Do you buy Precious Metals because you don't know how to invest?

Discussion in 'Bullion Investing' started by myownprivy, Mar 6, 2019.

  1. myownprivy

    myownprivy Well-Known Member

    Do you buy precious metals because you want to invest but don't really know how? Does the stock market intimidate you? Does the prospect of starting your own business to earn money scare you? Do you not own a home or rental property?

    Investing in the market can be intimidating for people who never have. You might not know the answers to questions such as: Where do you start? How do you buy stock? Should I pay a financial advisor so I can buy ETFs or mutual funds?

    Perhaps the idea of starting your own business sounds too risky. Maybe the idea of paying business taxes sounds like something you don't want to navigate through.

    How about property? Maybe you don't know how to buy property or run a rental. Again, maybe it sounds like a gigantic hassle. Home ownership? Maybe that's out of your grasp.

    Anyone can go online and buy gold and silver. Anyone can walk into a local coin or pawn shop and physically possess a piece of gold or silver and get that feeling of accomplishment of "investing." I've done something! But are you buying PMs because you don't know how to invest in traditional areas such as: the market, property, or yourself?
     
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  3. Legomaster1

    Legomaster1 Cointalk Patron

    Not necessarily. I do have shares in Apache corp, but, since silver is relatively cheap right now, I bought some, and am waiting for it to go up in value. It is highly unlikely that silver price will sink below $15, so silver might not be a bad investment.
    About property, prices in my area (Bay Area) are grossly inflated. Back in 2008 people were dumping property, but now, there seems to be a boom in housing prices.
    If buying property, I am personally waiting for prices to go down, and so are many other people I know. Now, because the housing market has already reached the top, speculators realize they will not be able to make as much money. Altogether, in my opinion, it's best to be patient with property purchases. After all, the housing market (like numerous other things) is a bubble. Another problem with property (at least in the CA)- HOA. And in some other places in CA- "mello roos". One of my friends said it best: "HOA and mello-roo=forecloseroo"
     
    Last edited: Mar 6, 2019
  4. Nicole113

    Nicole113 New Member

    I agree with Santinidollar.
    I also buy gold to enhance my investment portfolio. I've done a lot of research for price matching online and I found Bullion Exchanges to be the best.

    [Link removed due to suspicion of potential spam. Apologies if this was a legitimate, unsolicited third-party testimonial. I did leave the company name there. Since you're a new member I felt I would err on the side of caution. ~Moderator]
     
    Last edited by a moderator: Mar 7, 2019
  5. Santinidollar

    Santinidollar Supporter! Supporter

    Gold is a small hedge in an overall investment portfolio.
     
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  6. rte

    rte Well-Known Member

    You didn't let us know where you fall in line with the questioning?
     
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  7. Legomaster1

    Legomaster1 Cointalk Patron

    Exactly. I provided an answer, but the question itself is very negative. "Maybe that's out of your grasp". Rather than asking "Fellow forum members, what do you invest in?" the question seems like the statement that "If you do not have stock, or own property, then you are either afraid, or lack knowledge in investing."

    All in all, I think PMs are a better investment than Bitcoin right now.
    I've been considering purchasing Amazon shares when I am able to, but, they've already passed the $1,500 mark.

    And, @myownprivy, what's wrong with PMs? I believe we had a fellow CT member talk about how he mortgaged his house to purchase gold, and, when gold went up in value, he sold it. Sure it's a bit extreme, but, if the price is good, why not purchase precious metals?
     
  8. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    If one purchases physical metals because of belief of a world wide meltdown of civilization and only metals will be valuable -or- that we are in deep dip of the "actual " worth of an ounce of gold , silver , platinum, radium, etc. and it will go up 3 fold someday, it is like winning the mega, someone does well ( but usually the dealers).

    If it because you like the glitter and shine , and you can defend its purchase as the family eats peanut butter and WW2 Spam, at least you have a good reason. Spam is fine with pineapple!

    For that one person who sold at a peak, there were 1000s that did not sell and rode it to the bottom , expect a reversal any day now.....and probably won't sell again then as they have it physical and not paper and can liquidate in a few seconds.

    IMO , no offense intended to anyone. I have some gold and silver , but a very well defined minimum in my holdings.

    Jim
     
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  9. -jeffB

    -jeffB Greshams LEO Supporter

    Yep, we don't hear a lot from the people who mortgaged their houses to buy gold or silver in 2011 and 2012.
     
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  10. Legomaster1

    Legomaster1 Cointalk Patron

    jeffB: My point was that it IS possible to make some money on PMs. Just need to check on the price every once in a while, and, sell it when it gets to a significant sum.
    Ex: I bought Ag when it was $15 an ounce just like now, and plan to sell it when it gets to at least $30 an ounce. In 2011, Ag was $50/oz, and in 2012 it was $35/oz. It hasn't been doing well in the past 5 years though, as it has been drifting around $15-$18.
     
  11. green18

    green18 Sweet on Commemorative Coins Supporter

    Nope. I buy them because they're shinny and pretty and my favorite color is blue.......
     
