Buying gold/silver as a secure investment

[Groseph]

Exactly ... the metals correcting is just a reaction to margin calls, and people needing to liquidate their precious metals cover other trades. Very few people are trading with cash and most are heavily leveraged in the market. Also...USD will rally up (metals down) as other countries run into our dollar for safety from their own already dieing currency.

A brief deflationary period can only last for so long before the masses are screaming for help. Then and only when people are literally begging for it will the FED step in and put a lot of $$ back into the market. Further inflation - PMs will go up and away. Get em now.. they look to be going on sale as we speak.

- -

Its good not to put all your eggs in one basket I guess... but I dont personally agree with only putting a small percentage into Gold/Silver. When your so sure of something its foolish not to go in heavy...provided you know the risks and are not leveraged. Gold/Silver is one of those things... its a sure thing. In my humble opinion of course. Do your own due diligence.

Mike Maloney said it well..something to the tune of
::Its not that I want to own gold and silver. They are just dumb worthless metals.. but RIGHT NOW.. there is nothing else that I would want to own. They are in their cycles right now and will out perform every asset class out there.::

Sell gold and silver holdings? Sell For What? Surely not for a failing dollar that buys less and less each week.

 

[igrowone]

Exactly ... the metals correcting is just a reaction to margin calls, and people needing to liquidate their precious metals cover other trades. Very few people are trading with cash and most are heavily leveraged in the market. Also...USD will rally up (metals down) as other countries run into our dollar for safety from their own already dieing currency.

A brief deflationary period can only last for so long before the masses are screaming for help. Then and only when people are literally begging for it will the FED step in and put a lot of $$ back into the market. Further inflation - PMs will go up and away. Get em now.. they look to be going on sale as we speak.

- -

Its good not to put all your eggs in one basket I guess... but I dont personally agree with only putting a small percentage into Gold/Silver. When your so sure of something its foolish not to go in heavy...provided you know the risks and are not leveraged. Gold/Silver is one of those things... its a sure thing. In my humble opinion of course. Do your own due diligence.

Mike Maloney said it well..something to the tune of
::Its not that I want to own gold and silver. They are just dumb worthless metals.. but RIGHT NOW.. there is nothing else that I would want to own. They are in their cycles right now and will out perform every asset class out there.::

Sell gold and silver holdings? Sell For What? Surely not for a failing dollar that buys less and less each week.

this is the crux of the biscuit - deflation/inflation?
some prices have risen relative to the dollar, some have fallen
i know the USA isn't Japan, but the longer the current situation seems to go, the more similarities i see
a near flat growth rate, bank issues that linger and have no simple solutions

 

[jakeh]

I just read something anyone interested in buying precious metals should look into. If you had to pick gold or silver to buy right now which would it be? In the few days this thread started gold and silver have tanked. In the process something interesting has happened. The gold/silver ratio has changed dramatically. 3 days ago you could trade 43 ozs of silver for 1 oz of gold. That ratio is now 54.5 ozs. The point being if you like gold you would be better off buying silver at the current ratio and trading it for gold when it moves back to the ratio that existed 3 days ago. You would net an almost 25% increase in gold going that route. Anyone interested in the subject should google "gold to silver ratio". In nature it is 16 to 1. Since silver is consumed its' ratio is less than 16 to 1 above the ground for all silver ever mined. In all the reading I've done on the subject I haven't seen much mention of this lately. It has only been 3 days so I'm sure it is coming. In May when silver hit $50 the ratio was 32 ozs of silver to an oz of gold. You could clean house buying at the present 54.5 ozs of silver to 1 oz of gold ratio if it hits May's ratio. That was not that long ago. I have a friend who is a hard core precious metals bug and from reading a few of the replies there are a few here. For those of you in that boat that won't trade for paper what are your thoughts on swapping your gold for silver when the ratio is as favorable as it is now? It is hardly an original thought but I do get frustrated with my friend for not taking some money off of the table since his average is a little over $400 for his gold and $5 for his silver. If you own 10 ozs of gold and 100 ozs of silver you could increase your metal position switching between the two as the ratios switched to your advantage regardless of what happened to the price.

