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The Latest Warning from the IRS on Home Storage Gold IRA

For over a year now, a number of companies have been busily advertising the idea of home gold IRA storage. By this they promoted the possibility of you setting up a custodian company in order to manage and vault your retirement holdings precious metals that you bought for your Self Directed IRA at home. This has been a questionable practice and grey area of the law since Home Storage Gold IRA companies first suggested it. As the Wall Street Journal has warned earlier this month, the IRS is taking an unfavorable view of this method now. Read on to learn what the controversy is surrounding the Home Gold IRA storage and if it is worth the risk for your own gold holdings. What the Ads and the IRS Say About Home Gold Storage This past summer, the advertisements have been particularly prolific on IRA Home Gold Storage. They have insisted that you are able to use the funds from your tax deferred retirement vehicles to purchase gold and other precious metals. The promotions from firms like Augusta Gold and Hartford Gold Group say that you can then store them wherever you would like, including at home or in a bank safe deposit box. Other companies sell packages that set you up an LLC company to be custodian for the gold. This has not yet been tested by the courts or the Internal Revenue Service directly, but the IRS issued a set of guidelines that apply to the storage of Self Directed Gold IRA holdings. Most recently, earlier this month the IRS has issued a stern warning against the home gold storage concept...

Investor Gold Demand Sets New Records in 2016

The World Gold Council’s semi annual Gold Demand Trends report is always a much anticipated publication in the world of the yellow metal. It is considered by authorities to be the foremost resource in the industry for data on gold demand. This year’s first half report did not disappoint. Contrary to what you may hear in the media from time to time, gold demand continues to grow in most important categories. In several critical ones, it set new records and near records. Read on to see why this continues to offer tremendous support for your gold retirement holdings and future gold prices. Gold Enjoys Second Highest First Half Demand On Record Gold is basking in the near record high for the first half total demand. Thanks to the Q2 continued growth of 15%, it achieved the second greatest first half in the gold data records. This amounted to a total demand for gold in the first half of 2,335 tons. ETFs were the star performer with an impressive +579 tons added. The second highest first half on record occurred even in light of weak jewelry demand that struggled in a scenario of substantially higher prices. Gold rose over 24% in terms of U.S. dollars, and even higher in other currencies as this chart shows. Record Investment Demand Breaks Great Recession 2009 Prior Highs Investment demand is the category that really put overall gold demand over the top in the first half of the year. The old record had been set during the panic and fear that pervaded global markets in the low points of the Great Recession in 2009. For 2016 first half, the total investment demand...

Gold Inflation Adjusted High from 2011 is $2,000 Per Ounce

Just last week, you read here about how Deutsche Bank predicted the fair value of gold should be at $1,700 or more per ounce. Their argument was based on the expansion of the central bank balance sheets from the world’s four major central banks the U.S. Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China. In an interesting twist on the idea for substantially higher gold prices, Macquarie Bank Research has attempted to explain why gold has not rocketed up to its literal or inflation adjusted high from 2011. The 2011 Inflation Adjusted High for Gold Gold reached just over $1,900 per ounce in 2011 before it began a steady pullback and correction lower. In terms of the inflation adjusted high from that point five years ago, this represents a $2,000 per ounce price today. Yet gold is is mired in the lower $1,300’s per ounce price range. This is not an insignificant price when you consider that it is up over 24% on the year. It is a poor price point if you consider that the yellow metal has experienced a record surge in investment for 2016. As Macquarie Research pointed out in their report they released last week, today’s $1,325 per ounce is still almost $600 below the actual 2011 high and nearly $700 away from the inflation adjusted one. They give several reasons to explain this phenomenon, all of which deserve closer scrutiny. Why Gold Has Not Reached Its Inflation Adjusted High The Macquarie Research department analysts have three main arguments for why they believe gold has not reached or exceeded its over...

Central Bank Expansion Argues for Higher Fair Value Gold Prices

Gold has rallied impressively so far in 2016, but this does not yet mean that it is yet fairly valued. When the commodity is measured against central banking balance sheet expansion, fair value figures significantly higher than $1,300+ per ounce appear. This is not just an idea suggested by fringe elements predicting imminent financial collapse. Though Zero Hedge raised the idea of higher gold prices based on central bank money printing over a year ago, Deutsche Bank has recently gone to great lengths to make the case for substantially higher real values for the yellow metal. The Case for Why Gold Should Be Substantially Higher In July of 2015, financial site Zero Hedge brought up the idea that gold prices should actually be substantially higher based on the incredible expansion of central bank balance sheets. This was at a time when gold prices had pulled back significantly to just under $1,200 per ounce. The chart demonstrates what they predicted would be fair value for the safe haven metal currency based on the continuous growth of the major six central bank balance sheets. It takes into account the U.S. Federal Reserve, European Central Bank, Bank of England, Swiss National Bank, Bank of Japan, and People’s Bank of China. As you can see, Zero Hedge’s chart assigned a nearly $1,800 per ounce fair value to gold. That was a year ago, before the European Central Bank had been creating euros to purchase bank and financial assets throughout the eurozone at the rate of another 80 billion euros per month. It also predated the latest round of asset purchases that the Bank of Japan announced. Today...

Senior Trump Economic Advisor Advocates Return to Gold Standard

From time to time, you hear rumblings about a renewed gold standard. This is more often the case as financial crises continue to roil international markets every few years. U.S. Republican Presidential candidate Donald Trump has a senior economic advisor who is putting forward the idea again. Dr. Judy Shelton recently revived the gold standard in an interview she did with Fortune Magazine. Who is Economist Dr. Judy Shelton? Donald Trump recently appointed two economists to his all important economic advisory team. Dr. Judy Shelton is the only woman who has been named to it. She is both a co-director and senior fellow at the Atlas Sound Money Project. Their goal is to encourage the use of dependable money as well as to increase awareness with the potential built in problems of the present day monetary system. Dr. Shelton achieved fame as she correctly forecast the Soviet Union’s economic collapse two years before it occurred in 1989. This all matters enormously because Donald Trump is a businessman who surrounds himself with highly qualified people and then relies on their advice. If she is calling for a gold standard, then you can be sure the Republican presidential candidate is seriously considering it. Trump’s Advisor Shelton Proposes A Gold Standard Return Dr. Shelton was asked about her thoughts on a gold standard and she had interesting answers. For starters, she does not have any opposition to holding another international Bretton Woods conference. She also believes that it is not necessary to bring around numerous other countries to the idea at the same time. This is because the U.S. holds a unique position as the...