Sandy is wondering about the wisdom of transferring an IRA over to gold. Dave lets her know, beyond a shadow of a doubt, that it's a bad idea.Show Transcript
QUESTION: Sandy asks Dave what he thinks about transferring an IRA over to gold. Dave leaves little doubt that he believes this would be a really bad idea.
ANSWER: That’s one of the dumbest things a human could possibly do. I hope I wasn’t unclear.
Gold is going down like a rock right now. As people start to believe in the economy and the economic direction of the country — and the stock market indicates they are — gold becomes worth less and less. Gold is a fear-based product. When people thought Obama was going to screw everything up, that’s when gold went through the roof. Or in 2008, when Bush and Obama were working together to screw everything up and everyone was scared to death, gold shot way up. But it’s a fear-based thing. The less fear there is, the cheaper gold is.
That’s not how you want to fund your IRA. You want to fund your IRA with something that has a track record that’s based on growth, and the growth is based on the performance of the companies involved — not someone’s greed or fear. Gold is a horrible investment. I do not own any gold, except for one really nice watch and a pair of cufflinks. That’s it.