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Discussion Starter · #1 ·
I know there is so much knowledge here at 2cool, so I will start here. I am 22 years old about to go into Maritime Law at U of H. I have about 10,000$ at Charles Schwab doing absolutely nothing. I am familiar with IRA's/ ROTHS, however I would like to do something else with this money and not ad it to my IRA. I was thinking about buying gold in hand. Is this a bad move? I would put it in a precious metals fund, but I am a bit paranoid of this. Has anyone here bought actual gold boulion? If you have any ideas of where to move this money please let me know, I do not plan on touching it for a good while.
Thanks Again
Matt Reeves
 

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Discussion Starter · #3 ·
Yes, I have of course. They want me to leave the money with them- I want to pull it out and have something tangible, but not cash. I am afraid the dollar will be worthless soon.
 

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reelbusy
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Keep the cash! Do not rely on the advice of "brokers", including Schwab (and I have a Schwab account) Time is on your side. The only positions to have at this time are cash and fetal. Good luck!
 

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Use the money for a down payment on a small house. This has been the best time to buy a house in a long time. Live in and get roommates to pay you rent. You have an assett that will give you tax write offs, equity from payoff, appreeciation, and instant equity if you buy cheap.
 

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Leave it where it is. I assume CS has it in some Mutual Funds, you are in for the long term. The market will come back. You will just be buying more at a lower price and when the market comes back you will be that much ahead of the game. Do not fret! You will loose more by moving it around than just leaving it there.
 

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Im for the gold idea. dollar lost 40% of its value since 2000. gold doubled in value since 2000.
 

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Discussion Starter · #10 ·
Do you think Gold will continue to increase over the next ten years? I like gold because its a world wide accepted standard of payment. If the dollar is worth about 10 cents in the future no one will take it. Does anybody follow platinum? It doubled in one year, now its back down around a thousand sounds like a good buy to.
 

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I am not an expert but the gold commercials seem convincing.

Gold is tangible it will always be worth something. The way the dollar is going its a good idea.

Inflation rarely reverses it just slows, but it will continue, its simple economics.
 

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Captain Kyle said:
Im for the gold idea. dollar lost 40% of its value since 2000. gold doubled in value since 2000.
I am always intersted in the gold buyers. In the late 70s gold topped ut at about $800 a Troy once. Folks were selling their class rings. I see this morning it is quoted at $880. 10% in thirty 30 years. If memory serves me I think it got as low as $350-$375 in the 90s. Compare that return to good solid stocks like Exxon or ATT amd see what a 30 year return looks like. Be sure to factor the splits.

It is easy to look good for a few years, but not on a long run. The best advice given so far was to buy a house, not one on a beach, and begin building real assets.
 

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Blue Wave- gold may be a decent investment but do not move the $$ you already have somewhere. You could put new money in it but it would be best to have a bit of money in several things than all in one basket. You are young and you still have 20-30 years before you are going to need or touch that money so just leave it.
MLcinNTX is correct,..... now look at your funds 30yr return
It will cost ya big time to move that 10k.
Alot of the people who jump on this gold bandwagon and use one of those companies in the commercial get screwed!
 

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Winter Hater
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my son works for a company that sells coins and bullion. they've been doing a booming business lately, so a lot of folks think gold is the way to go right now.

imo, let existing investments stay in relatively safe stocks. new money should go to precious metals. unless you get matching funds from your employer into your 401k. if so, minimize your contribution to get the match.

mm1
 

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Gold's pretty high right now - it would have been a good buy right when the AIG deal was announced though. I think it's at a high right now and will go back down as pressure eases off the market in the coming weeks (when the short sale ban expires, central banks reduce rates and banks start lending to each other again).

If you don't need it right now as an emergency fund, you could always look at CD's.
 

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As a 56 year old w/m who has been around for a while, I would go with the small house idea. Do not put yourself in a big liability of having to pay out a lot for morgtage and tax,s and things like that. However, take your time and do a lot of looking and checking around. You will find the right deal on a home. The tax advantage, plus earning equity in the home and the fact that over years time the house will go up in value. All the investors in the Dallas area are buying up cheap homes as fast as they can. People have to have a place to live. Every so often this country of ours has to go threw some type of re-orinization. Everything was going up way to high and way to fast. Supply and demand where out of perporition. Salarys and costs will fall in line more now. It might be slow for a few years and then boom we will take off again. If home building stops for a while what will be in demand in a few years- housing!
 

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You know that stocks with american companies is with american currency, so you are not safe from inflation. Now if you buy gold you are safe in a depression. It probably wont make you as good of return, but it is safer. Now ML I knew that gold couldn't have been that good, that commercial is a scam and I wouldn't buy gold from them ever. What I said in the earlier reply was right off of the commercial. Obviously they are misleading.

The buy a house idea is a good one, i like that. :cheers:
 

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About the only advisor I follow is Jim Jubak,who you can find on Microsoft's money and investing web sites. He has a history of consistently beating the unmanaged indexs and, therefore, most managed mutual funds. His recommendation, today, is to buy Oneok Partners. It pays close to 9% and has the opportunity to increase in value. He also says that commodities (gold) are not going to be growing so much in the near term. His advice is probably not for someone who is going to make a one time purchase, but, in my uneducated opinion, probably would be okay. If I were you I would put that money in Vanguard's Total Market fund or the S&P 500 index. I would also try to make monthly additions to the fund. Vanguard has very low fees and is a very solid company. Jubak does not charge for his advice.
 

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The fact that Dallas investors are buying houses on the cheap is just more evidence that houses are not always a good investment. For someone who is young and might move because of employment it is really not a good investment.
great white fisherman said:
As a 56 year old w/m who has been around for a while, I would go with the small house idea. Do not put yourself in a big liability of having to pay out a lot for morgtage and tax,s and things like that. However, take your time and do a lot of looking and checking around. You will find the right deal on a home. The tax advantage, plus earning equity in the home and the fact that over years time the house will go up in value. All the investors in the Dallas area are buying up cheap homes as fast as they can. People have to have a place to live. Every so often this country of ours has to go threw some type of re-orinization. Everything was going up way to high and way to fast. Supply and demand where out of perporition. Salarys and costs will fall in line more now. It might be slow for a few years and then boom we will take off again. If home building stops for a while what will be in demand in a few years- housing!
 
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