<--A Golden E-mail-->

[gavinmccallister]

I just wanted to let you read this e-mail from the place I got my gold coins from, they say you should own at least 20% in gold, I have just under 20% Does anyone have any opinions on this?

Date: Tue, 17 Oct 2006 13:54:32 -0700
From: "John H. Colyer" <jhcolyer@swissamerica.com> View Contact Details View Contact Details Add Mobile Alert
To:
Subject: Gold
“Over the past weeks and even months there has been a good deal of financial market commentary about the commodity price bubble bursting. Not so in this column. It has been my thinking for a long time that those who believed the price run-up was solely due to excessive hedge fund speculation were badly mistaken. Due to Café sleuthing and input coming my way, it appeared a fair amount of this buying was quietly going into Chinese hands (among others) behind the scenes … and that supply would not be coming back on the market.

What else might the Chinese be doing with their TRILLION dollars in US dollar reserves?

It now appears the base metals have finished their consolidation and, one by one, are breaking into new high ground. Gold and silver were FORCED (manipulated) down ahead of the coming US elections, and my GUESS is that oil has been too. Both gold, silver and oil should be MUCH higher by year end.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com



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*DISCLAIMER: *All of the provided information is believed to be accurate, however errors are possible. The opinions i

[sweeps]

Originally Posted by gavinmccallister

this e-mail from the place I got my gold coins from, they say you should own at least 20% in gold

Gavin, please, consider the source. These guys are just salesmen wanting you to buy buy buy.

Originally Posted by gavinmccallister

they say you should own at least 20% in gold, I have just under 20% Does anyone have any opinions on this?

Yes, 20% is beyond excessive.

Originally Posted by gavinmccallister

Due to Café sleuthing...

Your source has been doing some serious research I see.

[Broken Arrow]

For whatever reason, Gavin is dead set on speculating gold. He's been like that since before I got here, and despite the vast knowledge to the contrary-- much of which is even shared freely here-- I don't think he'll ever change his mind.

Of course, what he does with his money is entirely up to him. On the other hand, the only minor quibble I could have here is the potential of misleading other people on the true risks and potential in speculating gold....

Caveat Emptor.

[disneysteve]

I think the way to invest in gold and precious metals is not by purchasing coins. You pay a significant fee to do so, have to pay to store them securely and they are not liquid.

If you want to invest in metals, which I think is a good idea as a small portion, perhaps 5%, of a well-diversified portfolio, buy a good precious metals fund. We actually invest part of my wife's 403b contributions in Oppenheimer's fund. It has 1, 3 and 5 year returns of 29.11, 21.98 and 27.87%. It is not a no-load fund, but fees are waived within the retirement account.

[Broken Arrow]

Originally Posted by disneysteve

If you want to invest in metals, which I think is a good idea as a small portion, perhaps 5%, of a well-diversified portfolio, buy a good precious metals fund.

Absolutely! Yes, as I'm sure you already know, this has been one avenue for those who want an alternative to bonds, or perhaps more accurately, cash in their-- and I can't emphasize this enough-- well-diversified portfolio! 5% is the typical norm, used as a balancing agent to the more aggressive investment vehicles in one's portfolio.

Doesn't it seem ironic, then, to speculate only on this one single commodity? A commodity that, traditionally, has had a stunning history of stability? Of course, I am by no means an investment guru, so what do I know? Still, the entire exercise bears a strong resemblance to a Rube Goldberg project to me. Why not just open up an index fund and call it a day? Or, heck, just stick the money in a high yield savings account or CDs and call THAT a day.

Personally, I would go so far as to say that speculating gold is equivalent to a scam.