Superannuation and Silver

[nicoliMember]

Hey Doc I’ve been watching from afar for too long… time to participate !

I am young and only 4-5 years in to my career as an I.T professional. Since the beginning of the year I have been slowly stacking physical silver (buying 10oz or so every pay day) and convincing my family and close friends to start getting in on the physical before it all goes. I am not too concerned with an immediate financial collapse here in Australia (thanks to a mining sector propped up by China), but I am scratching around to find ways out of the ponzi scheme nontheless incase SHTF!

One of the ways I was thinking of doing this was changing to a Superannuation fund that invests in GLD & SLV. I just got off the phone to my current ‘Super’ provider, and the lady did not know what ‘fiat’ was, and furthermore had no listed investment options for precious metals. This means my retirement fund is in a ‘default’ pool of money, where these bastards invest it in to whatever schemes they like. Superannuation is similar to 401K you guys have in the USA. There’s a bunch of legislation and rules regarding ‘super’ which I wont get in to, but I am seriously considering this as another way to safeguard my retirement savings.

I figure I would rather retire with a warchest full of bullion than numbers on a computer screen!

This site turned up in my investigation:

http://www.bullionbaron.com/2011/12/superannuation-exposure-to-precious.html

As far as I can tell you have two options: sign up for a managed super fund where they invest in GLD & SLV shares OR do the paper work + pay the fees to have a SMSF (Self-Managed Super Fund) where you can actually buy the phyzz and store it yourself. Personally I think physical is best, but as I can’t touch this money for another 3-4 decades do you think rolling over my retirement fund to GLD/SLV shares may be legitimate move??

SilverDoctors is one of the first websites I hit in the morning so any advice is appreciated. Would also love to hear from any Aussie’s who have gone down the SMSF path also, pitfalls, roadblocks, learning curves etc.

Thanks yall!

[BigrsoulMember]

Hi nicoli, I’m a farmer in Qld and have changed
over to a self managed super fund (e-super) two years ago, best thing I ever
did as a huge chunk of my super would be gone by now as most of the “financial
advisers” that I’ve used are as much use as a chocolate tea pot. I have ALL my
super in physical silver hidden away nice and safe as my thoughts are that if
you don’t have it in your possession you don’t own it. Glad to hear you are
still adding to your position as I think we are in for a rough ride very soon. Don’t
think that we are immune to the rest of the worlds financial meltdown because
of china, as all our banks are interlinked and are up to there ears in toxic
debt, and just wait until the derivative black swan comes home to roost!! Great
to see that someone else in Australia actually gets it and is doing something
about it, most of the people I know are so affected by normalcy bias that when
the banksters steal all there digital “fiat currency” they will still not
believe it, Keep stacking while you still can….cheers.

[AGXIIKMember]

Nicoli  Welcome to the family. 

 I will try to address your concerns by relating what I recently did with my IRA, a retirement fund that I developed over the years from investing a portion of my business profits into a retirement fund.  In America we can invest our IRAs and 401K in nearly anything we want.  Most people have someone else invest it for them or chose ETFs that seem like a hot deal. Initially I thought it would be a good idea to invest in GLD and SLV.  In my research on silver Doctors and elsewhere I found that these two subjects for real concern.  Leaving aside the manipulation in the PM marketplace causing some really wild swings in the prices of these two ETFs,  some well informed pundits and silver speakers such as Doc, Jim Willie and Harvey Organ and Ted Butler think they have leased out their physical assets and that, coupled with shorts against the shares, means that there is much less silver or gold to back up claims against their PMs.  GLD supposedly has 1,200 tons of gold and SLV supposedly has about 130,000,000 ounces in their vaults  But no one has be able to audit the holdings.  Too many bullion vaults world wide have be found to be missing their assets even in allocated supplies.  Von Greyerz of Matterhorn Fund noted a client paid the dickens to get his gold out of a Swiss bullion bank. 

Maybe one of the few honest and ethical bullion holders is Eric Sprott.  His PSLV (silver) and gold funds actually have the real thing in their vaults.  The NAV for his funds are higher than the actual price for the shares to silver or gold prices since the investors believe he does hold his gold and silver assets.  GLD and SLV sell for an NAV lower than the respective price per ounce for the metals. 

In my case,  I am  now a firm adherent to Doc’s Rule # 1. If you don’t hold it you don’t own it.  See MF Global for the best case in point regarding the outright theft of clients funds including their silver and gold holdings. Corzine is just the most extreme example of what can happen when you trust a banker or hedge fund manager to safeguard your assets. Maybe they won’t actually steal your assets TODAY, but they will fritter away your assets, nickel and diming your return to death as they line their pockers.

