This thread title reminds me of that Austin Powers scene–“Who does ten grand work for?!!”
I’m not sure gold is a great choice for a large percentage of one’s holdings. Of course I thought that silver was over priced at $14/oz so what the fuck do I know.
Much of the rise in precious metal (PM) prices is due to economic uncertainty and the lack of any palatable investing alternatives. Personally I think it is the next bubble to burst. For a long time people thought real estate was safe because, as the saying goes, they aren’t making any more of it. Unfortunately that saying leaves out a few a details like the fact that in most places they wouldn’t make any more of it even if it were an option.
It reminds me of a guy I used to know who was an ordnance expert in Vietnam. He explained the theory behind planting land mines on a VC trail. You put one where the guy on point will trip it, then you plant the secondaries in each of the directions you think people will run.
That’s what investing has been like over the past decade or so. First it was tech. When that blew up, everybody ran to real estate. That bomb made the tech bubble look positively quaint. Now everybody is rushing into gold.
Tick, tick, tick.
I love these threads, they’re so predictable. There’s always a “Safe guy who will never even beat inflation,” a “Buy x because it’s going to surge guy,” a “Short x because it’s going to fall guy,” the “Guy who outlines his entire portfolio,” and me, the “Take it all to the casino guy.”
Not to say any of them is wrong (hell, if I knew the right answer, I wouldn’t be here right now, I’d be floating in the Caymans while getting blown), but seriously, at least the casino settles your future quickly.
I don’t think Warren Buffet would have made out as well at the casino. Just sayin’. 
Groo’s first post made my head asplode. Was I supposed to be able to follow that, or am I just a complete child?
Wow! Thanks, Groo! I’ve certainly got a lot to think about!
Two words – bulk cocaine.
groo offers good advice. My advice is for you is to open a Roth IRA with Vanguard and distribute it with one of the allocations in the ‘Lazy Portfolios’ listed here. Vanguard charges very low fees for its mutual funds and, if you go for paperless statements, no account maintenance fees. Each fund has a minimum of $3000, so you’ll be able to purchase 3 funds no problem and diversify yourself between bonds/stocks with an even US/International split. All of the earnings will be tax-free and should be a nice nest egg over time through the magic of compounding.
I should add that a tremendous benefit of a Roth IRA is that you can withdraw your original contributions, the $10k, with no penalty. So should you not need this money, you can let it grow over the years. If you DO, however, you can withdraw up to $10k without penalty.
Sorry, but I am going to bump this up again to comment on my own suggestion of a Roth IRA to note that you can withdraw all contributions, but any gains you will not be able to withdraw without penalty until you are 59 and a half. Still, a Roth with a couple different holdings–bonds, stocks with an international split–is a good place to park your money for the very long haul while still being able to access the original $10k in an emergency.
Also, all of groo’s complaints about fees are totally valid. The less you have to pay in fees the better! Vanguard’s index funds tend to be very very low in fees. There are no purchase fees, no maintenance fees if you select paperless statments, and annual management fees on the order of a scant 0.3%.
I highly recommend selecting a bond fund–either the Vanguard Total Bond Market or the Vanguard Inflation-Protected Securities (TIPS) fund for 1/3rd. The Vanguard Total Stock Market Index (1/3rd) and the Total International Stock Index for the final 1/3rd will be your stocks. Obviously YMMV, but this is a pretty simple allocation of resources that will grow over the long haul.
This wiki is quite excellent. Bogleheads wiki. It is named after followers of the philosophy of Jack Bogle, the founder of Vanguard and creator of the first index fund.
I am in my 20s starting out investing for retirement and the advice in this wiki is excellent.