How do you guys cope with gold and silver costing so much more
Azurescens
Posts: 2,737 ✭✭✭✭✭
Compared to many here I'm relatively new at this.
I can't help but look at PR70 1/10 AGE and think, wow, that's $160 with a price tag of $350. Or a $180 G$2.5 Indian is now like $440. In other words, just about as much as a G$5 used to be, and you could get them in the form of undergraded OGH.
Seeing silver over $20 is still just a hard pill to swallow. Sometimes I'll check ebay looking for the $20 stuff and realize those days are long gone.
Don't get me wrong, I'm pleased they've both gone up. It has been very good to us and continues to be. In fact, I still believe both are undervalued, and I hope they go up more.
The only way I've been able to insulate myself from this is to realize the price is irrelevant so long as I buy low and sell high. As long as I'm making money it doesn't matter - it's just that the cost to buy in is higher.
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With prices where they are now.... not sure if it is a good time to start to buy a lot of it. Perhaps better to wait and see how the winds blow with the turmoil and uncertainty that is in the world today.
BUT... what do I know. Perhaps this time will be looked at as the Good Old Days.... and this is the time to buy?
I do have to agree with you on the price shock. Just have not made a good mental adjustment to the current price levels. I attended a local coin auction last week.... the gold and the silver lots went for more than I was expecting....
Be patient, the gutter will be sub $20 again just like the 50 other times. The Au however it looks like that train has left the station. THKS!
Unfortunately, it's not just a matter of gold costing more. Just about everything costs more. Gold is simply keeping up with dollar destruction. This is why I don't invest in gold - I buy gold for dollar protection.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Mental gymnastics...all around.
Knowledge is the enemy of fear
I don't see myself purchasing any more gold or silver at these prices.
I started accumulating physical gold and silver in January 2009. In 2018 I met my lifetime PM goals. Since then I have concentrated on my $2.50 set and paying off a home mortgage.
Someone relatively new to PM's may want to accumulate cash waiting for a downward correction - especially for gold.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
Gold will continue to make gains, but silver is a much better gambit at this moment.
I knew it would happen.
I found some mislabeled silver maples on ebay. Thought it was a scam, but I enjoy occasional risk so I bought them all. $23 or so each and believe it or not they all showed up. Then I remembered it used to be like this all the time and it made me a little sad.
I've had health issues and had to sell to cover bills but I did it smart. I had originally stacked commems at spot, got them graded, and got a ton more for them what I paid. My dreck collector pieces from my childhood like 4 or 5x'd during lockdowns and finally getting rid of those has been good.
I got really lucky on some gold and platinum commems that honestly I kinda just fell into and came across the right buyers. Right-place right-time kinda stuff fell in my lap.
I wanna say I'm not very good at this but I did do pretty well for myself and I'm super happy for where I'm at and how far I've come. I'm very grateful to everyone here for their help and advice over the years, too.
But all that being said, I'm not where I wanna be with my stack, but I'm not red, I have a few regrets, but don't know how deep I'm stacking big bars at current prices or something.
I've been buying to resell but the price has gotta be super appealing and the money has gotta be fast and not necessarily big. I feel the higher prices have me changing gears. Learning how to be patient and play the long game and kinda zoom out on all this has been the hardest part.
A store of value. Wish I could afford a store of it.
Cope with it? Isn't this why we were buying all along? I think most of us were expecting this.
While I like my gold, I find it hard to be pleased with what record gold is telling us. My only regret is that I did not protect more of my dollars with it.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I bought 100k rounds of ammo at peak prices and should have bought 15oz of gold at 1800.
Don't feel too bad.
I miss $17 PR69 eagles and $18 PR70 eagles.
I've been expecting gold to move higher for years and posted as such. I've also backed up my forecast with supply and demand rationales.
I think gold is going to at least $3,000 by 2030 and $5,000 by 2035 is looking more achievable.
Like I mentioned before, it takes a tremendous amount of capital now to operate because PM prices are so high.
How do you guys cope with gold and silver costing so much more
Personally, I compare the costs & risks & potentials between various asset classes and then I gradually get invested over time in the assets that make the most sense to me.
I haven't been disappointed in my mix of gold, silver and platinum. Pleased, actually.
I knew it would happen.
I can relate to that! Hindsight is always 100%. Darn crystal ball remains cloudy... and reading chicken bones does not seem to be working either!
I think sooner, much sooner. It's move will become more rapid overtime. I recommend the reading of "Future Shock."
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If you have assets then inflation is also hedged, stocks and real estate but I hear you, I had a chance to buy a couple hundred more ounces of gold back in the $1300 range and bought stocks instead. I did well on the stocks so I am not crying over it but my brother was buying Tbills and CD's with the same money and I have 3x what he has now.
The way it has been moving and the Fed just printing money, heck $1T just in interest I would not be surprised at $3K an OZ by the EOY.
The FED has cranked up the printing press since the '08 crisis. The Federal Reserve's online calculator says inflation has gone up only 47% since then. You and I have seen a lot of prices more than double since then.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I suppose a person could collect $1 gold pieces and Quarter Eagles instead of Double Eagles.
Right, I have been looking for those smaller denoms from 1868 and dang they are getting as expensive a DE a few years ago.
smaller quality gold coins cost you more premium per ounce than larger quality coins
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
ASEs at Costco now available $699.99 per tube $672 ($33.60 per oz) if your membership and Citi Card get you the full 4% rebate at Costco.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Yeah but they're not $80 and $220 anymore 😒
Yeah but they're not $80 and $220 anymore 😒
Price really doesn't matter so much. Average in, average out. Keep a cash cushion so that you don't have to sell in a pinch.
Silver is a better bet right now anyhow.
I knew it would happen.
I'm doing alright. Cash cushion, no panic selling. Pulling profits from obvious places. I've been gambling on blurry photos, typos and misidentified coins and that seems to be paying off. I've caught a lot of good grades recently that have helped. Cherrypicked some 90% that I never got around to doing. Kinda just tidying up my house, as it were, which isn't necessarily a bad thing. I've grown more cautious and discerning so that's nice.
Estate sales here have been pretty good to me. Not for the coins, but the money i make on junk that I can then spend on silver.
@Azurescens : Sounds like you have a good approach. Don't stop.
I knew it would happen.
Thank you sir that means a lot coming from you.