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<p>[QUOTE=&quot;fools_gold, post: 705790, member: 20669&quot;]Hey coleguy,</p><p><br /></p><p>Eventhough I am new to the world of PM&#039;s, here&#039;s my take on gold/silver and why I am buying physical.</p><p><br /></p><p>1) Well you can&#039;t eat FRN&#039;s either so I don&#039;t think anyone would want to eat PM&#039;s or FRN&#039;s. :eat:</p><p><br /></p><p><br /></p><p>2) You&#039;re right, you can&#039;t use it directly to pay for gas, or bread at the local store. But my purpose of purchasing PM&#039;s is to preserve purchasing power &quot;long&quot; term. Is this speculative? You can say that, but compared to FRN&#039;s and stocks, I no longer trust paper and the people&#039;s confidence in that paper. Gold and silver is tangible and there&#039;s real value to them rather compared to simply hitting the print button at the Federal Reserve.</p><p><br /></p><p>3) Anyone who completely wipes out their cash for PM&#039;s is a fool. You will find yourself stuck with items you can&#039;t pay for directly. I created my own calculation of having 1 years worth of cash in the bank for daily living if I end up not having a job and had to live off cash. The remainder of my cash goes directly to physical PM&#039;s. (i&#039;m a believer in that if you don&#039;t hold it, you don&#039;t own it.)</p><p><br /></p><p>4) I can&#039;t vouch for this, but I assume there will always be buyers for gold no matter what timeline we are looking at. For example, people who bought gold at $255 in the 2000-2001 period. I am sure that some people felt if gold ever hit $1,000 things will be so bad, no one will purchase your gold at $1,000. Well, you can still sell your gold at pretty close to spot price now. And I assume if gold ever reaches $2k, $5K etc, it will still be the same thing. </p><p><br /></p><p>5) I don&#039;t look at PM&#039;s too much as a way to profit off of them, but if they skyrocket, that is what will happen. But say I bought gold at $255 and I sell at below spot for say $950 instead of $1000. Some may or may not agree with me, but I&#039;m not going to cry over $50 when I paid $255 for them. Especially if I&#039;m selling at volume. I know there are penny pinchers out there who would not sell for too far below spot, but I just don&#039;t think that way....</p><p><br /></p><p><br /></p><p>6) I think that&#039;s about it, sorry for the long rant....</p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p>I HOPE that the gov&#039;t does not take our gold. But if I recall, for WW2, was it mandatory or volunteer? I think we need to make sure what happened first history wise.</p><p><br /></p><p>If PM&#039;s are through the&nbsp; roof at that point, say $5K 1oz gold and $100K 1oz silver, and the gov&#039;t made it illegal to own these metals and will pay face value for them, I think a lot of people will cash in. I&#039;m not going to jail because of PM&#039;s, and what do I care if they are giving me full value anyways?</p><p><br /></p><p>BUT, we would all be screwed if the value skyrockets even higher say $15,000 for 1oz gold and $500 1oz silver....</p><p><br /></p><p>But again, I&#039;m not going to risk prison time for metal unless the entire nation revolts, but considering most people still have their heads in the sands, I don&#039;t think we will get that many people revolting for the owners of PM&#039;s in general....[/QUOTE]</p><p><br /></p>

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