Are gold and silver a better investment than 401k?
June 26, 2010 by admin
Filed under Silver Investment FAQ
I guess that I feel that something tangable is just better like metals or land
June 26, 2010 by admin
Filed under Silver Investment FAQ
I guess that I feel that something tangable is just better like metals or land
NO, I would say 401k is your best bet. That’s YOUR money and no one else’s.
Food is your better investment.Just wait and see.
no.
You’re comparing apples to oranges.
The question makes no sense. A 401k is just a legal framework for employer-sponsored tax-deferred retirement funds. These usually hold stocks, bonds or money market funds but an be rolled over into an IRA, in which you could hold gold and silver if that’s what you want to do.
Gold & silver are hedges against inflation, not investments; a hedge is something that (usually) retains constant “buying power” regardless of the broader economy. Hence, a high quality Men’s suit historically has been available for roughly the going price of an ounce of gold.
Gold & silver are abysmal “investments” since they do not actually appreciate, and no mechanism exists for them to generate growth & profits (as stocks can), and in reality. in the long-term “precious metals” become LESS scarce, not more scarce, so unless you have massive growth in customers, they tend to lose value over time.
Regardless, you are confused about what “401(k)” means; a 401(k) is simply an investment account designed for retirement that allows you to postpone (or “defer”) taxes on any capital gains, and then pay simple income taxes on withdrawals when you retire. You can actually hold almost ANY asset (including gold & silver, should you choose to be so foolish) inside a 401(k) account…
For perspective:
Long-term annual return on gold; ~0.25%
http://www.soundmindinvesting.com/visitor/2006/mar/level4.htm
Long-term return on real estate; ~8.6%
http://money.cnn.com/galleries/2007/real_estate/0704/gallery.stocks_v_realestate.moneymag/index.html
Long-term return on stocks; ~13.4%
http://money.cnn.com/galleries/2007/real_estate/0704/gallery.stocks_v_realestate.moneymag/index.html
You shouldn’t “feel” anything when you are risking your future, you should use logic, common sense and facts!
(The very fact that so many people are “rushing towards gold” should make you aware that that is NOT the intelligent place to go right now!)
I don’t think gold & silver are great investments. You buy these at a premium & sell at a discount. Plus unless you want to store them at home, you need a safety deposit box at the bank. And that will also cost you money.
And I say this as someone who has (gold) Krugerrands & dozens of Morgan silver dollars.
With my 401k, I get tax deferral & a company match. My company matches dollar for dollar for the first 6.5%. That’s 100% return, on my 1st 6.5%. My gold & silver do not do this.
No. As another user said, you get a match (free money) with a 401 (k).