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A recent reply to a PM about a local coin show.....

gecko109gecko109 Posts: 8,231 ✭
in Precious Metals
Just got finished writing a reply to a forum friend of mine here on CU. The two of us had met up at a local coin show a couple years ago, and he asked if I had the chance to attend that show this year. After reading the reply I wrote, it became obvious to me my frustrations about the current economic situation this country faces. I thought I would share with you guys the response to my friend. Am I alone in feeling this way, or do some of you feel the same?



"Good morning (name of friend). I have transitioned myself fully into non-numismatic bullion recently. I just have a bad, bad feeling about the fundamentals of our economy, and dont want to leverage myself in the collectibles arena too much. Call me Mr. Doom and Gloom, but none of the financial fundamentals have changed since the massive corporate bailouts. Government spending is through the roof, jobless rates continue to hover in the low double digits, and im still paying PMI on my mortgage even though those (edited to publicly post this) were nowhere to be found in the housing collapse. IMO, the future economic/monetary meltdown thats coming soon to this country is gonna make 2007/08 look like ice cream in the park on a nice summer day. Its time to hedge myself against this with stacks upon stacks of shiny metal. If/when it all comes crashing down, humans are likely to revert back to a metals based monetary system. And if im wrong about all this, I still have a pile of PM's to help aid in retirement. Its the only legit insurance policy I can think of at this point in time."

Comments

  • gsa1fangsa1fan Posts: 5,566 ✭✭✭
    I myself wonder how many more band-aids "they" can apply before the dam burstsimage
    Avid collector of GSA's.
  • KonaheadKonahead Posts: 1,476 ✭✭✭


    << <i>Just got finished writing a reply to a forum friend of mine here on CU. The two of us had met up at a local coin show a couple years ago, and he asked if I had the chance to attend that show this year. After reading the reply I wrote, it became obvious to me my frustrations about the current economic situation this country faces. I thought I would share with you guys the response to my friend. Am I alone in feeling this way, or do some of you feel the same?



    "Good morning (name of friend). I have transitioned myself fully into non-numismatic bullion recently. I just have a bad, bad feeling about the fundamentals of our economy, and dont want to leverage myself in the collectibles arena too much. Call me Mr. Doom and Gloom, but none of the financial fundamentals have changed since the massive corporate bailouts. Government spending is through the roof, jobless rates continue to hover in the low double digits, and im still paying PMI on my mortgage even though those (edited to publicly post this) were nowhere to be found in the housing collapse. IMO, the future economic/monetary meltdown thats coming soon to this country is gonna make 2007/08 look like ice cream in the park on a nice summer day. Its time to hedge myself against this with stacks upon stacks of shiny metal. If/when it all comes crashing down, humans are likely to revert back to a metals based monetary system. And if im wrong about all this, I still have a pile of PM's to help aid in retirement. Its the only legit insurance policy I can think of at this point in time." >>





    image well put!
    PEACE! This is the first day of the rest of your life.

    Fred, Las Vegas, NV
  • sebrownsebrown Posts: 424 ✭
    I'm with you Gecko! I recently sold all my numismatic items at this past Jan 2010 FUN Heritage auction and have since used the proceeds exclusively for gold/silver bullion purchases. It was hard to let go of a few of my coins, but I felt it was the right time to transition into something that'll give me peace of mind. I don't own a single numismatic rarity at this moment and that's very odd....but at the same time refreshing!

    "In the absence of the gold standard, there is no way to protect savings from confiscation through inflation [...] Gold stands in the way of this insidious process. It stands as a protector of property rights." - Alan Greenspan
  • SoCalBigMarkSoCalBigMark Posts: 2,791 ✭✭✭✭✭
    Don't you only have to pay PMI if you put a small down payment?
  • gecko109gecko109 Posts: 8,231 ✭


    << <i>Don't you only have to pay PMI if you put a small down payment? >>



    If you have less than 20% equity in your home.
  • SoCalBigMarkSoCalBigMark Posts: 2,791 ✭✭✭✭✭
    You don't have the balance of the 20% in PM's? And if so why not sell and get rid of the PMI?
  • gecko109gecko109 Posts: 8,231 ✭


    << <i>You don't have the balance of the 20% in PM's? And if so why not sell and get rid of the PMI? >>





    How much of your metal would you sell to get rid of $200 a month on your mortgage that may be there for another 5-7 years? I would need to sell $40,000 worth of my gold and silver to save $200 per month. Not too appetizing, is it?image
  • SoCalBigMarkSoCalBigMark Posts: 2,791 ✭✭✭✭✭
    You save $14,400 of money that goes down the drain and your house is paid off sooner, it's not like the $40,000 goes down the drain. I suspect you just like looking at a huge pile o gold. image
  • gecko109gecko109 Posts: 8,231 ✭


    << <i>You save $14,400 of money that goes down the drain and your house is paid off sooner, it's not like the $40,000 goes down the drain. I suspect you just like looking at a huge pile o gold. image >>




    Actually, what I "suspect" is that the value of U.S. paper money will sharply nosedive in the near future. If this is the case, why would I ever concern myself with paying off a 6% loan early? As far as the $14,400 of savings, again, I'd rather have a "huge pile o gold" than an extra $200 per month over the next 7 years at the expense of $40,000 upfront taken out of my precious metal stockpile. Especially in the current economic climate!
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