"Investing" in Gold and Silver coins"

I listen to radio commentators once in a while and they always push "investing" in gold and silver coins and rounds. Having had a disappointing experience with one of their sponsors, I don't trust their advice. I would like your opinion the subject.

 

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Gold and silver are likely to go below zero like oil did because you can't eat it in the coming inflation and it's expensive to store. In inflationary times people want only corn and soy beans as well as stocks and bonds so wait until things calm down or the economy is no longer being micromanaged and planned.

 

At the rate prices are increasing especially for bank services safety deposit boxes might cost a few thousand dollars in a couple years.

Gold is a barbaric relic and silver is just a commodity so be careful out there.

You could always buy zinc pennies and clads. They cost nothing to store since any basement or attic will do.

 

They are a radio announcer so who are they supporting? The guy or business that pays them to say positive things about them. You need to get information from numerous resources and make the best call you can for yourself.

 

People that put out ads to invest in PMs are getting paid to do so or have a vested interest in selling you it.

 

Gold seemed to work well for people living in France during the NAZI takeover.
If it is so bad, why do British pilots have a dozen or so gold Sovereigns sewn into their flight suits?
https://www.bullionstar.com/blogs/r...ilitary-use-of-gold-coins-as-emergency-money/

 

Dont believe everything you read, especially from a bullion site.

 

Like the others have said. I wouldn't trust someone who is getting paid to promote precious metals as an "investment". Something like silver or gold that you'll rarely make your money back on unless you can afford to invest in ultra rare coins and then it may take years. Just my opinion of course

 

I think that is called Additional Overhead, thus even more Inflated Prices.

 

I'd compare their prices to places like ProvidentMetal or APMEX or others out there.
but right now everything seems to have a high premium tacked on.

 

It's hard to find places to put oil when demand crashes to near zero, as it did during the lockdown. I wasn't in a position to grab a few tankers full of crude when the price went negative. Same thing with wholesale electricity. But I'm pretty sure nobody advertising "WE PAY YOU TO TAKE GOLD" will ever have trouble finding people to accept their offer.

Why is gold expensive to keep? Because it's precious, and you have to secure it. If it's suddenly not precious, then you won't need to protect it any more, will you?

 

Those radio and TV spots often try to lure you with decent gold prices. Once they have your phone number, they will drive you nuts trying to sell you way overpriced numismatic coins. That’s where their killing is made.

 

I don’t. I have actually seen British pilots talk about using them when shot down behind enemy lines. Study some history.

I can’t believe stocks are in there. How much is GM stock from the 1990s worth?
ZERO. They went out of business. They didn’t get bailed out.

 

I have studied history hence take your own advice and not read from bullion sites. I never said such things were never used, the average British pilot much less the average pilot did not have them much less in such quantities as stated. WW2 was also 80 years ago, Vietnam was 60 years ago and Desert storm was 30 years ago.

What does that have to do with anything? Invest in gold and not stocks because you could be shot down over enemy lines one day in a fighter plane and hope the gold doesn't give away the country youre flying for to the enemy?

What does any of this have to do with someone asking about hearing people trying to sell them PMs in ads?

 

Marcus Aurelius and Dr. Lecter had it right: Man seeks gold and silver and precious baubles because Man covets.
It is the nature of Man, and that is what gives gold and silver and shiny baubles worth, to man.

 

I'm just a collector, thankfully as I think it would be stressful to invest in gold or silver, given how prices have been up and down and down and down and up etc for decades, it seems very hard to predict. I invest in the stock market because that's traditionally where the returns are (also I'm far enough out from retirement to view downturns as buying opportunities and increase my 401(k) and ESPP purchases). I don't buy stock in poorly run companies (GM, Tesla, Amazon) even if they have potential or are popular stocks, and I'm old fashioned about looking at the PE and market analysis. I am mostly in mutual funds anyway - and I'm not a rich guy, I'm trying to save for retirement like most of us.

That said my understanding is there are basically two schools of investors for gold and silver coins - bullion collectors who buy hoping for generic price gains and the Cherry Pickers Guide to Rare Die Varieties / high end coin type investor. If I was going to invest in coins I'd go the latter route. However, I'm one of those - as charley notes - who likes shiny baubles, lol, so that was the initial basis for my collecting - plus I love history and I find putting series together fun, so I wish anyone who invests (or sells coins for a business) well, because that seems like a tough path to take. My pattern seems to be that of an opportunity buyer for the most part - if I have money and I see something that I like / want / seems like a good deal, I buy it. I also now have a couple (at least) active collections - SLQs and Capped Bust halves - and I start with low grade coins (that's where I am with Capped Busts) then put together a complete year / mint set (if possible) and then start to upgrade it to AU/MS (which I'm starting to do with the SLQs).

What about you all? What's your coin collecting direction? I think we all respect the value of coins - silver, gold, Colonial copper, ancients, errors, etc. I don't know what direction the market will go, but I do know they're not making any more Standing Liberty Quarters. Scarcity lends itself to some value.

 

Take the stress away from investing. Buy gold. Buy silver. Tuck it away and forget you have it. I’m still opening boxes and envelopes from many years ago. Both are a lot higher in price today than when I bought them. Over time they will continue to go up and down but it will be higher years from now than it is today. Buy and hold. I’m retired and still haven’t sold anything to support myself.

 

In a capitalistic society there would have been a few phone calls made and they would have found a place to put the oil. If the boats aren't needed to haul oil there won't be much of anything else to haul either. This means the definition of depreciation (time value) on the boats changes and this is what would approach zero or even go negative because they are still paying the crew. The cargo wouldn't go negative but our economy is being micromanaged by bureaucrats and it's easier to just do what the computer says. This, and the government refusal to acknowledge we've dug ourselves a very deep hole is what's pushing gold and silver down.

Every day the pressure on bonds and the enormous derivatives time bomb builds and every day the real value of most commodities is increasing. The government is simply propping up financial instruments because they believe there is no alternative and no free market to correct the growing imbalances.

Our systems aren't geared to sustainability except to provide for the few. There was a tightrope to walk to get out of this mess but now this escape may be gone. There is no computer program to tell them what to do when things rationalize on their own.

These are interesting times but it's entirely possible gold could go negative since the market is disconnected from reality and connected only to virtual reality. Unfortunately there is no intelligence and no artificial intelligence.

Be careful out there. We live in interesting times.

 

Just to be clear I don't really think people should invest in any coin and especially not in zinc pennies and clads and especially not if they are stored in basement and attics.

Satire sometimes doesn't come off well on message boards.