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Investing in silver/gold other precious metals (1 Viewer)

BigJohn

BigJohn

Footballguy
Seeing the price of this stuff skyrocket has made me think again about trying to dabble in this a bit. Silver is probably where I will start, but looking for a little advice.

Where is the best place to research how and what to buy? Are there reputable retailers that sell silver bullion? Is Ebay a viable option?

Any tips or advice are greatly appreciated.

 
I think your late to this party. Commodoties are volatile and can crash hard, I wouldn't buy at these levels but Im sure there will be others that think the sky's the limit here.

 
'Jefferson the Caregiver said:
I think your late to this party. Commodoties are volatile and can crash hard, I wouldn't buy at these levels but Im sure there will be others that think the sky's the limit here.
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I understand that. The volatility is exactly why I haven't touched it until now. Problem is it doesnt seem like the trends are reversing at all, and I'd rather be late to the party rather than never even going.
 
I would shy away from gold as I think that it has pretty much peaked (unless you buy stock in a mining company as they can make more money while the price is still elevated). I think silver, palladium, gallium and indium and other metals heavily used in industry are likely still good plays. As the world economy gets back on track, the demand for these types of metals will increase and drive up the cost. I would also shy away from buying physical metal- for a couple of reasons. First and foremost, most of the ways you can buy will eat up your purchasing dollar through the sellers margin. You start in the hole on most of these places. Second, you then have to store it~ which can be bothersome and a security risk on top of your investment risk.

 
If you believe that inflation will increase in the future, then gold or silver are good buys, because they will tend to hold their value. However, do not buy right now, because the price is inflated due to unrest in the Middle East. Wait for the dips.

Recognize, however, that gold or (to a lesser extent) silver don't pay dividends, and do not grow with the economy. They are purely anti-inflation hedges. They have a had a big runup. Like always, past performance is no guarantee of future performance. You can buy gold but not have to store it, like in SPDR.

http://www.spdrgoldshares.com/

 
'BigJohn said:
Seeing the price of this stuff skyrocket has made me think again about trying to dabble in this a bit. Silver is probably where I will start, but looking for a little advice.Where is the best place to research how and what to buy? Are there reputable retailers that sell silver bullion? Is Ebay a viable option?Any tips or advice are greatly appreciated.
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First you need to decide if you are in this for the trade or if you are in this for an investment. If you are in for the trade and have access to the stock market then GLD or SLV will do just fine. If you are in for an investment then I prefer physical holdings. My personal preference is to stick with Gold/Silver US Eagles, Canadian Maples, Swiss Philharmonics, China Pandas or if you are feeling a little spunky then Perth Mint Kookaburras (and Kugerands for gold or pre 1965 us halves/quarters/dimes). NO NOT BUY FOM Ebay. One of the main reasons why Ebay is so expensive to buy though is because lots of people don't have access to a local shop. The best bet is to find a local high volume coin shop. You shouldnt pay more then a few percent premium for a 1oz gold round and $2.50 for a 1oz silver round. Best of luck. If you have any questions let me know. If you can't find a local guy PM me.
 
'wilked said:
In a word...don't

Single worst sector to invest in
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Note to self: never take investment advice from a chimp, un;less you don't want to make money.Gold will hit $2000 in early 2012 and silver may hit $50 before this year is out. I will grant that he is getting to the party late, and that even someone as connected as I am won't make the same kind of money in 2011 that he made last year, but demand, macroeconomics, and Fed policy favor a continued bull market in precious metals.

My own portfolio, I have de-emphasized gold stocks in favor of silver, oil, and oilfield services stocks. However, I still own gg, gold, and a fistfull of mid and small caps.

 
'DiStefano said:
If you believe that inflation will increase in the future, then gold or silver are good buys, because they will tend to hold their value. However, do not buy right now, because the price is inflated due to unrest in the Middle East. Wait for the dips.

Recognize, however, that gold or (to a lesser extent) silver don't pay dividends, and do not grow with the economy. They are purely anti-inflation hedges. They have a had a big runup. Like always, past performance is no guarantee of future performance. You can buy gold but not have to store it, like in SPDR.

http://www.spdrgoldshares.com/
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I would argue that gold was over bought in December, pulled back in January and February and is poised to continue an upward trend.

