True or False

i'm lookin at investing in PM's mainly gold and platinum so this was an interesting thread.

 

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My only contribution to this thread would be this:

I've bought as much gold and silver as I can afford, which is actually very little -- because those of us without any retirement plan, without any savings and with only our personal residences as investments have very little to "invest."

I'm also selling everything I can on eBay (collector plates from mother-in-law's estate, anyone? :rolling: ), planning to sell my home soon and build a small place in the country that uses Solar power, with a deep well, and thereby reduce my "carbon footprint" and liability for high C&T energy taxes. Call me a conservative survivalist: I want my money to survive the high energy taxes that will hit me just as I try to retire.

And, BTW, I think the S has already HTF. It happened back in November, '08. I believe it will also hit all of us, eventually. So, I will continue to buy gold and silver with the eBay and garage sale proceeds.

Okay, let the flaming begin ...

 

What is your opinion of silver? It is dropping will it level off, go up, or continue its slide?

 

Buy low sell high if you can!:eat:

 

If well above normal inflation is your fear - then one of your best move is to incur as much longterm fix rate debt as possible. Then down the road pay it off with deflated dollars.

 

Don't you mean devalued dollars?

 

Inflation deflates the general purchasing power of a currency, deflation inflates the general purchasing power of a currency.

 

It's the terminology you used that's incorrect.
Inflation devalues the dollar. Deflation adds value to the dollar.
Inflation doesn't deflate and deflation doesn't inflate.

Just wanting terminology to be clear; you can't personalize terminology.

Bill

 

BOY! I sure am glad we got that cleared up!

 

Now, back to the regularly hashed issues ...

 

If you don't invest in PMs then what, the stock market? I was lucky enough to get out before I lost 70-80%. Now my savings is in fixed CDs and PMs. It is not the government and MSM that is telling you to invest in gold, they are telling you to go back into the stock market, I think so they can do it again. There should not be shortages in gold. The price should be set such that this is the case. I have been waiting 3 months for some gold I bought to be placed in my IRA -- at least they cant take the money until it's delivered.

Fiat currency is backed by nothing except the law that says you have to take it or the debt is cancelled. I hear folks talking about how they "print" money but in reality they just change a database entry in a computer. IMO until everything crashes they can say gold is whatever price they want it to be. They can also manipulate the stock markets. There is a big flap now about how Goldman Sachs has a program that can execute trades so quickly that they can extract as much money out of the market as they want (using taxpayer bailout money as the initial stake). The crash of the stock market sure "felt" like a cyber attack to me.

IMO the best approach is to have cash, silver, gold, food, guns and ammo. If the banks have a bank holday in September the cash will be good for awhile at first then the rest can be used to either get away or will be valuable in the new economy. If things do recover I don't see how you will be hurt. Even if gold goes down that means the economy is going, the dollar is strong and you should be able to work and make up for any gold losses.

BUT, I don't see how things are going to recover anytime soon. IMO

 

I think what i've learned from this thread is there's manipulation going on from everywhere. The government is pushing for a stronger dollar and the PM dealers for higher metal prices and everyday both move up and down based on who's message sounds best for that particular day. I also realize even more now than ever the whole economy is a big manipulation whether it's Stocks, PM's, Real Estate or the price of Oil and Gasoline. I watched the price of Gas in California in the last month go from $2.60 a gallon to $2.99 in a 1 week period and then back down to $2.75 the next week WTF is that? Ooops sorry that one always gets me worked up. Anyway thanks for all the advice and comments I think I'll hold off a while on the Gold I think there's still some room to go lower but think I'm going to dive in on the Silver with spot under $13.00 seems to good not to invest a little now. :thumb:

 

Dont wait too long!

 

In theory this can work. In practice a lot can go wrong. I might work as long as:

1. The assets purchased with the borrowed money rise in value at a rate greater than the interest on the debt [a decrease in value is economic death].

2. You have such a secure income stream that there is no possibility of losing your job or no possibility of business declining if you are a business owner.

3. The bank, regulators or government don't change the rules to protect the lender at the expense of the debtor.

4. The inflationary rise doesn't spin into a deflationary collapse.

5. The bank which lent you the money isn't taken over. In the late 80s, distressed banks that were forced to merge were permitted to reset rates on loans and/or call them.

6. The economy doesn't unexpectedly return to normal.

This is only a sample. There is no easy way to beat inflation, even with gold.

 

Gold WILL hit $2000 and more. It's the when that is the tricky part. I think it is both good insurance and a good bet for retirement as it's performance history has been excellent. Those that disagree usually look at the peak of the last run up as a starting point -- not when it was $35 when McGarrett was dealing with it on Hawaii Five-o. They say 10% of your net worth should be in PMs. I am a little higher around 20. For awhile there you could get MS Saints for around the spot price. I thought that was a good double play and for now it looks like I was right. Tomorrow, who knows, the kids will probably end up with them anyway...

The most amazing thing to me is looking at one of those Saints and thinking "this used to be $20." Now we toss $20 federal reserve notes around like we are feeding the chickens with them.

Hey, there's always the stock market. Now there's a good bet.

 

WOW! 3 months for delevery of your gold? I think you better find another dealer! I get mine deleverd to my hand within 5 days after ordering

 

Nobody knows what's going to happen, so the best bet remains diversification. Don't load everything into one asset. Buy some stocks, some PMs, land (if you can), save some, etc., etc... just don't buy collector's plates, beanie babies, or save bags of limited edition Doritos (hoarding state quarters also won't help). Diversification will help hedge any coming economic disaster, but since no one knows when or how such additional disasters could strike, don't overload on one thing. Don't be the people in 1929 who loaded their entire life savings into the stock market and then went whooooops...