Advice Moving Investment to a Gold Prescious Metal Funds

I have a smaller amount of money which right before the melt down last year I moved into a new fund away from GIC's. I took about a $12K hit on $31K, and now that is up where I have lost about $ 7k plus what I would have made on the GIC's in the past year or so.

It would hurt too bad not having this money say in 10 years since what is 24K today, but unfortunately I am one of those people who strongly believe in the market tanking and the stock market taking another hit, now as Canadian I might fair better, but only 30% is in the Canadian funds and 60% in international business.

So I am thinking I would like to speculate in gold, and silver, so I asked my broker about a fund which has a high gold and silver stake instead of futures, here in Canada it the "RBC Precious Metals Fund" also the winner of the 2009 Lipper Award in the 'Precious Metals' category.

I feel that right now we are on the cusp of a major gold hike, and that in a few years we might see $1500 an ounce gold, or keep feeling the number $1483 an ounce.

Now I know this is not a safe bet, but keep in mind in the last year I have made contact with extraterrestials, and they come to see me and the people I bring almost on a weekly basis, so my paradigm is changing quickly. And part of that, I am not sure that the current system will be around in 5 or 6 years that way it is now.

So, lets assume you knew that a completely outlandish event was happening where the current financial system was going down in say 2 years, and that a new sheriff was coming to town, with new laws that might invalidate your whole investment, what would you do? Would you rely on your instincts, and take that change on something versus nothing?

And over the long haul is metals really dangerous. I know it is volatile in the short term, but lets say when it comes time to cash it in, I can wait six or twelve months either side, and this thing I am hedging for does not happen, then what is the chance of me maybe breaking even?

Is there anyone else out there that really feels that Gold is artificially low and being kept low? I heard the US dumped alot of Gold on the market from the IMF, that has to be affecting the prices of gold.

Anyway, I think thinking I will be irresponsible and take the plunge and spend the $1500 to switch it out of the Funds market, but I am curious is there is anyone else that is sort of in an alarmist reactive state like myself.

And keep in mind, like I am selling everything I own and moving 4000 miles to a higher elevation just to sit this out to see if it happens, so I am really really really feeling a sense of change happening. So I am not sitting in my lazyboy planning my future, this is a major issue for me, but in the end $30K is a small amount of money I guess and not enough to really mean much at this point, so I am considering gambling with it.

Well, if I knew for sure the market was going to implode at a specific time, I´d be placing all my chips in a hedge fund that is going to make the most profit from such a collapse. You could turn what you have into big money and easily recover all your losses. Which hedge fund you may ask? You will have to do your own research for that but I know of a hedge fund who made BILLIONS in profits because it betted that the real estate market would implode, and did it at a time nobody was thinking that would happen. So, if you know when the SHTF, make your hedge accordingly, and make it early enough. You´ll make a truckfull of cash, then buy hard assets with it before the aliens, or whatever, takes over. Make sure your picking the right currency as well...the US dollar may long be toast within a few years. Send me the date it happens as a thanks for the advice!

[edit on 12-8-2009 by fockewulf190]

Please forgive my ignorance on the subject, but when the SHTF what good is a portfolio? It's my understanding that when you buy gold, you don't physically get the gold in your hands. You get a piece of paper stating you own gold.

So if the SHTF and the dollar becomes worthless, you either have a piece of paper saying you have x amount of dollars in gold or you get a payout in worthless American dollars. I personally would buy gold if I could physically have it in my hands to use as a currency. I'm sure I have it all wrong, but that's what I feel about it.

Originally posted by fockewulf190
make a truckfull of cash, then buy hard assets with it before the aliens, or whatever, takes over. Make sure your picking the right currency as well...the US dollar may long be toast within a few years. Send me the date it happens as a thanks for the advice!
[edit on 12-8-2009 by fockewulf190]

I think you are onto something with the Hedge funds, I see a number of them have a overall 12 month performance of say +9% over last year, so they have got a good bunch of their losses back. Is this normal for a good hedge fund?