 
There once was a guy around that was a big proponent of metals a few years ago but he got ran off for his views. If he comes back you might want to ask him about this. I think his name was BPP or something like that.

 
'Master Gators said:
There once was a guy around that was a big proponent of metals a few years ago but he got ran off for his views. If he comes back you might want to ask him about this. I think his name was BPP or something like that.
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BGP I think it was.
 
Was listening to the radio on the way to work today and they had an investing show on that deals with this exact thing. The big thing they said that cost my attention was you needed to buy 1000 yes 1000oz to start an account with them. This is buying physical metal and they hold it for you and all that jazz but 1000 to start is a big deal.

 
'GTBilly said:
Was listening to the radio on the way to work today and they had an investing show on that deals with this exact thing. The big thing they said that cost my attention was you needed to buy 1000 yes 1000oz to start an account with them. This is buying physical metal and they hold it for you and all that jazz but 1000 to start is a big deal.
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For most FBG's, that's petty cash.
 
'bueno said:
'wilked said:
In a word...don't

Single worst sector to invest in
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Note to self: never take investment advice from a chimp, un;less you don't want to make money.Gold will hit $2000 in early 2012 and silver may hit $50 before this year is out. I will grant that he is getting to the party late, and that even someone as connected as I am won't make the same kind of money in 2011 that he made last year, but demand, macroeconomics, and Fed policy favor a continued bull market in precious metals.

My own portfolio, I have de-emphasized gold stocks in favor of silver, oil, and oilfield services stocks. However, I still own gg, gold, and a fistfull of mid and small caps.
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It's interesting that you use the chimp reference...I will stay with the chimp reference, and quote Tobias:
If a monkey can invest as well as a professional, or nearly so, it stands to reason that you can, too. It further stands to reason that, unless you get a kick out of it, you needn't spend a great deal of time reading investment guides, especially long ones. Indeed, the chief virtue of this one (although I hope not) may be its brevity. This one is about the forest, not the trees. Because if you can find the right forest-the right overall investment outlook-you shouldn't have to worry much about the trees. Accordingly, this book will summarily dismiss investment fields that some people spend lifetimes wandering around in. For example: It is a fact that 90% or more of the people who play the commodities game get burned. I submit that you have now read all you need ever read about commodities.
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But I am sure you are part of the 10%, same as the OP
 
I have Vanguard's Precious Metals and Mining Fund in a Traditional IRA. I think the ETF or mutual fund is the way to go here instead of buying physical gold, silver or whatever. I'd put it in something tax-deferred or you will get hammered as they aren't very tax-friendly funds. You may want to get in slowly as a lot of people are assuming, (like those above), that this is a bubble about to burst...

 
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards.

With oil or metals used in industry, we have a decent answer.

With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.

 
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards. With oil or metals used in industry, we have a decent answer. With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
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Fair points. But you must ask the same quesitons on the other side of the ledger. What is a dollars inherent value? Could people wake up and realize that "hey, this is printed off a press by the trillions and it doesn't make my life any better." It is a matter of confidance for BOTH the dollar and gold. Of course one has been traded for thousands of years and can't be duplicated with out significant cost. The has been in existance since 1971 after the closure of the Gold Window and has had significant dillution ever since. I'd argue it is a matter of what you have confidance in.
 
For what it's worth, my dad started investing in gold a while back when most people weren't and has made a fortune because of it. I think he got in around 400 and he's still buying. He has been hoarding silver for awhile now. I know most "experts" think the economy will rebound and the dollar will be fine once again but he doesn't agree whatsoever. He buys alot of realestate as well and basically doesn't want to have too many U.S. dollars on hand when it all goes bust. He's pretty doom and gloom about the outlook on the dollar and seems to be always opposed to what most of the "experts" say and he is right alot more than he is wrong.

