Your Questions About Tips For Investing In Precious Metals

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Chris asks…

Intraday calls for Commodity?

last 2 months i am doing commodity trading in precious metal sometimes i get profit sometimes loose..
Pls suggest the best calls provider with best accuracy…

Justin answers:

You are just begging to be scammed.

Trading on tips is amazingly stupid. You have no idea of the person’s expertise or motivation. An online track record can be easily faked.

You’ll get spam answers claiming 70% to 100% accuracy. ALL FRAUDS!

Your results are random because you have no expertise in a market dominated by experienced professionals.

Read. Study. Take a class. Learn to invest. Don’t depend on silly tips.

Paul asks…


like any makeup tips or anything!?!

Justin answers:

1] no preschool Tshirts or hairdos.
2] wear clothes that fit, not tight or baggy.
3] wear grownup shoes – either heels, or peep toe, or strappy sandals, or sling back [ no kitties or rainbows,etc. ]
4] all clothes should be whole, or fitted and hemmed properly
[ no puddle pants, camel toes, whale tails, headlights, muffin tops, brastraps, etc.]
1] get a grown up style that you can arrange differently – don’t wear ponytails or a braid every day, and headbands are not sexy.
2] invest in some quality hair accessories – large tortoise clip, leather, smaller CV barettes, etc.
1] wear some makeup when out in public – most need at least mascara, blush, and lip color or gloss
2] for work or school, wear natural colors – in liner and mascara – brown, brown-black, or black, depending on how dark your hair is.
3] save brighter, darker, or glittery stuff for clubs and parties
4] adjust color and brightness of blush/lips depending on what you are wearing.
EX: if you are dressed all in black, with only a bit of colors in accessories – you’d look better in a bright color, like rose vs. Pink, and red vs. Peach.
If you are wearing bright red, don’t match lips to that color – go for a vivid neutral, like caramel or bronze.
invest in grownup pieces like classic hoops, chandeliers, chains, bangles, cuffs in your best precious metal – gold or silver.
Avoid plastic.
Gemstones [ diamonds, emeralds, rubies, sapphires ],and semiprecious [ amethyst, aquamarine, garnet, peridot, topaz ], and ‘soft’ stones [ pearls, onyx, jade, coral, turquoise ]stones always work.

Joseph asks…

So… I’m looking to invest, there’s the stock market, real-estate… what else?

Ideas and tips are appreciated. Thank you!

Justin answers:

It’s not in what you invest, it’s the timing, which makes the difference.
Collections (art, stamps, coins, antiques,…), real estate, stocks, funds, bonds, CD’s, precious metals, jewelery, etc, all of them have one thing in common, their value goes up and down.
If you catch it on the down swing and sell it on the up swing, you can make loads of money, but you can loose it all too.
Only people, who work with other peoples money, make money for sure.

Michael asks…

what are MUTUAL FUNDS?

what exactly are mutual funds and can i make money off of them? lets say i started with 500 dollars? what could i make lets say in 2 years? im new to this give tips please

Justin answers:

What pikachu said is incorrect.

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks. Investors put money into a pool. One professional makes all the decisions of what to invest in. All you have to do is decide when to leave.

You normally sell when you believe the sector you decided to invest in is at its peak. I.e. Precious metals right now are a great investment.

Mutual funds are good because you don’t have to be watching it everyday unlike the stock market as someone makes all the decisions on behalf of all the investors.
The problem is, you have to buy your mutual funds from a bank that you can trust. Do a little research on the professional that is running that mutual fund and whether or not he/she has a good track record.

From most risky to least risky:
Mutual Funds

More risk = more reward

You won’t be making a lot with $500. Look at the price history and yield on the mutual fund(s) that you are planning to invest in.

Robert asks…

What should I do with my money and investments during quantitative easing?

I have $85k right now in savings(50k), mutual funds(30k), and 5k in precious metals. I also have about $20k in equity in my current house. If I’m the kind of person who thinks quantitative easing by our government is going to create inflation, and/or other Bad Stuff(tm). Where should I put my money? A couple of thoughts. We’re currently looking to move soon. One thing I could do is put it all into the next house. Real estate should be inflation-resistant, right? Also debt becomes good during inflation, so maybe go with a bigger, more expensive home? I could also play it safe, and using a part (half or so) as a down payment on the next house, and do something else with the rest, like commodities? or precious metals? other suggestions? $50k in a savings account is scaring the heck out of me right now, I want to do SOMETHING with it, I just can’t figure out what.
Also, none of this is in any tax sheltered accounts.
Just FYI, the residential real estate market where I live (central Iowa) remained flat while the rest of the country tanked. We had no “bubble”. Also, farm land has gone up during that time, so again, where I live, there was no real-estate crisis.
Just to address a few “concerns” I have, and am contributing to my companies 401(k). My wife and I also have IRA’s. We haven’t added to them this year or last, but this question was specifically about our non-tax sheltered money – this is NOT our “retirement” money we’re talking about here.

Justin answers:

Here is a very different perspective from your first thoughtful answer.

I consider macroeconomics as pretty important in investing. Like you, I am very concerned about inflation. For the last decade, I have been way overweight both cash and inflation-sensitive stocks like BHP, POT, SLV, NBL, GG. For a mutual fund, I own Vanguard’s Precious Metals and Mining (VGPMX) which is run more as a global resources fund than a straight gold fund. This is not conventional wisdom, but it has worked very well for me.

My advice is to separate the decisions on housing and investing. Buy the amount of house that you need or want, but as a residence rather than investment. If you want to invest in some productive real estate (farmland), that might be a great choice if you have the expertise.

