OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
Maybe some snowlfakes you know aren't feeling safe but everyone I know has been enjoying our great parks, and beautiful weather.
I have explained this. Gold ETF's are backed by actual physical gold. Whether these ETF's possess the actual gold holdings to support the value of the ETF's is questionable.
What would you rather have, possession of the physical gold or a certificate that may or may not deliver when you cash out? Of course if you are buying gold ETF's like stocks to get out when you hit a certain level or sell when it goes down to a certain level, then I think Gold ETF's are fine, But as any other stock, timing is everything.
Why wouldn't you be able to cash out of an ETF? If the market and society has broken down so much, your physical gold (normally in a bank security box) will be gone as well. Right?
My God you are dense.
You can as I clearly stated. Just don't get caught holding the bag which is true of every other stock.
And your are the only one talking about the end of the world.
Don't get angry, just relax and answer the question. I will repeat, why wouldn't someone be able to cash out on a gold ETF?
Stop assuming how others are feeling. I have answered the question now three times. Mdk gets it, Dave gets it. 05 gets it. Greg gets it.
Maybe if a Republican explains it to you, you will suddenly get it.
For the 4th time, THEY CAN as I have stated on three previous posts.
Then why physical gold over an ETF? Look back at my original question, which was a honest financial question. Is there a reason to own physical gold over an ETF and you replied with not being able to cash it out.
Again, I have already answered this in this thread.
ETF's are mining stocks that act like a mutual fund. Their value rises and falls in line with the price of gold and silver. There is nothing wrong with gold ETF's as I have already said.
Personally, I prefer physical gold and silver although, I also own PHYS.
And the main reason for my personal preference, is that gold ETF's are valuated in fiat currency. By that I mean when you decide to sell your shares, you receive the proceeds in dollars (fiat currency). So as long as the dollar holds its value, well then everything is great.
But if the dollar decreases in value, the proceeds you receive when you sell your shares are devalued.
Physical gold, as long as you hold it in your own possession, eliminates this problem. It also protects you as opposed to an ETF, if the gold mining ETF goes belly up.
Gold and silver are not investments per se, but more as a hedge against a devalued dollar. I own maybe 10% of all my investments and the rest in 401(k)s, IRAs, pensions and cash.
But that 10% in precious metals could save you if the dollar tanks.
ETF's are mining stocks that act like a mutual fund. Their value rises and falls in line with the price of gold and silver. There is nothing wrong with gold ETF's as I have already said.
Personally, I prefer physical gold and silver although, I also own PHYS.
And the main reason for my personal preference, is that gold ETF's are valuated in fiat currency. By that I mean when you decide to sell your shares, you receive the proceeds in dollars (fiat currency). So as long as the dollar holds its value, well then everything is great.
But if the dollar decreases in value, the proceeds you receive when you sell your shares are devalued.
Physical gold, as long as you hold it in your own possession, eliminates this problem. It also protects you as opposed to an ETF, if the gold mining ETF goes belly up.
Gold and silver are not investments per se, but more as a hedge against a devalued dollar. I own maybe 10% of all my investments and the rest in 401(k)s, IRAs, pensions and cash.
But that 10% in precious metals could save you if the dollar tanks.
Thank you, that was the answer I was looking for. Just went through the mid-year tweaking of our allocations, so I have been interested in hearing more opinions.
We have a small amount of PHYS in our backdoor Roth IRAs, but that amounts to a tiny amount of our overall portfolio.
There are many reasons to not own physical gold or silver. For one, you have to buy it. Then you have to store it somewhere. And finally, you have to sell it. Storing physical gold or silver is not easy. 1 stock of silver ETF (SLV) is roughly equal to 0.93 ounces of silver. If you buy 1000 shares of SLV, that is roughly 930 ounces of silver. Are you going to store the silver in your house? Bank? Bury it somewhere? You also have to sell it someone when you want to sell and there is no guarantee that the place you bought the gold or silver will take it from you at market value. SLV is very fluid and can be sold easily. In the event that you want to cash out then you would need at least 50,000 shares and get that exchanged for physical silver. Most people will use gold and silver for trading and not to hold forever, therefore a fluid ETF such as GLD and SLV are good enough. But yes, to maximize your profit you would need to own physical gold and silver.
Last edited:
Buying it is the easiest thing in the world. The same as buying anything on Amazon. In fact, many reputable gold and silver dealers sell on Amazon.
Regarding storage, I store mine in a personal vault near my home. You can also store in a bank safety deposit box.
And as to selling it, that is also incredibly easy. Most dealers will buy your gold and silver back, no questions asked. Then almost every town in America has private dealers who will buy your gold and silver.
I don't own gold and silver to sell unless there is a reset to a new currency that is based in part on gold and silver. Silver to barter and gold to maintain wealth. If that does not happen, I will hand it down to the kids. At the end of the day I think owning both ETF's and physical metals is the way to go.
Okay, let's have some fun. What are you current allocations (in general)? Thoughts and comments are welcome from everyone.
My asset allocation (not including home equity):
24% cash
76% investments
We divide our financial savings into 2 parts with separate objectives (cash & investment/retirement). We like to have a large rainy day fund, but much of our cash is in prep for a shore home.
As for our investments (so the 76%):
Large US index - 35% (mostly S&P, but some Russell 1000)
Large US growth - 35% (index and managed funds)
Mid/small cap - 5% (this is on top of the Russell 1000 which covers some mid-caps)
International - 5% (greatly reduced this over the past 2-3 years)
Bond fund - 10% (mostly BIV)
Stable value/hedge - 10% (mostly part of our backdoor Roth IRAs)
No individual stocks
@albanyknight
@rutgersdave
@RU-05
And others.
