This is the bulk of the letter we received on the 12th of April.
We are writing to inform you and alert you to some continued speculative activity that could have a negative effect on your current holdings in your IRA. Your timing and foresight to establish a precious metals IRA was excellent as the Federal Reserve continues to pursue inflationary monetary policies. However, we want to alert you to some potential moves by speculators that could temporarily negatively impact the price of silver and subsequently the value of your silver holdings.
Much of the recent price explosion in the silver market over the past year or so has been fueled by speculators using their hedge funds and investment banking houses to drive silver prices higher. We expect them at some point to take short-term profits and possibly drive silver prices temporarily back to the $15-$18 level. Silver seems to have stalled in the $30.00 range. As such our recommendation is to "lock in" your silver profits while maintaining your same percentage of assets in the precious metals.
We strongly recommend you consider trading half or more of your silver American Eagle coins into the gold American Eagle coins inside your IRA. Our reasoning is quite simple. With increased volatility and the potential of a speculative sell off and drop in price of silver we believe it is a good time to lock in the silver profits and diversify at least half or more of your silver IRA into gold as gold has established itself as the premier International Currency. Gold is proving to be the more stable way to hold precious metals.
The transaction is tax-free and would consist of essentially a mere trade of one metal to another and requires only two pieces of paperwork which are enclosed. Please feel free to contact us to further discuss our recommendation and to understand your options.
Our long term outlook for gold is $3000.00-$6,000 per oz. Due to the massive U.S. debt the Federal Reserve will monetize the debt to try and avert a total collapse of the U.S. and world economy.
End of letter---------------------------------------------------------------------------------
FYI - I have had this IRA account for two years. A while back, I blogged on this site about the fact that this company took months to finally send us our gold. We had ordered and paid for 14 Swiss francs at a cost of 398.00 each. By the time we received them they were down to the $290 range. We actually have not made any profit at this point as I actually paid about $32.50 for the SEs in the first place.
Ironically, I had just yesterday filled out the paperwork to take the losses and have our silver shipped to us from the depository. I have not mailed off the documents yet.
I sure would like to hear any input or opinions from any of you guys. So thanks in advance!