Home Forums Hunting & Shooting Hunter's Campfire Dumping an IRA with an 8% loss in the last 2 years, for 5.1% 1 year CD's?

Fair question. I dont invest in gold or silver. I do invest in gold mining companies instead. I own(tickers ) RIO and NEM. The pay very good dividends.

Because I want earnings long term.

Can we modify that a little and say “earnings that beat inflation”?

I do some of that too but it's more of an insurance policy against a currency crisis and as a store of value. Historically gold and silver don't grow like some stocks do but in the craziness of today's market where nothing makes sense and one black swan event could knock out your retirement accounts I like the security of having something tangible in hand.

I tell friends to put 10% of their net worth into actual physical gold or silver as insurance. I was always heavy in silver because I thought it had more upside but I've realized that historically gold is the real money. Plus silver gets bulky as your stash grows. I can easily fit lots of money worth of gold in a quart baggie. Yet $100,000 in silver fills 2 big safe deposit boxes and weighs around 300 pounds.

There is some craziness in the physical metal markets now too. Just the last few weeks premiums have rose again. Spot on silver is around $24 but you can't find eagles for under $35. Junk silver which is 1964 and before 90% silver change is bringing around $28 per $1 face value today which is .715 ounces so it's about $41 an ounce. Junk was much cheaper just a few weeks ago then banks started folding and supplies tightened up with the panic. I bought junk last month at $18.50 per $1 face.

I just happen to like silver and gold though so I'm not an objective source. I enjoy buying some physical metal like other people enjoy buying clothes or a new computer. It helps me save because once I convert cash into silver or gold I'm more like to hang onto it instead of spending it eating out etc. Anymore I don't focus on buying dips like I used to I just buy a little every once in a while. A lot of good online dealers have free shipping with a $199 order.

I know many will disagree but I feel strongly that everyone should own some silver and gold especially given that China, Russia, and Iran are working to collapse the dollar. Don't panic and buy the crazy premium eagles and junk right now because there are places you can still buy generic silver bullion for around $4 over spot.

If I was smarter id take my own advice and get the most weight for my money but i like some of the nicer coins too much. The spreads on the nicer coins is always more and that's where the shops make their money. They'll charge you $4 over for generic rounds and pay you $2 over when you sale back. Yet on eagles they'll charge you $10 over and only pay you $4 over. The only way I do ok on the nicer stuff is to sell it directly to people myself but I'm holding long term anyways. If you want to play the dips go for the lowest premium stuff.

Bb

SIlver went up a lot yesterday , like 4%.

You didn't lose anything on it until you sold it...

How does one buy gold and or sliver? I have been thinking of buying a little and see how it goes.

Edward Jones - I have had an account with them for years. Guy called me yesterday for my yearly review.
Suggested a Roth when I mentioned putting away some more money.
I also have a sizable savings account and he was really hammering me about putting some in one of their money market accounts. I have thought about something like Marcus which I think is through Goldman Sacks.
I also have a handful of stocks that are set up to reinvest the dividends back into the stocks.

Fidelity have local offices? Back to EJ, the guy before this one called a me few years back telling me I had to get in for a face to face review. It was the law he said. Never happened prior to or after. Seemed shady still.

Rocket science. Which is why I do not own gold or silver. As I posted elsewhere rather than retired at 53 I'd still be working at 61.

I would avoid Edward Jones, commissions are high and they like to sell front load funds that clip you 5% first day you buy. The EJ boy handling my wife's 401K wanted 1% of the account value every year paid to them IN ADDITION TO COMMISSION. We went to USAA that sold us out to Schwab which is where we are now. Usually there is no charge for a trade. They claim to make their money on the cash parked in accounts. I have traded 1000 shares that I only owned for 1 or 2 days and not get charged commission. Bought 1000 shares of RIOT today. Time will tell on that.

Lots of good advise here. So here is my 2 cents. I wouldn't use these commission brokers.
I use both Fidelity and Schwab. Neither charges a commission to buy Stocks, bonds, CD's and Treasuries.

My monthly SS goes into to Fidelity govt money market, SPAXX, at todays rate of 4.49% and is totally liquid.

Schwab is my favorite and they have purchase money market fund, SWVXX, paying 4.7%. You need to sell today and its liquid the next day. Today I had a 3 month treasury finish up , turned back into cash so I put it into this money market as I'm not sure where T bill rates are going.
I just looked at Schwab and today you can buy one month CD's @ 4.85 and 3 month Treasury's @ 4.96.

Is this Schwab the same as Klaus Schwab’s family? I don’t think I want my retirement funds with them.

I did a Google search and it sounds like they share the same name but have no business connection. I use Schwab and was wondering the same thing but until you asked I had not checked.

Not that Google is always truthful or correct.

As far as I know Schwab was started by Charles Schwab. I've had accounts, with them for over 20 years and never had a problem. They are the 10 largest broker/bank in the country.

I use that SPAXX account on fidelity a lot too. It's been paying me about 4.5% lately. I've noticed the interest on some of the longer term bonds have been coming down lately. I think the markets predicting a hard crash soon that will lead them to lower rates again. I'm having a hard time finding anything over 1 year that pays better than 5%. A month ago I found some at 5.25.

Bb