When should we buy metals? Silver, Platinum, Gold, etc?

[nforest]

Buy metals when the economy is great, sell when everyone else is buying. If there are numerous advertisements and commercials offering gold for sale, Its not time to buy. Basically do the opposite of the populace. My $0.02

 

[Camelfilter]

Where I've ended up in my thinking about pm's is in the end we can't know for sure how it's gonna play out. If an economy falls apart but another one exists somewhere that values gold and silver, it should have value in the collapsed economy, especially if it can be traded into the healthy economy. If we end up seeing some sort of truly global, truly harsh crash, I feel like it's a toss up as to whether or not it will have value. It's bound to have more value than worthless paper at the least, but in the end it will only have value if someone else agrees that it does.

since I think our overlords have a grand restructuring scheme on the horizon, it's probably gonna come down to what they want it valued at, other than possibly small local economies.

That said, I absolutely think it's smart to have some, especially if you have disposable income. Its gonna have value during the collapse, the question like always is at what price point?

IMO, would be more worthwhile as a portable value. Both literally and figuratively.

Figuratively as in retaining value THRU whatever economic comeuppance. To bump family "wealth" on "the other side" of whatever economic goings on. Be it Depression, hyperinflation or restructuring. As in long term after such has stabilized and safe open trading can commence (or reasonably safe other than standard market trading).

Literal wealth portability is just that, and will always be of use should ones family need to relocate for any reason.

Adding:

Trading PM, "on the street", amidst Depression, hyperinflation or restructuring would seem to risky. Also literally & figuratively.

IMO

 

[4Freedom]

Damn, Silver is just skyrocketing and already at $30/oz. I am hating to say it, but maybe I have missed the boat on silver.. At least from a profitable investment standpoint. I guess people finally caught on about the imbalance in Gold/Silver ratio.. By the time , I actually want to buy it may even be hitting $50/oz and no point in buying a metal that is like 4 times as high as it was just months ago.. Seems risky..

I guess at this point my feelings are gold, silver and platinum are a security policy rather than something that will make a profit.

With the nuttiness of our economy and the demands for universal income, more borrowing, lending, bailing and printing and redistributing more currency to people who refuse or simply no longer have the ability to work than we have ever done in history. In fact, I would go as far to say this is the first time in history where a nation of this size literally demanded its people just stay home and do nothing. Like I said, what I am seeing makes even Communism look more rational economic system. Every time I ask the people demanding Universal Income how it will be paid for, they say through the government and taxes. I say what taxes? Our GDP dropped 32% and will drop even more than that at this rate. Biden is promising this nutty, suicidal idea to the scared sheeple to get elected. I mean, there were plenty of diseases even in the times of Soviet Union, wars, famines, etc and I highly doubt the government would let everyone just stay home and collect checks. It's the most insane and self-destructive measure I have ever seen.

I do know if Biden wins the election and goes forward with his $6 trillion spending plan for universal income, increased tariffs, massive increase in taxes that I definitely will stock up on silver. Not as something that will make me money, but hopefully as something that will hold more value than the an unstable currency. I understand those who say its very hard keeping silver around as we are forced to convert it into cash and its not readily available. I am wondering if anyone has heard of Gold-Backed checking accounts that people like Peter Schiff are offering? It is supposedly a checking type account even one with a Debit Card where your money is backed in Gold and can be automatically converted for cash for immediate use. I know you need like $50,000 to open one of those.. For me, it wouldn't work, unless I can find one that has lower starting balance requirement. Maybe, there are other ways to quickly convert Gold /Silver to cash. Then again, if our currency collapses I just feel we will be living in a new reality.

I am terrified we are going to go down the path of many third world countries that once were thriving and ruined themselves for various reasons: corruption, disease, war, bad weather/investments leading to famine, etc. Rhodesia (now Zimbabwe) was one of the most successful and wealthy African nations and many considered it the bread basket of Africa. That was until the corrupt dictatorship of Robert Mugabe took control and turned the nation into a destitute and starving nation. The Zimbabwean currency I read at one point during Mugabe's regime ended up being worth less than the paper and ink used to print it. Is this country going to keep printing money with no return of product and labor? Where is all the tax revenue going to come from with all the businesses that are collapsing and lots of people who have been ruined on their investments, suffered loss of capital, lost businesses and people who are out of work?

