School me on gold as a hedge

[LaBelle]

Never really thought about it before and wondering whether I should convert the 401k to gold.

Yea or Nay ?

Your thoughts pro and con...

 

[AustinBR]

Never really thought about it before and wondering whether I should convert the 401k to gold.

Yea or Nay ?

Your thoughts pro and con...

Nay - bulky, stealable, and burdensome. It also hasn't really changed in value that much over the past few years. Yes, it holds value, but it's risky holding that much value in one place (at your house).

 

[drill sgt]

No matter which precious metal (gold /silver) or what ever that you might be saving as a hedge how will you convert it into something that will be easily done???? ........... drill sgt.

 

[Abby Normal]

I’ve been looking too. Still haven’t pulled the trigger. I thought about gold IRA but it’s paper & subject to scrams and cons. If I bought or rolled over an IRA when it was $1850, now it’s almost $2K. I looked at long term, in 2000 the price is $1683 higher now, a 585% increase. And I’m still not sure.
Remember in investing to buy low, sell high. It’s high now, but will it go higher.

 

[LACamper]

I think it's too late for gold. The price is already high. Of course with another war pending, who knows...

The other problem is when do you cash out? Say you bought at $1600. Now it's at $2K and you're looking at retirement. Do you get out of gold and into dollars? Then what? Do you cash out a bit each month? And how do you cash out of physical gold? Head to the local coin shop who offers $1800 instead of $2K?

BTW, most HO policies cover gold coins for only $200. Jewelry (and guns!) are covered for theft up to $1500 on many policies ($2500 on others, a few can be endorsed to $5K). So if you get a burglary there goes your retirement? Not a good plan...

 

[John_]

I purchased 1 oz Krugerand coins in the late 80s and early 90s in NOLA. There was zero taxes involved them. Now they sales tax purchases pretty much anywhere, in person or on line. Plus typically a 3 to 8% premium to buy versus sell back. Gold 1 oz coins is the only thing I would hold, Maple Leafs are a nice durable, well respected coins too. Bullion requires an assay when sold back, more hassle and cost.

And if there was a financial crash or something major, trying to sell or trade a $2000 1 oz gold coin may not be easy. You can't go buy groceries with a $2000 gold coin and expect proper change. Or gasoline. So there is that, the ability to convert physical gold into products, food, services, or cash if there was a world wide economic failure. And purchasing 1/10 ounce coins is even more expensive per gram of gold. I don't hold any physical gold today. I made a few bucks on the Krugerands and sold all of them years ago.

Gold ETFs are a good investment, if you feel you can "time" gold market fluctuations. Threats of war or economic instability drive up the gold spot price at any time. Or down too in good times. But be careful, one should be well researched in gold prices and market fluctuations over decades before investing any cash. Understand the dynamics and the gold market before doing anything is wise, imo. FYI, gold 1 oz spot was around $270 in 2000. Today is ~ $1990.
Apple common stock has multiplied like 17x in the same period.

 

[Abby Normal]

I read that Warren Buffet Does Not buy gold because there are no dividends paid out like with stock. But he bought stock in a company that owns gold mines. That company does pay dividends. So when the price of gold goes up so does the gold mine stock.

 

[AustinBR]

The other consideration is that your 401(k) will likely incur penalities if you try to cash out a majority of it at once into gold vs paying out slowly.

If you really want to buy some gold, buy a few thousand and throw it in your safe as something cool to leave to your kids...but I definitely don't see it's value as something you can physically use (without great loss) in the next 10-20 years.

If someone tried to pay me in gold for something, even at a massive loss on their end, I wouldn't take it. It's too difficult to guarantee that a gold coin or gold bar is made of a majority gold and not some alloy. After that, it's difficult finding a way to convert it to a currency that the common-folk will accept.

