Gold Investing Poll

The purpose would be to preserve his wealth if he were to make a bad investment.

 

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Isn't it possible to make a bad investment in gold too? For example, buying 1-3 years ago and selling today?

Isn't it possible that buying gold at $1200/oz will be a bad investment as well? i.e. Gold drops back down to $400 an ounce and stays there for a generation or two.

 

You were on the right track until "...or have an investment firm store it for you..."

Like Tulving?? You...need...gold...in...your...personal...possession!! Look how many of the banks and brokerages and financial firms have paid multi-million dollar fines for various scams against their customers and colleagues. When the crunch comes, who do you think gets the preferential treatment? Not some prole with 6 ounces, that's for sure. It's the mob boss or the money-laundering guy that mails the CEO of the investment firm a severed human ear and says, "...you'd better cough up ALL our gold NOW -- you've got 48 hours or else...WE are at the top of your list, sucker!"

The SDB is unfortunately the "best" option for many of us. I personally think there's about a very small chance of confiscation of PM's in my lifetime, and/or if not confiscated, at least a prolonged period where you can't get at your PM's when you'll need them the most.

All this is impossible to predict, I'm telling you what I believe. If I didn't believe it, I wouldn't buy PM's in the first place, I'd use that money for gorgeous collector coins, U.S. and Canadian cents and half-cents and CWT and HT tokens like I aspired to, some 50 years ago.

 

The world runs on Gold so the likelihood of the scenarios you presented have a chance of .01% chance. I've heard that the Central Bank in NY recently confiscated Gold from Ukraine. The reason being is that Ukraine could not pay it debts so we took the collateral and that collateral was Gold Bullion.

So that is another thing to add to the list. Even if Gold goes down from when you bought it you can still use it to your advantage as Collateral.

 

Blaubert.................YES. There's some risk. If it were a sure thing, everybody would be buying PM's. But to my way of thinking, holding Dollars has higher risk.

 

Part of this wealth preservation that you speak of is the idea that the economy could collapse to such an extent that most retirees who were living on their retirement savings would need to return to the work force.

I guarantee you that no financial event will ever force Warren Buffet to take a day job. First, when stock markets collapse, it's not the billionaires that end up losing 99% of their savings. They are the first ones out of the markets and are a large part of such collapses.

But, let's say he wasn't able to sell off his stocks fast enough and he did lose 99% of his investments in the market. He'll still have $600 million.

If he did really, really bad, and lost 99.99% of his investments, he's still got $6 million.

Also, Warren Buffet is an aggressive investor who seems more interested in growth than preservation. Maybe when he approaches retirement age, he'll switch strategies to conform to your advice.

 

"The world runs on gold"? The total value of all gold in the world is what? Maybe 1% of liquidity, if that high? Last I saw the USD was the prevalent settlement amount instrument. As far as anyone impounding Ukrainian gold to pay outstanding bills, please post an article. UNless the gold was specifically pledged against a debt, it would take years of court cases and sovereign bankruptcy for such a thing to occur.

 

ehh.... dollars don't lower in value half price in the blink of an eye.

 

The total value of all the world's gold according to the article is roughly 9 trillion U.S. dollars.

 

An extreme example but I see your point. Having a Bank or firm store your Gold is an option that one may consider. Personally I'd have it in a place nobody would be able to find it. Throw it in a safe bolted down to the floor in a hidden room of some sort or put in in a canvas bag or chest and bury it in your crawspace. Use common sense when hiding your stash make sure it is hidden or someone is going to steal it. For example don't put the safe in your living room.

 

What I meant by the world runs on Gold is that Governments are kind of screwed when they don't have anymore Gold. Gold is an important part of modern finance.

As for the ukraine thing. I was only repeating what my boss told me the other day.

 

Josh, just letting you know, I have never read about a sdb being robbed. Maybe it has happened, but it would be extremely rare. Now, every day I read about people's gold jewelry being robbed in a burglary, coins being stolen in the house, etc. I looked at this long and hard a few years ago and went the sdb route. A safe, properly bolted to the floor, with walls around it preventing access to the door jam, is a good fallback position IMHO.

However, I 100% agree with Doug44 regarding third parties. I have been around pm for quite a while now, (maybe not as long as some, but longer than most), and it seems every year there is a story of a pm firm screwing their customers by selling off customer pm to finance a lavish lifestlye. IDK why pm attracts swindlers and thieves, but it does, and it always has, and probably always will. I would never, ever trust a firm to store my pm unless it was a CME bonded warehouse. To send money into a pm firm with their promise that they will buy it and keep it for me is pretty darn close to flsuhing the $100 down the toilet IMHO. If I am going to buy physical pm, I will take possession of it, and put it in my sdb. To me, that is the safest route all around.

 

I would fire your boss, if i were you.

 

heres that ruby I was talking about, gold fine, but gems are better

 

And not mentioning you did so on CT or any other forum, nor show photos in your posts with out removing gps information ( cell phones are good at sending such info with photos and posts).

 

Good point. Btw, even if I did keep coins at home, and didn't own a sdb, I would still say on a public internet forum that all of the coins are in a sdb, right? That logic, which I believe is sound, always shows why people should use a sdb. A thief, upon hearing no coins are in the house, immediately becomes disinterested. But, even if I said I had a dog, or a safe, or a correctly installed safe and a pack of dogs, some thief might be contemplating it. With a sdb, I save him the hassle and let him know he will never be able to get them, no matter how "clever" he is.

 

Actually, I doubt Buffet has much if any gold. As a major stockholder and employee of Birkshire Hathaway, I read his annual report, and he has said for as long as I've been receiving the reports, that gold is a terrible investment. I tend to believe him, and for good reason.

 

just tell everyone you have one of those sentry turrets from call of duty protecting your safe.

 

Peope often see investments as an easy way to gain and lose money. Investing in Gold preserves wealth rather than build it like stocks and bonds do. Buffett is trying to manipulate people so that he and his buddies can buy more Gold. Right now the wealthiest people and governments are buying up all the gold they possibly can and for good reason.

 

How much tinfoil are you hoarding?