 
'theglorydays said:
For what it's worth, my dad started investing in gold a while back when most people weren't and has made a fortune because of it. I think he got in around 400 and he's still buying. He has been hoarding silver for awhile now. I know most "experts" think the economy will rebound and the dollar will be fine once again but he doesn't agree whatsoever. He buys alot of realestate as well and basically doesn't want to have too many U.S. dollars on hand when it all goes bust. He's pretty doom and gloom about the outlook on the dollar and seems to be always opposed to what most of the "experts" say and he is right alot more than he is wrong.
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My brother in law got into mining gold about 6 years ago or so. It is a hobby (a hardcore hobby) but he makes a few bucks here and there from it. But, it was pretty cool that a couple of months ago the tv show The Mentalist ended up hiring him as a technical adviser and he ended up as an extra in one of the opening scenes, his father was an extra in a couple of other scenes and a bunch of his friends in another scene. He made a pretty good haul from being the TA, extra and then renting his equipment. He had talked them into giving him some lines... I guess enough that he has to join SAG but those lines got edited out. As far as your father goes... a lot of people lose a lot of money buy following the biggest new thing. Like the old saying goes, when your mailman is giving you sure fire investment advice on something, you know it is time to sell. I think your father has been doing well with going against the grain and that is why I am a little bearish on gold. It is the biggest bubble right now. I do have a position on a mutual fund that mainly is centered around mining companies that specialize in gold but I have been thinking of selling it. I like the long term prospects of metals that are heavily used in industry. When the worldwide economy gets going... these are the metals that will rise in value more so than gold.
 
'The Ref said:
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards. With oil or metals used in industry, we have a decent answer. With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
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Fair points. But you must ask the same quesitons on the other side of the ledger. What is a dollars inherent value? Could people wake up and realize that "hey, this is printed off a press by the trillions and it doesn't make my life any better." It is a matter of confidance for BOTH the dollar and gold. Of course one has been traded for thousands of years and can't be duplicated with out significant cost. The has been in existance since 1971 after the closure of the Gold Window and has had significant dillution ever since. I'd argue it is a matter of what you have confidance in.
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True, but I'm not advovacting investing in cash. I'm writing about investing in companies that produce things people actually use like Johnson and Johnson or McDonald's (not stating those two are great investments but they make the point) or useful things themselves, food commodities, oil, real estate, etc. Obviously each of these poses risk and could have a bubble like real estate - but the thing about real estate is its likely to bounce back while tulip bulbs did not. I would and have invested in mining companies or jewelry stores before the physical commodity, but that's just my opinion and I've lost money before for holding that opinion. My firmer belief is that it's a mistake to invest in things just because its value has increased lately. It's chasing the past, often without understanding the true value of what you're buying. If you happen to know a lot about something, say art, beanie babies or belly button lint, and believe the value will increase in the future, you'll probably do well. But that's not what I'm seeing here.
 
'wilked said:
'bueno said:
'wilked said:
In a word...don't

Single worst sector to invest in
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Note to self: never take investment advice from a chimp, un;less you don't want to make money.Gold will hit $2000 in early 2012 and silver may hit $50 before this year is out. I will grant that he is getting to the party late, and that even someone as connected as I am won't make the same kind of money in 2011 that he made last year, but demand, macroeconomics, and Fed policy favor a continued bull market in precious metals.

My own portfolio, I have de-emphasized gold stocks in favor of silver, oil, and oilfield services stocks. However, I still own gg, gold, and a fistfull of mid and small caps.
Click to expand...
It's interesting that you use the chimp reference...I will stay with the chimp reference, and quote Tobias:
If a monkey can invest as well as a professional, or nearly so, it stands to reason that you can, too. It further stands to reason that, unless you get a kick out of it, you needn't spend a great deal of time reading investment guides, especially long ones. Indeed, the chief virtue of this one (although I hope not) may be its brevity. This one is about the forest, not the trees. Because if you can find the right forest-the right overall investment outlook-you shouldn't have to worry much about the trees. Accordingly, this book will summarily dismiss investment fields that some people spend lifetimes wandering around in. For example: It is a fact that 90% or more of the people who play the commodities game get burned. I submit that you have now read all you need ever read about commodities.
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But I am sure you are part of the 10%, same as the OP
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I think thaty can be said of any sector of the market. There are those of us who know how to invest and those of you who have to work in hell holes like Saudi Arabia to pay the bills.
 