 

[V.Taltos]

The metals market has been suppressed for decades. If gold were to be valued fairly, it would be $5000 an ounce, perhaps higher. Every central bank has been buying gold like mad, except one. That one central bank is the "federal" reserve. IMO that's because they've been selling off the gold in Fort Knox and because they want to destroy the US economy. Honestly, I'd rather have my money buried in lots in the woods than in a bank. I say that because of something called a "Bail in". After they screwed everyone in 2008, they know they can't do another "bail out". However, they can do 'bail ins". Look it up. It's where a bank, or group of banks makes bad deals or they steal too much money to where the bank is insolvent. So they take a certain % of their depositors money! Yes, they steal from their customers to cover their bad investments. It's been done in Cyprus and if I'm not mistaken, in one other place. So far our financial overlords say they "hope they won't have to do a bail in". Anyway, if you want to convert an IRA to gold, or just buy gold/silver, check out https://wisewolf.gold/ . They also have a subscription service I've been a part of for over a year. It's pretty cool. That's at- https://www.wolfpack.gold/ . IMO, eventually they won't be able to suppress gold and silvers value and the price will go north, quickly. If nothing else, I'd pick up some metals, just to hold as insurance. Just my .02

 

[Bigchillin83]

yall wanna invest in metals thats increasing in value... Buy ammo... lol you can make a big profit off of buying 10K + rounds now and hold them till 3 months before the elections next year yall dont remember green tips going for $1 a round ,lol, p mags going for $35??

buy now
1K 9mm= $240

sell then
1k 9mm= $650

 

[V.Taltos]

One thing I left out of my post above. CBDC. CBDC, central bank digital currency is the one currency to rule them all. Our globalist overlords are wanting to eliminate all cash from every country and have one money type, their CBDC. It won't be like Bitcoin which is decentralized. CBDC will enable the controllers to program people's individual access to their money. It will allow them to say what everyone can use their money on, even set expiration dates on your money. With CBDC wedded to ESG (Environmental Social Governance) which will set carbon limits, likely monthly on everyone. Want a steak? That's X amount subtracted from your monthly carbon allowance. Want to fill up you're 'antique' 2010 Camaro? That's - X from your carbon allowance. I know, carbon isn't causing any climate apocalypse. But, just like how a t-shirt covering your face doesn't stop a virus, actual facts don't matter to these doorknobs. Only Narrative matters. So, if they succeed in pushing CBDC's on us and eliminating cash, having gold/silver will be useful as an alternative currency. There are fairly easy ways now of ensuring you really have actual gold/silver.

But I'm not saying to only get metals. As Bigchillin said, ammo is an excellent investment!

 

[LACamper]

I do stash any pre-64 silver coins I find...

 

[V.Taltos]

I do stash any pre-64 silver coins I find...

Not many of these in circulation. At least I don't run into them. Although I get some in my Wolfpack shipments. I almost think the banks have a way to spot them when they come through in deposits.

 

[Abby Normal]

Did you ever notice the marble counters tops at banks? Silver coins make a different sound than the alloys. My Mom was a bank teller & would go through all the change that was turned in for the pre64 silver & buy it from the bank. Add up the millions of bank tellers around the country & you can see why there is so little silver coins left out there.

 

[davidd]

Did you ever notice the marble counters tops at banks? Silver coins make a different sound than the alloys. My Mom was a bank teller & would go through all the change that was turned in for the pre64 silver & buy it from the bank. Add up the millions of bank tellers around the country & you can see why there is so little silver coins left out there.

In high school in the early '80s, I worked part time at a mortgage company where people still came in and made cash payments. Same thing. I learned at an early age to look out for that pre-65 silver. Add all of it up, and forget about the money given to replace the coins taken from the cash drawer, and I maybe have $200 worth at today's silver value. Still, it was fun to do back then.

 

[V.Taltos]

This is a fairly long video but they explain it better then I can and they pretty much cover the important parts on why owning gold, or silver is a good thing.

https://www.rokfin.com/post/154352/383-A-Barbarous-Relic-Of-The-Past--Tony-Arterburn