Isn't gold the best precious metal ?

pmcollectour

I hear of so many on this board who have profited very nicely on other PM's besides gold.
I'm just wondering what many of you went through around 2008 when every precious metal got beat up badly.
Gold was the best performer during those difficult times. Silver, platinum, and palladium all took pretty big hits.
Aren't those of you who endured those difficult times a little bit more enclined to stick with more gold ?
I can't seem to bring myself to buy any other metal but gold. I just can't see myself enduring another time like 2008,
and unfortunately some people think our inflated stock market will drop once again, and those other metals may get
hit bad once again. I see that many of you have accumulated silver for a SHTF scenario. But if the SHTF, and our paper
markets and banks fail, then won't these other metals fail along with them, just like in 2008 ? I'm just having a hard time
convincing myself that there is a better alternative then gold. I feel like I sleep better at night with this perspective, but I
sometimes wonder if this perspective is not the correct one.

Mesquite

Many would likely say that which PM you prefer likely reflects how much room you have left in the SDB. If not much room, buy Au and maybe Pt and Pd. If there is a lot of room then buy Ag. Ag likely has more upside than Au in the long run and further to fall than Au if the market bottom falls. If you're worried about a SHTF scenario then make sure that you accumulated, along with your PMs, plenty of Pb. Your gold and silver will not be sought after by the corn grower because he can't eat them any better than you can. He is, however, likely to trade you 10 ears of corn for half of that rabbit you just shot. It is lot easier to shoot the rabbit than to convince the wife that she needs to run that rabbit down and bash its head with a rock. In a non-SHTF scenario collect what you wish - they will all likely move up going forward.

jmski52

I hear of so many on this board who have profited very nicely on other PM's besides gold.

Yes, that is true.

I'm just wondering what many of you went through around 2008 when every precious metal got beat up badly.
Gold was the best performer during those difficult times. Silver, platinum, and palladium all took pretty big hits.

I owned some metals prior to the peak. I bought some at the peak. I continued buying some on the way down. I continued buying on the way back up. I'm getting ready to buy again at this peak. My position is quite sound, and I've had no reason to be too concerned. I'm focused on the fundamentals.

Aren't those of you who endured those difficult times a little bit more enclined to stick with more gold ?

Not at all. They all have their advantages, and they all have their drawbacks but in times like these the advantages in owning any of the precious metals far surpass the drawbacks.

I can't seem to bring myself to buy any other metal but gold. I just can't see myself enduring another time like 2008, and unfortunately some people think our inflated stock market will drop once again, and those other metals may get hit bad once again.

Two axioms come into play:

- Those who forget the past are doomed to repeat it.

- Past performance is not a guarantee of future success.

In other words, you analyze the situation to the best of your capabilities and then you take your best shot. Nobody wins them all, but if you depend on your own smarts and judgement then you have at least eliminated one spurious variable - that of the investment advisor who makes money from your account by giving you or selling you "advice", which may or may not be good advice and may or may not be motivated by retaining his fee structure at your expense.

That's not to say you should never pay for expertise. But know the difference.

I see that many of you have accumulated silver for a SHTF scenario. But if the SHTF, and our paper markets and banks fail, then won't these other metals fail along with them, just like in 2008 ?

The SHTF scenario might be a consideration, but it is not the prime consideration. In my opinion, the fundamentals for silver are very compelling.

If the markets panic and everyone runs for the doors, you can bet that the paper markets for silver, platinum, palladium and even gold could drop fast. Some of the reason is because people will liquidate their paper positions, period. If you hold silver as an investment, you should be prepared for volatility.

The important issue is what happens when the dust clears. Silver has surpassed its highs of 2008 by 25% or so. The stock market has not even come close to recovering to its late 2007 highs. In my opinion, silver has performed more strongly than the stock market.

But if the SHTF, and our paper markets and banks fail, then won't these other metals fail along with them, just like in 2008 ?

Paper contracts for commodities might fail, but the real commodities won't fail completely and they will be the first things to make strong comebacks.

The PROBLEM with leverage, and interest rate swap derivatives, and worthless securitized mortgage derivatives being sold for full value, and government spending, and bailouts, and bankers getting huge bonuses, and monetizing the debt - is that they are shell games. At some point, the paper is not worth anything and the goal is not to become "the bagholder".

If you hold paper, the odds are increasing that the bogus paper I just listed in the above paragraph will affect the value of the paper that YOU own in a negative way, which makes you the bagholder.

Buying precious metals removes that amount of your assets from the paper chain. It's still not a guarantee, but it's better than owning what we strongly suspect is going to be a paper meltdown. Nobody knows the how or when. It's simply a likely outcome of the programs and policies that have been in place for many years.

I'm just having a hard time convincing myself that there is a better alternative then gold. I feel like I sleep better at night with this perspective, but I
sometimes wonder if this perspective is not the correct one.

Gold is valued as one of the two most recognized and universally-accepted precious metals. If you are sleeping well by owning gold, then you are confident that you've made some sound decisions. Frankly, I can't really argue with you about that.

derryb

No SHTF scenario needed for silver. It is an industrial metal that is being consumed. Like oil it's supply will peak.

cjmezz

Yes