Precious metals

xx2

 

I can use my gun to get food. Silver and gold have always had value due to an upper class who wanted them. Silver and gold have no practical value or no real industrial application when people are fighting for survival. You're 10x more likely to find someone willing to barter for food, guns, ammo or shelter than for a hunk of metal.

But to each, his own.

 

People were killing each other over gold before there were guns, I also have 11 guns and 2,500 rounds so I can keep the gold...

 

well gold and silver has historically been used as money. people for thousands of years now have used it as money. Even in US history, up until 1971 our currency was either gold and silver or linked to gold. Fiat currencies will go away again one day, they always fail.

 

Both gold and silver can and will lose value.
silver has dropped from +/- $49 to +/-$35.

If anyone would like to learn more about precious metals, then check out the forums on the following sites:
kitco.com
goldismoney2.com
bullionstacker.com

I usually find the most competitive pricing at coin shows. Then sometimes the local coin shop and finally at online sites such as apmex.com or gainsvillecoins.com

 

Seconded; I exited my position at 48,25 but am getting back in slowly. It is quite volatile, but if one knows how to invest and does not let the swings of the market influence one's long term views, it is safe.

if one wants to be more conservative, gold would be a wise move. It did not fall nearly as much as silver, and is more stable overall.

I also advise ZeroHedge.com and Gold-Silver.US.

 

COMEX showing large declines in Troy inventory. Is the game afoot?

http://www.zerohedge.com/article/fi...illion-ounces-physical-deliverable-silver-und

Lots of plays happening today. One day gains will evaporate on maufacturing news. So far silver hasn't hit the magic 1/16th number.

*scratches head*

Greece not looking good and neither is eurozone.

 

I'm swapping gold for silver. I just purchased a hoard of silver pesetas from Spain at a slight premium to the spot price. Many overlook European silver, but because of the VAT, it is not easy for them to unload in their own countries, so there are deals to be made.

 

+1 Well said.


With that in mind, I might trade some Libyan nationals some pinball machine parts for a few dozen tubes of Plutonium, a la Doc Brown.

 

Coming up on 1,600 oz. Time to sell????

 

me too!

 

That's not really true. Commodities are not investments, they are speculations (like oil). Investments are financial stakes in companies which provide returns (they create something).

Gold and silver are commodities that are affected by supply and demand. Say a huge supply of gold were discovered that doubled the amount of gold available in the world (unlikely I know). Your price per ounce would be worth half of what it was per ounce without any fundamental change in the economy.

There was a gold/silver spike in the 1980s which resulted in tremendous losses which didn't break even in price until 2008. That doesn't count inflationary dollar levels (1980 dollars vs 2008 dollars). In inflationary terms, it still hasn't reached parity ($2088/oz).

Silver had an artificial boost in price when the Hunt brothers tried to corner the market on it, driving the price up to $50 an ounce back in 1980, a level it still hasn't reached to this day.

In contrast, if you had purchased a Dow Jones Index fund in 1980 (a fund which buys equal shares of the Dow companies to mimic the return of the index), you would have gone from $750 to $11,500 or 1530% increase. For Gold to equal that, it would have to sell for $12,266/ounce.

Also, at around $5K/ounce, it becomes the breakeven point to create Gold in the lab (creating gold will be no different than printing dollars).

I'm not saying it's bad to buy gold. Just don't fool yourself thinking it holds value. Usually the worst time to buy something is when everyone is saying you should buy it (remember real estate prior to the crash or oil when it was trading at $140/barrel?).

All of the big investors are buying it as a safe haven, which is driving up the price rapidly. When they sell, it will come crashing down. This is a bubble.

 

Keeping cash around is a problem because of the fact that the US dollar is a fiat currency (not backed by gold or silver), and our government increasing the monetary supply by printing $$ and extending credit. They do this because they reap the rewards of the newly printed dollars in the spending chain. Eventually as this money works its way through the system, more dollars chasing the same amount of goods results in inflation, which negatively impacts your purchasing power. This is actually a hidden tax on Americans--those who have savings accounts or dollar bills stuffed under their mattress, and it mostly impacts the lower/middle class, whom are often on fixed incomes or fixed retirements.

However, I am with Evil Monkey on gold/silver. These metals have little industrial value and are mostly for jewelry. IMO it is best to invest your cash in hard assets like stocks, real estate, or in your own business, as these investments generate dollars. If you're worried about the collapse of the dollar, don't be, the dollar will never completely collapse, gas will just cost $100 per gallon and a new set of BFG ATs for the Taco will be $15,000. People will continue to exchange goods and services in dollars because the government will never give up control of its ability to debase our currency.

 

my family invests in gold and stocks, just in case.

and I've made an extensive coin collection as my investment
(which is my excuse. those things are just cool)

 

Anyone buying gold and silver with the recent dip in prices?

 

I'll bump this, silver price is around 35 bucks right now... I'm a young guy trying to build my net wealth, I think I'm going to start buying a roll or two every month and see where I end up.

 

I also stack silver and gold. I wish I had started when I was a young guy.

By purchasing every month or two, I'm averaging into my position at a reasonable price. I do end up buying at the "high" but also buying at every "low" price point.

Though I've already been convinced of precious metals as an insurance/investment, this averaging strategy eases some of the anxiety during the purchase... such as "Did I pay too much? Is the price going down?" etc.

At this point, my "core" position is in place. I will continue to buy 60-100 oz. per year of bullion, possibly buying some of the fancier premium stuff.

Stick with your buying plan and soon you'll have accumulated a nice chunky pile!

Good luck.

I hope these pics are sized correctly...

 

Where do you guys buy from? I saw earlier in the thread someone mentioned gainesvillecoins.com. Anywhere else?

 

I usually find the most competitive pricing at coin shows. Then sometimes the local coin shop and finally at online sites such as apmex.com or gainsvillecoins.com or providentmetals.com

 

Any idea what will happen to PM as the "fiscal cliff" approaches?