Posted on 05/07/2025 1:32:43 PM PDT by SeafoodGumbo
The dollar keeps losing value with accelerated devaluation appearing inevitable, stocks seem inflated, and bonds don't seem good either.
Gold and silver seem poised to go much higher, but the fees seem high for precious metal IRAs.
Thoughts?
I’m kind of wary of ETFs.
How about a gold mining ETF like GDX?
Are those podcasts TRYING to SELL you something?
I think we are in the midst of a stock market correction that started last December.
It MAY already be over. Stocks like Palentir and NVIDA have already recovered most of their pullback.
It is true that almost all the foreign banks/countries have been accumulating gold for several years now. That BRICKS may be trying to create a gold backed currency to replace the US Dollar. There are other Freepers that seem(talk like) to be large gold investors.
I just believe you are better buying the actual gold coins.
Than buying into a gold IRA. I also do not own an Annuity.
Buy GLD and SLV etfs in your investment portfolio. No need to do PM IRA. Can also buy the miner ETFs or individual companies. ABX, FCX, etc.
What the BRICS are doing also plays into this, and the amounts that all the central banks have been accumulating in the last year.
Most long term bonds would be the absolute worst investment in a high-inflation scenario.
Everything in balance/moderation
It can/should be part of any balanced portfolio, but as with any asset class, not an overwhelming majority.
Like other asset classes, unless you are an industry insider who knows the timing, its better to dollar cost average into a position.
In general, look for things now that, on a long-term basis, are relatively cheap to other assets.
For example, Platinum is at 50 year lows vs. the price of gold. Besides the Covid 2020 collapse, the same is true for oil. Maybe start there, instead of gold.
There isn’t anything inherently more or less safe about ETFs than stocks, bonds, various funds, etc.. It is just a package of assets, so you need to look at what each ETF is and evaluate the risk.
Thanks, I’m thinking more about silver than gold because the Gold to Silver ratio is very high - over 100.
“””but the fees seem high for precious metal IRAs.”””
If you concerned about fees, then buy a few shares of GLD or SLV to get your feet wet.
Unless you are planning to buy millions of dollars of gold and silver, I would not worry about buying a few shares of GLD or SLV ETF’s.
Maybe you should watch another one or two podcasts - you can’t inflate the dollar when there’s wolves at the door who want to take over our reserve currency status...
Best thing to do is reduce spending and increase revenue. Which is what Trump is doing.
Who says? All those companies selling gold.
Buying gold now may be contrary to the investment adage, " Buy low, sell high". Another thing about buying physical gold is that the moment you buy an oz you will lose money if you attempt to sell it the same day. Also, you may have additional storage & insurance expenses with physical gold. Also, unlike some stocks & stock funds, gold doesn't generate any dividends.
I apply Buffett's advice and invest in low fee S&P 500 fund that reinvests dividends for the long term and brokered CDs, Treasuries and high-grade bonds short-term. It's not a sexy get rich approach but it lets me sleep well.
Bingo. Owning physical gold means it has to be physically within reach.
So with all of my family members who are working, each month we log into their Roth IRA accounts (except the ones who exceed the income limits of Roth IRA's, for those we do traditional IRA's), sort the mutual funds they own by total balance per fund, and invest in whichever one has the lowest balance. It really is that simple. We don't care why that particular asset class is low (though I sometimes try to pay attention to market "analysts" LOL). Whyever it's low, it's a good time to buy. And if they're not retiring within 5 years, they're 100% into growth mutual funds (over 30 of them). When they get to within 5 years of retiring, we start looking for a time that their portfolio balance is at an all time high and start contributing into the bond/treasury/money market funds. Eventually we look for an ideal time to convert some tax deferred IRA money to Roth IRA money (when their income is in a low tax bracket).
I prefer the 75% equities / 25% bonds ratio over the usual 50% / 50% because I want to fight inflation. I've been pushing that for over a decade in the financial small group at church I sometimes lead. The idea is that inflation is a known monster, so our investments have to be aggressive enough to fight it (more than 50% equities).
But market downturns are real too. So the 25% in "safe" mutual funds will handle at least 6 years' worth of a market downturn (if we're retirement withdrawing based on the usual 4% annual strategy). But because the growth portion is in over 30 asset classes, there's almost always something in equities that's up even during a market downturn (i.e. in 2020 my tech and health science funds were up while almost everything else was down). I made a program to download closing prices of many mutual funds at T Rowe Price of different asset classes, store them in a SQL Express database, and then another program to let me graph the mutual fund prices over whatever time periods I want. I looked at the dot come downturn of 2000-2002, the mortgage downturn of Oct 2007 to March 2009, the covid downturn from Jan to March 2020). I'm quasi retired and don't need my investments now. But if I had retired at the worst time of any of those downturns that 75%/25% portfolio would have been just fine for living on. And of course, during the market upturns it grows better than a 50%/50% portfolio.
But about my suggestion to convert to Roth IRA's, be sure and look up the Order of Distribution Rules of Roth IRA's. Be hip to both 5-year rules of Roth IRAs (the 5-year start rule, and the 5-year rule for each conversion from tax-deferred IRA/401K money to Roth IRA money). It might seem complex at first to map out a strategy based on laws made by the lawyers we elect to Congress who give themselves loopholes around income and retirement taxes. But you can spend a day or two looking at that, it's pretty easy and is worth the tax savings. That might be worth as much as the decision of what to invest in.
To be technically accurate the value of dollar can sink lower. And it will.
I’ve probably got another 20 years of working.
You may encounter higher tax rates (28% vs 20%, for example) for investments based on precious metals, if I remember a recent article correctly...
Not a fan of precious metals... I think it’s way over valued.
Go to YouTube and look for Lynette Zang. She will answer any question you have regarding gold and silver without you even having to ask it.
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