Anybody invested in Gold?

[Torrey]

My wife and I have been talking about putting some of our money into gold. Has anybody done this? Is it possibly to roll a 401k into a gold IRA without penalties? Does anybody know the best companies to buy from? Things to be careful of? Watch out for? Gold is on the rise and we want to act fast.

[Whumbahcumba]

While I'm not invested in it, I am watching the value per ounce since I have some one ounce coins sitting around. It was about $1015 an ounce back in March I think, and that's when I should have sold it.

[dbphotos]

To answer a few of your questions, you won't be able to buy gold in a 401k, you can only buy the limited funds that are offered in a 401k. You can buy gold in a "self directed IRA". As far as gold being on the rise, it's actually only been on the rise again in the last couple of weeks. Here is a chart showing gold prices over the last 8 years. You'll notice that it has "topped" 2 times this year and then has declined quite a bit since then. Most experts will tell you that once you see an investment "double top", it's generally not a good time to buy. In my opinion (and it's worth what you're paying for it) you don't want to buy when gold is at historical highs.

If you do decide to buy, you can either purchase gold directly and hold it or you can buy gold mutual funds which invest in the companies. No matter what you do, check with an actual investment advisor about all your options, don't ever buy from a company that only sells precious metals as they have 1 goal and that's to sell you gold.

It's normal to be nervous when the stock market is so rocky but either look at it as a buying opportunity, keep it in cash or diversify in other types of investments.

Email me if you want a referral to my advisor I use in Dallas. He can handle any type of investment and has over 20 years of experience. No matter what you decide, just make sure you get advice from pros and not just a bunch of photographers.

P.S. And, yes I do have some gold but it was purchased when gold was in the $300 range.

[timbertoes]

GOLD = Fannie Mae. doubled my small investment in the past 2 weeks. will hang on to it for the long run, I guess. not much to lose money wise anyway. but when stock sells for about $1 or so, you do get a fair little chunk of it.

*I know nothing about stocks, except to take a wild ride once in a blue moon.*

Like GM. bought at 20, sold at 28 a couple years ago. rebought at 17 and 19
now you can get it for about $11. Bet in a few years it will double. I hope :)

[johnastovall]

Don't forget "Ballistic Wampum."

[Beezwax]

no gold for me... my investments are international currency

[The Philos]

Personally I think gold is bad investment - it's got a poor long-term track record when compared to mutual funds and is far more risky. Gold MIGHT be a good hedge, but I doubt it would perform as expected in a barter situation because if the economy gets to that point people trade excess items of necessity for other items of necessity.

[dbphotos]

There is no 10 year period in history where that stock market hasn't outperformed precious metals. So for a long-term investment, gold is not a good trade, especially at the current elevated prices.

[Hogleg 44]

I have a little bit invested in a "Precious Metals" fund, which includes Gold.

[dracula02]

First off, if you are still employed with the company that has your retirement account, you may want to check with your 401k provider to see if they'll let you roll over you money into an outside IRA. (In-service distribution if the wording is correct) Second, when you look at putting together a portfolio, you don't want to "put all your eggs in one basket." Then there's the rule of thumb: "Buy low, Sell high." I would assume that Gold is far too high to be buying into it right now. At this point, if you have a long term time horizon, you may want to look into a mix of investments including large cap, mid cap, small cap, international, and bond funds. If your a "do it yourselfer," put it into a targeted fund like a 2020 or 2050 fund and be done with it. Also, don't time the markets or chase the latest fund because it will bite you in the arse. Remember the dot com boom, and even more recently the real estate boom?

[SCone]

Best investment you can find... firearms. An AR-15 that sold for $195 in 1975 now goes for $1800. That out performed gold two to one.

[Torrey]

Thanks for all of the input. Personally, I'm not sold on the idea, but she got a little extra in her paycheck and really wants to do this. I don't expect it to perform well, but it would be a very long-term investment. If it does well, great. If not, then it won't be a big loss and maybe she'll learn something from it. We'll just play with her money for now...I'll keep mine where it's at.

[johnastovall]

I would buy bullion coins (which I did) rather than funds. Those are truly in your hands. I like Maple Leafs.