To me, comparing the patterns of precious metals over the past year to something as catastrophic as we are seeing today could be misleading. I almost feel happy to lose money on a gold and silver investment if the reason for me losing such money is because our economy has come back and nation has restored to stability. But, if our economy collapses I feel like there is just no way gold and silver will be worth less than the currency we possess. For anyone who can say gold and silver may not be worth much in a bad economy I wonder may be underestimating its value. For 1000s of years, gold, silver, jewels, precious stones were considered the standard of wealth. The concept of a financial lending institution or investing in a country's economic output is a much more modern concept that hasn't with stood the test of time such as gold, silver and other valuable items.

 

[jbett98]

 

[Camelfilter]

Damn, Silver is just skyrocketing and already at $30/oz. I am hating to say it, but maybe I have missed the boat on silver.. At least from a profitable investment standpoint. I guess people finally caught on about the imbalance in Gold/Silver ratio.. By the time , I actually want to buy it may even be hitting $50/oz and no point in buying a metal that is like 4 times as high as it was just months ago.. Seems risky..

I guess at this point my feelings are gold, silver and platinum are a security policy rather than something that will make a profit.

With the nuttiness of our economy and the demands for universal income, more borrowing, lending, bailing and printing and redistributing more currency to people who refuse or simply no longer have the ability to work than we have ever done in history. In fact, I would go as far to say this is the first time in history where a nation of this size literally demanded its people just stay home and do nothing. Like I said, what I am seeing makes even Communism look more rational economic system. Every time I ask the people demanding Universal Income how it will be paid for, they say through the government and taxes. I say what taxes? Our GDP dropped 32% and will drop even more than that at this rate. Biden is promising this nutty, suicidal idea to the scared sheeple to get elected. I mean, there were plenty of diseases even in the times of Soviet Union, wars, famines, etc and I highly doubt the government would let everyone just stay home and collect checks. It's the most insane and self-destructive measure I have ever seen.

I do know if Biden wins the election and goes forward with his $6 trillion spending plan for universal income, increased tariffs, massive increase in taxes that I definitely will stock up on silver. Not as something that will make me money, but hopefully as something that will hold more value than the an unstable currency. I understand those who say its very hard keeping silver around as we are forced to convert it into cash and its not readily available. I am wondering if anyone has heard of Gold-Backed checking accounts that people like Peter Schiff are offering? It is supposedly a checking type account even one with a Debit Card where your money is backed in Gold and can be automatically converted for cash for immediate use. I know you need like $50,000 to open one of those.. For me, it wouldn't work, unless I can find one that has lower starting balance requirement. Maybe, there are other ways to quickly convert Gold /Silver to cash. Then again, if our currency collapses I just feel we will be living in a new reality.

I am terrified we are going to go down the path of many third world countries that once were thriving and ruined themselves for various reasons: corruption, disease, war, bad weather/investments leading to famine, etc. Rhodesia (now Zimbabwe) was one of the most successful and wealthy African nations and many considered it the bread basket of Africa. That was until the corrupt dictatorship of Robert Mugabe took control and turned the nation into a destitute and starving nation. The Zimbabwean currency I read at one point during Mugabe's regime ended up being worth less than the paper and ink used to print it. Is this country going to keep printing money with no return of product and labor? Where is all the tax revenue going to come from with all the businesses that are collapsing and lots of people who have been ruined on their investments, suffered loss of capital, lost businesses and people who are out of work?

To me, comparing the patterns of precious metals over the past year to something as catastrophic as we are seeing today could be misleading. I almost feel happy to lose money on a gold and silver investment if the reason for me losing such money is because our economy has come back and nation has restored to stability. But, if our economy collapses I feel like there is just no way gold and silver will be worth less than the currency we possess. For anyone who can say gold and silver may not be worth much in a bad economy I wonder may be underestimating its value. For 1000s of years, gold, silver, jewels, precious stones were considered the standard of wealth. The concept of a financial lending institution or investing in a country's economic output is a much more modern concept that hasn't with stood the test of time such as gold, silver and other valuable items.

Everyone's finances, investments & such are completely different & there own.

However, some folks may benefit more from bettering their personal financial situation first. Housing, employment, debt. As simple things to consider.

BEFORE INVESTING, in just about anything not DIRECTLY benefiting their personal IMMEDIATE financial situation.

Investments are things to consider more AFTER having sound & reasonable housing, employment (& yes limited debt, as in mortgage debt. Perhaps low rate/automatically reducing educational debt).

