What to do now?

So there is another haywire thread about the price of gold now and why that is happening. I am more interested in WHAT should be done about it. Today good old ben said that QE3 is still on the table. Of course, gold bounces back to close to 1700/oz. My question is our monetary policy about to change anytime soon or are we just going to print money like its going out of style leading to the inevitable destruction of our fiat currency. As of now I make only 50K yearly, so the idea of buying gold coins is impossible to me. Therefore, i'm more of a silver bug. Should i continue buying silver now, or do you guys think the economy is turning and eventually the fed will raise rates. To be honest, my profession by default makes me horrible with money, so i would love your opinion. Oh and please keep the politics out of this thread. Thanks

 

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My opinion....buy a few world history books on financial systems and see what people have done in the past and what worked and what didn't and make your own decisions. All you'll get here is 50 people with 50 different ideas and each says theirs is the best.
Guy

 

Are you a musician? :smile. I think some exposure to PMs within a balanced investment portfolio is a good idea regardless of monetary policy. TC

 

Nobody can tell you whether you should buy silver or not. That is a decision based on your personal goals, stage in life, money situation, etc.

Since you are a bullion buyer that at least indicates that you are not a blind follower of the status quo and to that I would say that nothing has changed. The central banksters have consistently broken every rule that they have made for themselves because none of their tricks work now and they are left with just papering over the carnage they have already caused. The economy collapsed 4 years ago but instead of letting the "free market" i.e. real capitalism and the bankruptcy laws handle it, they decided to step in and intervene in an futile effort to maintain the status quo.

Nothing's changed, there have been no problems fixed, and if anything the TBTF banks are even more TBTF because they have been used as a huge sponge to absorb all the currency being created. (And profiting quite handsomely too if bonuses are any indication.) The real problem is the real economy has not recovered and anything that isn't getting free financing or some sort of bailout from the government, is slowly dying while millions of people continue to get laid off. Until those issues are addressed, then expect the central banksters to continue to bring us QE to infinity. Anyone studying how QE actually works would be wondering why people are not being put in jail.

So digest that tirade. IMO, nothing has changed. Consider the dips, buying opportunities.

 

Don't give up on buying some 1/10 oz gold eagles. Less than $200 each, and easy to sell.

 

I'm still buying silver when I find good deals, and see no reason not to set aside some money for metals. I know that these price swings and uncertainty are hard to handle, but timing the market is really really really difficult. I've bought when I'm comfortable paying a certain price, not when others tell me to BUY BUY BUY. This combined with only putting money that I can afford to lose into metals means there's not one precious metals transaction (buying or selling) that I regret.

There is no substitute for DYODD (do your own due diligence), so I agree with the suggestions above regarding educating yourself. I'm no expert and have only been paying attention to metals for a decade or so.

 

Jim Rogers says that QE3 is and has been happening for some time now:

http://jimrogers-investments.blogspot.com/2012/02/qe-3-is-already-taking-place-look-at.html

I don't see it. The Fed has to maintain ZIRP for the foreseeable future. If interest rates rise materially, it will be impossible for the Federal government to maintain the rolling debt service. Foreign countries have curtailed buying of US Treasuries and the Fed has to step in (directly or via their proxy banks) to make up the shortfall. The rest of the world is actively working on setting up alternative payment systems in anticipation of the demise of the petrodollar. YMMV.

 

You make over 4 times what I do per year and I manage to buy a few oz of gold per year. If I can do it you can do it hehe.

 

Yeah but you don't know what type of bills they have, if they have any dependents, etc. If I made 50k a year, I'd have to get a second job, 50k a year wouldn't pay most of my current expenses.

 

What are ya doing drinking 200 year aged scotch with diamonds for icecubes and 10 strippers wrestling in jello every night? O.O

 

Oh the investments I could make with a extra 50k a year. I could retire in like 3 years O.O

 

Perspective, fellow. I have a friend struggling with $100k per year. He has 4 kids, monster mortgage and even bigger college loans. I have to presume you do not.

 

Exactly. Now I don't have monster mortgage, (maybe a medium monster), or college to pay for yet, you would be surprised how fast $1500 a week take home can go. No one knows the other person's bills.

Heck, if I made 100k I would think about a second job.

To the OP's question, my only advice is to diversify. Its not bad having assets that will protect you from disaster, but you also need "protection" from a possible recovery. Nothing is worst for you financially than sitting on the sidelines watching a bull market stride right on by, while you are sitting on "safe" assets not growing. Try to position yourself to benefit regardless the economic conditions prevalent.

 

Sure don't. All my houses paid for in full never got loans, same with cars I just pay for them in cash, I don't even own credit cards. All those mortgages and loans are a trap to enslave a person. Credit is the modern form of slavery, the bank sucks you in and now your hard work gos to fill their pockets because until you pay them off they own you.

 

Heck, if I made 100k I would have over a million saved and put away within 5 years . (well id have it invested and not actually in liquid cash but you get the point hehe)

 

Maybe you could, but I have to feed, cloth, provide transport, shelter myself and two others, while paying MN taxes! Not as easy as you would think. About 40% of that is taken away from me before I can even see it.

 

Well I got ya beat on the property taxes, all my houses and property are in CA

But yes its just me I really need to take care of (and the occasional phone call from my mother needing money lol)

 

That's quite a rate of return, you should start your own mutual fund.

 

Oh, I see. You're talking about fantasy investment, not the real-life kind where you actually have to earn the money before you can invest it, and have to be subject to real-world returns.

"If I made 100K and didn't have to spend any of it, I'd have over a million put away within five years, because I'd know how to invest it all in vehicles that consistently returned 25% per year. Just ask my wife, Morgan Fairchild."