muses of the moment

April 19, 2011

gold update

Filed under: Dollar Crisis, Fiat Currency, Gold and Silver Investing, Precious metals, US Government Debt — totallygroovygirlfriday @ 2:32 pm

Gold hits all time high and major milestone in intra-day trading today….$1,500.

Main Stream Media continues to ignore all red flashing warning signs of next leg down in this global debt contraction. Nothing to see here, Sheeple, move along. Look over here, Timmy is on this screen saying US debt doesn’t matter, rating agencies are wrong, but raise the debt ceiling or disaster will bring down the United States of America.

Too late, Timmy, gold prices, even suppressed,  say US and dollar already dead. Just waiting for MSM and Treasury to acknowledge reality.

Update…and silver just took out $44. Groovygirl LOVES this.

2 Comments »

  1. TGGF,

    Back to a 401K discussion that we had in the past … Once a year I can take a small percentage of my company 401K plan and roll it over in to my own self-managed plan without any tax implications. Each time I’ve done this I have invested my money into my self-directed 401K in to commodity-based stocks. Right now I have all of this money in one stock, PSLV. To date my first investment in this stock is up 110%. My second (which was done three months ago) is up @25%. My 401K plan at work it us a grand total of 1.1%. What I guess I am saying is that I am breaking almost every rule that I’ve ever been told about investing … Leave your money alone in your 401K plan and diversity it to protect yourself, etc..

    I think this was good advise in the 90’s and 2000s. Not any more.

    With the way the dollar is going we are no longer operating under a “normal” investement world.

    My question to you … Why not take all of your money out of your 401K plan and take the huge tax and penalty hit now, and use that money to go all in on physical silver and gold?

    The University of Texas just did it? (1 billion in physical silver). Countries are doing it. Why not me?

    What are your thoughts?

    Mike

    Comment by Mikemc — April 19, 2011 @ 2:43 pm

  2. Mike,

    Before you take all your money out of your 401K, I would ask yourself some questions.

    What is your age, could your 401k preserve enough capital in this winter cycle to make it to the steady growth of the spring cycle? Will you need that money from your 401k in the next 10 years. How much of it?

    Is the government going to take over your 401k in the near future?

    Is the penalty and taxes going to be off set by the rise in gold and silver in the next 5 years, including those special precious metal taxes and storage fees? Run the numbers. If it is close or a wash, you may want to wait.

    I don’t think your 401k will be returning only 1.1% for the next ten years. Interest rates have to go up, so even a money market in a 401k will make more money than it is now at some point.

    The University of Texas only has 5% of their investment funds in physical gold. And groovygirl suggests 10-20%. I would never suggest 100% in physical gold and silver unless we were experiencing a complete global government/society breakdown.

    Depending on your retirement age and threat of government nationalization of 401ks (which is low at the moment), I would wait and see.

    Gold and silver is not going to $10,000/$500 (estimate under current conditions) next Thursday, it will take at least 3-4 years, probably longer.

    Go back and ask these same questions in 6 months.

    In the meantime, I would take whatever you are currently putting into your 401k (if anything) and instead buy physical gold and silver with that money, and continue to roll over what you can (without penalty) to your privately-held 401k plan that has better investment options.

    You are wise to question the investment advice of the past.

    gg

    Comment by totallygroovygirlfriday — April 19, 2011 @ 3:08 pm


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