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Is investing in gold/silver a good idea right now? How does one do this - coins? bars? certificates? Is there a minimum one should have to invest for this to be worth the investment? Where do people keep these things - bank deposit boxes or home safe, or store certificates? Also, I recently heard that certificates are "the way to go" because it costs money to 'restock' bars when you sell them. I am as green as possible on investing but a family member keeps insisting this is what should be done...gold or silver (ingets -sp?). Thanks
Is investing in gold/silver a good idea right now? How does one do this - coins? bars? certificates? Is there a minimum one should have to invest for this to be worth the investment? Where do people keep these things - bank deposit boxes or home safe, or store certificates? Also, I recently heard that certificates are "the way to go" because it costs money to 'restock' bars when you sell them. I am as green as possible on investing but a family member keeps insisting this is what should be done...gold or silver (ingets -sp?). Thanks
Depends if you want to hold the metal. If you want to hold the metal, buy the ingots as close to spot as you can--either online or at a local coin/metals dealer.
Personally, seems to me like both gold and silver are high right now. Too high.
Depends if you want to hold the metal. If you want to hold the metal, buy the ingots as close to spot as you can--either online or at a local coin/metals dealer.
Personally, seems to me like both gold and silver are high right now. Too high.
Thanks, J_K_K.
What is "as close to spot as you can" ?
I think you're right on the cost of both at this point. I know we need to invest, I'm just not sure where or in what. Something needs to grow slowly and be helpful in retirement...its just not our area of expertise or interest and we wish we had someone trustworthy to give up controls to with some guarantee that we'll have something significant enough to depend on years down the road. We're open to any suggestions, :-)
I think you're right on the cost of both at this point. I know we need to invest, I'm just not sure where or in what. Something needs to grow slowly and be helpful in retirement...its just not our area of expertise or interest and we wish we had someone trustworthy to give up controls to with some guarantee that we'll have something significant enough to depend on years down the road. We're open to any suggestions, :-)
'Spot' is the current price of the metal per ounce, or pound, depending on how it's usually sold. The idea is that if silver is $14/oz, don't pay $18 for it.
Frankly, from what you are describing to me, you're not in a situation where you should invest in anything riskier than CDs until you educate yourself much better.
You are the classic folks who end up going to a financial 'advisor' or conventional broker and getting hosed, like most of my relatives who talked a good game about learning what was going on, then didn't bother. No one can guarantee you anything, and anyone who does is a liar. For example, some people will say that CDs and T-bills are guaranteed. They aren't. If the U.S. government should collapse, neither is safe. A lot of people think gold is guaranteed; it's not. It could plummet in value. No guarantee is worth more than the full faith and credit of the guarantor. Now, I don't happen to believe that our government will collapse; I'm just pointing out that all investments entail SOME risk.
Also, bear in mind that investing in a conventional mutual fund amounts to exactly what you described: selecting an advisor you deem competent, and handing them the reins.
This guarantee you seek is thus elusive and evasive. You are better off playing the odds and hedging. For example, I feel confident enough that our currency won't turn into Zimbabwean toilet paper overnight that I am okay having my assets in $US. No guarantee, but I'm pretty sure, and I'm playing the odds. I feel confident enough that my credit union will not eat flaming death that I have some money in CDs and MMAs, and that if it does, the government will pay the NCUA insurance. But I also have a good chunk in collectible coins and gold and silver, because that's a good hedge.
If you want to save money for retirement you need to decide on your risk tolerance, investment horizon and intestinal fortitude. Tell me what you think those are, then I'll ask you questions to verify them (most people think they are gutsier than they really are). That'll help suggest where you should have your money.
'Spot' is the current price of the metal per ounce, or pound, depending on how it's usually sold. The idea is that if silver is $14/oz, don't pay $18 for it.
Frankly, from what you are describing to me, you're not in a situation where you should invest in anything riskier than CDs until you educate yourself much better.
