- Centurion Member
- Posts: 4047
- Joined: Thu May 08, 2014 7:42 pm
- Location: United States
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.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt, Arrival
May close or PC: Prestige, BrooksBros
Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech