Do any of you guys invest in silver or gold?

A place to discuss anything... except credit cards!
13 posts
paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Do any of you guys invest in silver or gold?

Postby paparoach429 » Tue Mar 03, 2015 12:55 am

Lately I've been thinking alot about investing. 401k, stocks, and putting some money into silver for a long term investment. Maybe buying one, one ounce bar per week and seeing where the prices go long term. What websites do you guys use? Obviously lowest prices are the most important, and then maybe free or low cost shipping. Overall, what do you guys think of investing in this manner?


LessIsMore
Gold Member
Gold Member
 
Posts: 44
Joined: Sat Feb 21, 2015 5:59 pm
Location: Vader, WA

Postby LessIsMore » Tue Mar 03, 2015 3:51 am

Everyone has their own unique investment strategy. If I was younger (I'm 64), I'd probably be more interested in growth. But now, I'm more interested in wealth preservation. And, I'm willing to trade the prospect of high-interest income in exchange for safety & stability. So, most of my "rainy-day-fund" money is part of my TreasuryDirect account - primarily invested in TIPS securities. I've never even considered investing in precious metals. But, wise or not, I've always had a "suspicion" about such investments.

Whenever you see the airwaves (radio and/or TV) flooded with advertising - telling people that "now is the time" to buy gold, I've always suspected the opposite. People far wealthier than me currently own gold. And if ads appear in the media urging others to buy it, it's probably because those wealthier people are trying to sell it (because they're predicting that the price of gold will go down). In short, they're trying to dump their gold into the hands of poorer people while prices are high so they end up suffering the loss when prices go down. Hehe, you know what they say about the rich getting richer and the poor getting poorer.

So, since people who currently own gold are wealthier than me, I'd defer to their wisdom on when to buy or sell - and ignore what I hear or see in the media.
"People with a clever plan can assume the role of the mighty."
Paul Kantner

LessIsMore
Gold Member
Gold Member
 
Posts: 44
Joined: Sat Feb 21, 2015 5:59 pm
Location: Vader, WA

Postby LessIsMore » Tue Mar 03, 2015 4:49 am

P.S. to my last. Back in the 90s (when I was in my 40s), a senior-citizen friend of mine came to me and urged me to buy gold. He gave me a downloaded PDF brochure from the broker he said he was dealing with. It was long on generic info, mostly sales related, and short on specifics. But, they did have a website - so, I paid a visit. And while I was there, I clicked on a barely visible link to their "terms and conditions" to read the teeny-tiny print.

The next day, I went to him and asked him if he'd already invested. He said that he hadn't yet but was seriously considering it. I breathed a sigh of relief for him and asked him, "Did you know that if you buy gold from this broker, all you'll receive is a printed Certificate of Ownership from them? And did you know that if you wanted to physically acquire the actual gold, you'd have to show up with this certificate in person at their licensed & bonded warehouse in Germany?" He was apparently unaware of these "details" - not to mention the costs of shipping and export fees/taxes to get the gold back to the US (not to mention any import duties).

Whatever you do, be sure to read the teeny-tiny print. The Devil is always in the details.
"People with a clever plan can assume the role of the mighty."
Paul Kantner

luvbullmarkets
Centurion Member
Centurion Member
 
Posts: 241
Joined: Thu Apr 21, 2011 1:02 am
Location: TPC Stonebrae

Postby luvbullmarkets » Tue Mar 03, 2015 1:57 pm

The easiest and simplest way to invest in Gold is purchase Gold ETF's.
Amex EveryDay, Amex BCE , Barclaycard Arrival+ WEMC, CSP Visa Signature, Discover it, Wells Fargo Propel 365 Amex

"Attack this day with a level of enthusiasm unknown to mankind." - Jack Harbaugh

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Tue Mar 03, 2015 2:08 pm

I have never owned any physical gold or silver beyond a modest coin collection (less than 1% of assets). Of this <1%, maybe 15% is bullion, and 85% is numismatic (coins that have 'antique' value beyond their 'melt' value). I have invested in before, but have not held for a few years, shares of precious and industrial metal mining companies as well as SLV, a silver metal ETF.

Some observations, in no particular order:

Storage costs are expensive. Either you need to rent storage space (something like a heavy-duty safety deposit box) or get a home safe that is approved for insurance coverage. I'd favor the home safe. I'd be a bit skeptical about any 'physical metal' investment that claims to have low costs. To operate a facility to store precious metals safely while allowing investors to access it whenever they want is just inherently expensive.

Silver can be an effective way to fight the temptation to overspend. If you come into a windfall and you really like to spend, then having bars of metal in a safe is a better way to force yourself to save it than if it is in a checking account.

