Fermion
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'd rather be sitting on a lot of Au vs. a lot of cash. Cash is variable. Au is fixed. An ounce is an oz.
Cash is a lot softer on the buttocks.
I'd rather be sitting on a lot of Au vs. a lot of cash. Cash is variable. Au is fixed. An ounce is an oz.
What you can buy with cash varies also. Ever look at stock & home prices over time? Give me an ounce and $1300 & let's see what each buys in 10 years. Hint: Au is 400%+ in dollars since 2000.
I'm not talking of Au as an investment. I'm talking of it as an alternative to holding cash. Clearly +65% to cash since 1980 it's known which is better to have held. A CD isn't holding cash.The fun thing about this debate is whoever uses the keyboard last is probably the winner. If my math is correct Gold is up about 65% since early 1980. I think the lowly 1 year CD over the past 34 years has that beat if both were bought then and held until today. But I am just having fun and have no idea if AU is a great investment today is not.
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I'm not talking of Au as an investment. I'm talking of it as an alternative to holding cash. Clearly +65% to cash since 1980 it's known which is better to have held. A CD isn't holding cash.
The fun thing about this debate is whoever uses the keyboard last is probably the winner. If my math is correct Gold is up about 65% since early 1980. I think the lowly 1 year CD over the past 34 years has that beat if both were bought then and held until today. But I am just having fun and have no idea if AU is a great investment today is not.
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You have to be quite selective in your holding period to make gold a sensible alternative to cash, especially in a thread such as this, which is talking about relatively short holding periods. The only time in my life that I've caught gold fever was in the bull market around 1980. I bought some gold in the $600 per ounce price range and still own it. So I've made a profit over the entire life of the investment, but I was looking at outright losses for the first couple of decades that I owned it. And that's not even taking into consideration the opportunity cost of not having that money invested in stocks during the greatest bull market in history.I'm not talking of Au as an investment. I'm talking of it as an alternative to holding cash. Clearly +65% to cash since 1980 it's known which is better to have held. A CD isn't holding cash.
Based on this recent post of yours, it appears that your 401k was closed out on April 9. If so, you are in a fairly good position to do a lump sum investment in your IRA. Stocks are almost completely flat since April 9, so you can reestablish your 401k stock allocation in your IRA with a reasonable expectation of neither gaining nor losing much by being out of the market for several weeks.
In my view this is the right way to go, even though you admittedly may get a lower price by waiting. If you use the transfer of funds from the 401k to the IRA as an excuse to remain out of the market for the time being, then you really are converting a straightforward rollover into an exercise in market timing.
http://www.early-retirement.org/forums/f28/its-better-to-be-lucky-than-good-71513.html#post1437324
I guess I look at it in reverse: The ounce is an ounce forever - as is an acre of land or a diamond; i.e., a hard assets. What varies all over the map is the value of a dollar, but continued, government-sponsored inflation makes holding it as cash a long-term loser.You have to be quite selective in your holding period to make gold a sensible alternative to cash, especially in a thread such as this, which is talking about relatively short holding periods.....
So pretending that gold is somehow not really an investment, or that holding it is a safe alternative to cash just doesn't match the facts. If OP puts his money into gold while he's out of the market, he may eventually sell at either a profit or a loss, depending on how well gold does while he's holding it.
Not to hijack this thread with a debate on the merits of gold, but it's hard for me to see how even the most devoted of gold bugs could make a reasonable case that gold has been anything but a disastrously bad investment over the past 34 years. The only way it comes even close to cash, for example, is if you had decided to hide your cash under your mattress for almost three and a half decades. For much of that time period interest rates were high and you could have gotten high single digit or even low double digit yields in money market accounts.I guess I look at it in reverse: The ounce is an ounce forever - as is an acre of land or a diamond; i.e., a hard assets. What varies all over the map is the value of a dollar, but continued, government-sponsored inflation makes holding it as cash a long-term loser.
If instead of buying gold at $600 you'd kept the cash, you could $700 ahead today; i.e., you cash is down over 50%.
No idea if in the short run a dollar will go up or down, but the Au will be there for you.
I received some six and seven figure lump sums each year starting in 2010 through 2013. I decided to DCA them into the market. If I had just lump summed them all when received each year, it would have been a net gain of about 300-500k. A tough lesson to learn.