 I was able to set up a Self Directed IRA and just took deliver of my first tranche of gold and silver that I will store in a very well protected site.  My avatar indicates my mind set when it comes to those measures. The SDIRA allows a person to take their retirement fund and buy assets of THEIR chosing, not the chosing of some high price stiff who’s only concern is how many times he can flip your assets to generate the biggest commissions.

The SDIRA also get me completely out of paper including stocks, bonds, ETFs and cash  I have no trust in brokers today since the counterparty risks in their portfolios along with the rehypothecation of your shares of stock and other holdings done by the brokers to juice their yields means that your shares may not be your any more. Someone may have claim against them. If you hold your shares directly in your name and the brokerage goes bust, or the markets completely shut down for a period of time; maybe a few days; maybe a few weeks in the case of a world wide financial crisis, you are stuck with no market for your holdings and this is the same thing that is happening in Europe right now. Doc posted the Forex trader who will close due the upcoming Greek elections.  BNI, one of the larger banks in Italy shut down for a month. The people with accounts there are screwed.

Like your fellow Australian Bigrsoul, who appears to be all in with his retirement plan, you should be able to effect that change. If not, maybe you can make your contribution into PMs as a choice now. I am of the mind that we are in for a real storm and when formerly civilized first world countries like ours and most of Europe are whipsawing the citizens with debt, expropriation of assets, bank shut downs and tax hikes, the average person and their assets are not safe.  I am all in with PMs and sleep well at night.  I hope this give you a few bits of data to work with. Cheers and my best to you.

[nicoliMember]

Thanks for all that information, funnily enough the idea of taking hold of this money and getting it out of fiat currency came up out of the blue when discussing some of this with a colleague, so it’s reassuring that some people have already walked the path to a PM backed retirement fund.

There is still what seems to be a legal labyrinth yet to battle in order to get a hold of the money, as someone with a keen interest in being Sovereign as much as possible; I like to be 100% clued in to the documents I’m signing. 

So far a SMSF seems the best option, but the most work. There’s super funds that are able to invest in PMGold (Perth Mint Gold) which seems rather secure, but again you do not actually hold the physical gold. Further more, my retirement fund is quite small as it is, so the last thing I want to be doing at the moment is blowing it all on a handful of krugerrands.

I can now see why Silver is definitely the way to go for the average middle class investor! 

The next few months I’ll continue stacking, and begin to set up my own SMSF backed by physical silver – not looking forward to it, but I consider this a pretty essential thing to do in my life at the moment.

AGXIIK : thanks for the write up mate, much appreciated. You certainly sound serious about protecting your assets, what do you think about a recursion of Executive Order 6102? In Australia we had a similar thing called the Banking Act of 1959 that seems rather unfair!

[AGXIIKMember]

Nicoli   It sounds like you are on the right path to hold your physical assets in your own control.  Silver does get more bang for the buck as well.  FDR was an evil SOB and by stealing the peoples gold and then devaluing the currency by over 50%, he deserves a special place in hell. 

 My thoughts on a federal expropriation of my retirement gold?  Well, after taking action to remove my paper retirement assets into physical form  it will be a cold day in hell that anyone from the government will get them from me.  I bought gold.  The amount will easily fit into an ammunition can that can be buried out of greedy government hands.  One of my main reasons for converting to physical is the real threat of the federal government expropriating our retirement plans to fill the multi trillion dollar deficit. The laws and executive orders are now on the books.  Governmental theft of retirement plans has been the resort of thieving politicians for decades.  We are no less likely to be subject to this than any country in Europe or South America.  My plans are to remove myself from harm’s way

[2 OZ.Member]

Well Nicoli, glad to have you no board. I was going to tell you to ask AGX as he was working on a Self Directed IRA and was answering questions from SD readers. Anyway, AGX chimed in as well as Bigrsoul and both seem very savvy with this type of information. Good luck.

[nicoliMember]

This just in….

JPMorgan Tells Other Bankers About a Pending 4 $Trillion Public Pension Bomb that is About to Explode, Keeps Public in the Dark

JPMorgan recently circulated a “strictly confidential” report among leaders at the bank and with trusted hedge fund allies outside of the bank which details an impending public pension crisis. And we mean big time nastiness.

http://www.nypost.com/p/news/opinion/opedcolumnists/morgan_big_secret_DSB0O9VFZwDih1ZrjkeaAN

[Author]

Posts