1. Ammo and MREs might allow you to actually get to old age versus piles of PMs that possibly people won't want or might just take from you if you lack ammo and guns.The good thing about assets like gold. cash, real estate etc is when you get real old and guess what...SHTF or The Rapture never happen ...you can sell off all that junk to keep yourself alive for a few more years in the nursing home. They dont take payment in ammo or eggs or MRE's.
Sorry to inject reality into the discussion.
Bingo my friend. And for many citizens, it is getting harder legally to acquire every year. FOIA cards, taxes, state permission slips, background checks, bans on internet sales, bans on lead, limits on monthly purchases, etc.... And then there's scarcity during price spikes. We all experienced that several times in the last 10+ years. All of this adds to the hassles, costs, wrongful denials, shortages, etc.I'd invest in ammo any day over silver or gold. It is likely to have a higher ROI than silver or gold and it will actually be useful if anything catastrophic happens. On top of that, common ammo is unusually inexpensive at the moment. I don't expect that to last.
If you don't have craploads of ammo I'd agree. Stock up. But not true if you say, already had over 20,000 rounds of 5.56 and all other calibers pretty well covered. Ammo, and all SHTF items like food, water barrels, etc etc as it turns out, takes up a lot of physical space. $6000 worth of 5.56 is @ 2 feet x 3 feet x 5 feet. $6000 worth of gold fits in the palm of your hand. Nobody is advocating one over the other. For myself, I would be advocating both, perhaps we are on the same page here.I'd invest in ammo any day over silver or gold. It is likely to have a higher ROI than silver or gold and it will actually be useful if anything catastrophic happens. On top of that, common ammo is unusually inexpensive at the moment. I don't expect that to last.
As a hedge against werewolves no doubt.I get two silver ounce coins every Christmas from my parents, they do the same for my kids as well (4 kids). When I turned 20 I started buying silver bullion (1once at a time) and as I got older I started buying silver bars (10oz). I keep them in sealed worn looking pales that can be gunned in plain sight, LOL. One time I was going to cast some lead bullets and grabbed the wrong bucket and almost made an expensive mistake.
Alloy content of the coin is of no significance so long as the net gold content is the same.From what I understand, the Canadian Maple Leaf is 100% gold as opposed to the American Eagle/Liberty coin that is .999999 22k.
Governments have a way of getting in the way sometimes. FDR administration caused a turn-in of gold by US citizens in 1934, followed by a decades long ban on owning it. Kinda took the legal liquidity out of it. There are some federal government reporting requirements for dealers when certain thresholds are crossed. They are supposed to report redemption purchases of over 25 one ounce coins; of over $1000 face value bags of US silver coins, etc. I don't know if dealers typically do this or if the government ever asks any questions later on the basis of this requirement.-I want to keep some money off the books away from government
A good dealer of any size these days usually has one of those electronic scanners that reads the material content being scanned. I've asked that this be done a few times and they've done it for me.-How do I protect myself from getting ripped off even buying from a reputable gold coin dealer in Bellevue? What is a foolproof way to test the gold?
There is always the "spread," the difference between buy and sell.-What is involved in selling gold, will a dealer charge me a fee to buy back?
Many but now at my age, one is that I may forget where I've put it.-What are some of the risks of owning gold?
There is some truth to this. But the big "investors" may be characterized as speculators who are interested in shorter term gain. Small buyers are more likely to be buying gold to hold long term as a form of insurance.a banker buddy of mine said "gold is for major investors" not the average citizen
Right now, I'd say that is a fair statement. The ratio of silver to gold is very wide compared to historical reference.Silver is a better buy.
For this example, you've cherry picked a moment in time where values were askew. Look at more recent numbers to get the opposite view.5k in 2009 bought 500 oz silver (@$10/oz) - By 2011 that same 5k/500 @10 went for nearly $50/oz. $5k got you $25,000.
5K of gold in that same period (@1k/oz.) in gold only brought $1,750 an oz - or $8,750 for that same 5k investment
This is true, to some extent, with many asset types. As one financial guru said recently, "Right now, we live in an expensive world." Meaning, just about everything is being avidly pursued and there aren't many alternatives that seem like a good deal. Time will reveal if some form of major financial adjustment will reverse this trend.Value is akin to antiques. If everyone likes it / wants it, its valueable. When everyone decides they don't like / want that anymore, value drops.
Gold has recovered a lot of the value that it lost in 2011. Silver not as much, ratio is pretty wide right now. Both of those highs came and went fairly quickly which supports the idea that they were artificial. Both have never re-tested the lows of the trough following 2011 so we might consider those low values as a floor in prices. Unless some major deflationary adjustment comes along and blasts all asset classes.Just looking at the last 8 years after a spike, both silver and gold have lost a LOT of value. And their volatility seems arbitrary and unpredictable.
You can't do this. There were reasons you didn't buy when the opportunity presented itself way back when. The few people who did were more lucky than smart.I honestly am kicking myself whenever I think of Apple, Amazon, and Bitcoin. I nearly invested in these and wish I would have, or course. Oh well...
