Put a silver lining in your IRA? For those who would like to invest a small percentage say 2-3% as Mr. Warren Buffett did recently, perhaps it would be worth looking at silver see below:
WASHINGTON, D.C. -- President Clinton on August 4, 1997 signed the
Taxpayer Relief Act of 1997 which includes a provision (Sec. 304) that
broadens the precious metals investment options for Individual Retirement
Account (IRA) investors, beyond US Mint-issued American Eagle Gold and
Silver Bullion Coins. The new provision permits investment in other silver
bullion coins and silver bullion bars provided that they are of a fineness
equal to or exceeding 99.9 percent silver.
Although investors in individually directed retirement accounts may invest
in a wide variety of precious metals mining stocks and mutual funds, they
currently are unnecessarily restricted in their choice of physical precious
metals investments. Bullion is fabricated in several forms, among which the
two most predominant are bars and coins. With this legislation, Congress has
in effect placed precious metals on par with bonds and equities for the IRA
investor. Once signed, the provision becomes effective on January 1, 1998.
The significance of this provision is that it expands investment
opportunities beyond the American Eagle bullion coins to silver, gold,
platinum and palladium bullion coins issued by a number of other governments
including the Canadian, Mexican, and Australian mints. Bullion coins provide
the small investor with an economical way to make precious metals
investments for diversification and portfolio protection purposes. Bullion
coins are manufactured in large quantities and in a standardized and uniform
manner, making them fungible, or interchangeable with each other.
While coins are convenient for smaller transactions, they do carry a higher
premium than bullion bars which may make them less attractive for investors
choosing to invest larger amounts in precious metals. To address that, the
new provision also permits investment in bullion bars of silver, gold,
platinum and palladium, which come in a variety of sizes ranging from a few
grams up to 1,000 ounces. Bullion products are among the most liquid of
investments, with a global 24-hour market.
"Precious metals have uniquely been used for savings and investments since
the dawn of civilization, and millions of Americans invest in precious
metals today," said Paul Bateman, executive director of the Silver
Institute. "They recognize that precious metals, such as silver, are an
excellent way to diversify a portfolio and provide a hedge against inflation
and financial uncertainty. Silver, like other precious metals, can bring a
balance to other portfolio assets like stocks, bonds and mutual funds,
reducing the volatility caused by fluctuations in the securities markets."
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For Further Information Contact:
Christy Rosch‚
The Silver Institute
1112 16th Street, N.W., Suite 240
Washington, D.C. 20036
Tel: (202) 835-0185
Fax: (202) 835-0155 |
