Frequently Asked Questions
Why gold?
Gold as a medium of exchange - that is, as something that can be traded for goods and services - has been valued for
literally thousands of years. Across cultures and centuries, it is recognized that gold holds its value against all
other currencies, inflations, deflations, and turmoil. In fact, the Constitution even says that "No state shall make
any thing but gold and silver a tender in payment of debt." [Article 1, Sections 8 & 10]
Gold can be considered the only real money.
Why hold gold instead of dollars?
It's often said that one hundred years ago, one ounce of gold could purchase a fine men's wool suit, and that today
an ounce of gold can still purchase the same at today's prices. Ignorant persons point to this as an example of
gold not gaining in value - i.e., it can only buy the same items it could 100 years ago. But what this means is
that, even over one century, gold has kept 100% of its value. Imagine how many paper dollars that men's suit cost
back then: how much suit can that amount buy now? It is the gold - not the dollars - that retained value.
What's a 'self-directed IRA'?
A Self-Directed Individual Retirement Arrangement is an IRA that requires the account owner to make investment
decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee,
or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets
and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist
in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform
other administrative duties on behalf of the Self-directed IRA owner for the life of the IRA account.
Should I Transfer or Rollover my retirement plan?
Your first alternative is a "transfer." This is something you can do at any time with your existing IRA, as long as
the assets go from custodian to custodian. In a direct transfer, the money flows directly from one IRA custodian to
another. This means the distribution check from the old IRA custodian must be made out in the name of the trustee
or custodian of the new IRA account that receives the funds. Transfers may be made as often as you want.
The second alternative is a "rollover." A rollover occurs when you receive the distribution from your
existing retirement account and then turn around and deposit it in another retirement plan custodial account.
In this case you would need to re-deposit the funds into the new retirement plan account within 60 days.
If the 60 day time period is exceeded, you would be liable for taxes and penalties on the money withdrawn.
You may roll over the same money only once every 12 months to preserve the tax-deferred status of your
retirement savings.