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards. With oil or metals used in industry, we have a decent answer. With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
Click to expand...
There are two aspect to gold: the love trade and the investment trade. People always flock to gold in times of economic uncertainty because it always goes up then. Right now both China and India are going nuts for gold. The price is driven in part by the declining dollar, in part by this rising demand and in part by speculation. Is there an inherent value? Yes there is, so long as people see it as a storehouse of wealth.People aren't going to wake up one day and decide gold has no value. That's crazy talk.There is much more to buying into a sector than the lemming law. I generally find that people who talk like you did don't know how to take macroeconomic data and condense it down to a stock purchase - which is why I make money where others don't.
 
if you are going to do it, i wouldn't buy the actual metal, i'd buy some shares in the ETF's that hold metal.. like GLD or IAU and SLVR

the Mad Money guy Jim Cramer mentioned buying gold as a good fade to inflation.

 
Unfortunately, to buy in now will be buying in high. Relative to past years. Relative to future years, who knows? PM's should definitely be part of your portfolio if for no other reason than an inflation/economic hedge. How much of your portfolio is up to you. I'd say anywhere from 5%-25%. guys like Ref and myself are probably on the high end of the range, but I'm not sure why anyone is saying to stay away completely.

 
'Random said:
Unfortunately, to buy in now will be buying in high. Relative to past years. Relative to future years, who knows? PM's should definitely be part of your portfolio if for no other reason than an inflation/economic hedge. How much of your portfolio is up to you. I'd say anywhere from 5%-25%. guys like Ref and myself are probably on the high end of the range, but I'm not sure why anyone is saying to stay away completely.
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Along these lines, if I was 0% invested right now I wouldn't run out and buy 10%-20%. I'd start with a nice chunk of 2-4%, and I would invest my way in to a larger % over time.I don't see the gains of the past few years as a big win, I see it as a disapointment. My $15 silver thats now $30 is great on paper, but what good is it if $2 Gas is now $4?
 
'The Ref said:
'Random said:
Unfortunately, to buy in now will be buying in high. Relative to past years. Relative to future years, who knows? PM's should definitely be part of your portfolio if for no other reason than an inflation/economic hedge. How much of your portfolio is up to you. I'd say anywhere from 5%-25%. guys like Ref and myself are probably on the high end of the range, but I'm not sure why anyone is saying to stay away completely.
Click to expand...
Along these lines, if I was 0% invested right now I wouldn't run out and buy 10%-20%. I'd start with a nice chunk of 2-4%, and I would invest my way in to a larger % over time.I don't see the gains of the past few years as a big win, I see it as a disapointment. My $15 silver thats now $30 is great on paper, but what good is it if $2 Gas is now $4?
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But everyone is paying $4 for gas. Even those without silver and gold. ;)
 
The reason gold has been on an upswing for the past few years is that a lot of people have lost confidence in the US government's ability to keep a strong dollar. As the government inflates the economy it devalues the currency. For a long time, the US dollar and US Treasuries have been looked at as the safest securities. Not any more; people are nervous and many of them flock to gold and other commodities. They could be wrong, but I don't see signs that the US is committed to a strong dollar.

 
'wilked said:
Here's a 10 year chart on goldhttp://goldprice.org/charts/history/gold_10_year_o_usd.pngPeople will tell you that gold is a no brainer investment because it can only go one direction, up (can't you read the chart?!)5 years ago I was looking at similar charts for housing.
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I was honking gold way back on old yellar...hell, I might have been BEFORE BGP (though not nearly as vocal or fanatical about it). I also started a thread (now pruned) broadcasting "SILVER as the new RAGE" when it was dirt dirt cheap. I've made nice sums of money in gold and silver stocks over the last decade. Familiy and friends who listened and followed along did well too.And I'll grant you that it's been a long run now and that the charts look parabolic and that all parabolas end in tears and end in a hurry, much like any bubble that pops. And at some point, this bubble too will pop. But not this year. And not any time soon. And to compare it to housing just isn't the comparison to make. IMO. Apples and oranges here. Housing was a symptom of greed. Gold is a symptom of fear. Fear will always overpower greed. If you think the worst is over with $4 gas, rising health care and looming inflation, then by all means, sell your gold and silver. Lotta buyers and the buyers are higher.
 