 

[cookie]

Buy when the proce is low . Too many see the metals climb and climb then when every one buys at the peak you paid too much.

 

[4Freedom]

Everyone's finances, investments & such are completely different & there own.

However, some folks may benefit more from bettering their personal financial situation first. Housing, employment, debt. As simple things to consider.

BEFORE INVESTING, in just about anything not DIRECTLY benefiting their personal IMMEDIATE financial situation.

Investments are things to consider more AFTER having sound & reasonable housing, employment (& yes limited debt, as in mortgage debt. Perhaps low rate/automatically reducing educational debt).

CamelFilter, I totally agree with what you say about investing. However, at this point I am looking to buy precious metals not really as an investment, but more as a safety net for collapse of the US Dollar and the catastrophic global dilemma this will cause, especially with currency.

@jbett98 I saw the whole video and just shocked at how dumb we , as Americans (supposedly the most business savvy and prosperous people in the world) can be. I mean, damn it, why didn't I get to bump into him? Yeah, I do feel many of the people were apprehensive and use to dealing with homeless people and scammers being down there in Southern California where I think that was filmed. However, for the few who heard him out, he presented everything, like let's go into shop and see its real and even offering to trade for penny or lipstick is ludicrous.

However, I also have to say if our US Dollar collapses people suddenly may very quickly learn the wealth of more material things.. For example, if it cost $20 to buy a loaf of bread people will quickly learn how much more valuable the items they bring to the pawn shop or literally barter for food will be. And, of course, if money is useless, many will say, well , what kind of currency do you use if the mighty Federal Reserve note is butt wiping material now?

I don't know, but I just feel gold and silver have withstood the test of time, whereas the US Dollar, especially being backed by the Federal Reserve has not withstood the test of centuries and millenniums of chaos. If we are putting our faith in the US economy and the sanity of our politicians and citizens for the strength of our currency and assets, I am very concerned it may not be the wisest decision anymore. Back when Americans were more sane and our government was rational it made sense and, of course, having ready to use funds that have a strong value is ideal. I am not so sure anymore.

Maybe, Silver will hit $80/oz.. Does that mean I know longer buy it? Or, maybe it means you better hurry up and convert all your degrading federal reserve backed dollars and put it into something worth something as the economy deteriorates more and more. The only reason I can think of gold hitting $4000/oz and Silver hitting the $100/oz range is because our economy is in the toilet. At that point you may wish you bought metals while they were half of what they could be.

This is my main concern.

 

[gmerkt]

Here is what I said this past Thursday:

If you already hold PM, you are doing well as prices rise. But if you want to add more to your holdings, it can be a nervous time. $2,000 plus per oz. is a nervy number for me.

So today, we had a correction. I expected something like this. I don't remember the exact numbers, but close to a 6% drop for gold and over 10% for silver.

There is a ton of liquidity out there, chasing after anything of value. This is one reason for the recent, rapid run-up. So we can think some of the appreciation may be artificial. Plus, the gold number gets up to $2K and some speculators want to take money off the table. They are taking the profit that I just as well could've done. But my interest is long term, not one of diving in and jumping out of the market. My belief is that in the history of the world yet to be written, paper will lose out.

The question now is, whence the short term direction of prices. Is this a temporary dip and therefore a minor buying opportunity? Or is it the start of a major downturn as came after the record price tops in 1980 and 2011? We'll have to wait and see. There remains the specter of trillions of new fiat dollars being pumped out.

Personally, I wouldn't run out and buy on the basis of a 5% drop. Not yet. Dealers won't adjust the premium down quickly enough yet. When you get a drop like this, seems to me based on previous observation that they widen the spread for a while to see what happens.

 

[gmerkt]

@jbett98 I saw the whole video and just shocked at how dumb we , as Americans (supposedly the most business savvy and prosperous people in the world) can be. I

I just watched the video. Wondering if some of those people were managed. If this video was real and not staged, good thing I wasn't walking by. The guy might've lost his hand, I'd have put the grab on the coin so quickly. But I absolutely hate that dowdy, old-maid image they put of the queen on their bullion coins. I liked the image of the younger Elizabeth II much better.

 

[wired]

ive been through a currency collapse. Wages catch up eventually but it sure makes your mortgage cheaper.

 

[Bushman]

They are honestly a poor investment and if things get so bad that the dollar has no value, food, gear and ammunition will be FAR more valuable....

