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Which is a better investment, 401(k) or silver?

September 20, 2010 by  
Filed under Silver Investment FAQ

I’ve asked the same question of gold but this time I’m talking about Silver.

Irecently received a raise at my part-time job, my income is only 10k annually while I’m going to college. I’ll graduate in 4 years with a MBA and I’ll have student-loans to pay off. What should I do with the money I’m saving now? Invest for the next 4 years in my company’s 401(k) or invest in silver?

The 401(k) plan is $3 for each $1 of the first 1% of pay contributed, $1 for each $1 on the next 4% contributed. I don’t know how much they will contribute after 5%)

Comments

6 Responses to “Which is a better investment, 401(k) or silver?”
  1. Russell G says:

    The answer is still 401k

    However, I believe silver has a lot more upside than gold

    But both commodities are risky

  2. kevin h says:

    401K. If you invest in silver, is someone going to match your money? They are giving you money to invest, by you investing. To the first answer, the 401k isn’t a commodity.

  3. Swaminathan P says:

    it is an investment decision supported with reward as well as loss.
    please scratch your head and hold yourself responsible for investment decision.

  4. es says:

    Listen, a 401K is terrific because you will not find another investment where the employer contributes. However, at your age, it all depends if you can keep the money in your 401K. It doesn’t make sense if you will have to take it out within a few years, because there is a 10% tax penalty for early withdrawal, unless it is rolled over into an IRA. So, if you have to pay taxes on the money and a penalty on top, don’t do it. The penalty is more than the employer’s contribution.Also, it depends how the 401K is set up. In some, you have a choice of a few mutual funds. In others, you can actually purchase stocks and ETF’s and select them individually. If the 401K allows you to invest in etf’s, you can purchase the gold and silver etf’s ( there are several- some ticker symbols are SLV for silver and GLD for gold.) So, you have to weigh your options.
    You can also invest in gold and silver bullion directly. There are many on-line metals brokers. One of them is http://www.golddealer.com.

    if you are investing a small amount each month, there is something else to consider. You can actually purchase stocks without a broker. This is called a DRIP. See http://www.dripinvestor.com–again, there are many websites relating to such programs.
    First, figure out your tolerance for risk. If you don’t want to risk losing, then open a savings account.
    Good luck!!!
    ps- there are also cd’s that invest in gold. Check out http://www.everbank.com–but you have to hold it in your account for 5 years.

  5. catzerine42 says:

    Do the 401K. Are these your only choices? Gold is better than silver but a lot of people think it may be at the top of its range. Others say it will go to $1000/oz.

    The 401K ratio you quoted is a good one. But if you have any confidence in your own investing ability, why not go into the stock market? It’s a good time to buy stocks (not a good time to own them, however).

  6. Houdini says:

    The 401k, you are going to get 7 for 5 on the first 5% you put in. That’s better than 50% increase immediately

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