CNN Money has released a special recommending retirees avoid investing their retirement funds in gold, which is ‘far too volatile‘.
CNN says ‘gold isn’t a place to put money you can’t afford to take a loss on‘ and concludes by stating ‘Bottom line- we can’t wholeheartedly recommend gold for your retirement savings.  If you really feel that you must put some of your retirement savings into gold, make it a small bet‘.

So let’s get this straight: holding physical wealth is a ‘bet’, but purchasing government, state, and municipal bonds ahead of the looming fiscal cliff is a sound investment decision?

  1. My retired parents’ financial advisor has all their money in municipal bonds and money market funds. I run the silver and gold idea past them every once in awhile, telling them they only have to do 10% or whatever, but they will listen to anyone but me. They are bound and determined to lose everything.

    • I can relate to that SM, as I am pretty much in the same boat.  All my folks want to do is buy CDs and complain about the minuscule rate of interest they get.  I did get them to let me invest about 8% of their holdings in a few select mutual funds that are doing very well… so far.  As we silver and gold bugs know, a lot of these paper investments will one day find their true value next to the wood stove or in the out house.  I have mentioned to them that they should buy some gold.  Not a lot but maybe $100k or so worth.  That would be just about 10% of their retirement savings.  The first question I hear from them is, “And then do what with it?”, followed by “Where do I store it?”.  My answers to them are that: 1) you don’t DO anything with it, you just hold it and watch it hold its value while other things shrivel away; and 2) anywhere! Anywhere will be better than keeping all of their net worth in CDs at BofA, Chase, etc.  Maybe if they see me buying good amounts of gold and silver, they will get the idea that something really is up and that I am bailing out of paper.  My trigger hinges on the election of 2012.  If there is no regime change, it’s time to bail the heck out of all paper assets except for maybe a little cash for the day to day expenses.  All else should be in land, gold, silver, guns, ammo, meds, food, tools, etc.
       

    • @ UglyDog… “My parents are CD-aholics with accounts spread out all over the country.  Their idea of diversification.”

      LOL!  Yes, that would be “diversification” in my folks eyes too.  Of course, there was that $100k jumbo CD at IndyMac bank.  
      :-/
       

    • My parents used to buy gold which was a long time ago and it was in the 90′s. I used to remember as a kid where they would bring me to a local jewelery shop buy gold chains. Also, my parents’ friends used to gift each other some gold during special events.
      Now, my parents don’t buy gold anymore and their friends don’t give each some gold during special events because the prices went up and they don’t have enough spare cash to buy some. Although, my parents didn’t sold their gold according to my knowledge.

    • When your parents, or others, reject your advise, it calls to mind a couple lines from a Beatles song. “If live and let live makes you give it a cry, then live and let die”. I just retired a few months ago on a pension and social security. I had a 401(k) but worried constantly that I might lose some or all of it to confiscation. I cashed it out last week, took the tax hit and paid off debt. Now my total retirement nest egg, aside from the income mentioned above, is in land, gold, silver, guns, ammo, food, tools, etc. I feel relatively confident about facing the future.

  2. You buy bond and your going to get burned. I remember Ali Velshi (CNN) stated that you should only contribute 5% of your personal financial wealth into real commodities. I was like you have got to be kidding me. So then he stated that Gold was a bad bet and was being sold off. I then asked, him was this paper or physical? He never replied. 

    I wonder how Ted Turner not sees his once revered news station, that has now become a big joke. Many of their journalist are leaving for local news stations throughout the country.. 

    • Yeah, one could only imagine how small CNN viewership would be if they stopped counting CNN employees as part of the audience!

      Once again we have boneheads discussing gold as an investment or a bet.  It is neither.  What gold is, is MONEY!  REAL money, not that pulled-out-of-thin-air-at-a-whim-and-worth-every-cent-of-the-effort-put-into-it counterfeit fiat crap.

    • Some will, some won’t.  As a retiree, I know a lot of other retired folks and they are just as diverse as the rest of the population.  The 500% gains in gold and silver over the past 10 years have NOT escaped our attention even if it has those in the media.  

