Why most people buy PMs for the wrong reasons...

Yet somewhere between 1 and 3 percent of people own ANY precious metals. Well over 60% own stocks either directly or through a fund of some kind. I happen to be in both groups, but who's the odd group here? Yes, a SMALL position in PM's is okay, but not huge stake expecting a collapse of the dollar. Morons have been predicting that since 1933 and we're still waiting. Yes, if you extremely carefully pick a particular starting and ending point, you can create an interval when metals have done better than equities, but they are by far the exception.

I sold ALL my generic gold in August 2011 ($1895/oz.) and greatly lightened up on generic silver that same October ($39 each for Maples in the pouches). I bought most of both in the mid-90's. Gold 300ish and silver 6-7 ish.

 

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More morons. It never ends. Sad and unbelievable.

 

The taxes and brokerage fees will eat up a lot more than the 10% premium paid to your LCS.

The other thing is that you can't take those shares of Microsoft to your LCS - or any LCS anywhere in the world. The government HATES this prospect, and will do everything they can to de-value that international currency - or MONEY as Kurt doesn't call it.

The older I get, the more I want "off the grid" investments.

AIG paid a healthy dividend before they played "mulligan" and wiped out my investment before giving their CEO a raise and bonus. BTW - if I ever meet him, I will be kicking him squarely in the censored and reminding him that he owes me several grand - regardless of whatever politicians he paid off in the too big to fail and screw the little guy campaign.

I remember checking my brokerage account that morning. After seeing my stock go from $40some to about 40 cents a share over the course of a few months through AIG's bankruptcy / mulligan shystering. I woke up the next morning to see my shares briefly showing $42 all over again and called in to make a quick "market" sale. I was told that the shares showed that value, but didn't have it since the ticker was not reset yet. And basically my stock was worthless, it just looked good in my account. I watched my account sit that way for 2 days, and then magically deliver the reality that was AIG's "Too Big To Fail Mulligan"

The "establishment" if you will - has total control of the game and walks with impunity. They make up the rules as they go, and they change them based on political donations as needed. My only hope is that we get someone in at the top that can start to break down the "pay to play" career political system.

I'm well diversified in land, gold and silver. I think I'm going to start moving more into lead - lest Kurt and cronies advance the cause of the Keynesian Utopia.

With enough people on the public dole gravy train than ever before, I believe it's hit critical mass, and I don't even know if it can be corrected anymore.

 

Yer deplorable...

 

Brett, you ARE the "gold standard" -in spewing incorrect information. The "government" can't logically act above the law, they MAKE the law. Every Federal Reserve Chair in the last 103 years, through administrations of BOTH parties, has "made the odds in a free market economy", every single day of your lifetime.

Every econometric figure is calculated EXACTLY as it has traditionally been calculated, no change. Now, you might argue, and I might agree with you, that the way we calculate unemployment and inflation NEEDS TO BE CHANGED, and hasn't been, but to suggest collusion is an outright lie spread by YOU!!

 

Stocks can be very volatile. Thus one has to keep up with the latest news (which the more inside ppl have that stuff faster and react faster). But, in essence over time you don't want all your funds in one stock. Thus you end up creating your own mutual fund that *you* have to manage getting in/out based on valuations and future valuations.

Not all stocks are easy to sell. I owned TGONF for a while. Took a while to buy, and a while to sell. The last 10 day daily volume is a paltry 1,305 (that's one thousand three hundred and five). Great dividends (.165 per share and that was great when the shares were under $9) though (pre tax), but no DRIP. I got out and put it in GE which can easily be bought and sold and DRIP.

But I also have Mutual Funds for less volatility, and 401ks in Mutual Funds/bonds. I also have some gov't bonds just for correlation as they are providing a positive return. Then coins and PMs.

selling silver is very easy. It just depends what you want for it and what others will offer. You can probably get a neighbor to buy an ASE. But maybe better to have some emergency cash reserves to handle paying local bills. I'd hate to buy Silver at 25 to sell at 15 to pay bills. That's just lost valuation and cash would have been better.

What I see is the *quicker* you need the money the closer to cash you need to be. Short term doesn't gain much interest. So cash reserves is always good to have. Silver/gold as a positive investment needs the cyclical valuations ..buy low and sell high (hopefully).

 

I heard buying a boat is a good investment too.

 

Anyone ever heard of narcissism?

 

It is if you make your living fishing.

If you are looking for defense or hunting - lead.

 

Hey Brett,

You know your avatar character was funny precisely BECAUSE he was a moron, right?

 

The number of offices my broker has near me to the number of LCS's near to me is about 20:1. And the main LCS opens after I'm at work and closes before I leave work and his buy/sell spread is about 40 points, not 10. Then, if I make a few bucks from metals, that gets FIT taxed at 28% while my stock cap gains only at 15%. Why, you'd have to be a (wait for it) MORON to invest in metals.

 

THIS is where we agree. The famous 47% of four years ago is now a majority. The receivers now outnumber the payers. By the way, kiss "off the grid" goodbye - ain't no such a thang. NSA = FBI = IRS. Same thing. It's ALL on the grid. Internet privacy is ZERO. He who hasn't been caught soon will be.

 

Brings up the central question- what are metals today, high or low? I say high. Many others insist low. That's why I'm neither buying nor selling now. I work on numismatic pieces only - no near-bullion at all!

 

And the happiest day of your life will be when you sell your investment.

 

Everyone's life circumstances are too unique unto themselves. If you desire the simplest way to evaluate the health of your financial portfolio, aka diversified allocation, just take the ''sleep test''. If you can sleep well at nite knowing PMs are (or are not) part of the mix, you are on the right track for yourself.

 

By the way, Ray Dalio, who is the king of allocation and who runs the Bridgewater and largest hedge fund in the world, recommends a 10-15% allocation in PMs.

 

Memories fade over time, but I do believe that was Mr. Cason playing a moron.... Just saying and please do take as you will.

 

No fiat currency in the history of mankind even survived?

What make the dollar the exception?

It's looking shakier and shakier out there every year.

 

This is somewhat flawed as an argument. The reason the fiat currencies of the past failed is due to a failure of the economy. The reality is no economy based purely on a commodity standard in the history of mankind has even survived.

It's not that the dollar is the exception. The issue is that all major economies of the world today use fiat, so, whether you like it or not, even if the dollar fails, there will be fiat in the world.

 

I have my coin collection with copper, silver and gold coins.
I also have a small bullion collection which I treat differently than the coins.

I'm hoping bullion is high right now, as it has a downwards trend so far. I read things that gov't/ETFs are buying, and read other things that they are selling. So who knows. Just trying to track bullion futures now.