 

[Camelfilter]

They are honestly a poor investment and if things get so bad that the dollar has no value, food, gear and ammunition will be FAR more valuable....

True, however are useful for retaining value thru-out "whatever" as well as the portability of said value.

Meaning, having value "after" whatever has occurred, and commerce again has stabilized.

"Perhaps" as trade value within some economic calamity, however far more likely & worthwhile to hold towards when stabilization recurs.

 

[Bushman]

True, however are useful for retaining value thru-out "whatever" as well as the portability of said value.

Meaning, having value "after" whatever has occurred, and commerce again has stabilized.

"Perhaps" as trade value within some economic calamity, however far more likely & worthwhile to hold towards when stabilization recurs.

Yes, they DO hold value, that is true. But you can't eat a gold coin, wipe your bubblegum with it (well, maybe, try it and report back) or use it to defend yourself in a world where currency itself has no value, but practical supplies like ammo and food do.

I decided to buy a new house for myself and buy more rentals. With rates so low, I'm borrowing money for free and my rentals have gone up 100K just in a few months with the new buying frenzy. And I get to pay the money back with devalued dollars, someone else's devalued dollars. Price of admission: 125K down payment per house...but leveraged 4:1 increases my profits.

And real estate has utility value. I can live in it, grow food on it, rent out space in it, etc.

 

[Bushman]

ive been through a currency collapse. Wages catch up eventually but it sure makes your mortgage cheaper.

Yep, one of the benefits of leveraged real estate. I happen to be a part time realtor on the side, if anyone wants to get started investing...

 

[Camelfilter]

Yes, they DO hold value, that is true. But real estate is far better for that AND profit. Plus it has utility value. You can live in it, pay the debt back with inflated dollars, grow food in it, rent out space in it, etc. Hence while the government is printing money like crazy I bought a new house for myself and am buying more rentals to add to my portfolio. Heck my rentals have gone up 100K in just a few months since the market picked back up. I'm refinancing right now, with rates so low I'm practically borrowing money for free....

Oh absolutely!

However PM's are just another option in a larger basket.

If a total collapse were to occur, that would be...catastrophic. All markets, including PM's and real estate would be affected.

The "problem" with real estate following a collapse, is maintaining it thruout, as well as ownership following restructuring. Could be challenging depending upon what types/how many "regime" changes occur.

Whereas PM's and such are simple bearer commodity.

 

[Bushman]

Oh absolutely!

However PM's are just another option in a larger basket.

If a total collapse were to occur, that would be...catastrophic. All markets, including PM's and real estate would be affected.

The "problem" with real estate following a collapse, is maintaining it thruout, as well as ownership following restructuring. Could be challenging depending upon what types/how many "regime" changes occur.

Whereas PM's and such are simple bearer commodity.

Yes they say stocks, gold, bonds and real estate should be part of everyone's portfolio. I decided against gold, if you recall I was looking to buy a lot of late last year, early this year before COVID hit to balance my portfolio, but after further research I found it only increased in value 1% adjusted for inflation over 30-40 year holding periods. YES, it does store value so you won't lose money IF you hold long term.

But for me I decided it was not going to be part of my strategy. Stocks aren't really either except maybe index funds here and there. Nothing has ever worked for me like RE. Although ironically everyone I know fell flat on their face with RE rentals. Some I know do well with stocks but not RE. I think it depends on how well you know something. I know RE very well.

 

[GWS]

I think that if it gets to the point where PM's don't have value then real estate deeds would only have value as TP.
Land would be taken and held by whoever has the power to take and hold it.

 

[Squidly]

lead is relatively cheap right now. That's the only metal I'm buying.
It's gone up a little. Spot price is $0.89/lb

 

[nk02442]

Gold and Silver (especially Silver) is dirt cheap right now.

There is 200x the amount of paper as physical and want to guess what sets the spot price.

The markets are artificially suppressed so large institutional buyers can stockpile way bellow value. With mines and mints shut down or severely cut back, it should on rise. Based on historical silver/gold ratios, silver should be around $150/0z right now, that at a depressed rate.

Once Paper and Physical decouple, you will see a skyrocketing of physical. Its just a matter of time. 5 years, 50 years who knows.

 

[Member 52301]

Bushman,

You were talking about selling your rental houses somewhere on this forum.

Did you make a decision to NOT sell any of your rental houses or apartments or whatever?

Thank you.

Cate