← Autodidact Archive · Original Dissent · Valley Forge
Thread ID: 14445 | Posts: 18 | Started: 2004-07-05
2004-07-05 18:42 | User Profile
I'm thinking about dumping all of my investments, getting out of my company's 401K plan, and putting all of my extra income into:
Gold
Silver
Euros
What do you think?
Dumb decision or shrewd move?
2004-07-05 18:50 | User Profile
Land.
2004-07-05 21:23 | User Profile
Well, yes, of course, land too.
That's always a good option.
Good point.
2004-07-05 22:47 | User Profile
I don't think it's a good decision. I am not sure that real estate is good right now either, unless you are planning to move, you see a hot opportunity, etc.
I'd say, buy around $10,000 in gold. Put it in a safe deposit box. Maybe you can also spend a little extra to buy some to keep at home.
As for the rest: what's wrong with the 401K, etc.? The 401k is usually a good idea, unless there is something wrong with your employer's plan.
2004-07-05 23:23 | User Profile
Valley Forge,
I would not trust the Euro!
2004-07-05 23:38 | User Profile
darkstar,
I am trying to figure out what I can do to protect my life savings/investments in the event there is a serious social/economic breakdown.
I won't be able to take advantage of my 401K for another 30 years, and with the way the US government is currently spending, I think the curtain is going to come down well before then -- so I want to be ready.
On the other hand, perhaps this is an example of seriously flawed thinking on my part, and maybe the best plan is just to buy a little gold as you suggest and leave everything else as is.
I don't know; that's why I want to solicit some opinions on this issue.
[QUOTE=darkstar]I don't think it's a good decision. I am not sure that real estate is good right now either, unless you are planning to move, you see a hot opportunity, etc.
I'd say, buy around $10,000 in gold. Put it in a safe deposit box. Maybe you can also spend a little extra to buy some to keep at home.
As for the rest: what's wrong with the 401K, etc.? The 401k is usually a good idea, unless there is something wrong with your employer's plan.[/QUOTE]
2004-07-06 00:08 | User Profile
It's difficult to predict the future. The 401k isn't bad, since we know for a fact that Social Security is not going to exist when it comes time for our retirement. Faust is right about Euros--Euros would be hit by the ripples from any disasters down the road in this "globalized economy." [That's one good argument against globalism in the first place, it creates vulnerability akin to that of pulling one of the lights out of the string of Christmas tree lights--they all go out.]
Gold is good, just ask everyone from the ancients forward. Land isn't bad, particularly if you grow food on it if you ever need to.
Whatever your decision, the best rule I can think of is not to put all your eggs in one basket. Diversify your portfolio.
I'm certainly no financial expert, I'm just looking at it from a cautious, common-sense point of view.
2004-07-06 01:47 | User Profile
Silver was good to me back in 1980 and it will be good once again, I turned $18,000 into around $750,000,,,,,,,,, Buy silver and wait, silver going to the sky and land going down, you will be able to buy it for pennies on the dollar, also silver is easier to trade than gold. Euro? I guess it would not hurt to have a few of those on the side.
Many people will loose their homes so it would be good also to buy an apartment building.
2004-07-06 01:50 | User Profile
Remember that in 1980 gold went up 4/1 and silver 21/1,,,,,,,,,,silver is the way to go.
2004-07-06 02:03 | User Profile
Ponce,
Can you suggest any resources such as books or web sites for precious metals investing?
Thanks.
2004-07-06 02:48 | User Profile
[QUOTE=Valley Forge]Ponce,
Can you suggest any resources such as books or web sites for precious metals investing?
Thanks.[/QUOTE] [url]http://www.certifiedmint.com/y2k-1.htm[/url] You might check these guys' rep before ordering. I like the way they talk , though.
If you can't find any guys who have experience buying gold here, maybe check frugal squirrel forum. You'll have to register or log in. [url]http://www.frugalsquirrels.com/[/url]
2004-07-06 03:35 | User Profile
Valley Forge,
Check out Franklin Sanders over at the following link. He has been around for a while and is also a fine patriotic person.
[url]http://www.the-moneychanger.com/[/url]
2004-07-06 18:55 | User Profile
Valley Forge,
I am no financial expert, but my ideas on precious metals investing are:
Be very careful of precious metals investing firms.