In theory TIPs should be a nice asset. However, I gave up on them because I think the government deliberately under-reports inflation. At least their measure of inflation bears little relation to what I experience personally.

Consider starting a Roth IRA or a 401k if your employer provides one.

Mark asks…

What are the safest investments in an crashing dollar, hyperinflation environment?

…if that is where we are headed. Are ANY 401k-type investments safe in this type of environment? I could switch to a 100% international fund but wouldn’t that still be tied to the US dollar? Is it possible for our dollar to crash yet these foreign investments would actually increase in value enough to offset the dropping effect of the US dollar? What about precious metal IRA’s? Would those be any safer?

I guess my question is where is the safest place to keep your savings and investments in an environment where the dollar is going to crash? Should I convert cash savings to precious metals at this point? Should I reallocate my 401k to 100% international funds? Should I roll my IRA to a precious metal IRA or into international funds?

Justin answers:

I won’t argue your hypotheses. I think you’re just guessing, but any argument on my part would be guesswork, too.

You can safely protect against inflation by buying Treasury Inflation-Protected Securities, or TIPS. These are government bonds which adjust along with inflation. Whether they adjust enough is an open question. If you can’t invest in individual TIPS, try the ETF whose symbol is TIP.

And certainly you can reallocate to international funds. Why not? I have over half my investments outside the US, and those investments have been doing much better than domestic investments. China and Brazil may be over, maybe Canada is still strong… But you need to do your own research to decide where to invest. Some will say it’s time to get back into emerging markets, but IMHO, that’s about as risky as US stocks at this point.

If the dollar really “crashes” as you say, then all bets are off. Even safe harbors like money market funds will sink. But the government won’t let that happen. They’ll pick one of your pockets and put the money in another pocket. After taking a cut, of course.

Donald asks…

Any college savings tips?

My son is 1 month old. I have established a 529 account. I have bought EE bonds from the Treasury. I have also made significant purchases in gold and silver. Each month I put in a static amount. What am I missing?

Justin answers:

Personally, I would stay away from Gold and Silver. The precious metals market is best served as an inflation hedge. IMHO, precious metals are overpriced right now. I think the prices of gold and silver will fall as the stock market starts accelerating again. I am not saying to rush out and sell what metals you have bought. I think you should limit the amout that you buy in the future.

A 529 account is an excellent investment, especially if the state you live in gives 529 accounts special tax treatment. Personally, I have chosen not to invest in a 529 at this point. The problem is that if your child doesn’t go to college, the money has to be used for educational expenses. If you are OK giving the money to another relative or using it yourself, not a big deal. If you don’t want to give the money away or use it yourself, then you have to pay a penalty to get it out (10% I believe).

EE bonds are a good investment in limited quantities. Savings bonds are liquid assets that can be cashed pretty much anywhere. The interest rate they pay tends to not be very attractive. I’d recommend only investing $10K or $20K in bonds. Treat them like stocks. When the interest rates are attractive, buy them up. If the rates are low, put your money elsewhere. You might be better served by purchasing short term Treasury Bills or Treasury Notes from the government. They usualyl pay a little better interest rate. T-Bills mature in weeks. T-Notes mature within 5 years. The catch is that T-Bills and T-Notes are sold in $1000 increments. You can buy them online in an auction from TreasuryDirect. It works pretty similar to an online trade account. I believe you can also have a bank buy them on your behalf.

Personally, I’ve opted to invest in a standard taxable mutual fund accounts. Whether you invest in a taxable account or a 529 plan, I would invest in a mixture of stocks and bonds. 18 years is a good amount of time, but time can run out if the market goes south. About 85% of my college fund goes into a 60% stock 40% bond mutual fund. The remaining 15% is invested in a REIT (Real Estate Investment Trust) to diversify a little more (be careful with Real Estate funds as they are very volitile). Right now, I think that large companies are cheap compared to historical prices. I’d consider picking up an S&P 500 index fund or a Growth or Value fund that invests in Large Cap Stocks.

Make sure to alter your asset allocation as you get closer to college. 60/40 stocks to bonds is great for 20 years from now, but the closer to college you get, invest more in bonds and cash (money markets/untra short term bonds) and less in stocks.

You can also invest in a “retirement” type mutual fund as if you were going to retire in 20 years. This type of fund will change your asset allocation automatically as you approach the goal date.

It seems you got your bases covered pretty well. If your child is only 1 month old, I would direct more of your assets toward stocks and bonds and less toward savings bonds. Precious metals is going to be a crap shoot. You might score big or you might break even in 20 years (personally, I don’t like investing in commodities as it is volitile and long-term return tends to be low).

Good Luck!

John asks…

Question on silver investing.?

I have been buying silver, and gold for a few years now. I have read that silver should be selling at about $80 oz to be historicly even with gold at a 1/16 of the value. Does anyone think silver is going to make a jump any time soon? Also at the current prices am I better of buying more gold, or silver?

Thank you for any tips.
Please keep it simple. I’m a stealmill worker, not a stock guy.

Justin answers:

Well, the 16:1 ratio I assume refers to the $800 high in gold in ’79-80 when silver hit about $50. So what’s the same now, and what’s different? Back then we were in a clealy inflationary environment, but now we’re not. The gold move now seems to be more as a “currency” hedge — an alternative currency to hold against fear currency devaluations in an environment of global economic malaise.

But silver is not a pure “precious” metal, it’s an industrial metal too, and that means that economic sluggishness curtails demand for it.

But incidentally, since the February lows this year, silver has handily outperformed gold: SLV +39%, GLD +22%

Good luck!

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