I am thinking CAD is good, assuming an Amerio eventually hits the street, Canada and Mexico will move into that when the time is right and it settles out in stability, that is my thoughts on currency. What is your thoughts on currency?

Hmmm...

I wouldn't be "speculating" at all in your position, but that's just me..

If you really believe that things are gonna go to hell, nothing says "safety" like tangible assets...that is, assets that you have in your physical possession...and keep in mind, when the chips are down, governments have been known to confiscate tangibles....

I would stay as far away from any kind of paper market "funds" as you can get.....pull it, take the hit, then build your own personal treasury..

Again, it all depends on what YOUR outlook is

[edit on 12-8-2009 by RolandBrichter]

Originally posted by Tartarspoon
I personally would buy gold if I could physically have it in my hands to use as a currency. I'm sure I have it all wrong, but that's what I feel about it.

Locked in RRSP, so I cannot take out, so I would agree, but I am trying to work within the framework I have, and it took one move to get it from the bank RRSP, but I just chose a bad performing fund, well, it could have been worse I guess.

But I agree, a person with a large amount of money might want some actual gold, silver, or junk coin at least, sitting around.

Thats the thing, make your cash, then buy your hard assets (house, power systems, food, water, gas, survival gear, Chevy Volt) with it before it´s too late. Pick a currency before hand that will last the longest and mantain the most value for as long as possible.

Originally posted by RolandBrichter
I would stay as far away from any kind of paper market "funds" as you can get.....pull it, take the hit, then build your own personal treasury..
[edit on 12-8-2009 by RolandBrichter]

Yeah I think you are right. Oh well, if it was not locked in that would be my take on it too. Platinum, small, easy to transport, and hide, with some silver and Gold mixed in. Oh well.

reply to post by SoulOrb


"Now I know this is not a safe bet, but keep in mind in the last year I have made contact with extraterrestials, and they come to see me and the people I bring almost on a weekly basis, so my paradigm is changing quickly."

Can you provide more details on your ET contact? I find it facinating that you casually mentioned this in your post.

Regarding investing in gold. I would advise that if you want to get into gold do not but into a precious metal fund or any other paper investment into gold. Buy physical pieces of gold coins or bars. When the SHTF you will find that an investment in gold on paper will be pretty much worthless.

Beware of gold . Gold is in a bubble due to speculators companies as im sure you have seen on tv commercials.

Ok, so this hedge fund seems to be doing well, in that they are heavy assets. So since I cannot get assets, well, this fund can get assets, and I can get the fund. LOL

www.scotiaprimebrokerage.com...

Anyone heard of the Scotia Capital Canadian Hedge Fund? It seems to have a heavier Asset position, and according to this has a pretty good performance compared to the major a few of the major markets, that is my understanding.

Originally posted by Erasurehead
When the SHTF you will find that an investment in gold on paper will be pretty much worthless.

There must be alot of people like myself in that they are in locked in funds, so I am sure that someone has done this research before me.

The ET contact is documented on my YouTube channel, and well, they seem to be very high and few in the past few weeks, which in itself is interesting, why they are not coming so low.

I just accept the contact now, I went through an education stage, but in recent months as I prepare for this major move in my life, I am sort of just keeping it low key until I know if I am supposed to share, or keep those experiences to myself.

However, I will tell you, there are things that a year ago, I did not know existed, and well, that is just the way it is, take my word for it, there is some kind of life that we are not being told about, or which chooses not to make contact with everyone.

First off...

Don't invest in a fund. Buy the metals outright, and either keep em in a safe, or in a Deposit Box at a local bank that is secure (as in you don't expect it to disappear over night)

The benefit of having the metals compared to say .. investing in a fund.. is fund disappear.. over night.. you can wake up one morning thinking "Ahh.. wonder how my gold is doing.. no need to worry.. it's gold" .. just to open the mail to read "Sorry to inform you..." and you read on about how your fund you invested in didn't really have the Gold it claimed it did, went bankrupt and was seized by regulators.

Second...

