using leverage.  The truth is leverage can be one of the best investment tools to make money in the precious metals market.  In fact, every millionaire I know has used leverage as an investment tool at one time or another.  The problem exists when you use too much leverage.  As I mentioned earlier, the 3 rules of investment are:

1. Be in the correct asset class
2. Diversify in that asset class
3. DON'T USE TOO MUCH LEVERAGE!!!

Follow these 3 rules of investing and you will make money 85% of the time.  Leverage allows you to borrow other people's money to make profits BUT you are protected on the downside if the investment goes south (meaning you don't have to pay back the money borrowed...or a non-recourse loan).  Many people abuse leverage and borrow 5, 10 or even 100 times their money.  The problem with using too much leverage is if the precious metals value decreases by even a small margin, you are asked to make a margin call (or invest more money).  The markets fluctuate on a daily basis and, leveraging your money like this, will almost always result in a margin call.  The most you should ever leverage your money in a gold or silver account, is 3 to 1.  Meaning if you invest $100,000, you'll have $300,000 worth of metals.  Anymore than this and you are breaking the rules of investment!  I would never go above 3 to 1 leverage and I would never put another investor in more than 3 to 1 leverage as I don't believe it is a good thing.  With this being said, I personally made over 250% on my precious metals last year because I used leverage correctly.  The most important thing is understanding how leverage works before you use it (just like anything else)!  Remember, leverage is like a glass of wine...1 glass per day is good for you...9 glasses per day is abuse...

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com. 

No Social Security Checks?

President Obama released a statement today that there was no guarantee social security checks would be paid on Aug. 3.  This means that 27 million Americans may be without their social security money.  If that is not alarming, then I don't what is!  After that statement was released, Gold also soared to an all time high of $1,568 per ounce.  Is there a relationship between the two?  ABSOLUTELY!  Are economic times looking up?  It doesn't seem that way and THAT is why people are investing in precious metals.  Almost every analyst will agree that the dollar will not get any stronger for a while.  That means gold and silver prices will continue to rise through, at least, 2012.  We may not be sure about the strength of the US dollar but gold is gold and silver is silver...there is only a limited amount on Earth!

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com. 

Why do precious metals companies charge more than the spot price to buy gold and silver?

Like any business, precious metals companies are in business to make a profit.  If companies even bought gold and silver at spot, which they don't, they would still have to charge you more money to make money.

Most gold companies I've worked with charge 25-35% above their wholesale price (which is usually 2-4% above spot).  To me, that seems unethical to charge that much as the precious metals price would have to increase by at least that much to make any sort of profit.  People who charge less than 25-35% usually have some sort of hidden fee somewhere. The reality is that you are going to pay sort of premium on precious metals as no one work for free but it is EXTREMELY important to find out what you are paying.

I believe, if you're going to charge someone a premium, you need to work for that premium.  The problem is that most companies charge you a huge premium and then don't talk to you again until they want more money.  Here's the secret: you need someone who manages money and knows when to sell.  Anyone can buy into anything BUT the real success comes from knowing when to sell to make a profit.

In my practice, I believe on a max of 15% on any purchases and NO hidden fees.  I work for that money and I know when to sell.  No fees on selling, no fees on shipping, no fees on storage (if you store your metal), etc.  I charge maximum 15% and then I hold my client's hands as we make money together.  I don't work for free but my clients DO make money and that is what a modest fee is supposed to be charged for...not a HUGE premium because you are a large company and have HUGE expenses!

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

What are the 3 rules of investment and why are they SO important?

Because I'm somewhat of a conservative investor, I follow the 3 rules of investment. 

The first rule of investment will tell you to be in the right sector or asset class. An example of this would be back in the late 90’s technology stocks were leading the market, before that it was biotech stocks.  When those sectors were leading the market it seemed you could buy any biotech stock or technology stock and you made money.  Even if you were invested in a horrible company the share price still went up.  If you instead choose the best utility company for example that was run almost perfectly with increasing revenues and increasing earnings, those shares rose much less so your return was minimal at best. Precious metals is, without doubt, the right asset class to be in now!

The second rule of investment will tell you that once you invest in the right sector or asset class, diversify in that sector (don’t put all your eggs in one basket).  In relation to precious metals, don't just buy gold or just buy silver.  Buy a combination of different precious metals.

The third rule is to not use too much leverage.  I think of leverage like a glass of wine.  One glass per day is ok but 10 glasses and you are abusing it.  Don’t abuse leverage.

