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Gold and silver. Discuss

Discussion in 'Business, Careers & Education' started by Valproate, Feb 20, 2011.

  1. mintyfresh

    mintyfresh Well-Known Member

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    A question out of my own ignorance - why invest in actual bars instead of a seemingly more liquid stock or etf tracker?
     
  2. dunkin

    dunkin Well-Known Member

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    cause when the shit hits the fan, good luck transforming your paper / virtual holdings to actual precious metal.... Doomsday concept.........
     
  3. javyn

    javyn Well-Known Member

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    A question out of my own ignorance - why invest in actual bars instead of a seemingly more liquid stock or etf tracker?

    I thought that at first too, but why invest in a mining company who owns a mine in a third world country in this political climate? You run the risk of your investment being nationalized after a revolution.
     
  4. javyn

    javyn Well-Known Member

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    i have gold and silver coins taped to my body...just in case.....just in case............

    Great you could have told me this yesterday and saved me some unnecessary anal expansion!
     
  5. Crane's

    Crane's Well-Known Member

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    In a doomsday scenario gold and silver won't be worth a thing. Water, food, guns and ammo will be where it's at.

    If you don't want to hold precious metals the smart way to go is with something like a Kitco pool account. You basically buy X of whatever metal you like and it's held by the company. It also allows you to jump between different metals by converting say X amount of silver to X amount of Palladium for instance. If you decide to actually take delivery you can also do that or just dump it and have a cash account. It makes it easy to get rid of instead of having to actually dump physical bars which can be a PITA.

    Of course there is some advantage to physical ownership as well. You can go anywhere and sell it at whatever the going price is. The proverbial suitcase full of money without the worry of whether or not the suitcase full of "currency" is actually worth something somewhere else. It's a good hedge against a partial currency collapse.
     
  6. javyn

    javyn Well-Known Member

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    Funny thing is, we are seeing doomsday scenarios in several countries now, and guess what, metals are booming.

    So you think we'll revert back to a barter economy?
     
  7. Nosu3

    Nosu3 Well-Known Member

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    Last edited: Nov 15, 2011
  8. javyn

    javyn Well-Known Member

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    In the first few months, people will be prioritizing necessities and barter will gain hold. After that, rebuilding will begin and silver/gold currency will start to stabilize itself in trade.
    That's what I'm thinking. But what do I know? I have a BS in Economics, which has only taught me just how little I actually know lol
     
  9. Crane's

    Crane's Well-Known Member

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    Funny thing is, we are seeing doomsday scenarios in several countries now, and guess what, metals are booming. So you think we'll revert back to a barter economy?
    I'm not talking about regional collapses. I'm talking about a real doomsday scenario where everything collapses. In that environment things like gold silver diamonds etc won't be worth anything. At least for a while. Water, food, shelter/building materials, fuel sources, guns and ammo will be your new currency. Now over time gold and silver will come back into play as a currency marker as civilization re establishes itself. That could take years to happen. In matters of surviving a catastrophe there is something called the rules of threes. You can only live three minutes without air, 3 days without water, about 3 weeks without food. If you think about this for a while it gives you an idea of how much we take for granted and how valuable these things are.
     
  10. javyn

    javyn Well-Known Member

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    Gotcha Cranes, can't argue here. But....I do think stocking up on silver is going to be better than stocking up on canned tuna in the long term. Even though obviously food and ammo should be a given, if not for a doomsday economic scenario, at least for a doomsday weather scenario (I'm in Houston).
     
  11. Crane's

    Crane's Well-Known Member

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    Gotcha Cranes, can't argue here. But....I do think stocking up on silver is going to be better than stocking up on canned tuna in the long term. Even though obviously food and ammo should be a given, if not for a doomsday economic scenario, at least for a doomsday weather scenario (I'm in Houston).
    Oh yeah I agree. I've been into silver for decades and it's been very good to me. Of course it's always wise to stock up on some food and water for short term headaches. Katrina should have driven that one home for a lot of people.
     
  12. dunkin

    dunkin Well-Known Member

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    and u can always throw the silver bars at the zombies........
     
  13. Crane's

    Crane's Well-Known Member

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    and u can always throw the silver bars at the zombies........
    That's what my AR and Benelli M1 Super 90 are for. I'll save the silver for the vampires.
     
  14. javyn

    javyn Well-Known Member

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    Oh yeah I agree. I've been into silver for decades and it's been very good to me. Of course it's always wise to stock up on some food and water for short term headaches. Katrina should have driven that one home for a lot of people.
    Should have, but didn't for many. You'd be surprised just how many here chalked the Ike warnings up to liberal media conspiracy only to have to be life-flighted out of Galveston. [​IMG]
     
  15. Crane's

    Crane's Well-Known Member

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    Should have, but didn't for many.
    Well you know what they say about history Javyn.
     
  16. mkarim

    mkarim Well-Known Member

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    Buffett said this in his 2009 shareholder letter. However, he also made a nice amount of money when he bought silver for $4 and change around 1997. He sold it sometime ago, however.

    Yes, he said gold does nothing but stay there and look pretty... [​IMG]
     
  17. javyn

    javyn Well-Known Member

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    So, anyone else besides javyn in the freak out and stock up on bullion club? Just got ~130 oz silver and a few 1/4 oz gold krugerrands.

    The numismatic and metal exchanges here in h-town were all sold out of everything save one this weekend, so I got what they had.

    Plan on increasing this week to around 30k physical metal if I can find any exchange that's been restocked this week.
     
  18. javyn

    javyn Well-Known Member

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    http://www.thenewamerican.com/index....s-legal-tender

    So it is, so it is.

    I need to find a 1k oz bar and soon
     
  19. Crane's

    Crane's Well-Known Member

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    So, anyone else besides javyn in the freak out and stock up on bullion club? Just got ~130 oz silver and a few 1/4 oz gold krugerrands. The numismatic and metal exchanges here in h-town were all sold out of everything save one this weekend, so I got what they had. Plan on increasing this week to around 30k physical metal if I can find any exchange that's been restocked this week.
    Kitco and Perth always have bars in stock. I'm negotiating a deal on 50 or so ounces of junk silver dollars on a private deal. After that I'm going to sit a bit and see if prices settle down. If it keeps running I'm inclined to dump 200 to 300 ounces and buy some gold.
     
  20. javyn

    javyn Well-Known Member

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    Apmex has a ton of bars, but I'm looking for junk coins now like you. I'm not ordering online though, whatever I buy I want to buy cash with no paper trail.

    Bad enough the cop guarding the gold exchange marked my license plate number when I was leaving with what I bought Saturday.

    Going to be hitting up the exchanges for junk this week, and more bars if they have em.

    Keeping an eye out for 1/4 oz gold coins too, but will buy a 50 peso piece if I come across one because, they are just cool.
     

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