 

[Greenstar420]

This is a really great thread and I know ill learn a ton just reading thru these posts, ive already gained some knowledge and just started reading. My question is what am I better off collecting and saving, Gold and silver bars like engelhards and pamp? Or minted coins? Does it matter? I'll def be buying up some silver at these low low prices

 

[Snook]

well, if things really go shitsouth, gold and silver isnt something people need.
but might use it for barter, even if only out of old habit..

so, gold is being bought up enough to have more than quadrupled the price?

wonder if its any plan beyond just plain fear of society collapsing..

though, if its really a consciousness change thats happening. not just years of mismanagement finally kicking ourselves in the ass, heh, then gold and silver aint gonna be worth shit..

but looking at people, i kinda dont see That Much of a consciousness change happening..

anywho..

buying gold now, well, record high or near it..

probably gonna fall in price in 2012 when things dont end. if that was influencing people buying gold.

if its just the rich hoarding it, well, if they are doing that and not out of some weird reason, then they are doing it to drop the price of gold later.

force people to sell quick, dropping it from 1900 to 1800 say, that would make a lot of people freak to sell.

dunno, if things really went shit, what you really need, is food and shelter..

if its really scarce, you gonna need a shitload of gold to buy some and even then probably be shit out of luck.

yeah, i tend to mention shit alot when i talk money

but i dont think things are gonna go that shitty, not anytime soon anyway.

and considering how insane people are concerning gold, i really doubt buying gold is a bad investment.

unless you buy now and the price crashes id want alot more info before i bought and maybe prices are gonna go down soon, cant really go that much higher anyway.

though id personally be careful about buying stocks and something like gold, where its obvious someone is manipulating the playing field, to such an extent, laws are created..

You're a profet.. http://www.apmex.com/Category/502/Gold.aspx
gold $1650.97 .. there's that $100+ drop you mention. Lets see what happens Monday morning when the markets open. Guns, ammo and knives. Survival tools. Silve bullets for the vampires.

 

[THE TROOPER]

I buy gold and silver all the time! doesn't matter wich one just buy only when it goes down!
buy at your marks when it goes down and sell at your marks on the way up! that's how you make money!

TT

 

[Hydrosun]

I buy gold and silver all the time! doesn't matter wich one just buy only when it goes down!
buy at your marks when it goes down and sell at your marks on the way up! that's how you make money!

TT

You might make more money if you place your by sell marks on the gold to silver ratio and not the paper price of PMs.

 

[Vash]

Its good as long as the economy does not turn around, as it stands the economy is so dodgy at the moment it seems a sound investment; some even predicting gold to hit $5,000.

Antique jewelry is not a bad idea neither, if you have the time and smarts to learn it can be more sound than base metals, also easier to put more cash into something very small. Numismatic coins is another option, something you would need to spend some time on though too.

Especially if you are in the US all better than holding US$'s, can wipe your ass with it in a few years

As long as the economy doesnt turn around? You're safe, it'll never happen. I started collecting PM's in 2010 when Gold was 1150 and Silver was 17.50. The economy is being propped up with the useless paper for now, but it won't last long. It's gonna all come crumbling down very soon. The PM's have dropped for the moment. Now's the time to back the truck up and load up on the metals. No way in hell the economy is gonna recover. All the jobs are overseas, and greedy CEO's are steady collecting the big bucks when they should be executed, IMO.

I do agree, though, that you will be wiping your ass with those dead presidents soon, and the new currency will most assuredly include gold and silver.

 

[Groseph]

Good to to hear the positive sentiment during this take down.

Normally the scared start panicking and the bearish folks starting touting bullshit. Glad to hear you guys are strong hands.

Keep buying. Things will get more volatile and several dollar a day moves will happen more frequently, but NOTHING has changed! Buying opportunity..

 

[whosthatguy]

Silver crashed pretty hard on Fri, thinking of scooping some up. Are you guys trading ETF or physical??

 

[Vash]

Physical here. Don't trust the ETF. That's "paper". Yes, silver took a hell of hit. Will be purchasing more for sure.

 

[In~Plain~Site]

Phizzy here as well,keep an eye on paper margins...lol

 

[mrpotatohead]

Silver crashed pretty hard on Fri, thinking of scooping some up. Are you guys trading ETF or physical??

Physical only!!!!!!!!