      I notice that this CNN blurb did not mention a full decade of PM performance that VASTLY exceeded that of all of the stock and bond indexes.  In fact, while gold and silver were rocketing upwards, those same much ballyhooed assets were falling flat on their faces in 2, not 1, mind you, exceptionally vicious bear markets… 2001 and 2008… in the same decade!  Now if one was looking for a way to lose retirement money, something should be said about stock and bond bear markets.  But was it?  Noooo, of course not, because these guys are part of the elite owned media and their job is to beat the drum for paper assets while telling lies about precious metals and other real assets.  Remember, folks, these are the same yokels who were telling us all to jump into real estate when it was at the very height of its bubble in 2007.  So much for their track record!

      They did mention the long time periods when gold and silver languished.  Those of us who know better, recognize that as a PRIME period of accumulation.  :-)
       
      They also mention that it might be OK to invest a SMALL part of our portfolios in PMs. While everyone needs to select an asset allocation that suits them, I would not put less than 15-20% of my wealth into gold and silver and a similar amount into base metals, oil, timber, agriculture, etc.

  3. The majority of people are cowards because they think having gold and silver as money instead of the counterfeit fiat debt currencies that governments/banks print will be too drastic a change of their lives.  They live in a conditioned world and have always been afraid to break out of the mold.  They have never truly matured as human beings, but have been enslaved into a system and outlook on life because they are afraid to think for themselves–they are deceived!  And being deceived means they don’t know that they are deceived.  They are enslaved but think they are free.
     
    And this idea is foreign to them:
    “Your will know the truth, and the truth will set you free.”
     
    I have come to realize that only people who seek the truth are able to understand why having silver and gold as money is better than hanging on to the notion that fiat debt currencies are money also.  Just because the world accepts fiat debt currency as money does not make it right.  The whole world can be wrong, and that does not make the wrong right.  People think, “Everybody can’t be wrong!”.  But the truth is, everybody can be wrong!  The sooner that’s recognized, the better.
     
     

    • Plebian, thank you for the best three paragraphs I’ve read on the ‘net this morning.  Some of us have been very comfortable for a long time not being one of the herd….occasionally we meet like minded individuals with whom it is a pleasure to converse.

  4. These “dollar centric” idiots are really getting annoying. It isn’t that gold is volatile, it’s that the dollar valuation is volatile. Just because you can get more dollars doesn’t necessarily mean you can buy more. They really pander to the uninformed and money illiterate.

    • Well said, Not Sure.  On this topic, I sense that you are Quite Sure!  ;-)

      In every system, there is a standard by which everything else is measured.  In the metric system, for example, this is the gram / meter standard and in the monetary system it is gold and perhaps silver as well.  Gold and silver retain their values and these values do not change. All else around them DOES change, including the value of fiat paper currency.  Many speak of gold and silver rising or falling but we know that this is not possible.  Instead, it is the so-called value of the US dollar that is falling or rising.  This is the essence of understanding what real value is and I fear that many of our countrymen do not understand this.  All that we know of monetary collapse, hyperinflation, precious metals as money, etc. is completely foreign to them.  If we do get a collapse, they will be amazed at how rich we all are and how poor they are.  They will work hard at manual labor jobs ALL DAY LONG for that 90% silver $0.50 piece that is but a trivial part of our hoards.  Just remember that old quote, folks, “Living well IS the best revenge!”.  lol
       

    • @redrubberball
      @Ed_B
      @Not Sure
      That’s how you “mention” someone. I copy-pasted your SN and Not Sure’s, but I knew Ed_B’s by heart  ;)
      “Not Sure” is an intelligent “newer” member, but a noob by no means! 
      “Ed_B” is one of our “elder statesmen” and quite well versed. Been here quite a while! Be careful! He can 
      and WILL use your words against you! lol, not really, but he quotes folks a lot, whom he is addressing.
       
      You get a Golden Apple! 

    • @redrubberball
       
      Thank you for the kind words.  They are appreciated.  It is good to have you here as well.  I sense a kindred spirit in you that I would very much welcome in a friend or neighbor.  :-)
       
      @undeRGRound
       
      I do like to quote people so that the point I am discussing is clear.  Sometimes that is using words against someone but my real goal is to learn and to pass on what I have learned to others who are newer to all this than I am.  At other times, I am just sharing life lessons that I have learned.  This really is a great web site and there are several people here who really help make it enjoyable and informative.

