Who is buying Precious Metals?
- Thread starter stharthjw6j
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goosefrabah
Regular Member
- Feb 26, 2011
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Gold and silver are two investments that I completely missed years ago when prices were low. I was trying to take the short return route at the time, but could have made a lot of money if I actually made the leap. If the price keeps dropping for gold, I am going to have to open up my wallet. Since prices for silver are so low, I am thinking that may be a better option to start with personally. Less risk and less upfront capital.
makemybusinessboom
Junior Member
- Oct 15, 2013
- 100
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I have friends that bought low and enjoyed the massive increase a few years ago. Wielded huge returns. i think gold should be a part of every investors portfolio.
stharthjw6j
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- Dec 23, 2013
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There was a bit of a dead cat bounce last Friday, it's settled down and it looks like it will keep dropping for the foreseeable. Still a good time to DCA.
Metals are a bad investment IMO, I have a little bit around just for shits and giggles. But I don't really even count is an investment. You don't hear of too many millionaire/billionaires who made their fortunes investing in metals.
It doesn't pay dividends, and it even cost money to store if you have a lot of it. It's popular among the prepper types, those who fear all other assets.
I bought it at $600/ounce in 06, I don't see anything stopping it from going back down to those levels again. In 1980 it was near $2k/ounce damn!
Now my stocks on the other hand, its been great these past 3 years
! My investments properties have been doing well too, making me a monthly return and appreciating nicely. Can't beat 4% @ 30 years, for an investment property mortgage. It's like free money!
Who knows though, I could be wrong, gold could go up to $2k+/ounce. If it does, I highly doubt it would be in the next 3 - 5 years, which makes it a bad investment in my portfolio. I'd rather buy stocks, put in a mutual fund, or use it as a down payment for another rental.
It doesn't pay dividends, and it even cost money to store if you have a lot of it. It's popular among the prepper types, those who fear all other assets.
I bought it at $600/ounce in 06, I don't see anything stopping it from going back down to those levels again. In 1980 it was near $2k/ounce damn!
Now my stocks on the other hand, its been great these past 3 years
! My investments properties have been doing well too, making me a monthly return and appreciating nicely. Can't beat 4% @ 30 years, for an investment property mortgage. It's like free money! Who knows though, I could be wrong, gold could go up to $2k+/ounce. If it does, I highly doubt it would be in the next 3 - 5 years, which makes it a bad investment in my portfolio. I'd rather buy stocks, put in a mutual fund, or use it as a down payment for another rental.
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stharthjw6j
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- Dec 23, 2013
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I wouldn't look to PMs as a way to make your millions, or even your 100ks. Think of it to start as a hedge against hyperinflation or the USD hitting the fan, and from there you can consider the rest as bonuses. Silver is being stocked up by BRIC for their growth industries, so I do see upside in it.
Capo Dei Capi
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- Oct 23, 2014
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Its in Venzuela where there is hyper inflation now.
http://www.ft.com/fastft/366271/venezuela-bolivar
Capo Dei Capi
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I found a silver 1964 quarter in my room yesterday, and found out it was worth $2.66 currently.
stharthjw6j
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Yaaaay, gold is on sale! Slashed down prices!
That's how I look at it. I've been buying more this past month by DCA (dollar cost averaging). Always DCA and only spend what you can afford to lose.
Keep in mind as Jazzc said, that this is a long term thing. Patience is the name of the game when it comes to PMs, and even then it's with a view to protection first then profit after.
It's not for everyone, but keep in mind it's been a whopping 8 months since I made that OP, you need to think in terms of several years and more to ride this thing (it's been 4 years since the 3.5x high). Rule of thumb with all stocks or assets is buy when an asset is hated and crapped on by the masses, and sell when the herd is all up it's ass like pornstars. I sold a portion of silver at about $40 when it fell from $50 in 2011 to where it is now at $14. Right now people are hating and pissing all over it, those bankers are manipulating prices like nobodies business (that itself tells me they're worried about fiat) but they can't manipulate the fundamentals of precious metals, and despite all the hullabaloo, those fundamentals of PMs are still there and crystallized. The only thing that's been shaken is the herd.
