ASE on ebay question

Well, he is correct, and you also do see it, about one thing for sure - diversification.

To me, the old adage applies - past performance does not guarantee future results. Although there's all the charts and historical data for the stock market, PM's, etc, whatever path they all take from here is anyone's opinion and speculation. My personal belief of which thing may be a "safer" bets than others, is different. I like the idea of having physical metal over paper in most cases, but that does not mean I'm not also hedging my bets elsewhere. However, the key is to make sure you've not only got a well rounded portfolio and you keep on top of it, but to make sure you're actively watching and adjusting it as time and needs arise to make sure you're not letting anything slip by.

Now, back on topic, make sure you also look at the B/S/T sections here for opportunities to obtain your silver. I've been active in sells and trades with a number of good folks, and usually you'll end up with at least a comparable price, if not better when especially comparing to eBay. As always, be careful as I learned some lessons the hard way, but in general I think there's a good bunch of folks here that are willing to help.

 

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I don't think of it as steering people away from bullion, and I own it myself. What bothers me are the situations where young or presumably young folks come in here and indicate that they plan to buy as much silver or gold as they can and hold it forever as their first and maybe only investment. That is their financial plan. Before anyone seriously invests in bullion, they should make sure that all of the other basics are covered, so I just point that out to make sure they are in a position to put significant money into PMS. Gold and silver have been in a tremendous bull market for the past decade. So stop and think. How likely is it that the next decade will match the last? How likely is a significant drop? How likely is it that stocks or real estate will do better. When you buy PMs now, are you buying low to sell high, or is it already high? What is your exit plan? What if it is confiscated? Where will you keep the stuff for 40 years? Is it insured? Can you afford to lose half or more of your cost, and perhaps a lot more from the eventual top if you never sell?

I was a screaming bull on silver in particular when it was below $10, and was actually criticized for it. Probably one of the reasons there IS a bullion section on Cointalk is because I was such a pest about it . You can go back and look it up. I'm more cautious now that it is up multiples in price, and a different mindset is needed to invest in it.

That's all.

 

Ok I hear you, I just found it a little odd, especially when he wasn't asking for advice. As far as how well precious metals will do, I agree who knows! Everyone should decide that for themselves, none of us knows for sure, if we did, we should already have made tens of millions in the futures markets.

I personally don't think the stock market (as a whole) and real estate will outperform metals over the next few years, but time will tell.

 

I would never presume to be young if I wasn't, I totally agree with your points. I'm buying now while I still can afford to do so as I am single without children. I'm not planning on having a vault full of coins like Scrooge McDuck. For one I like the coins for their aesthetics as much as their bullion value. But the majority of my wages go to the 401k , IRA, mutual funds, etc.

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The comment was directed at all readers and not just the poster -- to get people thinking. My general and unscientific observation over the years has been that investments rarely outperform for more than a decade. Think PMs in the 1970s, Japanese stocks in the 80s, tech stocks in the 90s, etc... The darling asset class of one decade generally cools in the next. I think PMs have a couple of more years left, but who knows?

What I learned from tech stocks in the 1990s is (1) a favored asset can rise longer and higher than anybody anticipates, (2) a tremendous amount of money can be made in this type of strong bull market, and (3) you have to get out when everything is working perfectly - no easy task. I hope I manage to do it. With tech stocks, the market "taught" investors that the way to make money was to buy on the dips. And this worked perfectly right up to the day when it stopped working and took everyone down 75% to 90% or more.

It's something to think about.

 

Great!

 

Exactly. There's good reason to believe the US stock market is in for a decades-long secular Bear market, so anyone's personal experience in the 1990s is irrelevant. Now's NOT the time to buy stocks now and forever (that line never gets stale, apparently.) It's foolish to put all of your assets in Paper - but that's exactly what 99% of investing Americans did. Precious few own any PMs, beyond a wedding ring or baby cup. They're still missing the big picture, now...

The Bubble? The biggest bubble in history is in US Treasuries. No one here can predict what "US stock investments" look like when that Bubble pops. But bullion is the tried a true hedge for currency failure: that's what Gold & Silver (and this forum) are for!

 

You said it better than I could well done sir :thumb:

 

I have been thoroughly unimpressed with the performance of my 401K since I started it 6 years ago. That's why I've drastically reduced my contributions to buy bullion instead.

I would also like to point out that many young people do not have jobs that offer benefits such as a 401K plan. I wish somebody had shown me some silver bullion when I was 20 years old. I have tried and failed many times over the years to save money of any kind whatsoever. I would do really well for a month or two and then wind up using the saved money for something else. But buying bullion works better for me. Its less liquid than cash so I don't end up spending it, but is more liquid than a 401K so if I have some sort of emergency I can get to it if needed.

Bullion also has another BIG advantage for me. It allows me to participate more. With my company 401K I basically get to pick from 4 different investment options. That's it... pick A, B, C, or D. And I get a quarterly statement telling me how much money I lost in the market. Fun, fun fun, huh?

With bullion I can buy all kinds of different stuff and actually get to hold it in my hand and appreciate it. Also giving me an active role in it encourages me to invest more.

Somebody else mentioned the fact that I pay more because I buy one or two coins at a time. Well, the fact is, before I started collecting bullion I was pretty much unable to save anything. So I consider any savings and investment a plus.