Silver and Gold ......

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llowry61

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Ok, so how many have been have been hedging and with which hard asset. With at least 4 T on the table we know inflation is gonna go off the charts.
I have enough smiths and booze and some hard assets, but curious what others are doing to fend off inflation.
 
:cool:Silver and gold are hard assets. But you should expect to pay a premium of 10% over spot when you buy and when you sell expect to get 10% less spot.

This means that if you bought today and sold tomorrow you should expect to lose 20%.

But if you want to put something away now that will have value to tour children and grandchildren in the future, spending some savings on gold and silver makes sense.

I would get 1, 1/2 or 1/4 ounce gold American Eagles
Today with gold at about $1750 per ounce:
1 ounce Eagles cost about $1,890
1/2 ounce Eagles about $1050
1/4 ounce Eagles about $550
 
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I caught the silver and god bug a few years back. Bought a lot of US silver coins and some British sovereigns when I could purchase at about scrap value (silver or gold content at or below spot prices). I can tell some happy stories about purchasing a batch of old coins for scrap prices and finding one coin with significant collector value, allowing me to cash in immediately and still hold several ounces at little or no cost.

Then there are some unhappy stories. A burglary of my home taught me some valuable lessons about homeowners insurance. Every policy has limits on specific types of personal property such as firearms, currency, gold, silver, jewelry, etc. My pile of silver coins was treated as currency, subject to a policy limit of a couple hundred dollars maximum instead of its market value at the time of several thousand dollars.

For those who wish to stockpile precious metals I strongly recommend either a safe deposit box at the bank, or a comprehensive review of your homeowners insurance policy and upgrading coverages as required to protect your investments.
 
When the financial SHTF back in 2008, I watched a bunch of coworkers bail out of their rapidly falling market investments to buy gold, losing their butts in the transition. I held firm, ignoring the market, and continued my payroll investing. The market dropped (I got more shares for my money), the market came back (any "losses" on paper were erased) and the market continued to climb (as it always does over time). I'm way ahead. I don't know about the other guys.
 
It depends....... if TSHTF Lead, clean water, food, shelter, a generator that runs endlessly on natural gas, etc. will be worth more than either! Let's hope it doesn't come to that!!!

For more normal times, I would suggest speaking with several financial advisors and see what they think - not that they are geniuses, but if you are asking us here on a Gun Forum, I would say at least talk to some who are involved on a daily basis.
 
doublesharp said:
junk silver when you can find it. hard to fake and gun shows are good places to find js. Quarters and halves first choice but dimes and dollars are all good.

Blue chip stocks with dividend aristocrat status or close.
Click to expand...


The Chinese are faking junk and Eagles, better buy a test kit if you’re not buying from respectable dealers.


Sent from my iPhone using Tapatalk
 
I have seen some YouTube Videos about fake Silver.
Just makes me like the Junk US Silver Coins even more!
For some reason I especially like Dimes.
Not sure why.
And I like the one ounce Indian - Buffalo Rounds .
 
Been 'dabbling' in silver since the late 70s' (remember the Hunt brothers buying all the silver they could) and silver went above $50/ounce then.
As above, US bulk silver coinage is the way to go. My preference is for the 40% Kennedy halves, 90% 1964 Kennedy halves, common Washington quarters, and common Franklin halves.
 
I only think of Burl Ives if you post -
‘Eating Goober Peas.’
Or mention Galisteo, NM.
Long ago he lived there.
 
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There are adverse tax implications to ownership of silver and gold (also collectibles) as investments that do not exist for many other investments - for example, there is no such thing as a Capital Gain for Gold and Silver. Or a step-up provision on death. Keep in mind, FDR outlawed the possession of gold by private citizens (other than for industrial and jewelry use) back during the Depression, and that continued in force until the Nixon administration. It could easily, and probably will, happen again. Or even worse. I won't get into the other shortcomings of silver and gold as investments. If you want to do it, well and good. But you really need to investigate and understand all of the bad things about it first.
 
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SMSgt said:
When the financial SHTF back in 2008, I watched a bunch of coworkers bail out of their rapidly falling market investments to buy gold, losing their butts in the transition. I held firm, ignoring the market, and continued my payroll investing. The market dropped (I got more shares for my money), the market came back (any "losses" on paper were erased) and the market continued to climb (as it always does over time). I'm way ahead. I don't know about the other guys.
Click to expand...

I have done the same. Dollar cost averaging and time are both important elements to wealth building.

My concern is that I won't have time to recover if the market gets hit hard. I have a well balanced portfolio, so just thinking about some hedging with hard assets. nothing crazy, just a little bit of insurance would be nice.
 
