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Gold glitters as investment for some, not all

By Helen Huntley, Times Personal Finance Editor
In print: Sunday, April 20, 2008

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We asked

Is gold a "buy" or a "sell"

at these levels?

I sold some jewelry a few weeks ago when the price was more than $1,000 an ounce. The price of gold is more emotional than reality-based. From here I would be a long-term bear.

David Vaurio, Trinity

If the expectation is rising inflation, it's probably a "buy" in the current market. However, it is very doubtful that if held after the inflationary pressures subside that it would be profitable.

Michel Curi Jr., Seminole

I advocate selling gold at its current level (ideally for long-term capital gains) and looking for well-situated mutual funds.

Eric Rhodes, New Port Richey

Gold is a good investment and will continue rising in price in the long run. Some of my IRA funds are invested in gold securities.

Roger Girson, Hernando

I recommend a hold for right now. I would sell at $1,000 an ounce and buy at $700 an ounce. I do not see gold moving much past $1,000 an ounce, if at all.

Mike Beattie, Tampa

Bullion gold is just too speculative. I recommend and buy rare gold and silver coins, but that requires a level of prior experience and expertise.

John Fetzko, Tampa

No gold! It does not pay dividends or accumulate interest, and tomorrow it could be down to half the price that you paid for it.

Joe Trangata, Holiday

Gold is definitely a buy. As the dollar weakens, and as inflation comes back roaring, gold is now and will always be a hedge against a weak dollar.

Sam Lasley, Clearwater

You asked

I now have a fixed IRA annuity that yields 7 percent interest, but the contract terminates in July. Any suggestions about what I can invest in? I am 80 years old and need this income to live on. My health so far is good.

There are no perfect options. I suggest that you consider an immediate annuity that will pay you a monthly income you can't outlive. You'll get the largest payment if you choose the option with nothing left for your survivors.

You also could create your own annuity with CDs and money market accounts, withdrawing both income and principal to meet your income needs. The big risk, of course, is that you might run out of money with that option. A third option is a reverse mortgage if you own your home.

Is it safe to get a CD with an out-of-town bank? I'd like to earn a high yield, but I don't want to lose my money.

It is safe as long as you verify that the bank has FDIC insurance and you keep your accounts within the insurance limits. That's generally $100,000 per person plus $250,000 per person for IRAs in any one bank. For information, go to www.fdic.gov or call toll-free at 1-877-275-3342.