I agree, no reason to pay premiums for coins you want to hold as insurance against difficulty.Stay away from numismatics
Yes, but my concept of owning precious metals retail is basically one of insurance. I don't own them strictly as investments. I have other things that throw off investment revenue. If I am lucky, I will never have to cash in my PM but it will be there for my wife or children to have in case they need emergency money. And emergency can take many forms.The best investments are the ones which generate revenue.
There is truth to this. Best said, a premium paid for coinage eventually goes away. BUT: There is a recognition value in certain coinage. People recognize and favor an ounce of silver minted as a US Government Eagle coin over that of say, a generic silver round.I would recommend that if you are buying precious metals stamped in to coins that you only buy the coins for the value of the actual precious metal therein, not the additional costs of stamping etc., which you won't get back when you sell them (unless you can find someone else who is willing to throw some money away by buying coins at their 'higher-than-billet' price). When you sell it, you will most likely be selling them for the value of the metal by weight alone, not any additional perceived value from them being stamped out in coin form. I strongly share the recommendation of the posters who recommend buying billet metals instead of stamped coins. If you are buying coins at anything other than the straight metal price, you're paying a premium (read: giving your money away) just for having them in coin form, and you're not likely to ever get that back.
This is one of the forms of insurance/emergency I've mentioned. Surely you can't completely rely on "extended health care plans" because most of them only pay a fraction of the amount needed by the time the buyer actually starts claiming against it. Inflation of the worst sort.The good thing about assets like gold. cash, real estate etc is when you get real old and guess what...SHTF or The Rapture never happen ...you can sell off all that junk to keep yourself alive for a few more years in the nursing home. They dont take payment in ammo or eggs or MRE's.
I'd recommend both.I'd invest in ammo any day over silver or gold.
Well, because the ugly fact of government can intrude. There is now ammunition regulation in California, was proposed in Wash. this session but likely not to pass. Who knows how far this will go, but my guess is it won't go away. In both cases, private sale of ammo was prohibited. So you lose liquidity on this asset to some extent if you can't legally sell it.Why can't you sell ammo in your twilight years?
Yes. And who knows what the future will bring. But I myself don't like to buy when the trend seems high. My tendency has been to "buy on the dips" instead of the peaks. I've bought gold at under $300 the oz. And held it for years and years without interest but as a form of insurance that i hope to never need. I've bought gold sporadically over the years since then at higher numbers but when it got into the low teens, I throttled back to see what happens. Lately, I've been more interested in silver because of the historically wide spread.Just noticed it's $1620 an oz this morning.
My in-laws bought hundreds of shares of MS early on over a period of time. It has gone up over 8000% since then...My sad confession....I almost went to work for Microsoft in 1986.
In those days, new hires HAD to buy 5 shares of company stock, which was taken out of your first cheque.
In 1986, whole stocks of Microsoft sold for $10 a piece.
I turned down the job because, not knowing what a "Mircrosoft" was, it sounded like a pyramid scheme to me and I had so many bills that needed attention, I couldn't spare the $50.
Totally agree with this if you substitute the word "hyperinflation" for "inflation".Allocate no more than 5% of assets towards precious metals. It's only an inflation hedge. Don't follow the "doomsday" forecasters--if it really came down to Armageddon gold wouldn't matter anyways. Simply have a small amount invested in physical bullion or ETFs so you can sell when the price climbs high. Anything past that should be treated like a hobby.
A lot of great information here…From what I understand, the Canadian Maple Leaf is 100% gold as opposed to the American Eagle/Liberty coin that is .999999 22k. Local coin store has them for $1,609 an oz. which is $20 a coin cheaper than AMPEX...
I'm considering buying gold because:
-I have a portfolio of rental real estate, stocks and cash in the bank. That cash is sitting waiting for buying opportunities. I'm losing some money on the value of it (it is in a high interest savings and CD but still not up to par with inflation).
-I want to keep some money off the books away from government and away from home without it losing it's value due to inflation. Enter the reason I want to buy gold.....
-This has been recommended as a part of a balanced investment portfolio anyways as it does well when the economy tanks. Asset classes don't move in tandem. When stocks are doing well, gold usually goes down (and you use cash to buy more gold). Then when the stock market tanks you cash out the gold and buy more stocks at a discount).
-How do I protect myself from getting ripped off even buying from a reputable gold coin dealer in Bellevue? What is a foolproof way to test the gold?
-What is involved in selling gold, will a dealer charge me a fee to buy back?
-I looked into AMPEX online to buy gold but the shop in my area is cheaper and I'd rather not have it shipped.
-What are some of the risks of owning gold?
-Is it better to keep in safe deposit box or look into...alternative storage solutions...
If you actually look at charts of the price of ammo and gold over the last 20 years, you'd understand how incorrect that assertion is. I pay less for ammo now than I did 14 years ago (although not as little as I did almost 20 years ago). Gold is worth 5 times more than it was about 20 years ago. Ammo is about 2 times more than it was....I'd invest in ammo any day over silver or gold. It is likely to have a higher ROI than silver or gold and it will actually be useful if anything catastrophic happens. On top of that, common ammo is unusually inexpensive at the moment. I don't expect that to last.