Am I crazy to be thinking about buying Silver/Gold Right Now?
cownas22
Posts: 54
I am a novice at precious metals but have been an avid coin collector for many years. Over the years I have accumulated a few oz of gold and some silver as well, but am interested in building up my silver/ gold stores considering the path we are currently headed down. I know I seems like a strange way to enter the market right now with silver and gold prices on high. So I wanted to get some opinions on weather or not it is a good/decent time to start. Is purchasing ASEs and Maple Leafs worth the premium or are bars the way to go?
Any advice for a US collector starting out in PMs is welcomed.
Any advice for a US collector starting out in PMs is welcomed.
Currently Working on:
U.S. Type Set
Classic Silver Commemoratives
Modern Commemorative 50c, $1 sivler
Modern Gold Commemoratives
U.S. Type Set
Classic Silver Commemoratives
Modern Commemorative 50c, $1 sivler
Modern Gold Commemoratives
0
Comments
TD
<< <i>not a lot of people jumping to sell. >>
Totally agree. With the prices where they're at, there really aren't that many sellers in the BST forum.
to be at. They represent an insurance policy in
the event that all financial order should fail. You may
make a profit or may lose money, but you will be able
to buy food to eat and gas to drive.
Camelot
Buy some ASE's, buy some Maples, buy some bars and diversify!
you feel ready.
Some people who post here are much higher then 10%, and feel very comfortable with their position.
Fred, Las Vegas, NV
<< <i>You can only buy or sell today. The past is past, and the future is unknown. If it is right for you to buy, buy. If not, don't.
TD >>
Spot on. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
"having money's not everything and not having it is."
-Kanye West
Spot on. MJ
I agree. You came to the right place to get a full range of opinions & discussion. Welcome!
I don't think you're crazy for asking for advice on precious metals. My advice is to cost-average and not to plunge into a large position all at one time. I think that the metals have room on the upside, but that's not why I own them. Good luck!
I knew it would happen.
<< <i> Is purchasing ASEs and Maple Leafs worth the premium or are bars the way to go? >>
Without directly answering your question....
Higher buy prices often translate into higher sell prices when the time comes.
<< <i>You can only buy or sell today. The past is past, and the future is unknown. If it is right for you to buy, buy. If not, don't.
TD >>
Great answer!
Welcome to the forum!
I agree with you except that I don't think that gold is in a bubble. I think that the dollar is being trashed, which means that everything is getting more expensive in dollar terms, not just gold.
I knew it would happen.
It is not a bubble. It is the deliberate annihilation of the US Dollar.
Some good posts here, I think the best way to start off for me is to buy 10-20 oz silver at a time and try to buy on the dips. I look at it as the silver will only be worth X amount at the time I determine to sell it so if I bay a bit here and there I am not all in at a specific price... Right now most of my gold is in classic u.s. coins but I might buy a bit of fractional bullion.
U.S. Type Set
Classic Silver Commemoratives
Modern Commemorative 50c, $1 sivler
Modern Gold Commemoratives
Everybody should always have "some" physical PMs.
Everybody should at least consider trading metals for profits.
Nobody should think that prices only move in one direction.
...............................................
Nobody should fail to consider that getting "free houses,"
by paying-off mortgages with PM profits, might be a good
idea.
At some point, I have NO clue when, a "Mortgage Protection
and Equalization Act" will be considered by lawmakers. Any
president could implement the same via Executive Order.
An MPEA would attack all mortgage contracts and rescue
banks/lenders from the dwindling value of their paper. If
that happens, PM profits will be "equalized" out of existence
AND the opportunity to get "free houses" will be gone.
Existing mortgages would be "recalculated and reset" in
accord with then current dollar values. The chance to use
"cheap dollars to payoff expensive dollar debt" will be lost.
Having closets full of PMs is not generally life changing; having
NO mortgage payments is.