Above all else I think it's interesting that Most have more faith in little pieces of paper that have been in existence for less then 40 years over a medium of exchange used for thousands of years that can't be easily duplicated. ignorance is bliss for one or the other I guess.

 
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards. With oil or metals used in industry, we have a decent answer. With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
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and you carry dollars in your wallet presumably. Ask yourself the same question abotu the $. Gold has a better track record in this regard. It doesnt mean Id invest in it (though I have held it since July and netted 40% APY), but since you brought it up...
 
'Tango said:
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards.

With oil or metals used in industry, we have a decent answer.

With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
Click to expand...
and you carry dollars in your wallet presumably. Ask yourself the same question abotu the $. Gold has a better track record in this regard. It doesnt mean Id invest in it (though I have held it since July and netted 40% APY), but since you brought it up...
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I've been unable to convince the local 7-11 to accept gold bullion in exchange for a slurpee. Dollars in my wallet are not an investment, they're for spending.Look, I'm not saying there isn't value in investing in gold as part of a portfolio (although I personally have not and likely won't). I am saying that buying into something, anything, just because it's gone up in value recently is a bad plan.

FWIW:

In real-dollar terms (adjusted for inflation), large U.S. stocks have absolutely walloped long bonds, short-term cash investments, Gold, and the dollar itself in terms of total growth or return. Each $1.00 invested in large stocks at the end of 1925 is now worth $244 (85 years later at December 31, 2010). $1.00 invested in long U.S. government treasury bonds for those 85 years is now worth $6.88. (It's not shown but $1.00 invested in U.S. long-term corporate bonds in 1926 did slightly better than treasury bonds and is now worth about $7.60.) $1.00 invested in T-Bills in 1926 is now worth just $1.68. $1.00 invested in Gold for the 85 years is now worth $5.62. $1.00 left literally in cash and not invested at all is now worth only 8 cents, due to the ravages of 85 years of inflation.
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'FUBAR said:
'Tango said:
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards.

With oil or metals used in industry, we have a decent answer.

With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
Click to expand...
and you carry dollars in your wallet presumably. Ask yourself the same question abotu the $. Gold has a better track record in this regard. It doesnt mean Id invest in it (though I have held it since July and netted 40% APY), but since you brought it up...
Click to expand...
I've been unable to convince the local 7-11 to accept gold bullion in exchange for a slurpee. Dollars in my wallet are not an investment, they're for spending.Look, I'm not saying there isn't value in investing in gold as part of a portfolio (although I personally have not and likely won't). I am saying that buying into something, anything, just because it's gone up in value recently is a bad plan.

FWIW:

In real-dollar terms (adjusted for inflation), large U.S. stocks have absolutely walloped long bonds, short-term cash investments, Gold, and the dollar itself in terms of total growth or return. Each $1.00 invested in large stocks at the end of 1925 is now worth $244 (85 years later at December 31, 2010). $1.00 invested in long U.S. government treasury bonds for those 85 years is now worth $6.88. (It's not shown but $1.00 invested in U.S. long-term corporate bonds in 1926 did slightly better than treasury bonds and is now worth about $7.60.) $1.00 invested in T-Bills in 1926 is now worth just $1.68. $1.00 invested in Gold for the 85 years is now worth $5.62. $1.00 left literally in cash and not invested at all is now worth only 8 cents, due to the ravages of 85 years of inflation.
Click to expand...
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having some exposure to commodities in your overall portfolio is fine. say like 3-15% , however, going crazy like some people are like 85-90% is just a massacre waiting to happen. the better buy is silver over gold right now anyway. as a matter of fact year to date the S&P 500 has done better then gold. gold has had a huge runup. a lot of people don't realize that the gold market was flat for about 20 years (roughly 80 to 2000). and it has a tendency to have some extreme volatility. just me :2cents:

 
'golfguy said:
'FUBAR said:
'Tango said:
'FUBAR said:
Before investing in something, ask yourself why it's different than investing in tulip bulbs or baseball cards.

With oil or metals used in industry, we have a decent answer.

