Advice Moving Investment to a Gold Prescious Metal Funds

ok, lets pose a question for those who know the stock market.

You wake up tomorrow and there is not one alien ship in the sky, but say 100,000 around the world and people are not completely sure of why they are here and there is a state of confusion because people do not know who is to trust.

What happens to the stock market, and what is the safest bet.

The stock market would not open.
A state of emergency would exist.
People would storm the grocery stores.
Gas will be gone in one day.
You should have guns/ammo BEFORE this happens.

Originally posted by SoulOrb

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

When I brought up the idea of managed futures for you, these are managed futures that invest in gold, silver and other metal futures contracts. They then make strategical bets based on the economic environment.

An ETF than is a gold ETF for example, is not actually holding the full amount of gold bullion that is invested. Most ETF's that buy metals buy some of the metal, some of the futures, and then notes to purchase as well.

Its all very complicated, in essence. If you are looking to get into metals, I think the appropriate managed futures manager could be good for you. You would be investing in a managed futures fund that focused exclusively on metals.

To answer you question about if the Amero did in fact happen, the corresponding way that would happen would be first a drastic devaluation of dollar based assets to bring it in line with peso and Canadian dollar assets, then when the dollar went alway, there would be massive metals price appreciation. The Amero in essence would we price every asset. Personally I don't think the Amero is coming, also a dollar collapse very well may be.

Originally posted by SoulOrb
ok, lets pose a question for those who know the stock market.

You wake up tomorrow and there is not one alien ship in the sky, but say 100,000 around the world and people are not completely sure of why they are here and there is a state of confusion because people do not know who is to trust.

What happens to the stock market, and what is the safest bet.

The stock markets would not open, nor would you want them to because they would collapse instantly. To the same extent, economies as you know them would grind to a halt as no one went to work or conducted normal commerce. Currencies in general would be worthless. If this persisted for more than a week or so, the only safety would be in assets you could barter with. Gold, silver, bullets, guns, blankets, clothes, canned food, clean water, seeds for gardens, gasoline, etc.....

You are posing some very out there hypotheticals that any sort of investment planning really couldn't get out of the way of. If you are sincerely worried about these sorts of scenarios, I would say to take comfort in the fact that life as we know it would change forever. It would get much simpler and your worries about stock markets and currencies would be gone. Point being, do not stress about what you cannot control. Prepare for things you can control and that stability will bring comfort and confidence.

Originally posted by THX-1138
You should have guns/ammo BEFORE this happens.

I can agree with the other stuff. However I think in times of violence, do you want to gather more life karma by killing other people. Best to lose your body and not take a hit.

Originally posted by johnny2127
The stock markets would not open, nor would you want them to because they would collapse instantly. To the same extent, economies as you know them would grind to a currencies would be gone. Point being, do not stress about what you cannot control. Prepare for things you can control and that stability will bring comfort and confidence.

Well, I am not stressed about it, however there are eventuality planning. Lets assume that the markets did come back up once the panic subsided, and the currencies did not collapse, where would you want your money to get at that time. In futures? In a fund who hold Prescious Metals? Funds based on real estate.

Look, my funds are tied up for 15 more years. I cannot cash them in. They will be in the control of someone, who will manage it for me. The point is, where is the safest place to place them for the possible recouping of the whole or partial value in the eventuality of such an event, and that they whole system does not tank and there is eventually business as *almost* usual on the other side.

It seems that people might think that I am cashing it in and heading for the hills, and suggesting that there will never be a market. No, what I am saying is that I have money in tow funds that did very poorly in my opinion in the last volly of problems, and I need to find a vehicle where it is not based so much on futures adn more tangible assets, and if the whole thing goes to hell, then well, I will be like everyone else bartering for seeds, we will be in same boat.

Originally posted by SoulOrb

Originally posted by THX-1138
You should have guns/ammo BEFORE this happens.

I can agree with the other stuff. However I think in times of violence, do you want to gather more life karma by killing other people. Best to lose your body and not take a hit.

Uhhhhh..... step away from those 20 sided dice and drop the wizard hat for just a moment. R U Serious??!!!

Originally posted by THX-1138
Uhhhhh..... step away from those 20 sided dice and drop the wizard hat for just a moment. R U Serious??!!!

Completely. Aren't you tired of death and killing? Has it ever resolved anything? Who wants to live in that kind of world.

reply to post by SoulOrb


Hi SoulOrb,
I think I know exactly how you feel, i asked the question "Is now the right time to buy gold?" in this forum about a month ago. You can find it here..

www.abovetopsecret.com...

I had actually made up my mind to buy physical gold at the time of posting but was interested to see how other members viewed this. Maybe you would like to see their comments.

As Johnny points out on your thread, there is quite a large spread on physical gold (I also had to pay a 3% fee for buying bars!!!) but if you look at it as a mechanism for protecting the wealth that you now have in paper money instead of an "investment" for short term gains, I think you will feel better.

I am no financial expert but I do think that the markets will crash and the dollar will collapse and perhaps quite soon. I have been called a doom and gloom merchant by people on here, but the writing is on the wall in front of me and in my world that is what matters.

I wish you good luck in whatever you decide,

PEACE,
RK

Originally posted by Rigel Kent
collapse and perhaps quite soon. I have been called a doom and gloom merchant by people on here, but the writing is on the wall in front of me and in my world that is what

Thanks RK, and well being responsible and considering all aspects is not really doom and gloom!

Thanks!

reply to post by SoulOrb


You aren't getting what I am saying. Precious metal mutual funds do not typically hold much of the actual metal. When I say futures, that means futures contracts on metals. That way you actually get market price when you sell, versus holding the actual metal you won't be able to sell for market price.