Well that's how I see it anyway. Give me PMs over BitCrap anyday. But we'll see what happens. It's not for everyone, keep your eyes peeled if you enter.
Capo Dei Capi
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I'm probably going to start investing in gold and silver in the next couple of months. It seems so interesting now, since finding a silver coin in my room.
theconscience
Regular Member
- May 16, 2014
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Talk to Ronnie Biggs
stharthjw6j
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- Dec 23, 2013
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Depending on how much money you have, silver might be a better place to start than gold. At $14 per ounce you can buy what you can, as opposed to $1,100 per ounce of gold. Look on ebay to get an idea. American Silver Eagles are good, I like Austrian Philharmonics. I buy elsewhere though.
Go on the https://www.kitcomm.com/ if you want to get acquainted with that crowd.
Pigsy
Registered Member
- Dec 20, 2014
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I think it's good to have a small % of your wealth in physical precious metals, but most people go way over the top. Also think there's a ton of greed and general stupidity in the precious metals market (just like with cryptocurrencies). Everyone thinking they're professional investors or something, when they're nothing more than amateur gamblers.
But yeah, I like owning some gold. It's nice to look at, you can travel around the World with it without any issues or declarations, it's great.
As for the price that's anyone's guess. I believe it costs around $1,100 to actually mine 1 ounce of gold, so anything under that and mining companies are at a loss. Given that I wouldn't imagine it's going significantly lower than $1,000, but again, just my opinion
But yeah, I like owning some gold. It's nice to look at, you can travel around the World with it without any issues or declarations, it's great.
As for the price that's anyone's guess. I believe it costs around $1,100 to actually mine 1 ounce of gold, so anything under that and mining companies are at a loss. Given that I wouldn't imagine it's going significantly lower than $1,000, but again, just my opinion
Pigsy
Registered Member
- Dec 20, 2014
- 99
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Silver has never really interested me, simply due to the fact it's a complete pain in the ass to store as oppose to gold. You literally need 70+ silver coins to make the value of 1 gold coin. Screw that.
You see the likes of Mike Maloney pushing silver really hard, but then he's been pushing it for years and a lot of people have lost a lot of money listening to him. Gold too I guess. And he's never once apologized. Then again he probably makes millions selling the stuff
You see the likes of Mike Maloney pushing silver really hard, but then he's been pushing it for years and a lot of people have lost a lot of money listening to him. Gold too I guess. And he's never once apologized. Then again he probably makes millions selling the stuff
http://www.city-data.com/forum/investing/
Is a pretty good forum if you're a beginner. They won't ban you if you mention gold as an investment like some stock trading forums.
It's been a 7 year bull market so tread with caution. That said there is always tons of money to be made regardless of the market. Personally I think its a good time to invest in Oil stocks such as HAL, ULP, CHK, etc. If you have balls of steel there are oil stocks like NYSE:SD, I have made thousands this week trading this stock. You just have to really do your research, if you want a safer option look in to ETFs or bigger companies such as HAL (Haliburton) or Exxon. As long as airplanes fly, cars roll, trucks haul - oil will be in demand. Gold is nowhere as essential as oil considering where the bulk of demand comes from. [It might be different with respect to semiconductor cos.]
You have to assess the risks and really do your research before buying stocks. A lot of things will can change the price. This week the feds will be having a policy meeting, we will hear if interest rates stay the same or if they are going to raise rates. Which either decision can mean a lot depending on your portfolio. China, Greece, Iran deal, Russia, are just a few recent events to keep an eye on that can affect your portfolio.
If you like precious metals a lot such as gold (GLD) you can own them in stocks. You can short the stock, play with the volatility, trade in 5 times in a day if you want, trade on margins (risky) etc. You have tons of money making options as opposed to owning it physically. Now people who buy gold would never do this, as they likely have 0 trust in the financial system. Most who own gold have a vision of one day being last man standing. The reality is likely anything so bad that we have a collapse here would likely not have folks who lost their money in all other assets bidding on gold.
Is there a chance? Sure. But not enough for me to waste money on. I'd rather be getting a nice dividend and return on something else.
You can practice buying stocks without using actual money, just a virtual trading platform, there are many out there to practice on.
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