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02/25/2006 Archived Entry: "Open a REAL IRA"

IT'S “IRA SEASON.” Our munificent fedgov, the wastrels and spendthrifts who put every private-sector American worker some $6,000 deeper into debt last year, will “allow” you to save $4,000. Or $4,500. But only if you do it before April 15. Or April 17th, in some places. And only if you’re not too old, or didn’t make too much money. And they promise, and they really, really mean it this time, that they won’t take this money, that you don’t have to pay taxes on it, at least until you spend it, and maybe not then, if you got the right kind of account, and you do the paperwork right, and they don’t decide to change all the rules between now and then.

Phew. No wonder most American’s don’t save. Saving fiat paper that is being relentlessly, deliberately debased is a fool’s game, and the complex, ever-changing rules don’t help.

Why not start a real Individual Responsibility Account today? One with no forms to fill out, no taxes to pay, no snoops and spies (aka bankers) to report every detail of what you do with your savings to any local, state, or federal goon on a fishing expedition?

It’s easy. Decide how many FRNs you want to turn into real savings. Pick up the phone, and call the nice people at The Camino Company. If you prefer the net, go to Goldmasters and fill your shopping basket. Order as many gold bullion coins as you can afford. At today’s prices, a $4,000 IRA investment will buy 6 or 7 one-ounce bullion coins. (There are many fine establishments who will take your order, and a few not-so-fine ones who will take your money but never send the goods. I use Camino because they are scrupulously honest and have been in business for decades.)

Six coins may not sound like much, but if you do this every year they add up nicely. Remember, the fedgov doesn’t (yet) limit how many you can buy, so if you can afford to save more, go right ahead! You also don’t have to wait for April 15, buy anytime. If and when that day comes when you need to sell a few, well, I have no idea what the tax rules will be then, but governments throughout history have found it impossible to enforce taxes on infrequent, private sales.

If you already have an IRA or 401(k) account, and worry that all you really have are computer bits on a disk somewhere, representing claims of ownership in stocks or bonds, you can change that. You need a “self directed” account, which basically means you have control over your money. Just buy Central Gold Trust, (CLGLF). You are buying shares of a fund that places essentially all of its assets in gold bullion bars, stored securely in underground Canadian bank vaults, safe from the predations of private and public-sector thieves. If you prefer some silver with your gold, buy Central Fund, (CEF) run by the same people according to the same principles. CEF buys 50 ounces of silver for every ounce of gold. Central Gold Trust is presently trading at a discount of 5-8% over the value of the underlying bullion, a rare bargain in precious metals. CEF is trading at a premium of 11.3%. Remember, you are buying shares on the open market, and the laws of supply and demand apply.

Are there risks? Of course, the only escape from risk is death. The price of gold (and/or silver) might go down. But unlike stocks and paper money, the price will never go to zero. The goods can be lost or stolen; keep them secret, keep them safe. I don’t use safe deposit boxes, as modern American bankers are nothing more or less than well-paid government henchmen, but some people are more comfortable with their savings in a bank vault.

Saving is one of the habits of all free people. Gold and silver have been the choice of free people and free markets for a hundred centuries. Our government may fall, our dollar will become worthless, our computers and bank “accounts” may vanish, but gold coins will endure. Start your real IRA today. You’ll be glad you did.

Silver

Posted by Silver @ 07:15 AM CST
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