You are the classic folks who end up going to a financial 'advisor' or conventional broker and getting hosed, like most of my relatives who talked a good game about learning what was going on, then didn't bother. No one can guarantee you anything, and anyone who does is a liar. For example, some people will say that CDs and T-bills are guaranteed. They aren't. If the U.S. government should collapse, neither is safe. A lot of people think gold is guaranteed; it's not. It could plummet in value. No guarantee is worth more than the full faith and credit of the guarantor. Now, I don't happen to believe that our government will collapse; I'm just pointing out that all investments entail SOME risk.
Also, bear in mind that investing in a conventional mutual fund amounts to exactly what you described: selecting an advisor you deem competent, and handing them the reins.
This guarantee you seek is thus elusive and evasive. You are better off playing the odds and hedging. For example, I feel confident enough that our currency won't turn into Zimbabwean toilet paper overnight that I am okay having my assets in $US. No guarantee, but I'm pretty sure, and I'm playing the odds. I feel confident enough that my credit union will not eat flaming death that I have some money in CDs and MMAs, and that if it does, the government will pay the NCUA insurance. But I also have a good chunk in collectible coins and gold and silver, because that's a good hedge.
If you want to save money for retirement you need to decide on your risk tolerance, investment horizon and intestinal fortitude. Tell me what you think those are, then I'll ask you questions to verify them (most people think they are gutsier than they really are). That'll help suggest where you should have your money.
Your information is much appreciate - great post.
We understand that some investment areas are greater than others and fluctuate largely over days, weeks or months while others fluctuate but less so, and make a progress, gradual climb up the curve over many years. We lean more towards the latter, I think.
We are highly interested in retirement and not so much interested in banking anything of a 'win' in the next many years. So risk tolerance=low-med, investment horizon=(not sure of this term but)a nice 'egg' in 35 years to pay for something to do in replacement of work days at that time, and intestinal fortitude=we are not gamblers except on holidays, and even then we take play money with full intentions of losing it (which we mostly do). Thanks again for your help. We dont want to be "those stupid people" but we also dont know who to turn to, who to trust, or what all of our options are...
We are highly interested in retirement and not so much interested in banking anything of a 'win' in the next many years. So risk tolerance=low-med, investment horizon=(not sure of this term but)a nice 'egg' in 35 years to pay for something to do in replacement of work days at that time, and intestinal fortitude=we are not gamblers except on holidays, and even then we take play money with full intentions of losing it (which we mostly do). Thanks again for your help. We dont want to be "those stupid people" but we also dont know who to turn to, who to trust, or what all of our options are...
Okay. If you feel your risk tolerance is low to medium, that means that if history is any guide, you'll have to be satisfied with about 5-8% returns annually. Are you okay with that?
If your investment horizon is 35 years, that means you have a long time to ride out market shifts. Which means if history is any guide, you can recover from serious downturns.
If you are not gamblers and have low intestinal fortitude, I'm betting that a year in which you appear to lose 10% of your money would bother you a lot, as in causing you to panic a bit. True?
If I've read your answers right, that suggests to me that you should not buy individual stocks or bonds at all. Asset allocation mutual funds are called that because they invest in a mix of stocks and bonds, usually 60% stock, 35% bond and 5% cash instruments. Historically, they gain about 7-8% a year on average. Bear in mind that this means in good years, they will tend to underperform the market, so when everyone else is making a 20% killing you might make 13%. But when everyone else is losing 15%, you'll probably lose more like 7%. Those are just napkin numbers, but you get the idea. Would you be okay with that result? Could you watch it happen without fear or jitters?
This of course presumes that you also maintain a suitable savings reserve and owe no credit card or other frivolity/emergency debt. If you do, get it paid off, but continue to build savings as well. Credit card debt in particular is to your wealth what a bleeding abscess is to your health.
