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?

[BouzoukiJoe A.K.A. wrecker130 AKA Chuck Norris AKA joeforbroke (banned)]

Originally Posted by 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?

No need for a special gold IRA to invest in gold. Avoid those! Many of them are marketed by hucksters.

I have a self-directed IRA (through Fidelity) and own shares in gold miners and in the GLD trust. I could hold bullion but I choose not to do so due to carrying costs.

I'd also be careful about 'investing' in gold. Gold is a hedge, not an investment. However, it's good to have some as part of a balanced portfolio. Especially with the government doing all it can to destroy the currency.

If you really are a doomsday kind of guy you want to hold all you gold in gold coins outside your IRA. The assets in your IRA could conceivably be tied up. The British Sovereign is one of the most widely recognized world-wide. I have a few, but unfortunately not enough for me to be able to flee the country when the evil ones take over (perhaps they already have).

[kong]

Like the above poster stated, purchasing gold is mostly done to protect wealth and not to increase it. There are occasional run ups in price but it is mostly just a hedge. Remember that all the gold ever mined is still floating around today. The main factor that affects the price of gold is whether or not people are hoarding gold or trying to sell it.

The GLD ETF (mutual fund that trades like a stock) is a good way to invest in the changes in the price of gold and can be bought from any broker. There is also one for silver (SLV).

If you want actual gold, then stick with the South African Krugerrands. They have the lowest markup over the spot price of gold. The other coins may look better but they will be more expensive. If you are buying for the gold content then the design of the coin really doesn't mater. Also stay away from collectible coins. The premium paid will be much higher and the resell will be lower. Also stick to 1 ounce coins as the smaller coins have a much higher premium. Bars will have an even smaller premium than coins but are larger.

On the other hand, silver has much more use as an industrial metal. In the event of a total financial melt down, silver would also be more convinent to use than gold. The main thing is to determine why you want to invest in gold.

[fire diver]

I used to sink my extra cash into KruugerRands a few years ago, back when gold was about $400 an ounce.

Then I had my main water line break, underneath the foundation of my house. I decided it was better to liquidate the gold than to pay interest for the repairs. Shortly after, gold spiked. I wish had opted for the interest.

Anyway, the point of my story is that gold can be a good monetary holding, but have it in hand, not on paper, and consider the market possiblilities before buying or selling. Personally, I wouldn't buy gold right now.

[FishFood]

I bought gold at $485 and sold when it went past $900 (much longer than I ment to hold on to it, but it worked out). IMO gold is a good trade, BUT not a good investment. Historical performace backs me up on this one. If you buy gold, treat it as a trade and make sure you know WHY you bought it, and know WHEN to GET OUT!

[coral cowgirl]

Anyway, the point of my story is that gold can be a good monetary holding, but have it in hand, not on paper..."
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Bears repeating....especially in the current financial climate.

[PaulThomas]

You should be able to invest from your 401k. GLD if my favorite way to gain gold exposure because it track the bullion (They actually buy it), not the miners + the bullion as many gold funds do.

As mentioned, GLD it typically not usually an investment, but people choose to buy all kind of weird stuff as an investment. While volatile, due to it's correlation, GLD makes for a good edge and that's the way it's typically used.

In my opinion, a 401k should be all about assets allocations. Talk to your financial advisor and buy start reading some books. 99% of the people can't get rich by working, but all of us can live a comfortable lifestyle if we manage our money and invest properly. Putting money into this market is tough, but some parts of the market have held up incredibly well. I'm up ~7% YTD and all of this has been done on the long side without trading. The only "trades" I've done so far were to put new money at work.

[blcard]

Most 401's have limited options so you may have to move to the IRA (if you can) then buying gold related ETF's would be best. Be very careful though, Gold always spikes hugh when people are scared and drops huge when the market rallies. You don't want to sell at the bottom of a market drop just to buy gold at its high point getting ready to fall.

If you decided to buy gold in hand, you can't still do it as an IRA. Collectibles of any kind are not aloud in IRA's.


On a long term basis having 5-10% in commodities helps with diversification. More then that and your speculating, so be careful.