Many funds try to say they are precious metals funds, but what they invest in is the companies that make the metals, not the metals themselves. You don't want the stocks for what you are talking about. You want exposure to the actual metal commodity.

reply to post by SoulOrb


First off.. the Amero was a prank played by a over enthused racist talk show host Hal Turner. Assuming the US did in fact form a new currency, be it joined with other countries or not, it would have no effect on the Markets .. everything would be re-priced in the new Currency .. much like Europe did with the Euro.

The point is, where is the safest place to place them for the possible recouping of the whole or partial value in the eventuality of such an event, and that they whole system does not tank and there is eventually business as *almost* usual on the other side.

I don't know about .. aliens.. or financial collapse to form an "Amero" .. but in the event of a total financial collapse and or collapse of the government, your money should be the least of your worries.

If you want Metals, be it Gold, Silver, Platinum or what ever.. in the event of some catastrophe.. what is the point of being in a contract through a fund? The object of these funds are to trade the metals over short periods of time, to benefit from market fluctuations.. Holding the metal, you cannot sell quickly to benefit from volatility..

You also cannot buy the Metals with your money, as it's tied up in a Retirement account and will be heavily taxed. Which I think you are trying to rationalize a way around this.. All I can say is, leave your money where it is, and just forget about it.. your retirement money will be the least of your worries if the whole game comes crashing down.

Better yet.. talk to a licensed financial adviser.. perhaps one through your HR department who can offer you ideas based on the investment options presented to you.

Advice off the internet regarding financial matter that cannot be seen in detail is financial suicide..

**most of your scenarios will never happen anyways so why worry?**

IMO you are best off buying actual gold and silver, even platinum bullion. Depending on where it's mined it cost $300 to $600 for 1 troy ounce of gold.

Gold is up $128 (16%) on 1 year changes and up $29 (3.14%) in the last 30 days.




Here's a great article that came out today 8/13/09 on Bloomberg

kitco.com is a great resource for research, check it out.

reply to post by SoulOrb

Hi SoulOrb. We can invest in a home , or in the developer that builds the home. The RBC Precious Metals Fund gives you exposure to the companies that moil for Gold....the miners. For exposure to bullion , there's CEF (Silver/Gold/Platinum) , or GTU (Gold).

Both qualify for regulated capital accounts such as IRAs, Keoghs, RRSPs etc , and they are always noted as the preferred funds on the Canadian PM boards I frequent.

Credible professionals like John Embry and Ian McAvity sit on the BOD....

John Embry: Exclusive Interview with Canada's Foremost Gold Investor

Now, I may buy gold and have it in my own possession. I know I have it. And then there are other gold and silver vehicles like Central Fund of Canada (NYSE:CEF) or Central Gold-Trust (NYSE:GTU), to cite a couple, where the gold is allocated. It’s in a vault and there are regular audits to prove everything that’s behind the vehicle is in fact there. So you are getting what you pay for.

Full Text

Run 'em by your broker...see what he says.








[edit on 13-8-2009 by OBE1]

Delete dupe. Sorry

[edit on 13-8-2009 by OBE1]

Originally posted by OBE1
reply to post by SoulOrb

 

Hi SoulOrb. We can invest in a home , or in the developer that builds the home. The RBC Precious Metals Fund gives you exposure to the companies that moil for Gold....the miners. For exposure to bullion , there's CEF (Silver/Gold/Platinum) , or GTU (Gold).

Both qualify for regulated capital accounts such as IRAs, Keoghs, RRSPs etc , and they are always noted as the preferred funds on the Canadian PM boards I frequent.

Credible professionals like John Embry and Ian McAvity sit on the BOD....

John Embry: Exclusive Interview with Canada's Foremost Gold Investor

Now, I may buy gold and have it in my own possession. I know I have it. And then there are other gold and silver vehicles like Central Fund of Canada (NYSE:CEF) or Central Gold-Trust (NYSE:GTU), to cite a couple, where the gold is allocated. It’s in a vault and there are regular audits to prove everything that’s behind the vehicle is in fact there. So you are getting what you pay for.

Full Text

Run 'em by your broker...see what he says.

[edit on 13-8-2009 by OBE1]

I wouldn't touch that fund with what you are trying to do. Metals rising in price does not correspond to the companies make them having stock appreciation. Very typical mistake by many investors and so called financial advisors with limits options, experience or knowledge. You want access to the commodity itself. You want an investment vehicle that is invested in the actual metal or metals.

The ETF's this person above mentions aren't bad but they won't track the metals themselves 100%. Not bad options, but they are not up near what actual gold is, nor will they ever be.

Originally posted by johnny2127
but what they invest in is the companies that make the metals, not the metals themselves. You don't want the stocks for what you are talking about. You want exposure to the actual metal commodity.

Yes, thank you, I had figured that out, and I checked and one fund was investing in the companies who had it in the ground. Well, hello, if there was an issue with the economy, how do you get it out of the ground? LOL

Originally posted by Rockpuck
Advice off the internet regarding financial matter that cannot be seen in detail is financial suicide..

I dunno, your advice seem sound.

Originally posted by OBE1
Both qualify for regulated capital accounts such as IRAs, Keoghs, RRSPs etc , and they are always noted as the preferred funds on the Canadian PM boards I frequent.

Cool, thanks OBE I will read up on that fund and the principals.

Originally posted by OBE1
Both qualify for regulated capital accounts such as IRAs, Keoghs, RRSPs etc , and they are always noted as the preferred funds on the Canadian PM boards I frequent.

Cool, thanks OBE I will read up on that fund and the principals.