Okay. If you feel your risk tolerance is low to medium, that means that if history is any guide, you'll have to be satisfied with about 5-8% returns annually. Are you okay with that?
If your investment horizon is 35 years, that means you have a long time to ride out market shifts. Which means if history is any guide, you can recover from serious downturns.
If you are not gamblers and have low intestinal fortitude, I'm betting that a year in which you appear to lose 10% of your money would bother you a lot, as in causing you to panic a bit. True?
If I've read your answers right, that suggests to me that you should not buy individual stocks or bonds at all. Asset allocation mutual funds are called that because they invest in a mix of stocks and bonds, usually 60% stock, 35% bond and 5% cash instruments. Historically, they gain about 7-8% a year on average. Bear in mind that this means in good years, they will tend to underperform the market, so when everyone else is making a 20% killing you might make 13%. But when everyone else is losing 15%, you'll probably lose more like 7%. Those are just napkin numbers, but you get the idea. Would you be okay with that result? Could you watch it happen without fear or jitters?
This of course presumes that you also maintain a suitable savings reserve and owe no credit card or other frivolity/emergency debt. If you do, get it paid off, but continue to build savings as well. Credit card debt in particular is to your wealth what a bleeding abscess is to your health.
It all sounds/seems good...a slow and gradual earnings? We do not owe anything to any credit cards or other frivolity/emergency debt.
It all sounds/seems good...a slow and gradual earnings? We do not owe anything to any credit cards or other frivolity/emergency debt.
Good that you don't have such debt. That makes it feasible.
It's not hard to find asset allocation funds. RIMBX is a very reputable one; I'm acquainted with some of the firm's principals and employees, and that's a very smart bunch of people. But there are other asset allocation funds as well, and a mix of several would make sense if that's the way you feel most comfortable going. At this point I would suck out loud if I did not emphasize that you must, must, must read the prospectus carefully before investing.
That strategy would be a pretty boring one, lacking all adrenaline highs and lows. It sounds to me like that is exactly what you are seeking, that you are willing to sacrifice big gains to avoid watching your guts turn to liquid on seeing big losses. Notice, I am not putting down boring investing. I wish last year had been a lot more boring for me. I would have been very happy to have a boring, flat year, instead of the bath I took. But I have a higher intestinal fortitude and risk tolerance than perhaps you do, so what is suitable for one isn't necessarily suitable for another.
The easiest way to hold gold and silver is through ETFs: GLD and SLV. These can be traded like stocks. An online discount brokerage account that links to your bank account for transfers would be the most convenient and direct way to arrange this.
Good that you don't have such debt. That makes it feasible.
It's not hard to find asset allocation funds. RIMBX is a very reputable one; I'm acquainted with some of the firm's principals and employees, and that's a very smart bunch of people. But there are other asset allocation funds as well, and a mix of several would make sense if that's the way you feel most comfortable going. At this point I would suck out loud if I did not emphasize that you must, must, must read the prospectus carefully before investing.
It is interesting JKK that earlier you downplay the value of a financial advisor and then recommend RIMBX which is loaded fund with a high expense. That would be a typical recommendation of a commissioned "financial planner". If an asset allocation fund were the appropriate recommendation, there are a number which outperform RIMBX with less expense.
As for asset allocation funds, a blind monkey throwing darts could do a better job of asset allocation selection than 99% than of these funds. The past 18 months have shown they do not live up to their hype and even today as a classification of investment type, they are still underperforming a standard T-bill.
If a person knows, or think they know, the ins and outs of investing, then by all means they should go it alone. However, the OP clearly does not fall in this category and should seek the advice of a fee-only financial advisor. The selection is the same as you select a pastor, doctor, lawyer, cpa or any other professional. Look for qualifications, education and (investment) style. They charge a fee as a percent of AUM and their objectives are the same as investors. Or charge a flat or hourly fee for the development of an investment plan. When you don't know what you are doing, seek out the help of someone who does.
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