Downsides to precious metals?

[Lazyfaire]

That was the Hunt Brothers

Both right. It was the Hunt brothers, and one of them was named Nelson. Price got up into the $50+ range and then collapsed stranding many people at "buy high sell low".

 

[Burt Gummer]

Banks, PM paper, all a fraud game imo. Because of them marketing themselves as the good guys for decades the banksters ....... are just trying to help you out ..... no one can grasp this guy is 100% correct.

Through the middle ages right up to the mid-later 1800s, banksters would be tortured and killed - hung from light posts for stealing people's lands or other frauds. Not today though. Wells Fargo cares about you!

The greatest, next mass theft of wealth will be blamed on a Cyber Attack. They need all us useless eaters to start off in the brave new world adventure with the same amount of currency (CBDC in fact). Then you will be assigned XXXX amount and that goes up and down dependent on how good a compliant slave you are in the global bankster's calculations.

 

[MJGCamper]

Since 1970 the price chart on gold reveals it's average return to be around 10% per year but, there are groups of years when it either goes down or does not do much and has had longer periods when you sometimes have to wait several years to catch up to the average 10% return again. Does not mean what the future will hold... just saying.

 

[billdeserthills]

The biggest downside to precious metals is in selling them...

 

[GrayGoose]

The biggest downside to precious metals is in selling them...

Buying them and selling them both are the biggest downsides.

When you buy, you're forced to pay more than spot price, then when you sell you get less than spot price. It's a lose-lose if you're not the dealer who makes money on both buy and sell.

 

[hongkong2]

Banks, PM paper, all a fraud game imo. Because of them marketing themselves as the good guys for decades the banksters ....... are just trying to help you out ..... no one can grasp this guy is 100% correct.

Through the middle ages right up to the mid-later 1800s, banksters would be tortured and killed - hung from light posts for stealing people's lands or other frauds. Not today though. Wells Fargo cares about you!

The greatest, next mass theft of wealth will be blamed on a Cyber Attack. They need all us useless eaters to start off in the brave new world adventure with the same amount of currency (CBDC in fact). Then you will be assigned XXXX amount and that goes up and down dependent on how good a compliant slave you are in the global bankster's calculations.

This scam is called Fractional Reserve Banking, look it up.

 

[Burt Gummer]

I know a guy selling 300-400 .999 coins for $26/e if anyone is interested

 

[Certaindeaf]

Buying them and selling them both are the biggest downsides.

When you buy, you're forced to pay more than spot price, then when you sell you get less than spot price. It's a lose-lose if you're not the dealer who makes money on both buy and sell.

This is why people like to dig it out of the ground or steal it.






reeeee! lol

 

[Nick Burkhardt]

Remember that the money changers always get their cut.

 

[Bacchus]

My house built in 1978 sold for $28k and due to inflation its value in today's dollars is $350k. What was the rate of inflation over over 44 years ... ?

I calculate 5.908% per year. It doubled every 12 years over the 44 years.

 

[Bacchus]

I know a guy selling 300-400 .999 coins for $26/e if anyone is interested

That's a lot of coins. Kitco price for silver is $24.26 today, so I think that is a very fair price.

Silver has gone up about 10% just since the beginning of March.

 

[gimpwheelz]

IMO, there is no downsides to PM's other than the perceived opportunity cost that the fiat mindset can suck someone into. Watching bitcoin and nvidia go up is only a distraction to the impatient and undisciplined. PM's are money and the dollar is not. Stack away and realize you are in this for the long game.

 

[Burt Gummer]

@Bacchus That is/was the MELT price. No dealers sells silver for melt, they will BUY at melt or lower depending on their mood. Indian or other generic coins usually are $2 over melt and Gov't minted coins $3-4 over.

 

[Bacchus]

@Bacchus That is/was the MELT price. No dealers sells silver for melt, they will BUY at melt or lower depending on their mood. Indian or other generic coins usually are $2 over melt and Gov't minted coins $3-4 over.

I understand that, I was just saying that the premium (asking price minus spot price) your friend was asking for is very fair and reasonable.

 

[Jay Walk]

When cash is no longer good you can buy a loaf of bread with a $2,000 gold piece.

 

[Howard1955]

When cash is no longer good you can buy a loaf of bread with a $2,000 gold piece.

View attachment 1840658

Yep. The downside to having precious metals is: You can't eat them.

The upside to having precious metals is that you'll probably - maybe - be able to buy food when times get bad.

 

[Jay Walk]

At the U-scan too.

 

[Bacchus]

When cash is no longer good you can buy a loaf of bread with a $2,000 gold piece.

This is where silver works better than gold, bartering for small value items.

A good example is "junk silver", which is US Mint dimes, quarters, half dollars minted prior to 1965. At today's spot silver prices, a junk silver dime costs $1.73; a quarter $4.33; a half dollar $8.66. Each $1.40 face value in coins (e.g., four quarters and four dimes, or fourteen dimes) contains 1 troy ounce of silver, which at today's spot price is $24.26 per troy ounce. You generally have to pay a premium over that if the seller wants a profit.

So you could reasonably pay your neighbor one junk silver dime for his loaf of bread, at least at today's values.

SD Bullion is offering a roll of 50 junk silver dimes for $104.17

SD Bullion dimes

which is worth $86.64 with today's spot price. 24.26 * ($5.00 face value / $1.40 ), so you're paying $17.53 premium, which is about 20% over spot. This is a big-time online bullion dealer selling at this price, you might be better off buying from a local coin or bullion dealer. You're much better off buying from Burt's friend, he only wants 7% premium.

 

[Bacchus]

Yep. The downside to having precious metals is: You can't eat them.

That is also true of dollar bills, diamonds, and stock market certificates.

Or maybe you can eat dollar bills, if you use enough barbecue sauce.

 

[Alexx1401]

This is where silver works better than gold, bartering for small value items.

A good example is "junk silver", which is US Mint dimes, quarters, half dollars minted prior to 1965. At today's spot silver prices, a junk silver dime costs $1.73; a quarter $4.33; a half dollar $8.66. Each $1.40 face value in coins (e.g., four quarters and four dimes, or fourteen dimes) contains 1 troy ounce of silver, which at today's spot price is $24.26 per troy ounce. You generally have to pay a premium over that if the seller wants a profit.

So you could reasonably pay your neighbor one junk silver dime for his loaf of bread, at least at today's values.

SD Bullion is offering a roll of 50 junk silver dimes for $104.17

SD Bullion dimes

which is worth $86.64 with today's spot price. 24.26 * ($5.00 face value / $1.40 ), so you're paying $17.53 premium, which is about 20% over spot. This is a big-time online bullion dealer selling at this price, you might be better off buying from a local coin or bullion dealer. You're much better off buying from Burt's friend, he only wants 7% premium.

I have been laying aside a little silver here and there for a while now and if I ever need the cash out of it will probably try to sell it direct first. Would work fine for me even asking melt price. Buys of course may be a little leery buying from a person but if I sell at melt they would be getting a good deal. I bought all of mine from JM. When I buy I wait till something they have is less than $3 an ounce over spot which is quite often. They will buy most of what I bought from them over the years back at melt but, I would of course have to pay to get it back to them insured and all. I have long figured I would never really make money on it but, figure it will never be worth nothing either. So nice to have some.