  12. Collecting Nut

    Collecting Nut Borderline Hoarder

    I buy them as another for if investment. I call it diversification. I also buy them because I can.
     
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  13. imrich

    imrich Supporter! Supporter

    Fortunately as an insomniac who has generally always had less than 4 hrs sleep/night, and able to multi-task many "opportunities", I've generally virtually done it all, learning the pit-falls of society, and the realities of actions (or lack there-of). I can explain in depth the down-side, and probability there-of in practical realization. NOTHING VENTURED, NOTHING GAINED!

    Life is an illusion! We arrive/depart with nothing! Your practical learning cycle and application there-of generally determines success/failure. Don't be afraid of failure based on improbabilities, or others judgement. We only need to live with ourselves, and my experience has been if you're successful at that, many will follow. We are fallible, accept that, and just try to "beat the average".

    I've lived a wonderful long healthy life, and encountered many beautiful companions/treasures through a diverse philosophy that we have very little control. Do what you enjoy, in which you can naturally succeed. If at 1st you don't succeed TRY SOMETHING ELSE. I believe all of gods creatures have instinctual natural abilities, some have many, others have few. Even an Albatross can soar and land. Accept your failures, well as successes, and try to only repeat the later.

    It can take maaany hours of observation to be very successful in collecting, but believe me, it can be done. Don't be afraid of a challenge, the opinions of others.

    Look at our illustrious "LEADER"!

    JMHO
     
    Last edited: Mar 6, 2019
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  14. rte

    rte Well-Known Member

    Analyze this scenario,.
    Buying PM's with casino winnings.
     
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  15. Legomaster1

    Legomaster1 Cointalk Patron

    I know that the ship sailed. Even when Amazon was $200-$300, I was a broke college student. So, I guess I couldn't get on that "ship" to begin with.
     
  16. rte

    rte Well-Known Member

    I know a guy that keeps telling a story about how he bought a bay liner boat that was in the shop till it got repossessed instead of buying apple stock.
    He blames his wife for the bad financial advice and says it cost him over 500k:D

    I told him it don't work that way,...Just because you made a bad investment it doesn't still add up to what could have been losses :rolleyes:
     
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  17. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Bullion investing would probably make sense if the holder would SET a reasonable sell price and do so when it happens, then set a reasonable buy price and wait .......to buy at that, rather than a random buy price and repeat. It is not as much fun as randomly buying and selling, but at least your gains would be within your expectations or not at all.
    The public is playing against the miners and the exchanges. The miner only mines when there is too little gold on the market or in exchanges, and the price goes up. Then the bullion dealers proclaim, " The mines are going full force and can't keep up, the price is going to the moon, buy now, now!" So people buy, then the stored gold that the miners , exchanges, and bullion dealers have is cleared at the highest prices, and " rinse, repeat, get rich for the owners routine" repeats. It should be easy to sell on the way up , as most would make money, and buy on the way down, as most would use less money,.... But most do the exact opposites,, which is why most mine owners , bullion dealers, and exchanges are wealthy and most bullion "investors" are not. In the weekend paper, the ad for Federated Mint had 1/2 ounce "Heavy" silver bars stamped California were available for a short time for $59 each with specials for bags......ad was specifically directed to older , uneducated, people to leave a treasure for their grandkids,,,,,,It is companies like that killing bullion investing. Buy for pleasure, not investment. Jim
     
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  18. Numiser

    Numiser Active Member

    To answer the OP's question, no.
     
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  19. crazyd

    crazyd Active Member

    Everyone has their investment ideas. I have a modest 401K, getting some shares in the company I work for now, and maybe enough PM right now to buy a low mileage used car. By the time I retire I suspect - enough PM to get a nice brand new car and then some - so not a huge amount - just a emergency stash and a hobby I enjoy..

    However my biggest investment has been my home - and it will be paid off and upgraded they way we want by retirement. If I followed common investment advise I would not have renovated and accelerated my home loan to pay off early - and put more money in the stock market - but instead I am dealing with a shorter loan and larger mortgage payment- because there is security in having a nice roof over your head and no payments. When I have seen people hit hard times - housing loss is usually the one biggest pain and loss I see - even if they lost all there money in a stock market crash - its the home loss that hurts. The second is lack of decent medical coverage (insurance). So I invest with that in mind.
     
  20. juris klavins

    juris klavins Well-Known Member

    BEx charges sales tax thru their site, but not on eBay - Monument Metals charges no sales tax (yet) - MM's prices are a few $$ higher than BEx's, but the sales tax factor makes me prefer MM.
     
  21. PassthePuck

    PassthePuck Member

    I invest in the Stock Market, but not in gold or silver, but in Medical Marijuana. I turned my $34,000 into $400,000 by just investing in the marijuana pot sector. There are 100's of company that are hoping to attract investors. Be careful of shark in festered water. Canada markets just opened up and investors are finding out some companies are not what they say they are. I only invest in companies that have been around for a while...at least 10 years or more. They are more stable, and have crossed those shark filled waters. As for coins, it's a hobby!
     
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