Sentiment plays a big role when it comes to metal prices. So many people were excited about silver a few years ago that it is possible that it will be a while before it becomes popular again. I'm not making any statement about silver fundamentals here - I'm just saying that once an investment class has a lot of investor interest, and that interest dies down, it can be a while before that investment becomes popular again and the prices rise rapidly.

Silver doesn't pay dividends, and it's not easy to know when to sell it. I'd rather own residential income property in a reasonably decent market, conservatively financed, than hold onto metal for 30 years. Silver is a good hedge against hyperinflation, but it's not necessarily going to be a good hedge against moderate inflation. Silver has supply and demand just like any commodity, and that means price fluctuations.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

whit
Centurion Member
Centurion Member
 
Posts: 508
Joined: Tue Aug 13, 2013 10:04 pm
Location: ca

Postby whit » Tue Mar 03, 2015 3:06 pm

I think before you do any investing you should think about your goals and what you want to accomplish

If you're buying physical I prefer gold over silver just because silver is a b* to keep nice. Even keeping it in the Tiffany pouches..they tarnish..you can polish of course, but that's just more of an upkeep..whether as my gold pieces..it may dull with wear but it doesn't tarnish if kept in storage

But again, if you're not buying it physically, given the changes and the way they tax..which maybe why for short term you prefer to buy and sell it physically rather than in the market on paper..

Depends on what your investment objectives and goals along with risk tolerance

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Tue Mar 03, 2015 5:16 pm

If you want to invest a little money at a time, you can also put money into $0-commission low-cost index funds/ETFs. What is your reason for wanting precious metals in particular?
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Postby paparoach429 » Wed Mar 04, 2015 1:51 am

My main reason is like "carefulbuilder" said, it would be a way to put money "aside" without spending it. I can buy $100 worth a month or whatever I decide to do, and wait for prices to go up (hopefully it will). I don't plan on buying 50k worth or anything so storage wouldn't be an issue. Sorry if I'm thinking about this in a too positive of a way. As long as prices don't go down and I don't get in financial trouble and need to sell it, I can hold onto it for a while.

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3746
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Postby CarefulBuilder14 » Wed Mar 04, 2015 10:07 am

I'd suggest just getting some diversified, low-cost, commission-free index ETFs or index funds, then.

Is there a lump sum you're starting with? I have tried a lot of brokerages and can suggest some favorites, but several have account minimums. What are the chances you'd need the money in the next few years? Do you want to avoid 'sin' investments like tobacco companies? Have you invested money before, to get an idea of how much risk you can stomach?

If you want to send a private message to discuss this further, you'd be welcome to do so.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

popamode72
Centurion Member
Centurion Member
 
Posts: 1099
Joined: Sun May 04, 2014 4:41 pm
Location: Atlanta, GA

Postby popamode72 » Wed Mar 04, 2015 11:14 am

There are a lot of scam artists out there that are pitching and pumping up gold and silver in this economic collapse dollar collapse mantra BS of theirs. These are the same people who have been saying for years that the US would have some hyperinflationary economic collapse even though they don't understand anything about the petrodollar relationship or how the US is the sovereign issuer of its own currency, among many other things and have been consistently wrong over and over again. Really you could just do the opposite of what a lot of these guys preach and do very well.

I would never buy physical gold or silver and honestly, I'd buy the ETFs instead as CarefulBuilder14 and luvbullmarkets said. They sound a lot easier to trade and short with than the physical too.

If you do buy physical gold or silver for any reason, I'd buy it from a reputable dealer that doesn't charge massive fees for it at least. I've heard a lot about Newmont Mining for example. Don't ever go to a clown like Mike Maloney, Jim Rogers or Peter Schiff for these things ever IMO.

Just to show you how shady these physical gold and silver pumpers can be, just watch this. These are the folks I'm referring to.

https://www.youtube.com/watch?v=-0bHh2UoXcU

For more context, just look at where gold prices have historically been prior to 2008 and especially where they were back in the 1980s. I really think that eventually the prices of physical gold will go right back down again. I think a lot what's been happening with gold prices is psychological and a result of these folks trying to create an urge for people to buy these precious metals.

Also we are still in one of the biggest stock market rallies in decades. Why not also invest in Vanguard S&P index funds since their fees are relatively low if you already haven't done so? I would also be more concerned about deflation than inflation and adjusting your investment strategy to take account for that factor as well. If the interest rates for CDs go up in the future, I'd also take a look at those too.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)



Return to “The Lounge”

Who is online

Users browsing this forum: No registered users and 0 guests