Sell stock and invest in gold/silver?

Question

I have 130 shares in General Electric stock. Each share is now only worth about ~$30.00. I bought most of it when it was in the low 20's.

I'm worried about the American Economy and I know the news and government and sugar coating it. Should I sell and invest in buying silver, gold, or both. I know both are going up and will always hold value.

Would this be a good move? And I know I will save money by not going through a 3rd person. I just don't want to buy lead filled gold/silver. www.goldsilver.com safe?

thanks a lot!

Answer 1

Boy, I wouldn't.  I own some GE & despite the recent fall in share prices I'm starting to buy more - the current dividend rate is very attractive.  They've been a consistent earner for decades.  The stock price is (way) undervalued right now - at least in my opinion.  You'd also have to pay capital gains tax on any shares you sold.

Gold/silver tend to be cyclical.  Gold prices seem to me to be in a bubble right now.  As you said, they'll always hold some value, but I bet we'll see the price come down in the next year or two, if not sooner.  I suspect significantly.

It might depend on your time frame.  1 year from now gold may or may not be a better bet.  5 years from now I think you'd regret dumping GE.

Answer 2

Gold is a hobby or a hedge, not an investment.  It goes up and down in value.

Shares in GE have gone up steadily in value (with a few bumps in the road) for over a century.

Do what you think you should, but realise you will doubtless regret it one day 20 years from now when you realize that the $4,000 worth of gold you bought in 2008 is still worth about $4,000, but your 130 shares of GE would have been worth about $18,000, and that  you've missed close to $5,000 in dividend income.

People flock to gold when they think the sky is falling....it isn't, I promise, and if I'm wrong, you need bullets & drinking water, not gold!

Answer 3

The market of gold/silver is a hard one to track, and unless you know all about the trade i don't suggetst investing in it.  GE is a fantastic company and i would urge you to keep the stocks of that company.  GE is a leader in the wide variety of business they do.  To sell a near sure thing (because nothing is sure) would be a bad move.  Just look back at the past ten years of GE they are a company that "takes a l*****g and keeps on ticking"...so to sell its stock to replace gold is not good.  Try to put only a small amount in gold/silver.

Answer 4

I just bought GE for a long tem hold.  Its down right now but is one of the  most diversified companies big positions in US and abroad.  If nothing else the new CEO has to improve his record with Wall STreet.  Did ok in 2Q08 but missed in 1Q...GE rarely misses estimates.

I also purchased a small gold stock, but that market is tricky.  You may want to get some, but I wouldn't dump all my GE stock for it.  Lots of folks are thinking about gold so the price is going up...buy low sell high.

Answer 5

No gold at $1000 an ounce.  Put it a money market account

Answer 6

Well contrary to what the answers have been that you have gotten- I disagree with all of them.

Silver and gold are a world wide trading tool in case our almighty dollar should lose it's almightiness some day.

I am with you about the fact that the American Economy is at present staring down the barrel of a very real and huge problem in the fiscal sense of the word.

Diversifying is not a bad idea. I would go with silver  more than gold though. Silver has alot more margin to catch up to where its true market value should be once the present day manipulators lose their clench onit...which is coming very soon.