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Subject:  Re: Precious Metals Investing Date:  11/11/2010  10:49 AM
Author:  TMFMurph Number:  67717 of 78657

...I am looking at purchasing some precious metals within my retirement account. Would it be better to buy physical gold or silver or make the investment through ETF?

Hi r1976smith!

As always, investing in anything is a personal decision, based upon many factors....and please NOTE: I am NOT a professional/certified investment anything...just an ordinary investor...and I am NOT part of any TMF analyst team; just a Home Fool.

Now that I have covered my patootie.... ;-)

Like any other potential investment ( or even speculation ), timing and/or the price one pays can be key. While some have correctly pointed out that over certain long-term periods, gold and silver have very low/zero real returns, I see things a bit differently. Simply put: gold and silver have a unique "cycle", one driven sometimes by economic fundamentals...and more often by the media-driven political/economic environment....real or perceived. Said still another way, I tend to buy G/S when they have been out of favor for a long period of time ( this usually occurs after tulip mania type of over-speculation and price run ups ) and nobody wants them....and then sell the bulk of my holdings when I feel that the speculation is reaching the unreasonable hype level...sort of like value investing. ;-)

Now, I'm NOT a gold or silver bug, but in 2004 I placed about 5% of my tot