 

[mrpotatohead]

This is a really great thread and I know ill learn a ton just reading thru these posts, ive already gained some knowledge and just started reading. My question is what am I better off collecting and saving, Gold and silver bars like engelhards and pamp? Or minted coins? Does it matter? I'll def be buying up some silver at these low low prices

I've got some of everything but the most desirable is going to be from the US mint. Silver eagles are prob the most desirable but they are also the mist costly. I've seen eagles sell for $5 over spot. Buffalo rounds were produces by the us mint but because of the popularity of the eagles, they can be had for very reasonable prices. I found three in a box of junk silver for $.50 over spot. I'll buy them all day at that price. As far as private mints, Englehard, J&M, sunshine are all reputable. You should buy these only if they are cheaper like I only pay $.50-2.00 over spot for privately minted silver. Now keep in mind, an ounce of silver is an ounce of silver but to collectors or investment buyers, US minted rounds are the most sought after and they are also the only bullion produced in the world that are guaranteed by the us government to contain one Troy ounce of .999 pure silver. Did you know that during the second world war, Roosevelt lent out several tons of silver from the us treasury to make the huge electromagnets in Oak Ridge Tennessee to make weapons grade uranium for the manhattan project? A few tons also went to the Alcoa plant to make the huge bus bars nessecary for producing aluminum for aircraft.

 

[Capt Cannabis]

Lately I have thought the same gold has been increasing in value pretty steadily over the past five years. I guess it has to slow down and stop sometime though.

 

[Hydrosun]

they are also the only bullion produced in the world that are guaranteed by the us government to contain one Troy ounce of .999 pure silver.

Ain't nothing in life guaranteed. Canadian Maple Leaves, Austrian Philharmonics, and Mexican Liberdads all have one ounce of .9999 or .999. When the shit hits the fan these other three minted silver ounces should have less taint or political baggage than the Eagles.

I personally prefer them over Eagles.

 

[TrichyTrichy]

.

 

[TrichyTrichy]

Interesting show by Brad Meltzer, Decoded:Fort Knox
No Gold at Fort Knox???

 

[Greenstar420]

I've got some of everything but the most desirable is going to be from the US mint. Silver eagles are prob the most desirable but they are also the mist costly. I've seen eagles sell for $5 over spot. Buffalo rounds were produces by the us mint but because of the popularity of the eagles, they can be had for very reasonable prices. I found three in a box of junk silver for $.50 over spot. I'll buy them all day at that price. As far as private mints, Englehard, J&M, sunshine are all reputable. You should buy these only if they are cheaper like I only pay $.50-2.00 over spot for privately minted silver. Now keep in mind, an ounce of silver is an ounce of silver but to collectors or investment buyers, US minted rounds are the most sought after and they are also the only bullion produced in the world that are guaranteed by the us government to contain one Troy ounce of .999 pure silver. Did you know that during the second world war, Roosevelt lent out several tons of silver from the us treasury to make the huge electromagnets in Oak Ridge Tennessee to make weapons grade uranium for the manhattan project? A few tons also went to the Alcoa plant to make the huge bus bars nessecary for producing aluminum for aircraft.

Thanks for the reply, great info. Ill go check out the silver eagles next time I'm at the coin shop and get some in the collection. I'm getting the bars at 1.80 over spot so thats pretty good. Are Platnium and Palladium worth buying up? Is there value forecasted to rise also?

 

[SpasticGramps]

1. Food
2. Guns
3. PM's
4. Some physical cash

I like the biofuel idea.

There is too way too much debt being carried by western countries. We would have to go through a deflationary collapse to write it all off. Political leaders don't like that idea so we are going to print money to monetize debt and pretend there isn't a problem. This will eventually lead to the collapse of fiat money as it always does. Fiat is only backed by politicians promise to not print too much. Not once in history have politicians kept their promise.

Europe is at an inflection point this weekend. They three choices....

1. Merge into on European Superpower state with Germany controlling most everything (Hitler would be proud)
2. Print money (UK just launched their QE2)
3. Collapse

The ECB says it won't print money. Germans know about hyperinflation all too well. I believe an attempt to make a Europe SuperState would lead to war eventually. In the end I think they will print money. We'll see.