Experience shows us that following the rules of investment gives us the greatest opportunity to make money, and at the same time controlling risks.  

People break the rules of investment because they get greedy.  Experience shows us that trying to outguess, outsmart, or out time a market will only put you at greater risk and therefore put you in a position to have a higher probability of losing.  We have all heard of people losing money when the market or asset class is performing amazingly.  This will typically only happen when they break the rules of investment.

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com

Why are precious metals such a great investment? Why do gold and silver prices continue to soar?

There are a number of reasons for this but one of the main reasons is actually very simple: Our country's debt is larger than our GDP (Gross Domestic Product or the value of our goods and services).  To put this into lamest terms, that's like saying that your personal bills are larger than your income.  When this happens, you either do something about it OR you go bankrupt.  The government has 3 options:

One choice is that they default on their debt, meaning they can’t pay the treasury payments. We don’t believe that will happen. It’s certainly the last choice anyway.

Another choice would be to raise taxes and cut programs. This way eventually more money would come in and if they cut programs less would need to be paid out, and therefore they could pay the debt down to bring it below the GDP. The problem is that they would have to raise taxes across the board on the upper, middle, and lower class. And they would have to raise them a lot. The government can’t seem to get along… the republicans want to lower taxes and the democrats have a 1.6 TRILLION DOLLAR healthcare bill on the table.

The only other real choice left is to monetize the debt; which means print money. You probably heard the term our fed chairman came up with called “quantitative easing”. What that means is “printing money.” Our most recent printing was for 600 billion dollars last year! This is obviously what our government is doing. Europe had done it several times and Germany has done this successfully a few times.

When you print money, 100% of the time it will cause inflation. That’s just the price you pay, and of course they know that.  Inflation means the cost of your good and services will go up correct? And it also means that you can buy less with your dollar, or your dollar loses value, becoming a deflated dollar.  So the end result is that if the cost of goods and services goes up, then your GDP will go up and your dollar will lose value so you will pay down your debt with a dollar that is not worth as much. That will create the separation bringing the debt below the GDP…

The government will need to continue to print money for at least another 5 years, or they will default on the debt!!! It’s not a choice…!!!

So what does all this mean?

There are 3 investment types: stocks, bonds and hard assets.

Stocks are not making money.

Bonds can only go down as interest rates are so low and have a reverse effect on the value of bonds (when interest rates are low, bonds value is high...and vice versa).  This means that bond values are so high that they can only go down from here.

As we go through inflation, the only investment class that will make money is HARD ASSETS!!!

So you have corn, cotton, etc but where would you store a bale of cotton? You can put a million dollars of gold into a shoebox. It’s as simple as that: Right now, the smart investors are investing in hard assets that you can physically save. China and India are buying as much precious metals as possible. Even, Warren Buffet sold all his bonds to put money into precious metals.

This is why precious metals are a great investment and prices continue to soar!

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

Buying Gold vs Buying Silver...which is a better investment?

I often get the question: Should I buy gold or buy silver?  Which is a better investment?  The truth is that they are used for different reasons and I believe you should own both in your portfolio.  The smart investor will diversify their portfolio.  If you hold all your eggs in one basket than your risk increases greatly.  That's the reason I recommend having both.  Right now, silver is jumping all over the place (increased over 8% in the last week) and I believe a more aggressive precious metal.  Gold on the other hand is a safer investment.  Gold has proven to have a solid upward trend over the years.  Just like diversifying a stock portfolio with aggressive, moderate and conservative stocks; precious metals should be bought the same way.  It's important to set your investment goal and then purchase the correct amount of each precious metal based on that goal.

Do you want more information or have questions about investing in gold and silver?  Feel free to contact me at blakepollack@gmail.com.

Practice What You Preach

After being a successful precious metals investor for over 15 years, I decided that it was time to share the knowledge of my success on how to invest in precious metals, such as gold and silver.  With the rise in gold prices, it seems like more and more people are becoming interested in adding gold and silver to their portfolio.  Recently, I became a precious metals broker and now work with other investors who want to buy gold and silver.  I believe that you should "practice what you preach" and, since I've been successful in precious metals, it's time to show others how to also be successful and invest in the same metals I do.  That's why I only sell the same precious metals that I buy! You will find tons of information on this blog about investing in precious metals but feel free to contact me if you have any questions...

Do you want more information or have questions about investing in gold and silver? Feel free to contact me at blakepollack@gmail.com.