Jim,
I send this respectfully to those delusioned Exchange Traded Fund (ETF) investors. Just like the people of earth believing the world was flat, it will become common knowledge that ETFs are just a vehicle for investors and not for those who believe in the metal. It is proven in the ETF prospectus that most are backed with the same faith as our Federal Reserve Notes. Both are still good for trading for profit now but when TSHTF at least your dollars can be used as tinder. You will never be shipped a single ounce of precious metal from an ETF. Just like you would never be shipped a barrel of oil or given the keys to a house owning shares of their respective ETFs.
I don’t own shares of bulk food companies, I own bulk food. That is what will feed me and mine. If you believe in the metals and want to store your value for the long haul then buy the metal itself.
So the question now is as it should be, How do I get the most metal for my money? I am sure most who may be reading this do not trust the system as it is, so stop using it.
First, stop putting cash into it. A matching 401(k) is the only reason I still play along, for now, its free money.
Next take out what you don’t want others (gov) to have access to or know about.
Whatever you leave in the system (401(k), IRA, etc.), apply to ETFs and or mining stocks.
Based on your investing time line and plan for TEOTWAWKI, your metal will be far more valuable than any dollar amount in any account. It will be hard enough just to cash out your accounts when TSHTF.
The way I see it as a 31 year old, the Social Security, Medicare, Medicaid, and Pension fund systems will not be available to me when the government let’s me “retire”. My company just this week told us that my age/time in service group will not be given health care benefits after retirement, so that just gives more credence to the impending need for self reliance.
I believe in precious metals as a store of wealth over time. I also believe precious metals are a great investment at this time. In the Fall of 2008, I took a 50% loan out against my 401k (the most I could take without closing my account). The day I got the check I went to the store and spent 100% on silver bullion. The remaining half of the account is in silver and gold mining companies. From that time until now, my stocks are up more than my bullion, both though are moving up.
Personally, I chose to keep my 401(k) account open and at a minimum as my company matches 5%. I continue to manage my account in “speculative” mining stocks.
Like I said, my time line fits. When my stocks go parabolic and the investment side of the precious metals opportunity expires, I will sell the remaining stocks, cash out my 401(k), pay the taxes which may tally up to 45%, and be out of the system. Yes I will give up almost half but you must remember that was my companies half. Yes I will be young and without a 401(k), but I will have everything I own paid off including home, vehicles, stored food, and other preparations. I will be out of the system and self reliant. I will still have my metal, I will have my health, I will have time, and I will have the option to work where I want, if I want, as I will owe nothing to anyone but charity and God. If that is not retirement then I don’t know what I’m working for in the first place.
There are many people out there who believe in precious metals for the right reasons. If you are involved in ETFs and your not a hedge fund manager, read your prospectus. If you don’t get out of them after that re-read it. Any penalty or tax that you pay to the system so that you can own the same thing in its natural form should be another eye opener to things going on around us all. Stay away from ETFs, buy physical metal and be prepared. God bless, – K.A. in Ohio