    • @Ed_B
      I notice and appreciate your precision of commentary! 
      RRB is a good, we can see already! He has mucho experience in one of my realms as well… 
      Without divulging too much personal info, so let’s just say we have a lot in common career wise ;)

    • @undeRGRound

      Thanks, RGR, I appreciate the support.  I enjoy your comments as well.  RRB is definitely one of the good guys hereabouts.  The great thing about this site is that there are a couple of dozen like-minded folks who do a good job of keeping the conversation rolling while adding their own knowledge and experience to the mix.  That makes SD a great place to visit and one of only 2 web sites that are daily must-visits for me.  The other being SGT Report.  :-)

  5. Well since the release of this information i have sold all my gold and silver and have bought some highly recommended spanish bonds … i feel so much safer now ….. my future is safe at the very worst i have spare toilet paper

    max

  6. LOL.  You have to hand it to the banksters, they are masters of propaganda.  Making Joseph Goebbels proud!

    The day will come when the stupid American sheeple will realize they have been brainwashed and that they should have purchased physical gold and silver to preserve their savings.  Turks, Chinese, Vietnamese, Indians, etc., have done it for thousands of years, and continue today. 

    • Goebbels was a piker compared to the banksters!

      “Turks, Chinese, Vietnamese, Indians, etc., have done it for thousands of years, and continue today.”

      Indeed they have.  But they come from old and venerable cultures that have undergone currency death at a number of points in their history.  They KNOW from family, if not personal, and national experience just how fragile paper money systems really are and fully intend not to repeat those past errors.  Americans and many Europeans as well do not have this history to remind them of just how bad it can get when a currency dies.  The Germans do, so it is they who are most resistant to the calls for ever more money printing, bond buying, and unlimited bail-outs.  None of those who suffered through the Weimar Republic days are still alive but some of their children are and they remember how awful those days truly were.  It is a common thought among German citizens that it would be better for all of Europe to crash and burn financially so long as Germany does not.  They have already been there and done that and there is very little desire to repeat that lesson.  The politicians, on the other hand, are very often far less sensible about such things.
       
      From my point of view, I hope and pray that a dollar collapse can be avoided but I fear that it will happen because of the bungling incompetents running the show.  Either way, there is little I can do to prevent it from happening.  About all I can do is convert my soon-to-be-worthless fiat into ever valuable gold and silver, store food, water, seeds, ammo, tools, etc. in case the worst happens so that I can protect my family from events that are already gyrating out of anyone’s control.  My grand parents dealt with The Great Depression.  My parents dealt with WWII.  I figure that it is about our turn in the bucket and that a currency collapse and / or WWIII just might be what fate has in store for us.  But… dammit it all, anyway… we ARE Americans and we WILL persevere!
       
       

    • 18th-19th Century Americans would understand us here very well today. 20th Century Americans after WWII had the luxury of living so far removed from historical perspective and reality and cannot fathom the argument against fiat currency or the possibility of economic collapse. For them, the consequences will be especially brutal.

  7. Wells Fargo becomes latest bank to be hacked by cyber gang seeking revenge for anti-Islam film

    Read more: http://www.dailymail.co.uk/news/article-2209403/Wells-Fargo-reveal-website-hacked-cyber-gang-seeking-revenge-anti-Islam-film.html#ixzz27gmi46Dh 
    Follow us: @MailOnline on Twitter | DailyMail on Facebook

     Wells Fargo becomes latest bank to be hacked by cyber gang seeking revenge for anti-Islam film

    Trying to get Doc To Post This False Flag Event. They must be nearing collapse to blame the Middle East for the corrupt ways.. 

  8. My grandpa passed away in 1963, he left behind a couple hundred in confederate dollars.  Nice souvenirs but valueless.   There were some pre-depression stock certificates, also worthless.  But he wasn’t clueless, there was a strong box of silver coins in his closet.  Among all his personal effects, those coins were his only valuable legacy.  Silver and gold are money.  You’re not investing in silver when you buy phyzz, you are swapping bad money for good.  Telling folks not to do so is a lousy thing to do.
     

    • “Telling folks not to do so is a lousy thing to do.”

      I absolutely agree, Conax.  But consider the source of this drek… CNN?  The Communist News Network?  These people are skulduggerous in the extreme and are the type of people you can listen to and then do the opposite of what they say if you want to do really well.  On the other hand, anyone dumb enough to listen to these jackals probably deserves what they get.

