Downsides to precious metals?

[Angie]

Physical dollars will be (all but) worthless when the SHTF. These PMs are not for use as currency today, but they are a store of value that will be worth considerably more in the days/months/years to come, when fiat currency fails, which it has always done throughout recorded history.

Physical dollars are worth less every single day.

If you had $50,000 in cash in 2022, it has lost $6000.
If you had $50,000 in gold in 2022, it has gained $16,500. (that is at it's height in Jan 2022 when it was $2000/oz, not in the following Sept when it was $1650/oz)

 

[sobo]

Physical dollars are worth less every single day.

Absolutely, unequivocally, inarguably true.

If you had $50,000 in cash in 2022, it has lost $6000.
If you had $50,000 in gold in 2022, it has gained $16,500. (that is at it's height in Jan 2022 when it was $2000/oz, not in the following Sept when it was $1650/oz)

Gold's spot price today is $2,954±, which is a fair bit more than $2,000/oz back in January of 2022...



Using your metric of $2,000/oz of gold and having $50,000 of it in January 2022, then that same 25 oz of gold has gained $23,850 at today's prices, not $16,500.

Calculation:
$50,000/$2,000/oz = 25 oz (original investment)
25 oz x $2,954/oz = $73,850 (current value)
$73,850 - $50,000 (current value - original investment) = $23,850 increase in value in 3 years.

 

[eddiek]

Crazy how much silver has gone up .

 

[Martini_Up]

While there are benefits to bringing manufacturing home, the balancing the trade of deficit weakens the dollar. Weak dollar means our price for PM goes up. Watch the correlation of tariffs and PM prices. Heck, that stagnant as heck platinum is even over $1000 / oz in like forever.

I don't invest in PM's, I speculate. And I'm pretty diversified in my speculations, hehe!.

 

[Cavedweller]

Gold tops $3,000 mark. More upside from here?

Gold futures sustain above $3,000 as spot gold reaches historic milestone

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com

Gold may consolidate after surge to $3,000, but prices will likely rise higher – Saxo Bank

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

www.kitco.com

 

[Ducati_Meister]

Big reason watch manufacturers like Rolex raised their prices a fair amount in January because of the Gold prices. They are the largest Gold user in Switzerland.

 

[Mikej]

Big reason watch manufacturers like Rolex raised their prices a fair amount in January because of the Gold prices. They are the largest Gold user in Switzerland.

Oh no....Wait...I don't wear a watch. Phew! That was close.

 

[Ducati_Meister]

Oh no....Wait...I don't wear a watch. Phew! That was close.

As trained watchmaker, naturally I wear mechanical watches, despite me working with RF electronics all day long.

 

[WellFed]

There once was a quote that said "A silver dollar could buy you a good meal, a drink, and still leave you with change." Oh how things have changed...

 

[Camelfilter]

There once was a quote that said "A silver dollar could buy you a good meal, a drink, and still leave you with change." Oh how things have changed...

A silver dollar has roughly .8 troy ounces of silver. At today's silver rate, roughly $33.70/ ounce, one silver dollar would be roughly $25 fiat dollars.

While obviously not a "nice dinner" out, $25 should buy a decent filling meal today. If one looks & spends wisely...

 

[Bolt_308]

The only downside I see is storage. I have some PMs, mostly silver but some small quantities of gold and platinum. I grab good deals when I can and when its (hopefully) low.

I see storage of silver and gold as an UPSIDE- gives you the excuse to BUY A PIRATE TREASURE CHEST!! You know, like a PIRATE . . .

Here is the one that I bought from Amazon, and currently have all my PMs stored in it. #NotKidding!

Amazon.com

 

[sobo]

I see storage of silver and gold as an UPSIDE- gives you the excuse to BUY A PIRATE TREASURE CHEST!! You know, like a PIRATE . . .

Here is the one that I bought from Amazon, and currently have all my PMs stored in it. #NotKidding!

Amazon.com

View attachment 2058337

That looks like some nice booty!

 

[Bolt_308]

That looks like some nice booty!

 

[Jay Walk]

They are measured in US Dollars.

 

[Bacchus]

I see storage of silver and gold as an UPSIDE- gives you the excuse to BUY A PIRATE TREASURE CHEST!! You know, like a PIRATE . . .

Here is the one that I bought from Amazon, and currently have all my PMs stored in it. #NotKidding!

Amazon.com

View attachment 2058337

Can you get those with a digital keypad ?

 

[Mono1]

Gold $3,054 at the moment. 3/19/25

 

[gmerkt]

Physical dollars are worth less every single day.

Mrs. Merkt informed me just tonight that Dollar Tree has announced new pricing of $1.50 and $1.75.

If you had $50,000 in gold in 2022, it has gained $16,500.

For the moment, anyway. Most of my gold was purchased between 1999 and 2019. I can't help but think a gain of 45% in one year has outstripped inflation. So for now I'm on the sidelines until some of the FOMO momentum dies down. But I may be sorry for it later.

Back around year 2000, one of my fellow employees said to me, "Gary, I can't believe you're so stupid as to buy gold. It doesn't pay interest."

I don't invest in PM's, I speculate.

Some people consider it gambling.

Gold tops $3,000 mark. More upside from here?

Wait and see is all we can do.

I don't wear a watch

I can't do without one. Already I don't know what day of the week it may be. My battered old Seiko can tell me that. A fancy watch is just one more thing to worry about.

 

[Mikej]

Mrs. Merkt informed me just tonight that Dollar Tree has announced new pricing of $1.50 and $1.75.

Thieves have been MURDERING Dollal Tree, Family Dollar and other's profit margins. I have a feeling that there are never more than two employees in these places.

But I'll/we'll be hearing that it's "Trumps" fault I'm sure.

 

[Mono1]

Back around year 2000, one of my fellow employees said to me, "Gary, I can't believe you're so stupid as to buy gold. It doesn't pay interest."

You did good Bro! I bought a bunch in '99 as well and still have the receipt for it that makes me laugh when I look at it.

If I remember correctly, I think it was the Bank of England that precisely nailed the bottom when they dumped all their gold!

 

[gmerkt]

Thieves have been MURDERING Dollal Tree, Family Dollar and other's profit margins. I have a feeling that there are never more than two employees in these places.

Yeah, their business model is a tight one. Chronically understaffed, boxed merch piled in the aisles, floors never swept.

It would be difficult for them to stay in business if they locked everything up in cabinets, like is happening to some classes of merch in other stores. With nearly everything the same price, how would they decide what was valuable enough to lock up??