Don't buy coins with numismatic value. When doomsday comes, people will not care if the coin is a beat up 1980 Krugerrand or an 1865 proof US gold coin. You want precious metals not historical coins.
Buy Gold and Silver Ingots, unless you can get a good buy on coins with low numismatic value.
Buy precious metal with cash at coin shops in small lots, so they will not report you to the Feds. Look some up in the phone book.
Remember you are not going to make much with precious metal, it gives you emergency funds for doomsday.
Find a good place to store it, given the precious metal are emergency fund for doomsday keeping at the bank may not be the best idea.
I have over the past few years seem many talk up this investing system:
50% Stock 25% precious metal 25$ other (Banks)
2004-07-06 23:46 | User Profile
History suggests that gold will serve as a medium of exchange and store of value after any societal collapse, though one can never be sure.
It is estimated that there are 4 to 6 billion troy ounces of gold above ground. I would recommend buying enough to ensure that you would qualify as pecuniarily average in the event of a collapse -- i.e., the above-ground total divided by the number of persons you estimate will constitute the carrying capacity of the post-collapse world. If you assume a rather radical 90% reduction in post-collapse population, you would have roughly 7-10 troy ounces per person. Spend $3 or $4,000 to acquire that amount, or more if you will have family members to think about.
2004-07-07 00:01 | User Profile
[QUOTE]3. Buy Gold and Silver Ingots, unless you can get a good buy on coins with low numismatic value.[/QUOTE] There will be widespread suspicion regarding the content of such ingots. While the US and other governments are guilty of many abominations in recent years, their coinage has been available for assay for decades, and I have never heard that any US, Canadian, or Western European coin was found to have been minted with less than the stated metal content.
I recommend "junk" US and Canadian coins. You will have to pay at least a 5-10% premium over spot to acquire the fun (i.e., big) coins: halves and silver dollars. Both US and Canadian silver dollars will generally require an even bigger premium over spot, although the premium is much less for Canadian silver dollars (part of which is due to the fact that US silver dollars contain more than twice as much silver as a silver half does). You can often get quarters and dimes for close to, or less than, spot if you look hard.
I mention Canadian because Canadian coins are in less demand (resulting in less of a premium) and contain nice round amounts of silver. For many years until I believe 1966, Canadian dimes, quarters, halves, and dollars were made with 80% silver. (For a couple years thereafter they were 50% silver.)Quarters, halves, and dollars contained precisely .15, .30 and .60 troy ounces of silver.
2004-07-07 00:02 | User Profile
I agree that productive land is an excellent choice.
2004-07-07 00:40 | User Profile
[QUOTE=Valley Forge]Ponce,
Can you suggest any resources such as books or web sites for precious metals investing?
Thanks.[/QUOTE]
Valley,,,,, I may sound like a savy inverstor but I am not, I was only lucky,,,
I got my silver at $2.45 plus .50 cents per once, that was in 1972,,,,,,and in 1980 sold it for $43.76 per once,,,,,, luck of the Irish.
This time I will sell half my holding at $50.00 the next 25% at $100.00 and the other 25% for survival porposes,,,,,,only thing is, I dont need anything, so, if I were to sell my silver? what would I do with the money? I am retired period,,,,,,,, maybe buy me a couple of cute young blond ladies? And a truck full of Viagra? heheheheheheheheheh
PS: I only buy the one oz round junk silver.
2004-07-08 19:07 | User Profile
mwdallas,
A good point. "junk" are the best way to go. I think Krugerrands and other such Pseudo-coins would trusted by most people. My main point was to stay away from coins with high numismatic value. Remember American $.10, $.25, and $.50 and $1.00 were all silver and "junk" coins of any of these would be good.
I have seen many of these so-called precious metals investing firms trying sell people the idea that perfect coins with high numismatic are what people should buy.
[QUOTE]There will be widespread suspicion regarding the content of such ingots. While the US and other governments are guilty of many abominations in recent years, their coinage has been available for assay for decades, and I have never heard that any US, Canadian, or Western European coin was found to have been minted with less than the stated metal content.
I recommend "junk" US and Canadian coins. [/QUOTE]