:)
My asset allocation (not including home equity):
24% cash
76% investments
We divide our financial savings into 2 parts with separate objectives (cash & investment/retirement). We like to have a large rainy day fund, but much of our cash is in prep for a shore home.
As for our investments (so the 76%):
Large US index - 35% (mostly S&P, but some Russell 1000)
Large US growth - 35% (index and managed funds)
Mid/small cap - 5% (this is on top of the Russell 1000 which covers some mid-caps)
International - 5% (greatly reduced this over the past 2-3 years)
Bond fund - 10% (mostly BIV)
Stable value/hedge - 10% (mostly part of our backdoor Roth IRAs)
No individual stocks
@albanyknight
@rutgersdave
@RU-05
And others.
:)
Last edited:
Right now
10% gold
20% stocks
8% bonds
62% cash/cd
This % will change quickly right after earning season finish end of this week or next, I expect a correction maybe 10-15% in the tech stock will happen before the next earning period and when that occurs I’ll move in at 50% stock. I’m only investing in tech stocks like AMZN, ADBE, FB, PYPL, NVDA,AMD, CRM and maybe UNH and any high quality stock dropping 10%.
10% gold
20% stocks
8% bonds
62% cash/cd
This % will change quickly right after earning season finish end of this week or next, I expect a correction maybe 10-15% in the tech stock will happen before the next earning period and when that occurs I’ll move in at 50% stock. I’m only investing in tech stocks like AMZN, ADBE, FB, PYPL, NVDA,AMD, CRM and maybe UNH and any high quality stock dropping 10%.
Last edited:
I have my retirement accounts at 100% stock since I don't have a ton in there yet and I'm decades away from touching it. I have it split up like this:
60% US large cap
25% US small/mid cap
15% international
My non-retirement investment is also 100% stock, mostly in a large cap growth fund, since I don't plan on taking out any of that for a while either.
60% US large cap
25% US small/mid cap
15% international
My non-retirement investment is also 100% stock, mostly in a large cap growth fund, since I don't plan on taking out any of that for a while either.
Everything depends on your stage of life. I’m in my mid 60’s and I don’t like to take as much risk. If I buy these tech stocks at 10-20% down, I feel they will go back close to their highs and not as risky as buying at their highs.
Make sure that 60% US large cap is weighted toward growth stocks. Even if the current upswing for growth stocks plateaus, over the long run it will pay off.
Of course, sorry if I came off as disagreeing with you, I was just adding my answer to the discussion. I still have a ways to go before I start toning down my risk tolerance.
Thanks for the tip. I have my 401k contributions going into a growth fund, but I just started this job in October, and my 401k from my old job is invested in a fund that is classified as a blend of large cap value and growth, but now that you mention it I probably should change that a bit so it's more growth. I haven't touched this account since leaving that job, so I'll have to see if I can still make trades within that account or if I have to roll it over into my IRA, and if there are any fees associated with doing that.
Other than that, do you think the 60% large cap, 25% small/mid, and 15% international seem reasonable for someone in their early 30s?
If you have a clear avenue to accomplish all those things and your dealer will buy it back without any questions, then it will work out for you.
Very good mix! Make sure you mainly do index funds with very low expense ratios.....like 0.1% or lower. The only managed funds I use are large cap growth funds. Those may provide enough value to justify the higher cost.
I've been rocking FDGRX for the past 5 years. Expense ratio is 0.8%, but well worth it.
I'm currently at about 38% cash and 62% stocks. I think I'll move more towards stocks going fwd, but being as I'm relatively new to this I didn't want to go too heavy too soon.
My stock breakdown: (some estimates going on here)
4% gold
2% silver
Another 5ish% in miners.
About 40% large cap.
6% in MLP's(a couple midstreams and a solar)
25% mid/small cap, and without doing the math a fair chunk of that is small cap.
Then I have some 20% in international plays.
My stock breakdown: (some estimates going on here)
4% gold
2% silver
Another 5ish% in miners.
About 40% large cap.
6% in MLP's(a couple midstreams and a solar)
25% mid/small cap, and without doing the math a fair chunk of that is small cap.
Then I have some 20% in international plays.
Funny, the only managed fund I use is for small caps, which I don't have time to dig deeply into. And I've had excellent returns from T Rowe Price New Horizons Fund. It's been up 30%, it's been down 30%, but for the last 25 years it's averaged a 13% annual return, partially taxed through capital gain distributions, partially still untaxed appreciation. Sorry, it's been closed to new investors for 10 years.
Do people, in a time of a devalued dollar, use their gold to purchase things?
Like can you buy food and other necessities? How about real estate or auto?
You can, I guess, but that would be counterproductive. Gold is now at $1,950.00. Nobody knows where gold will end up but the idea is that in the event that the dollar collapses, the price of gold would go through the roof. At the same time, home and commodity prices would drop. It is at this point where you would use your gold to accumulate wealth such as paying off your mortgage, a 2nd home or commercial real estate.
Gold is for a financial reset. Silver is the better instrument for barter.
But would you not need to convert the physical gold to dollars first? Much as I would if I sold my position in GLD?
albanyknight is correct in that it IS better to own the physical metal than a piece of paper. The reason to own the Physical metal is that in a time of a dramatic financial meltdown, the physical will be a store of value and currency. If you do not expect a "life changing" meltdown then owning the ETF is the next best thing.
My own philosophy on this is if we ever get to a life changing financial meltdown then your best bet is Guns, Ammo and food. A worldwide meltdown having gold is really not going to do you any good because once people find out you have it, the people with guns and ammo will take it from you.
Bought a ton of Kodak shares yesterday.....just had a hunch.
:)
Similar threads
Latest posts
-
-
-
FB Recruiting Quick update on Transfer DT target Owen Wafle....- Latest: -RUFAN4LIFE-
-
