March 29th: Ed’s Daily Summary and Open Thread   6 comments

BAC: -0.22 to $9.53 (-2.26%, 19.87% overall)–bought at $7.95
CBRL: 0.08 to $56.28 (0.14%, 2.78% overall)–bought at $54.76
NNVC: 0.01 to $0.73 (1.39%, -5.19% overall)–bought at $0.77
SLRC: -0.15 to $21.90 (-0.68%, -5.19% overall)–bought at $23.10
SPXU: 0.05 to $9.17 (0.55%, 3.15% overall)–bought at $8.89

OVERALL: -0.68%

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Posted March 29, 2012 by edmcgon in Open Thread, Portfolio

6 responses to “March 29th: Ed’s Daily Summary and Open Thread

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  1. This year I am beginning a ten year process of moving money to places where I don’t have to daily review the status of my investments. You will not this is not a spur of the moment move but a ten year plan.
    I want to invest in gold and am thinking of putting 3 to 5% of our investment dollars into either IAU, iShare Gold Trust or GLD, SPDR Gold Trust. Anyone want to make a recommendation or suggestion? I want to make this funding move this year. Anyone want to make a buy price recommendation?

    • If I was going to invest in gold- I would buy the real thing and did- silver and gold late 80’s. Maybe it is just me but a Madoff or Corzine could make paper gold into just that. then again if the scenario comes that you really need gold-ammo will be a better commodity…………. But I would look and see when the low of the year has been-august sept Note: when I sold my silver at its height- the 10 Ounce bars sold at a 10-18% premium to the spot price- sold them all on ebay- if it got cheap enough-that is where I would buy them back. When the herd starts buying it seems any price will work and the same the other direction. Just a thought.

      • Mike, I am a newbie in owning gold. Where did you purchase your gold bars? How does the price of a gold bar compare with the price of market gold? Where did you keep your gold (for safe keeping)?
        I am an eBay fan and will check gold out on eBay.

      • Tom, In the late 80’s I being cheap-watched the want ads- mostly bought gold coins-you get the bullion and coin value- did the same with silver. Skipped the middleman. another way is craigslist-just meet in a place like the bank or? Storage- I think there are many options-safe deposit-me I have a secret area built into house-multiple layers of drywall-fire. i liked the ebay transactions-no middleman skimming the profit- distant-10’s of thousands of choices. i buy a lot of my lights-and parts on ebay. antique woodworking tools also so I am very comfortable with it. I still have silver and gold but it is funny my lights have gone up more % in the same time go figure-they threw them away in the 80’s and before. Look at it for investment make sure you buy cheap. the problem I have found owning for a long time is gold and silver get hammered first and the hardest when big trouble comes- that is buy point. Look at nov 2008-or 2001. also think about coins-they do not go down as fast and furious but do get the gains. They are making no more old coins but they are digging gold by the buckets full. Good luck.

    • Latetom,
      Is this for a retirement account, or a straight investment? If it’s a straight investment, Mike’s advice applies. But if you don’t want to actually store the precious metals (i.e. if the amount you’re buying creates a logistical nightmare in storage), then IAU is your best choice.

      For a retirement account, there are specialty accounts which allow you to invest directly in physical precious metal holdings, although I can’t advise you on those, since I have never tried them. They are strictly for holding precious metals, and don’t allow you to diversify into other holdings. If you don’t mind having multiple investment accounts, this could be an option.

      If you are considering IAU, George Soros used that when he was investing in gold (I don’t know if he still holds any). It has a lower expense ratio than GLD (0.25% vs. 0.4%), plus it has plenty of liquidity, with an average volume of 7.9 million shares. It is physically-backed, so they do hold gold. Check with Morningstar if you decide to buy it, and try to get it at the NAV (net asset value) price, which was 16.15 as of yesterday. However, if you are planning to hold it 10 years, then the small premium on it won’t make much of a difference (it closed at 16.19).

      • Ed, this is a straight investment or at least I am not using a 401K or IRA. I am now thinking of purchasing a portion to store at home or a bank (we have a free safety deposit box with nothing in it). Multiple accounts I already have so one more especially one I don’t expect to use — this is a buy and hold — will not create a problem.
        IAU is looking better than GLD if for no other reason than expense ratio. Thanks for the recommendation on checking NAV.

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