Archive for August, 2012

Dr Copper Update And Your Self Directed IRA

Saturday, August 25th, 2012

As we have mentioned before copper prices reflects the future expectation of of consumer demand. Consumer demand comprises 2/3rd of the GDP. Copper is a major metal used in numerous consumer goods and related services.

The current price pattern for copper is showing a head and shoulders pattern. Without getting too technical, this basically is a critical juncture in which price support needs to be established or else, we are looking a a drop in demand. A drop in demand predicts more dire economic circumstances for our future. As you will see below, we are in a head and should pattern.

What does this mean for self directed IRAs

If the prices for copper fall through support levels, then demand is clearly going down. Decreased demand means lower GDP. Lower GDP means less hiring and stagnant or increased unemployment. Worse unemployment means more printing by the Fed.

At the end of the day this means that we are looking at inflation and security issues for our investments.

Actions for your self directed IRA

Our recommendations is to continue holding metals in your self directed IRA. We believe that we are not going to see an appreciable increases in demand in the next few quarters. Therefore metals accumulation is recommended.

Real estate should be considered for your self directed IRA portfolio.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

Gold Recognition As Money And Its Effect On Self Directed IRAs

Sunday, August 19th, 2012

In the June 18 meeting of the Fed ad FDIC they reviewed what are known as the Basel III standards for Banks. As a result of that meeting, the following key points were established:

1. Tier 1 assets, for banks, are the safest assets that a bank can hold in reserve

2. Gold is defined as a Tier 1 asset under these new Basel III standards

3. The reserve requirements just increased from 4% to 6%. The new standards allows the banks to increase their reserves by holding gold.

What does this mean

First of all its a clear statement and recognition that gold is as safe as cash when it comes to banking. Further, this means that the Fed and the banking system now, for the first time in a long time, see gold as money — not just some commodity to put in your portfolio.

What does this mean for your self directed IRA

This admission and acknowledgement that gold is money will likely cause even more gold buying and holding by banks and other financial institutions. This tells you that they value it as a safe haven. This means that you should place the same kind of value in the metal. Because of this, we continue to maintain the position that gold and silver should be a key part of your self directed IRA portfolio.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

What The Lastest CPI Numbers Mean For Self Directed IRA

Wednesday, August 15th, 2012

The latest CPI numbers show that overall prices increased 0.05%. However, what this fails to acknowledge, and what the rest of us that live here know is that gas prices were up more like 7% in July. But, when we look at the infamous government figures the should be showing an increase of 0.24% vs. the 0.05%.

What does this tell us?

This tells us that the government is dealing with inaccurate, no-real figures when they set fiscal policy. This means that the US citizens have been and will continue to feel the pinch and pressure from failed economic policies for the foreseeable future.

What does this mean for self directed IRAs

Self directed IRAs continue to be a key retirement strategy for building your retirement. Self directed IRA investors are investing in hard assets and assets that are out of the direct control and manipulation of Wall Street and Washington. If you currently hav a self directed IRA, our current recommendations are to continue to look for and invest in rental properties. We are also advocating holding precious metals as the currency debasement and potential for more printing and dumping of the US dollar still has real potential.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

Crowdfunding And Self Directed IRAs

Tuesday, August 7th, 2012

For all of our recent memory and experience, its been illegal to solicit people or investors for investments into any business. This investment space has been relegated to the few that dwell on Wall Street and associate with the right people.

As most of us have learned from the 2008 meltdown, we are mere mortals and at a great disadvantage to Wall Street. However, there is hope.  Recently Washington has approved what is known as the JOBS bill which would make it easier for small companies to solicit and receive investments from private investors. This concept is based upon a concept known as Crowd Funding.

Crowd funding initially started as  a way for small companies to solicit investment by giving away generous amounts or products or services in exchange for money. The so called investor never receives any equity or ownership or any other paper. Instead they are at most receiving goods or services. This gets around the securities laws.

However, with the recent economic meltdown, and dismal, non-existent recovery here has been a push to make private, small business investing less restrictive and easier. This push has led to the JOBS act. The JOBS act attempts to allow small, non-accredited investors, to invest 10% or $10,000 in a private offering. The solicitation restrictions for the business would be removed. There would be a exchange platform in which the offeror would register. The investor can view and qualify the offeror. From there they can choose to invest.

What this means for self directed IRAs

The above discussion is brief at best, but it gives you a taste for what is going on. When this law becomes effective in 2013, it will open a whole new world of investment opportunities for self directed IRA investors.

The ISM Report And Your Self Directed IRA

Wednesday, August 1st, 2012

The July 2012 ISM report just came out and the the number came in at 49.8 versus the June number of 49.7.

The ISM report is a general measure of manufacturing activity and specifically how much manufacturers are planning in procuring for the business. A number below 50 indicates negative or contractionary environments. The ISM numbers were below 50 for the last two months which is a very clear contractionary signal.

What does this mean for Self Directed IRAs?

The contraction of the ISM numbers supports a series of other economic values which shows that the economy is not only slowing, but may actually be entering or have entered into a recession.

Recession is the perfect cover for the Fed to engage in more stimulus via printing. These policies will lead to inflation, weak demand. This is the type of environment in which you need to be holding precious metals and other hard assets such as real estate in your self directed IRA.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.