I have considered rolling over 20,000$ IRA to gold, which is now legal with the IRS. But, are these facilities or vaults that hold them, and you pay annual storage, safe? If chaos arrives, does the security guard take my gold and say adios? Fred

-- fred (fred@aol.com), October 26, 1999

Answers

You are only allowed to have American Gold Eagles in your IRA.

Although the holder of your IRA may protest the implication of dishonesty, thanks to what we now know about the gold lease trade, there appears to be many ways to get around the letter of the law, and there is no way (anymore) that I personally would trust that the eagles were actually, physically held in a segregated account and that hell would freeze over before anyone would be tempted to do anything with them during a crisis for the company.

I had a relative who attempted to "withdraw" some Eagles from his IRA when the price was quite low, and the market could be considered nearly dead. The company took weeks trying to arrange it (implying that the gold wasn't sitting in a drawer with his name on it). He finally decided it was more expedient to just "sell" the eagles within the IRA, take a check, cash it and get the gold himself. The company got a commission on the buy end and the sell end as well as storage fees, and there is no proof that he actually "owned" the physical gold.

Don't expect the above scenario to run smoother during chaos.

-- JIT (justintime@rightnow.net), October 26, 1999.

It was 2 years ago that I came into an IRA beneficiary's account under Merril Lynch, sold the stocks, converted it to gold, and around October, 98, tried to get delivery of the eagles. Two months went by and nothing at all happened. Merril Lynch was unable at that time to convert the paper gold into physical gold: and in fact I heard from the broker and a few others in the pipeline that "it's never done". I eventually just cashed out the account and used the monies to buy preps, and physical gold. With all the reports of shorts not being able to cover their positions, and the gold simply not being out there, I would have the MOST GRAVE RESERVATIONS about ever getting my mitts on any "gold" held in an IRA. I couldnt do it a year ago.

-- SH (squirrel@hunter.com), October 26, 1999.

JIT -- is that you, Sis?

-- SH (suirrel@hunter.com), October 26, 1999.

Could be?

I prefer to remain androgynous.

-- JIT (justintime@rightnow.net), October 26, 1999.

Come get your #$%@*&&% hard red spring wheat - before it sprouts in the garage.

-- SH (squirrel@hunter.com), October 26, 1999.

FRED, It depends on the Company that you deal with. I took my first withdrawal this year with no delay or difficulty. Mine is in Republic Bank in NYC. They had the gold in a vault with my name on it according to the American Church Trust Co., who is the agent for the IRA account. Their phone no. is 1-800-228-8825. I don't know what will happen next year if there is no communication or transportation. If there is a way to get to NYC, you could probably pick it up and take it home. Everything is uncertain. If you have an IRA with mutual funds or mm accounts, you are just as vulnerable. Call ACT and ask questions from them rather than take advice from someone on the internet.

-- JUBILATION T. CORNPONE (ALLTHATGLITTERS@NOTGOLD.Z), October 27, 1999.

This message is written as I have read your postings in the greenspun forum regarding your IRA accounts. The alternative to purchasing Gold Eagles is to purchase Central Fund of Canada Limited (est.1961). The shares qualify for inclusion in retirement accounts and might be the alternative that you are all looking for. Central's shares trade on the AMEX (CEF) and the TSE (CEF.A). They are backed by over 97.5% with physical gold and silver bullion that is store in our segregated vault within the vault complex of Canada's second largest bank the CIBC. The bullion is audited on a semi-annual basis and is fully insured with an "ALL RISKS" insurance policy. Central is the most cost effective way, that I know of, to purchase, store and insure bullion at under 1% per year. I invite you to review our website located at www.centralfund.com and would welcome any calls at 905-648-7878 at anytime.

-- J.C. Stefan Spicer (sspicer@nas.net), October 27, 1999.

Bite the bullet.

Withdraw the money from the IRA and buy your OWN gold. Ask them not to withold tax. You will pay the IRS (arf arf) any penalties NEXT April... think about it...

-- Andy (2000EOD@prodigy.net), October 31, 1999.