Your Mortgage Protection post is very important. Do you think that if the USDollar index halts its skid by around the .50-.60 level that no mortgage protection would be considered? I'm assuming that you're thinking a level down to .1-.3 that would evoke action on the part of the govt in either a formal revaluation.
roadrunner
<< <i>Storm888,
Your Mortgage Protection post is very important. Do you think that if the USDollar index halts its skid by around the .50-.60 level that no mortgage protection would be considered? I'm assuming that you're thinking a level down to .1-.3 that would evoke action on the part of the govt in either a formal revaluation.
roadrunner >>
/////////////////////////////////
Yes, the PM numbers would prolly have to favor us peasants
substantially more than they do at this moment. And, the
banks would have to be "worse off" than they are today; I
dunno how much "worse," tho.
I don't know what the limit is for the bankers, but they will
NOT let us Bankrupt them and get rich doing it. Their govt
WILL protect them, if it becomes necessary.
What I KNOW for sure is that there is a limit as to how long
the "free house" window will stay open. I am clueless as to
exactly when it will close.
AND, absent LOTS more money being pumped into the system,
the window could stay open a long time. But, it is doubtful that
it would take "hyperinflation" to trigger some form of tampering
with existing mortgage balances.
The tampering could involve an omnibus revaluation, OR it could
simply target mortgages with a reset scheme.
Obviously, they will not let us have that $5-million office complex
for "two gold coins."
..........................
Another factor to consider is that a "conservative" govt
could come in and make all/most of the "inflation worries"
MUCH less influential on PMs.
Such a govt would NOT have to be seated BEFORE the
flight out of PMs began. It just needs to be obvious that
a change is coming. 2012 could be perilous for that reason.
The folks that bought gold during the Afghanistan invasion in 1980(?) paid over $800/oz. It stayed there for a very short time, barely weeks, maybe less. It shot up in value and came down just as quickly. It was at $400/oz during the 80s and declined even more during the 90s because Clintonian economics worked.
With gold approaching $1400, those people that bought during the Afghanistan invasion are still not there when inflation is adjusted. Gold needs to be well above $2000 for those guys to break even and eventually profit. In time, Gold will achieve those levels, but we are talking about decades of waiting. So, gold is not always the best investment, you still need to do it wisely. That $800/oz was a fluke price.
Since more money has been printed into the system over the last 2 years, gold cannot just plummet back down to $400. Gold can fall, but it has to stay somewhere. Gold has been above the $1200 mark for a significant stretch and above $1000 even longer. So, this new push in gold prices is not entirely speculation, or a weak dollar, some of it is really just gold in a bull market. I don't know how much gold is if we deduct speculation.
Time has always been the best friend to gold. The longer gold stays above $1300, the less likely it can suddenly plunge.
If your wealth does not have 10% in PMs, go ahead and buy gold and silver whenever you see it go down. When you see gold go down, part of it could be people selling for profit. This is good because that means people are buying gold at recent highs and not everyone got in on the market when gold was $600/oz. If more and more people are paying above the $1100 mark, the less likely gold can go that much lower when it slumbers in its bear market.
There are some "experts" out there that say gold will correct itself to $675/oz (still better than what it was in 1989), while others say it will reach $5000/oz.
Owning PMs is great. Eliminating your mortgage is also great. If you sell all PMs its wise to find something else to invest in or that paper money will lose value the longer you hang on to it. Paying off debt, especially a mortgage is an excellent arena to place all the profits earned from PM. You will always need a roof over your head, so a paid off house will always be essential in that sense. Even if a house drops in value, it will always be your shelter.
BST: Tennessebanker, Downtown1974, LarkinCollector, nendee
As long as they do an Income Protection and Equalization Act also.
Box of 20
NOT let us Bankrupt them and get rich doing it. Their govt
WILL protect them, if it becomes necessary.
Their govt has already been bailing them out quite strenuously.
They don't need to change contract law in order to give money directly to the bankers.
They do that already with impunity.
By keeping the carrot in front of the paying few, they keep some revenues coming in.
Change the game too radically, and there might be alot fewer players.
I knew it would happen.