Monthly Archives: February 2013

Why is Gold and Silver Going Down

After receiving a few concerned calls about the recent market activity, I thought I share my opinion on the current market conditions. To truly understand why gold and silver spot prices are going down, one has to understand the current Economic climate. Currently there is a lot of uncertainty in the market place. Policy makers have not proposed a clear blue print for the future, so nobody is really taking any long term positions in the market. With that said traders still have to go to work and try to earn a living.

As an ex-trader, I can share a few things with you that might ease some of the stress that you might be dealing with now. When there is uncertainty in the market place, traders rely heavily on technical charts and market indicators. They go in and out of positions faster than they could digest their lunch. It’s also important to note that spot prices are affected by trading “paper gold” and not physical. Even thou the paper market have been selling off, the physical market has not been able to keep up with demand. To date in 2013 the US mint has sold 406,500 ounces of physical gold and 10,044,500 ounces of physical silver, some of the highest reported numbers since 2008.

Until the looming fiscal cliff and debt ceiling issues are resolved there will be a tremendous amount of volatility with the precious metals market.  As the equities markets are gaining ground due to the artificial strengthening of the US dollar, Traders are taught to bet against precious metals. It’s also important to note that most positions are only trading for a short amount of time as Traders scalp the market and take profits where they can. This market activity creates buying opportunities for long term position holders in precious metals.
Let’s take a look at some technical’s to get a better sense of what’s happening to the market and try to predict some buying opportunities

Gold Chart

As you can see Gold is approaching a resistance line of $1,540.59 many traders are waiting for that number to be reached before putting in buying orders. You can be sure that right now is a great time to buy gold, if you wanted to cost average your gold position, or get into the market.  It’s important to note that gold prices may never reach the resistance number so waiting for that number to be reached before pulling the trigger may not be a wise move.

Silver Chart 2.21.13

With silver we can see that there are 2 major resistance lines 1 at 28.09 the other at 26.32. With the industrial demand for silver higher than ever, reaching the second resistance line is unlikely to occur. The next major event is scheduled February 26-27 semi-annual testimony on monetary policy to Congress by Federal Reserve Chairman Ben Bernanke. Although he is probably going to avoid talking about the Fiscal Cliff the markets will be watching for any indicators of possible policy.

In conclusion it’s important to remember that physical gold and silver positions are “long term” hedges against the declining dollar. There will always be temporary market adjustments and volatility. Understanding fundamentals of an economy is what successful investors base their actions on.  Currently our unemployment numbers are not improving, we are not creating any more jobs or importing less goods. Additionally, we are printing more money than ever with the green light of QE3. All these factors make for favorable market condition for a long term position in precious metals. The current economic climate has provided a great buying opportunity. This is the time that clients should “dollar cost average” their metals position or enter into precious metals for the first time. We may not see metals at these prices ever again.
As always, please don’t hesitate to call me or your Numis Financial account executive to discuss current market conditions, product specials and more.

 

How Do I Buy Gold with my IRA

Gold IRA

The recent economic uncertainties has sparked investors to replace their holdings (stocks, bonds, mutual funds) with a less volatile investment such as gold and silver. Many investors are unaware that you can purchase gold and silver with not only liquid funds, but also with most retirement accounts such as:  Traditional IRA, Roth IRA, Simple IRA, Previous employer 401K, 403B, 457 Deferred compensation plan, Pension plans, Thrift Saving plan … and more. Less than 1% of US investors know that holding physical precious metals is even an option for them.

The mechanics in transferring your IRA or 401(k) into a Gold IRA is a Tax-Free, Penalty Free and Hassle-Free when dealing with Numis Financial. The IRA department at Numis Financial takes pride in handling the entire process for you. This practice of transferring your IRA into a Self Directed Gold IRA is commonly known as a “Direct Transfer” or “Direct Rollover.”

The first step in hedging your retirement against the volatile stock market and the weakening US dollar with gold and silver is to send the one page set up form which is included in Numis Financials Precious Metals Guide to the IRA department. By completing your set up form you enable Numis Financials IRA Specialists to have basic information about yourself, your eligible retirement account, and your beneficiary’s.

The second step for funding your Gold IRA is to choose a custodian and a Precious Metals Depository which is federally approved to hold precious metals within a retirement account. Numis Financial preferred custodian and for a Precious Metals IRA is New Direction IRA. However, we work with a variety of Precious Metal custodians. Whichever Precious Metals IRA Custodian is chosen Numis Financial will pay for your Set up Fee’s, 1st years Custodial Fee’s, and your 1st years Depository Storage Fee’s for eligible retirement accounts.

Numis Financials preferred Precious Metals Depository is the Delaware Depository Service Company one of the world’s largest and most secure depositories. The Delaware Depository is insured by Lloyd’s of London for up to $1 Billion. The DDSC is also the main storage facility for COMEX and NYMEX. As mentioned before whichever depository you elect, we will pay your 1st years Depository Storage Fee’s.

The third step after you have chosen the Precious Metals IRA custodian that best fits your needs and comfort level, Numis Financials dedicated specialists within the IRA department will complete all for the paperwork necessary on your behalf. Thus after, all documents will be sent over night to you for approval and lastly wet signatures. The package will also include a prepaid envelope which will be addressed to a designated department at your new Precious Metals custodian.

Once your preferred new IRA custodian receives the documents they will work very efficiently to establish a new account, and send a Transfer Request form to your old custodian who is holding your funds. The Transfer Form will give direct instructions to 1. Liquidate your current assets, 2. Put them into a money market account, and 3. Send the funds to the New Custodian in the most efficient manner (Federal Bank Wire).

The fourth and final step for protecting your portfolio with a Precious Metals IRA is to choose the type of metals which will not hedge your nest egg against the inflation and dollar devaluation, but also give you financial stability and growth. During your educational period with your Senior Account Manager at Numis Financial you will already be well informed on the different types of Precious Metals that are available to you to best fit your needs.

Once you choose the type of metals which will be held within your Gold IRA, Numis Financial will ship them within 72 hours to your storage unit at your designated Precious Metals Depository.

Safeguard your retirement with a Gold IRA Transfer/Rollover with an IRS approved process which is not only Tax-Free and Penalty free but also Hassle Free with Numis Financial.