  9. Oh, CNN, pleeeeeeze stop.  My sides are killing me from LAUGHING!!!!  More of the liberal left media telling the vulnerable (who will listen) WHAT TO DO WITH THEIR MONEY.  Of course, those libs are pushing all THEIR money into gold and silver.  Definition of a liberal: Spends your money, saves theirs.  When your money is gone, they go on to the next fish.

    • Don’t give the libtards that much credit, Silverrrrr.  Most of them would not know a gold or silver coin if it jumped up and bit them on the arse, let alone actually own any.  Their masters in the elite DO know the value of gold and silver and are hoarding it by the barrel-full.  These useful idiots of the press, however, are going to be used and thrown away when no longer needed.  That is when they will come crawling to us for some table scraps.  Personally, I would rather feed them to my dog.  At least he does useful guard-duty work for a living!  ;-)
       

  10. Just another example of establishment doublespeak! Invest in paper people, that will be a lot safer………(snicker). My favorite line is…..”ya, gold has been going up for about TEN YEARS or so but can also have long periods when it does very little”….BWAHAHAHA!!!! I’ll take “up for ten years” any day!

    • I sent email to cnn referencing said video, and said that gold is up 12 years 500% but yes you shouldnt put it into gold, you should put it into silver as it has performed better in said time frame, and has paper money or stocks done that? 

  11. “you have to realize gold can be very volatile”  Oh, thanks captain obvious.  So the US dollar isn’t volatile? Oh, wait, it’s lost 95% of its value…wait, um that seems kind of volatile!  So, um, whats your point?

  12. If they think gold is volatile, wait until they get a look at silver!  And like the prices of stocks never go up and down either!  I haven’t watched the video but it sounds like this should be nominated for the Hall of Shame.

    • You would not want that, Mary.  It is probably dried elite poo.  None of us who love liberty could inhale that crap and live.  Only a true kiss-arse could do so and that isn’t ANY of us!
       

    • @MaryB If you are mentioning about marijuana, then I just want to remind you that it is not bad. Marijuana can cure cancer and doesn’t kill people. You might tell me that it kills brain cells but that’s actually a propaganda from USA. Search on Google “Marijuana monkey experiment” and you’ll see that it was actually the lack of oxygen that kills brain cells and not marijuana itself. Also, I’ll give you all my gold and silver stacks if you could find at least one death report caused by marijuana.
      (PS: There’s actually no death report caused by marijuana!)
       

  13. <I>CNN says ‘gold isn’t a place to put money you can’t afford to take a loss on‘</I>
    <p>
    CNN is the mouthpiece of the big state, socialism and Keynesianism.  Facts for CNN:
    1. Gold IS money. Gold is NOT an investment, and
    2. Gold and silver are the bars on the windows of my financial house, preventing big government from breaking in and looting my property.
     
    FU big government and FU CNN. 

  14. If the msm tells you something, do the opposite. I’m a little surprised they didn’t tell people to put it straight into Facebook or GM. If you believe in anything the gov’t or msm tell you, than I’ve got some special kool aid for you.

  15. That guy must first of all know why gold is going up! Most people think that gold and silver going up means profit for them when it is actually their purchasing power being preserved. Also, gold is really expensive so it takes time to buy a small piece of it especially when your salary doesn’t go up with inflation and when you are paid with the minimum wage.

  16. So as a newbee here and reading all you comments out there about putting gold and/or silver away.
    What should a retiree with SSDI and a sorta small IRA do ? Cash a percent out of the IRA and put it in Gold/Silver in the back yard or all of it?  Naturally ,big tax hit.
    Have had this in the back of my mind for years. 

    • Hey There, Mikey! 
      Year late, and a few $ short, but here it goes:
      A: It all depends on how close you think the “END” is…
      @Ed_B is doing an annual withdrawl plan, to minimize taxes, but he can tell you more.
      If I were retired, I would try and roll it all into a self-held SDIRA, separate safe and 
      all is needed, and an accountant that can deal with IRS objections. @AGXIIK can tell you 
      more about this avenue… In my shoes, I would withdraw it all 100% and take the hit, I
      am too young and I believe it will save at least most of my $ and go ahead and convert 
      to PHYZZZ (which is how we say Physical Precious Metals ’round here!) or do the SDIRA
      if I could find the accountant with the cajones to face the IRS. Apparently you need a 
      local professional’s legal opinion to back you up, to do the SDIRA as a self-held affair. 
       
