[Money-matters] [Fwd: Everbank CD]

[Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios]

-------- Original Message --------
Subject: 	Everbank CD
Date: 	Thu, 22 Apr 2010 16:49:22 -0700
From: 	Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios 
<bayareaprocess at att.net>
To: 	Money Matters Email Jtan <money-matters-l at jtan.com>



Everbanks new Market Safe CD is based on Gold, Silver and Platinum.

After talking with them I have decided to not go hog wild over this CD 
for the following reasons:

1)    They mentioned a new CD more like the BRIC foreign currency CD 
should be announced shortly. The BRIC had better terms in my opinion and 
I was specifically interested in a foreign currency CD rather then a 
metals CD for the reasons listed below.

2)    We have lots of gold holdings and I actually do have a gold Market 
Safe CD from Everbank already. The terms on that CD were a bit different 
then this new one. Keep reading...


3)    For gold and silver, I find it best to just own the metal outright 
and speculate with gold funds like our UNWPX or TGLDX.

4)    The new Everbank CD is a 5 year tie up where the BRIC currency CD 
was only 3 years. I am not against 5 years but I am for this CD due to 
reason 5.

5)    You only get an average of the price increase instead of 100 % of 
the upside as you do on the BRIC currency CD. Additionally you can never 
make more then 50 % upside no matter what. This I do not like. 5 years 
is a long time and to limit our gains to 50 % for that long in this 
environment I do not find wise. Especially where gold and silver are 
today in the grand scheme of things. These metals could go ballistic so 
being limited to only a 50 % gain for a term like 5 years is in my 
opinion not a good idea
    
      
All things considered, this new CD is insured by the FDIC and you cant 
lose any money so says the bank, so if some of you wanted to stick a bit 
in this CD for another "leg" of diversification, then you could do worse 
I guess. Owning a gold, silver and platinum CD where you cant lose money 
is not a bad plan even if you have to tie up the funds for 5 years. That 
would amount to about an 8% return annualized if you get the maximum gain.

I prefer to wait and see what they plan to do with the next currency CD 
and hope it will be like the BRIC CD we bought last year.


Marc






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