With gold, although it has been valued for a looong time, what is its inherent value? Is there any possibility that people could wake up and realize "hey, this stuff is shiny, but it doesn't make my life better"? I'm not predicting a total collapse and I've missed out on gains here, but I don't buy into investments unless I see a real value in them. Many people have been successful doing so, but if you're buying only because you've "seen the price skyrocket", that just screams of herd mentality and a mistake.
Click to expand...
and you carry dollars in your wallet presumably. Ask yourself the same question abotu the $. Gold has a better track record in this regard. It doesnt mean Id invest in it (though I have held it since July and netted 40% APY), but since you brought it up...
Click to expand...
I've been unable to convince the local 7-11 to accept gold bullion in exchange for a slurpee. Dollars in my wallet are not an investment, they're for spending.Look, I'm not saying there isn't value in investing in gold as part of a portfolio (although I personally have not and likely won't). I am saying that buying into something, anything, just because it's gone up in value recently is a bad plan.

FWIW:

In real-dollar terms (adjusted for inflation), large U.S. stocks have absolutely walloped long bonds, short-term cash investments, Gold, and the dollar itself in terms of total growth or return. Each $1.00 invested in large stocks at the end of 1925 is now worth $244 (85 years later at December 31, 2010). $1.00 invested in long U.S. government treasury bonds for those 85 years is now worth $6.88. (It's not shown but $1.00 invested in U.S. long-term corporate bonds in 1926 did slightly better than treasury bonds and is now worth about $7.60.) $1.00 invested in T-Bills in 1926 is now worth just $1.68. $1.00 invested in Gold for the 85 years is now worth $5.62. $1.00 left literally in cash and not invested at all is now worth only 8 cents, due to the ravages of 85 years of inflation.
Click to expand...
Click to expand...
having some exposure to commodities in your overall portfolio is fine. say like 3-15% , however, going crazy like some people are like 85-90% is just a massacre waiting to happen. the better buy is silver over gold right now anyway. as a matter of fact year to date the S&P 500 has done better then gold. gold has had a huge runup. a lot of people don't realize that the gold market was flat for about 20 years (roughly 80 to 2000). and it has a tendency to have some extreme volatility. just me :2cents:
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The gold market was flat (actually declined precipitously from its high in about 1980) because the Fed made it very clear they were going to slay inflation, regardless of the unemployment consequences. And they did.

I have no confidence that the Fed today would go to war against inflation.

 
'General Malaise said:
'wilked said:
Here's a 10 year chart on goldhttp://goldprice.org/charts/history/gold_10_year_o_usd.pngPeople will tell you that gold is a no brainer investment because it can only go one direction, up (can't you read the chart?!)5 years ago I was looking at similar charts for housing.
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I was honking gold way back on old yellar...hell, I might have been BEFORE BGP (though not nearly as vocal or fanatical about it). I also started a thread (now pruned) broadcasting "SILVER as the new RAGE" when it was dirt dirt cheap. I've made nice sums of money in gold and silver stocks over the last decade. Familiy and friends who listened and followed along did well too.And I'll grant you that it's been a long run now and that the charts look parabolic and that all parabolas end in tears and end in a hurry, much like any bubble that pops. And at some point, this bubble too will pop. But not this year. And not any time soon. And to compare it to housing just isn't the comparison to make. IMO. Apples and oranges here. Housing was a symptom of greed. Gold is a symptom of fear. Fear will always overpower greed. If you think the worst is over with $4 gas, rising health care and looming inflation, then by all means, sell your gold and silver. Lotta buyers and the buyers are higher.
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Hey GBGM, when you think might be a good time to jump back in to uranium?
 
So my stepdad gave me $1500 to invest for my daughter, who is 4. He is, has always been, a gold guy. He's got a sweet little doe skin bag filled with kugerands he bought when they were illegal to buy. He suggested a gold coin and one every year after to give to her when she's 21. He left it up to me what to buy. What say you PM people?

 
'DA RAIDERS said:
So my stepdad gave me $1500 to invest for my daughter, who is 4. He is, has always been, a gold guy. He's got a sweet little doe skin bag filled with kugerands he bought when they were illegal to buy. He suggested a gold coin and one every year after to give to her when she's 21. He left it up to me what to buy. What say you PM people?
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I say you should listen to the man you know as a "gold guy" instead of taking the advice of random people on the internet.
 
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