Are Precious Metals a Thing of the Past?

Discussion in 'Bullion Investing' started by Endeavor, Mar 13, 2020.

  1. Jeffjay

    Jeffjay Well-Known Member

    With the spread of the Global Contagion, the demand for physical precious metals has increased significantly. According to the U.S. Mint’s newest update, another million Silver Eagles were sold over the past two days. This brings to total Silver Eagle sales in March at 2.3 million, more than three times the previous month.
     
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  3. vintagemintage

    vintagemintage Well-Known Member

    Why stop with Precious Metals?

    The same could be asked of coin collecting in general.
    Or art, baseball cards, antiques, celebrity memorabilia, etc....
    Precious Metals are just the most universal of these.

    Human nature is not always rational, people have attached significant value to many 'useless' things since the dawn of civilization ....and always will!
     
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  4. Endeavor

    Endeavor Well-Known Member

    I think you're mistaking my opinion with what I think will happen. I don't disagree with you that people are not going to begin thrashing they're jewelry and Rolexs. People will keep buying jewelry at exorbitant prices.

    I just think it's stupid when you really think about it.
     
  5. Collecting Nut

    Collecting Nut Borderline Hoarder

    In the last 10,000 years they have always been desirable to own, despite all the changes and advances in our society, therefore I see no reason to think otherwise.
     
  6. Endeavor

    Endeavor Well-Known Member

    I view baseball cards, coins, antiques, etc as nostalgic. They bring back memories or thoughts of a time in the past. Can't really say that about a bar of gold.
     
  7. vintagemintage

    vintagemintage Well-Known Member

    It's not just older people of today, or in our society that prized PMs. Civilizations across the globe, isolated and unaware of each other have all held PMs in extremely high regard & as a measure of wealth and power. That's more than a coincidence.
     
  8. -jeffB

    -jeffB Greshams LEO Supporter

    Now, there's an investment that's yielding immediate returns! Negative 12% from early Thursday to today's close, was it?
     
  9. Endeavor

    Endeavor Well-Known Member

    I get that precious metal, gold in particular, has been a status symbol for a long time. I know it has been a symbol of wealth and power. I also understand that aside from being visually appealing, it also projects that status of wealth in the form of jewelry on ones neck, ear lobes, wrists, fingers, etc. However I don't think it's out of line to question why, or if we're seeing a change in that philosophy which in my opinion seems superficial.

    Ancient civilizations were also known to have multiple gods. Many of them. They would pray to one for rain. Another for sun. One for love. Others for wealth and prosperity. This was widespread and common back then. We still pray today but normally to only one god. We have accepted science and made technological developments to take the place of certain gods. So why couldn't mankind progress to accept that precious metal doesn't have a direct effect on ones well being or function.
     
  10. Suarez

    Suarez Well-Known Member

    I already answered this in several replies: HUMAN NATURE. People's desires for gold aren't any more rational than there could ever be a valid justification for a million different luxuries. That doesn't mean they're not valuable and neither is arguing about why this shouldn't be the case will actually change these facts. If you find this fascinating you should pick up a good book on psychology.

    Rasiel
     
  11. Endeavor

    Endeavor Well-Known Member

    I'm not arguing.
     
  12. vintagemintage

    vintagemintage Well-Known Member

    You may think not, but when you say:

    And a host of people respond with positions you don't agree with, and you further reply:

    I think it meets the definition.

    ar·gue
    /ˈärɡyo͞o/
    verb
    gerund or present participle: arguing
    1. 1.
      give reasons or cite evidence in support of an idea, action, or theory, typically with the aim of persuading others to share one's view.
     
  13. myownprivy

    myownprivy Well-Known Member

    You've asked an interesting question: are precious metals a thing of the past
    But you haven't really explained in any convincing way while you wonder if it's a thing of the past.
    Therefore, there's not much to go on to have a discussion.


    I simply don't have enough information at my fingertips to go into any depth as to whether they are or are not a thing of the past.

    Anecdotally we can observe many bullion websites and many internet discussion groups with vibrant memberships. That seems to suggest widespread interest in PMs.

    We can also observe further economic development around the world that increases demand for gold and silver from more people than ever before, as more people desire gold and silver jewelry and bullion. (China and India)

    However, we can also observe that financial institutions in the United States are offering no fee investment options in the market that never existed to the masses before. Gold and silver at one point function as a low barrier to entry "investment" for the working class. But if everybody from the rich to the poor, to the education to the uneducated, to old and the young, and blue collar and white collar have equal access to investing in the market, perhaps that will decrease interest in PMs in the United States?

    The wedding industry shows us that more and more people are buying nonprecious metal rings. And high quality inexpensive nonprecious metal jewelry is prevalent in everyday wear. Does this indicate PMs are going the way of the dodo? Maybe.
     
    Last edited: Mar 14, 2020
  14. Endeavor

    Endeavor Well-Known Member

    Okay so by definition I am "arguing", but the connotation is that I'm being confrontational. I think a better choice of words to describe my interactions with others on this thread is that of expressing my opinion while also exchanging thoughts and ideas. That is after all the purpose of a forum. So thank you for pointing this out and giving me the opportunity to clarify.
     
  15. Endeavor

    Endeavor Well-Known Member

    On the contrary. I pointed out how price of precious metals seems to be unmoved by drastic events like it used to.

    Then I asked... Other than historical significance and jewelry (status symbol), what does precious metal offer (from a functional perspective)? I haven't gotten an answer on that. I keep reading replies about how it was always considered important throughout history and so we should continue to value it without really questioning.
     
  16. Endeavor

    Endeavor Well-Known Member

    Yes. This is what I am wondering myself. Are people "waking up" to the fact that precious metal is just shiny metal without an explanation for why it should be way more expensive other than cause everyone says it's more valuable.
     
  17. Suarez

    Suarez Well-Known Member

    Nothing wrong with arguing. Arguing is not the same thing as being argumentative. We're all here to share and learn.

    However, you keep saying you're not being answered even after repeatedly going over the same subject. One more time: gold is used in many different applications asides from jewelry and bullion. The electronics industry uses tons of gold each and every year. They wouldn't waste their money on it if there was a cheaper alternative. It's also used in many different branches of science and aerospace and would be used far more widely if only it wasn't so rare and expensive. You can Google this.

    We get it you don't like it but whatever you do at least stop saying it's worthless.

    Rasiel
     
  18. fretboard

    fretboard Defender of Old Coinage!

    Just so we're clear here, we have never had a situation like we have today with the Coronavirus. The Coronavirus is super contagious, and it's deadly to some people! Unfortunately some of our leaders have not taken this threat seriously and as a result, we are stuck with a soft stock market! As far as the price of gold, what is it you expect? I'm okay with the fact that gold was up to around $1675 and dropped down to $1575, it's still at a very good price! :D
     
  19. longnine009

    longnine009 Darwin has to eat too. Supporter

    It annoys the wallstreet gurus. That's makes it priceless.

    Perhaps it would get more respect as an investment if we too had the zombie guardian from above waving the magic toilet plunger.
     
    Last edited: Mar 14, 2020
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  20. longnine009

    longnine009 Darwin has to eat too. Supporter

    Just got 3 ASEs from MCM on Ebay $61.48 shipped.
     
  21. Clawcoins

    Clawcoins Damaging Coins Daily

    I want to see this magic toilet plunger. :pompous:

    Is it made of gold ?? :D
     
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