Which precious metal is the best long term investment?
hchcoin
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Please explain your reasoning below.
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Comments
<< <i>Precious metals are a horrible investment. >>
lets be reasonable here. it just depends on the timing of your purchases. it was so much fun buying gold and silver when silver was ~7 bucks an ounce and gold was ~450. i felt like i was getting great value for my dollars spent and was very comfortable in my investment. if i had to choose i picked silver right now but i would wait for a dip below 15.
for the record i only have a few ounces of gold left and about 50 or 60 silver dollars. i am pretty much out of metals.
<< <i>Precious metals are a horrible investment. >>
Sure....and that's why gold and silver have FAR outperformed the DOW and S&P500 and Russell 2000 over the past 15 years and even the past 45 years. Just horrible long term investments.
It is true that PMs have been horrible investments the past 3-4 years. And, stocks stunk up the joint from 2000-2003 and 2007-2009. Cycles are just that....cyclic. There will be a time in the near future when
investing in commodities will the "in-thing" again. It's just that it hasn't worked from 2011-2014. But precious metals and PM stocks at 3-7 year lows certainly have more long term potential than when they were at
all time highs. In some metrics, the PM sector is at 15-35 year lows.
Fwiw I picked gold over silver only because with the eventual monetary crisis coming at us, I favor the safety of gold as a "currency" over silver which tends to be more of an industrial/economy-related metal. Gold acted
much better than silver during the 2000-2003 deflationary/recessionary period. And until inflation is showing up in commodities, I'll stick with which one works better in a deflationary price environment. The better "longer"
term investments today are probably those that are closer to 5-10 year lows. And fwiw that doesn't describe the Dow, S&P, or Bonds which are at or near all time highs. Just sayin'.
"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
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......
<< <i>Brass and lead will always win this game. >>
Unless the drone sees you first
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<< <i>Brass and lead will always win this game. >>
Except when your competition has more brass and lead than you do.
<< <i>Gold. Possible appreciation and financial insurance.
MJ >>
+1
Knowledge is the enemy of fear
"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>simple: Which moves the most when there is movement? >>
Good question. Which has the highest beta short, intermediate, and long term?
Anyone?
Buehler?
Anyone?
The correct answer depends on "long term" outlasting deflation.
"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 knew it would happen.
Sits at the apex of the inverted asset pyramid.
I knew it would happen.
Sits at the base of the inverted asset pyramid.
I knew it would happen.
<< <i>Gold, historically and universally recognized as real money.
Sits at the base of the inverted asset pyramid. >>
Question is about best investment, not best money.
"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
Reason being Gold is most likely able to be redeemed later. Now whether its really a good long-term investment vs other things is the debate.
I know people with Lucent stock that thought it was a good investment. At least I assume gold will keep some decent base value.
To me, I see it being a whole new world for items in the "Precious Metals category"
<< <i>In bull markets, silver always outperforms gold; in bear markets, silver always underperforms gold.
The correct answer depends on "long term" outlasting deflation. >>
Over the course of an entire and normal commodities bull market that's probably true. But it's not true all the time. For instance in the gold bull market of 2000-2011 gold outperformed silver from 2000-2003. It was basically gold up +53% and silver flat or at a slight loss. Silver got bogged down in the 2000-2003 recession as an industrial metal. That's a significant period of time in the "bull" market for the normal leader to be on the ropes. Look at the 1970's bull market. Gold outperformed silver from 1970 to early 1979....9 years. It was only in the final 8-10 months of that decade that silver finally took off as the Hunts tried to corner physical silver. I'm sure there are other glaring examples too.
"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
Right now Platinum is cheaper than Gold, I'd be willing to bet 10, 20 or 50 years from now. platinum will have out performed gold, from this point forward.