Never invest entirely in a metal .. keep a certain amount in metal, say, 20-30% (if you're really worried) and the rest in stock. If you truly believe the market will tank soon, you can always take you're funds from the market for a time being, if it crashes, jump back in, if it doesn't, well at least you didn't risk loosing everything. Gold and Silvers growth is all hypothetical, and for the most part blown way way out of proportion .. hell Gold is still hovering around 950ish even with the bailouts and crappy economy. Anyone who says Gold and Silver is not manipulated is a fool.

Third...

Gold and Silver are great hedges against inflation.. so it would be important to have some aspect of your funds in metals anyways, simply for this reason. Diversify.. but keep it on hand, don't invest in a fund. However investment in stocks, especially if you are controlling the buy/sell will yield much better growth for your funds.. the metals in the background being a security backdrop against any number of scenarios.

reply to post by fockewulf190


Obviously you aren't completely informed about hedge funds. The amount of money he is talk about is unfortunately less than a hedge fund will take. Even the smallest hedge fund require a minimum of 100k per investor. There are hedge products that allow less. But the sort you bring up are not accessible to the average investor. Many require at least $10 million to invest.

I will try to respond as best as I can without knowing your investment situation. I myself own an investment firm, so I know all the various options and examples, and their corresponding advantages and disadvantages. So feel free to ask me any questions you like.

Getting into gold and precious metals is both easy and difficult. You have 3 basic options; 1) buying the actual metal. 2) Buying the futures contract. 3) buying an ETF in a normal stock account. Buying the actual metal may be easy to do, but it is near impossible to get market value back if you want to sell. So if you see gold at $960 an ounce, you most likely would have to sell below that. The futures contracts option is a great one, but they are very complex vehicles and should not entered into by someone that doesn't understand them. They are more labor intensive. In terms of the ETF's, they are easy to buy and sell, however they don't accurately track the metal all the time.

A good way to go may be to put money into a managed futures fund that specializes in metals. But there are many out there so you have to do a ton of research on the right one for you.

Of course this simple synopsis does not get into strategy or outlook whatsoever. This was just answering the question about how to put money into metals. Anyone feel free to ask any questions.

reply to post by johnny2127


Many people hear the term "fund" thrown around, so it shouldn't be surprising to see such a mistake. In all likelihood the OP is refering to a Mutual fund of some veriety.. or perhaps a retirement Fund as he indicated he's both locked in and able to change the fund based on risk/strategy.

(Sorry for temp. Bad spelling)

I think you are frazzled right now.

But.... BUT.... if you really want to play the metals and be prepared for all hell to break loose then take that $24K and put it all in junk silver (pre-65 U.S. minted dimes & quarters). Check ebay for real prices, and then see if you can clean out a local coin dealer once you know what market prices are. You will have the most easily traded coins in the SHTF scenario. en.wikipedia.org...
If metals continue to rise, and your blood pressure drops, you can flip it back to cash and carry on with life. www.coinflation.com...

But seriously I think you are off the cognitive map right about now.

You can actually do nothing, hold on, and you'll see your money come back plus some in 1.5 - 2.5 years. Then stay on board for the run up, or do something else. Don't take a loss unless you absolutely need the cash. And it sounds like you don't.


[edit on 13-8-2009 by THX-1138]

Originally posted by johnny2127
A good way to go may be to put money into a managed futures fund that specializes in metals. But there are many out there so you have to do a ton of research on the right one for you.

Thank Johnny, now I am curious, in futures if stock market went out and was shut down from roll over of currency to Amerio, how would that fair against a fund that was high in assets such as property or gold, and silver, instead of futures?

Thanks

Originally posted by Rockpuck
reply to post by johnny2127

 

Many people hear the term "fund" thrown around, so it shouldn't be surprising to see such a mistake. In all likelihood the OP is refering to a Mutual fund of some veriety.. or perhaps a retirement Fund as he indicated he's both locked in and able to change the fund based on risk/strategy.

(Sorry for temp. Bad spelling)

This is correct Rockpuck, it was a mutual based fund and my options are limited.

Originally posted by THX-1138
I think you are frazzled right now.

I don't think so. I seem to be fine, and feeling the urge to do something with this instead of watch it crash and burn in a few months, it is going to crash and burn, just would like some ashes left.