What percentage of you net worth (not including house etc) is invested in bullion?

We'll agree to disagree on this one. I think at the end of the day, the strength and resilience of the US economy might surprise you.

 

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Maybe so. I don't think so.

However I will point this out. Bullion is the classic hedge against economic failure of an economy. It's nothing more and nothing less. This is a bullion forum so it surprises me that someone who is so positive about the economic state of the USA is participating on a bullion forum.

It's not what people say, it's what they do that matters.

 

Indeed.

 

Hard to Say - about 50% or so?

Excluding my home, I'd say 50%. 90% junk quarters, Silver Maples and a little bit of gold. No stocks, 401k or anything. Don't keep much cash except to pay bills, daily expenses. I live pretty much paycheck to paycheck in other words.

My priority is with bullion considering the current environment. At least it will always have value and be highly tangible. Found this "knowledge center" from a dealer I've made a couple of large orders through ($500) or so. They've got good options and are highly accessible on the phone.

http://www.providentmetals.com/knowledge-center/

 

If I were to redistribute the percentages adding in Real Estate, they would be as follows:

38% Real Estate
8% Cash (includes CD's)
2% PM's (Physical and IShares)
8% Coin Collection
44% Stocks and Bonds

 

How has this been working out for you?

 

I'll let you know in 10 years. This is simply another buying opportunity.

You keep buying high, I'll keep buying low, and we can stack up and compare net worth at the end of our journey.

 

on monday morning ... i upped my gold and silver holdings to 55% of my net worth.
so far it's the best financial decision i've ever made.

 

I would simply say be careful. I know in a bull market it seems you are doing the right thing by buying more into the bull, but everything has ups and downs. This is the value of diversification. If you are good and can time the market, you can make a ton of money in a bull market, but you have to make sure you are not "in love" with it, so as to ride it down as well.

Just friendly advice. I know you are a smart guy Winged, but a lot of smart guys got too wrapped up with tech stocks, housing market, the previous PM rise, etc to see when things had changed.

 

i think silver is massively undervalued (even at $41.50)

i couldn't stand being in cash anymore ... making 0.00000001% (taxable)

gold and silver have become my new cash reserves (savings account)

could we have a big down day? sure ... but it's just another buying opportunity

 

Either stocks or PMs, success is determined by when you sell. The rollercoaster in between isn't that important, just that you get off the ride at a higher point then you got on.

 

This is pretty much how I view it to be honest. I didn't actually plan it that way as such, as I'm primarily more of a collector than an investor. However, answering the question above honestly I think i'm now at about 90% gold/silver and 10% cash. Because all my 'spare' cash goes on coins (after bills, pension & what not are deducted).

So i've ended up with 0 in 'cash savings' (inflation erodes your savings anyhow), I only keep an small extra amount in the account as emergency funds.
I'm only 27, so as I figure it i'll continue putting some gold on one side, because I enjoy collecting coins but also as a bit extra savings for a 'rainy day' when I retire. I'm kind of hoping gold and silver are going to come down so I can buy more and actually start a decent gold coin collection.

 

you sound like a smart guy sylvester ... good for you doing this at age 27!

 

Well, An investment in gold 10 years ago would have resulted in a substantial gain today. An investment in the S&P 500 10 years ago would be a loss today. Before the Federal Reserve printed up a couple of trillion dollars and dumped it into Wall Street (it has to go somewhere) the S&P was around 700. I'd say if you are buying, you are still buying high. Gold? I've made 50 bucks in the gold coin I bought only yesterday. I might just sell it back to the dealer.

 

You made 50 bucks. That's great. I bought the bulk of my gold bullion 7 years ago, when it was trading at around $400-500 per oz.
There were a lot of people laughing at me then too. At the time they were talking about stocks like you're talking about gold.
Just sayin'.

 

I am just pointing out a tech stock investor would have said the EXACT same thing in 1999 Fatima, except changing it to read:

Well, An investment in tech stocks 10 years ago would have resulted in a substantial gain today. An investment in gold 10 years ago would be a loss today. Gold was overpriced in the 1980's, and is still overpriced today. I'd say if you are buying, you are still buying high. Tech stocks? I've made multiple bucks in the tech stock I bought only yesterday. I might just sell it back to the market.

Any different? Just pointing this out to everyone that its easy, (and makes you feel smart), to crow about an investment when its going well, but not many people talk about it when its not. All of us who own PM, (and I own a few thousand ounces of silver), have done well. The key is to decide if we keep them today, or start to diversify. I am staring at some great blue chip stocks selling for way under a PE of 10 right now, are those still horrible buys long term? That is for each of us to decide.

All opinion.

Chris

P.S. I am not trying to pick on you or pick a fight Fatima, simply comparing many PM investors feelings right now to other similar market conditions. I am not saying in PM we are at the equivalent of 1999 for tech stocks.

 

Try reading my response again in the context in which it was given. The response was to a very stern recommendation that gold is priced too high and the S&P is priced too low, and to check again in 10 years. It was very specific. I said exactly what you just did in response, but apparently, you didn't get it.

 

Fatima, I'm not trying to argue with you. Merely trying to open your eyes to a couple of investing maxims that have proven themselves time and again over the years.

1. Buy low, Sell high
2. It generally benefits you, if your time horizon for reaping the profits of an investment, is longer. This allows you the flexibility to decide when to get out.

To my original point, 2004/2005, when gold was selling for $400 was a much better time to be buying gold as an investment than right now in 2011 when it's pushing two thousand.
Right now Ford stock is selling for about $10/share. Bank of America is selling for $6-7 a share. Both these stocks traded MUCH higher than those prices within the last three years.

So, for the average investor, who wants to buy low and sell high to make a positive return on his/her money, maybe stocks aren't such a bad place to be right now. As long a your time horizon is long enough to ride out the inevitable ups and downs.

This is what's called a contrarian philosophy, go against the herd. Buy what they are selling and sell what they are buying, it's worked out for me. I still haven't sold any of the gold I bought 7 years ago. But we're probably within a year of when I'll start considering it.

 

You are stating the obvious and ignoring the practical aspects of doing what you state. It's folly to suggest that a certain investment, i.e. S&P is better than gold or vice versa with the response, "buy high sell low", and you are only providing certain anecdotal evidence, price history, to determine what makes a good investment now. This is where many many investors get messed up. Euphemisms such as "Don't discount the resources of the USA" are not investment advice either. This makes the assumption that the current S&P reflects the industrial output of the USA. This is hardly the case now.

So you really don't need to worry about opening my eyes as I think that you need to take your own advice first. Both the S&P and the prices of PMs are being driven by very specific elements of the economy, none of which you have addressed.

 

Advice is free, you can take it or leave it. Have a great day, I'm out!