The logic for buying gold/silver?

The one thing about metals such as gold, silver, copper et. al. is that they will all be accepted as currency...especially in coin form...no matter what else happens.
The US Dollar could suffer the same fate (however unlikely) as the old Hungarian Pengo after the war...and yet a gold coin will always be able to buy food.
I don't look at it as an "investment"...but rather as an emergency stash of cash.
 
The Last Standing Knight said:
The one thing about metals such as gold, silver, copper et. al. is that they will all be accepted as currency...especially in coin form...no matter what else happens.
The US Dollar could suffer the same fate (however unlikely) as the old Hungarian Pengo after the war...and yet a gold coin will always be able to buy food.
I don't look at it as an "investment"...but rather as an emergency stash of cash.
Click to expand...

+1. For 5000+ years gold has been traded for food, shelter, protection, even bribes to get you across borders. Can't see anything changing in the near future.
 
So where's all the hype about masterminds at central banks buying up all the gold? When this thread was started gold was around 1550. Now it's 1200... the price where gold was at three years ago. It will be interesting to see where gold goes from here.
 
I notice many TV ads for smart people to buy gold NOW. The market is falling. The time to buy was 10 yrs ago when the price was under $300 / ounce and Silver was under $6.00. As a part time custom goldsmith, I sold my stash several years ago, just under the peak. I also deal with a refiner rather than a gold jockey...big diff in $$$$ BIG!
These "gold guys" on TV are next best thing to a crooked politician. I took a 42 gram 14K
(Almost exactly one ounce gold weight... 42 gm x .585= nearly 28 grams gold content)
- necklace into one place at the MOA to see what they offered. $325.00 was their offer. I sold it as scrap to the refinery and got $1,534.50 The gold market was just under $1620/oz. Buyer/Seller beware.
 
ChattanoogaPhil said:
So where's all the hype about masterminds at central banks buying up all the gold? When this thread was started gold was around 1550. Now it's 1200... the price where gold was at three years ago. It will be interesting to see where gold goes from here.
Click to expand...

They still are. Before you belittle that theory, I suggest reading this:

Gold suppression is public policy and public record, not 'conspiracy theory' | Gold Anti-Trust Action Committee

There is documentation and evidence that central banks, in particular the Federal Reserve, are indeed suppressing the price of gold through their primary dealers running naked shorts.

I also think that the bottom is in in this correction, and that you'll likely see a rise in the metals that will rip your face off, as physical demand around the world is off the charts-except of course in the USA where everyone still believes in the omnipotence of the Fed and the "value" of the notes that it issues and that we euphemistically call money.

I'll let you do the math on the debts (public and private) v. GDP, and how those are going to be dealt with. They have two options, default or print, and after the "tapering" remarks that Bernanke made a couple of weeks ago and its effect on the bond and stock markets, I think that default is out and the printing will go into hyperdrive. Either way, gold is about the only way to protect yourself from either option.

The bottom line is to buy stocks and bonds if you trust the Fed and the banking system, and the ability of the political class to make hard decisions IRT fiscal policy. If not, about the only option is precious metals.
 
I was in gold and silver for about 15 minutes a few years ago and decided I was late to the party,got out and was buying bac between 6.3 and 8.S&W and Colts have done well too.I had done well with real estate until I was faced with an angry,drunken wife( completely averse to any change or risk)and a horribly timed drug out divorce.The nitwit did a lot of financial damage to us all.My thinking changed dramatically after that.Still love my kids,but the rest of the clan should just be poor,they are that dumb.
 
Don't you have to pay a commission/fee both to buy gold and to sell gold, meaning that the price of gold would have to go up just to break even?

And if you, for example, buy gold coins, don't you buy them at the retail price, and end up selling them at the wholesale price?
 
In a total collapse, I don't think anything will do much good. A band of fierce, strong young people could take me without too much trouble, if they have nothing to lose. Least I'd go with my boots on, what the heck.

Gold and silver would be handy if for some reason your accounts were frozen and you had to get the heck out of Dodge, fast.

For all those who believe paper money is worthless, would you like my address? I'll take it!
 
Nasty weather here today so have been watching TV. (Fox) All afternoon just continuously trying to sell gold in the advertisements. If it is such a great hedge against the dollar why don't they keep it themselves instead of taking the dollar which loses value and what are they going to do with all the useless paper money.

Gold pays no interest or dividends. Sound like a **** shoot.

Don't understand it so that's why I am poor.
 
Assuming the SHTF and TEOTWAWKI folks are wrong and we somehow keep floating along on money that only has the worth our faith gives it, and our faith holds up, thelly no need to have gold, or anything else as a "hedge" as nothing is going to happen.

On the other hand, if the end of the world folks are right, gold is really worthless. I raise my own food, and if everything went to hell an ounce of gold would be worthless at my, and other prepared folks, place. I can't eat it, it won't fix a health problem, it won't do a service for me that I can't do for myself, etc.

In a situation like that, come to my door wanting to trade a couple hours of mechanic work or blacksmithing work for some pork or eggs...gold wouldn't get you anything.
 
If you want to own gold in your portfolio as a hedge, you should just buy GLD or another ETF that trades with the price of gold. The only way your hedge works is if you can quickly sell when you take the hit, and trying to liquidate coins and bullion that you physically own will not let you catch the move. Also, if you want to keep gold as a certain percentage of your portfolio, then you should be constantly trading GLD to maintain the percentage. If gold goes up 5% and you just keep it, you no longer have a hedge, you have a position.

I also don't think buying gold is a good idea for when SHTF. If things really go down, it will not be a good currency. Seriously, if you are without rule of law, no ATMs and US dollars are reduced to paper, which would you rather have: $10,000 in gold coins or $10,000 worth of batteries? If you need food or essentials, you need a fool on the other end who will take the gold coin in hopes of later cashing it in when things normalize.

If you want to own physical gold, you need to look for an angle - find something with a collectible value that adds an additional value beyond the mere weight - it's your hedge on your hedge, because the volatility of gold prices - especially when there are gold commercials plugging the airwaves - is awful.
 
I don't think any precious metal is....

I don't think any precious metal is a 'bad' investment, unless you buy increasingly valuable silver courtesy of the Hunt brothers. I know people that got caught up in that. Their silver bullion returned to industrial value.
 
I used to have a supervisor who was a big Coast to Coast AM fan and he'd take every opportunity he had to warn us all that we had better be stocking up on gold because the economy was going to collapse and only gold would be worth anything.

He used to get so pissed off when I'd ask him (in front of everyone else) "What are you going to do when the economy does collapse and the very first thing the government does is outlaw all gold transactions?" His response invariably was "There will always be a black market and people will always accept gold." To which I'd ask "so, you're willing to trust criminals to give you fair value for your gold?'

Long story short he got bent out shape every time he opened his mouth.

IMO our money has been worthless for a long time and I'd rather save things that have some intrinsic value (commodities, medical supplies, toilet paper) that waste time investing in an economic system that is headed off a cliff
 
I don't understand all the fuss about our currency being worthless because it isn't backed by gold. I was reading some information about total recoverable oil and gas on federal land. According to the Institute for Energy Resources (whoever they are) at current market value it was worth $128 trillion dollars. How much gold has ever been held by government? Surely nothing close to $128 trillion. I'm sure a lot of the land has been leased, but the value is staggering. America ain't broke just yet. I wonder how much ANWR would sell for on ebay? :D
 
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