Now considering moving a chunk of my IRA to one of Euro Pacific Capital managed accounts. I asked my representative about the disaster in late 2008, and what their lessons learned were following a significant loss of capital and betting against the US dollar. They said that world investors still thought that the dollar was a safe haven in times of uncertainty, but that recent trends in the dollar, the debt, etc. have changed investor’s perspectives relative to the US economy, and that future world market downturns would not necessarily lead to a stronger dollar. Foreign markets were uncoupling from the dollar so would be less affected. He also said that Euro Pacific had benefited from significant gains in the 2003-2008 time period, so those long term investors were less impacted.

I philosophically believe in their approach (foreign dividend paying securities), but concerned that they don’t appear to be agile in their management, but rather have a low churn, and want investors to commit to a 5-10 year time frame. It is a lot of money to commit, and seems like it will be difficult to control if the markets make another 2008 like run. The returns from their three managed accounts were ~6%, 12%, 12% for 2010, but since they were only established in Nov 2009, there is not much of a track record to go by, and there was a lot of volatility month to month.

Comments welcome as I continue to mull this over.

My account is up 125%. My dividend returns are quite high, around 10%, I think. Now, a new investor won’t get either of those numbers because the market has swollen, but I have been impressed by their recommendations and their overall track record.

No one is right 100% of the time, but I followed Schiff for a long time before I gave him my money and he’s called a lot of market moves.

The fees are high, but if you are a long-term investor they are better than the annual fees charged by retail brokers because they are one-time fees, not annual. (I am comparing to SmithBarney where my dad worked.) Also, I’m not sure where you will find a broker with lower fees who lets you buy on foreign markets directly for cheap without paying the pink sheet spreads as well. If they exist, please let me know.

Peter Schiff seems like a sensible no-BS investor adviser (ie: gold bullion only, in your possession only, don’t leverage PM, don’t buy numismatic coins, etc), but these fees tell a different story. They’re the highest fees I’ve ever seen.

Schiff’s firm would have you in commodity and PM stocks that have been on fire, especially the smaller caps, the last few months. So accounts that were created in mid 2009/2010 must be up huge…

Sitka Pacific, I have a lot of time for them, but I don’t think they have done what they said. My impression from market letters earlier in 2009/2010 that they “respect” the market, but they don;t appear to be following that….it is a shame…I REALLY hate to say it but they are looking like another “lucky” firm.

Perhaps 2011 will be kind to their investment strategies, but to be bearish in mis summer 2010 was a HUGE mistake. That was the consensus view and many 2008 winners are looking totally ordinary now.

Anyone notice how Mish never comments/annotates charts with market levels anymore? That is one bear who is seriously licking his wounds. You gotta be flexible in this market. And Sitka Pacific aren’t.

You want to be long risk premia in the long run. Maybe Mish will be right, but at the moment, on price action, you seriously have to question the bear case.

Good luck to all investors/speculators!