DWalt said:
There are adverse tax implications to ownership of silver and gold (also collectibles) as investments that do not exist for many other investments - for example, there is no such thing as a Capital Gain for Gold and Silver. Or a step-up provision on death. Keep in mind, FDR outlawed the possession of gold by private citizens (other than for industrial and jewelry use) back during the Depression, and that continued in force until the Nixon administration. It could easily, and probably will, happen again. Or even worse. I won't get into the other shortcomings of silver and gold as investments. If you want to do it, well and good. But you really need to investigate and understand all of the bad things about it first.
Click to expand...

I'm confused by the "no capital gain". The rules are different because it's classified as a "collectible" much like art, guns, cars, and gains are always taxed at the 28% Capital Gains rate and not at the same 15-20% Long Term Capital Gain for stocks, which is what I'm thinking you may be trying to point out.

Lots of people who buy the Precious Metals ETF's get caught by this. They may trade like a stock but they aren't taxed like one.

The Capital Gains tax rate is likely to change any moment I guess.
 
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THE PILGRIM said:
Hey Lobo -
Was your Silver locked in Safes?
Did they steal any of your Guns?
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The silver coins were not in the safe. Two handguns kept out for home defense were stolen. Solid-core steel door with deadbolt from exterior to garage was broken in with the frame destroyed. Solid-core steel door with deadbolt from garage to house was broken in with the frame destroyed. All of this happened in a quiet residential area on a weekday morning between 10:00AM and 11:00AM, over $2500 in damage to get in, about $9000 in property taken out. Insurance coverage after deductible was just under $2000.

In addition to policy limits on certain types of personal property there are assumptions of useful life of various items, used to determine actual cash value based upon depreciation. The standard for the firearms was 20 years useful life, so a 10 year old firearm was assumed to be depreciated by half of current fair market value. I do carry replacement cost coverage, which kicks in upon actual replacement of the item with one of like kind and condition (i.e. 10 years old, used).

If my memory is correct, policy limits for cash/currency were $200 (and the collectible coins were treated as cash), for jewelry $1000, for firearms $2000. Other categories of personal property also have limits (tools, equipment, whatever) and policies will vary by state and issuing company.

Coverages may be increased by endorsement at modest cost. Also, specific items may be insured for a stated value, may require appraisal, and each must be listed on the endorsement (relatively expensive coverage).

I will repeat my earlier advice: high value items should be kept in a bank safe deposit box or specifically insured. Please do not expect your typical homeowners insurance policy to cover anything or everything without limits. Speak with your insurance agent about your needs.
 
peterGun said:
The Chinese are faking junk and Eagles, better buy a test kit if you’re not buying from respectable dealers.


Sent from my iPhone using Tapatalk
Click to expand...

Nothing new. Chinese counterfeits of US silver coins started out in the late 19th Century, mostly silver dollars and "trade dollars" and they have never stopped. After more than a century there are probably more counterfeit trade dollars than the real items. Extreme caution is the best advice.
 
When the government stopped making silver coins, my mother started to save every silver coin she saw. I now have between 50 to 60 pounds of silver coins, from dimes to silver dollars.


Gold? You want gold? Gold is where you find it. My nephew, niece, and I are planning a gold prospecting trip this Spring when the snow melts.
 

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SMSgt said:
When the financial SHTF back in 2008, I watched a bunch of coworkers bail out of their rapidly falling market investments to buy gold, losing their butts in the transition. I held firm, ignoring the market, and continued my payroll investing. The market dropped (I got more shares for my money), the market came back (any "losses" on paper were erased) and the market continued to climb (as it always does over time). I'm way ahead. I don't know about the other guys.
Click to expand...

You did EXACTLY what I did. I purchased a bunch of stocks from companies that I knew were going to make it through this stock dip and ended up with 2.5x my original investment. If the auto industry ever gets back up and the supply of new vehicles returns to normal, my next pick up truck will essentially be free. Of course I will get taxed on the profits and taxed on the purchase, but I've made up for that already as well.

The guys who sold out early must have never read a history book.
 
I lost everything in a boating accident. You can never go wrong buying precious metals, as long as you don't mind hanging on to it and have a safe place to store it. I learned many years ago that you are not going to get rich quick, never chase it on the way up. If you have a few bucks laying around not earning you money buy junk silver in bulk. A local dealer used to sell small plastic buckets that weighed 40 pounds in an assortment of halves, quarters and dimes. The beauty of junk silver is that if the time ever comes when paper money is worthless you will need some method of purchasing items...a dozen eggs for a dime, etc. Not too easy to do anything with gold coins except maybe buy property or large items. There again Kruggerands were available in quarter, half ounce...that way you could avoid doing the whacking up of a full ounce coin like they used to do back in the day. Some Spanish coins even had a cross stamped on them for quartering, hence the term quarter.
 
IIRC only about a dozen states collect sales tax on silver/gold buy or sell....maybe less by now...I'm talking physical metal
 
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