      Sorry I did not see this earlier, it is best to direct these questions @Somebody’s Screen Name 
      so it gets seen. Not everyone subscribes to these threads, and checks emails either  :D

  17. Well, a 20%+ tax hit is lots less than an 80% market drop, or bond default, or govt. assumption of our assets to fight the public debt…

    I would do mine TODAY and pay all the taxes, and convert to Phyzzz… but that is me. Your situation may vary. I would personally go
    heavy into SILVER, it has by far the most upside in percentage gains.

    WELCOME Mikey!  

    • 36%!  YEOW!  That hurts clear over here!!  But that’s the way that it works sometimes.  :-(
       
      I am still kicking myself for not converting half of my IRA into a Roth IRA in early 2009.  My IRA was down quite a bit then and Uncle Sugar could have shared in that “loss” via taxing me less on the smaller conversion.  All of that money would now be available for a tax-free withdrawal since I have had a Roth IRA since 1998.
       
      The thought of converting a fiat-containing IRA into real gold and silver is VERY attractive.  I could see myself doing that with a good sized chunk of it.  Going the same route that @AGXIIK did looks very promising.  In that case, one sets up a LLC that has check-writing capacity and then uses their IRA to buy into the LLC… read transfer their IRA balance to a bank account in the name of the LLC.  The LLC can then invest in lots of different investments, including PMs.  Just make sure that you follow ALL of the rules on this so that the IRS cannot declare what you have done a “distribution” and tax you to death over it.  Having a good accountant, tax attorney, and local banker who understand how all this works costs some money up front but it is money very well spent.  The end result is that you have physical control of your PMs via the LLC.  You store them in a secure location, such as a safe in your home.  There is some sort of annual reporting required, probably an inventory that shows what PMs are in the account and any selling of your PMs, which would be distributions taken in the year in which they are sold.  A retired person can do this if they are age 59.5 or more and not pay a 10% early withdrawal tax.  There would be tax on the distribution from an IRA but not a qualified distribution from a Roth IRA.  Imagine having done this in the late 1990s via a Roth IRA.  ALL of the gains that we would have now would be tax-free.  :-)
       

  18. Well I have to say I agree with the CNN article, and what’s happened is absolute proof.
    In early 2009 I put just about all of my life savings into the metals, convinced by thousands of articles from experts that it’s the safest place, and that metals would (very) soon shoot to the moon. Now since then, the metals have crashed plus the fees that Goldmoney charge have sliced 30% off my life savings. Many of the same self styled “experts” are now saying metals will stay low for a long time, other experts are keeping their heads down, probably scared of being called out.
    The articles each day give gold and silver investors hope, they can string you along for years. Every day hoping it will go back up.
    My main mistake was I over invested, but I was encouraged to do by these “expert” cheerleaders. I reckon 20% of your savings is MAX you should put into this, but actually I’m not sure it’s a good thing to do anyway.
    Now I think I will have to sell a lot of my metals at a loss, and just hope against hope that the price goes back up in my lifetime, but I’ve lost confidence in it all, and wouldn’t be surprised if metals stay low for many many years.
    My advice – don’t invest in metals.

    • @ninja Word.
      I’ve finally figured out that the conspiracy stories surrounding Gold/Silver are probably not real (along most of the other usual).  Considering I’m like you, having lost more even, I feel betrayed by the ever-hyping gold mining/newsletter/merchants giving their expert opinion about gold/silver going to the moon any day now. Many of them believe what they are preaching so I guess their intent is not always ill, I’ll give them that. Beside the loss of the life earnings (luckily I am not that old so I can start over even though I had to sacrifice a lot in order to gain it), I have wasted a HUGE chunk of my time/energy/emotions on following the gold conspiracy stuff, plus lost my face talking about the stories among friends.
      What if the conspiracy stories themselves drove the bubble-like formation on the gold and (especially) the silver price charts? Even if the conspiracy stories are false, gold may still turn around here and start moving up (however slowly) if the fed keeps the taper off and increase the flow. Silver – not sure – the global economy (industrial use) is still slowing without end in sight and there is a lot of investment silver stock built up out there during the last decade that can come back. Even if mining output will decrease into the future, things like Graphene may replace much of the silver being used in industrial applications causing demand to lower too.
      So, I think the worst of the price fall is over (unless this guy is right http://www.youtube.com/watch?v=tCr3DWKirYY :)) but with a clear risk of dipping to around $1000 first.

Leave a Reply