Switching to precious metals

[Al Jecius]

Can anyone give me the pros and cons of switching my 401K accounts into precious metals?

[Daniel Murphy]

You mean switching your entire portfolio to precious metals?  

I don't see any pro's in that. Other than a (temporary) sense that you've "done something" to stop the bleeding.  Precious metals are wildly volatile & in general, not a good investment. They are an inflation hedge.  

The best quote I've ever heard after 15 years as a financial planner is, "an ounce of gold will buy you a nice suit.  If you hold it for 20 years, it'll buy you a nice suit."  IE - it doesn't appreciate, it just hedges inflation.