I have money taken out of my check that goes to my IRA. I just started doing this recently. I have like $1800 there now. I can't decide what crappy stock to buy with it. So i was thinking of just buying gold -- but even better -- a gold chain. Although I am not really sure which way it would go; short run down; long run up . . . is what I'm thinking.

I've never owned any jewelry before except a Gucci watch which I later sold on ebay to raise 10 grand to buy stocks with.

I have money taken out of my check that goes to my IRA. I just started doing this recently. I have like $1800 there now. I can't decide what crappy stock to buy with it. So i was thinking of just buying gold -- but even better -- a gold chain. Although I am not really sure which way it would go; short run down; long run up . . . is what I'm thinking.

I would suggest changing your thinking about the gold chain, at least with your IRA money.

Gold chains are considered collectibles. If IRAs are invested in collectibles, the money is considered distributed to you, and you will owe any taxes and penalties on the distribution. From IRS Pub 590:

Investment in Collectibles

If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. You may have to pay the 10% additional tax on early distributions, discussed later.

Collectibles. These include:

- Artworks,
- Rugs,
- Antiques,
- Metals,
- Gems,
- Stamps,
- Coins,
- Alcoholic beverages, and
- Certain other tangible personal property.

Exception. Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion.

AJ

Shoot it is in my Fidelity acct which I always had equated with my IRA, but it in fact in a different money market acct with Fidelity.

I'm supposed to in fact move it to my Roth and invest with it. But I figure the gold chain might be better. I am 20% cash in the IRA simply because I have no ideas on stocks and do not like anything right now.

You also could just buy a car with those spinning silver hub caps.

Uh, this was a joke, right? Gold jewelry isn't an investment ... you pay a premium for the gold, PLUS you pay for the design element and the manufacturing. When you sell it, the value of the design element (unless it is by some fabulously famous person like Harry Winston) is discounted and the value of the item is whatever the gold content is .. period. You want to buy gold, buy solid gold coins or ingots. At $1,400 an ounce, there are LOTS of better investments than gold out there.

JMHO-YMMV

DP

Jewelry is not an investment. You're lucky to get back 50% of what you paid. My wife was in the jewelry business for several years, she only bought what gave her pleasure, not what she thought would be "worth more" because that simply never happens.

Gold is absurdly high right how, although it might go absurdly higher for a while, you never know.

I'd suggest find "a crappy stock" that you think will still be in business 10-20 years from now, and putting the money in that. $1800 worth of McDonald's stock bought 20 years ago would be worth $18,000 today, not including dividends, which would make it higher yet.

$1800 worth of WalMart stock 20 years ago would be around $15,000 today, not including dividends.

Gold would have done well, too, but I believe you'd be buying in at the peak and watching it come down as the world economy settles. At the moment you're seeing a blip, as occasionally happens when people get scared. It never lasts.

i'm going to short it

If you short it too much, it will have to be a bracelet instead. :-)

Gene

I have money taken out of my check that goes to my IRA.

And who has your IRA? Fidelity or...?

What does the IRA DO With your money? Buy mutual funds? Or what? Do you know? If not, I urge you to find out. There are literally THOUSANDS of mutual funds, let alone all the individual stocks, bonds, etc.

I'm amazed at how many people tell me "I'm putting money into my IRA for my future retirement." Then, when you ask them what it's doing WITHIN the IRA, they give you a blank stare!

Somewhere out there some "advisors" are making a lot of money...

Do yourself a favor and ask some questions.

And stop thinking about buying gold chains as an investment!

Vermonter

I think Gene gets it...

Byron