Mutual Funds...

If I were you I wouldn't bother with a mutual fund. Higher energy prices and the double threat of inflation and interest rates make's mutual funds and stocks a risk right now. Not to mention a weakened dollar could crap up all of the above.

Personally, I would (and am) moving on copper, silver, gold. (in that order) Perhaps platinum for some more diversity. Nobody has ever gone poor holding on to gold/silver, but plenty of people have gone poor by holding onto paper. Which is really the only thing that a mutual fund is. Just a piece of paper. All above commodities are physical assets. All of which do particularly well in economic slowdowns. All of which keep pace with inflation so at the very least you're not investing into an Enron and your investment is safeguarded.

This does bring some minor complications as to how you'd store it, but it's easily overcome with a safety deposit box. Or better yet even storing it in your home. It's not like you're going be keeping King Mida's stash of gold in your home. More likely you would tie it up in American Gold Double Eagle coins. (Canadian maple leafs work) Or Morgan Silver Dollars. Just keep in mind not to buy "collectors" coins. The premiums on those are very high. What you should be going for is bullion. All of which you can track down and buy wholesale online easily enough with very little effort.

Wouldn't be fair to give you advice without warning you of the risk. The US government has confiscated the people's gold in the past. However it's unlikely to happen again, but still possible. When it did happen only about 20% of the coins were turned in, and maybe 60% of the bullion bricks. This was under threat of a $10,000 fine and up to ten years in prison back in the 1930's. Quite a hefty punishment. Still, why I recommend you add copper and platinum into the mix. They're even more unlikely to be confiscated. (Or you could... you know just break the law)

Well, as far as how my advice has panned out for me. Two and a half years ago the price for a oz of gold was somewhere around 240 US Dollars. Take a look at the price right now. I still think there's plenty of room for an increase.
As far as silver goes even more potential.

^ I should have gotten paid for that advice ^

:biggrin:

Jam it back in, in the dark.

Originally Posted by Technophile

Wow thanks for all the info guys. Looks like I've got a good chunk of research to do here. Maybe I'll pick up some sort of an "Investing for Dummies" type book.

You've already taken a first good step. Don't believe everything people tell you, or base your actions upon such information. Base it on what you've researched but more importantly what you think. In terms of where you think our economy is heading, and what is feasible for you. Advice is one thing, but being a tool to some banker is a whole 'nother thing.

There's nowhere I can't reach.