Prices have dropped and are dropping... Today's $$$ will seem cheap in our inflated future. How far off, who knows? Is it a 'gag' investment?
Thoughts?
Thoughts?
Thoughts on Gold & Silver?
- Thread starter Goodoer
- Start date
Precious metals are a hedge. They hold the value of your money. Yes, they are subject to some volatility, but over the long haul, usually sound.
Still, some people treat it as an investment… or go all in thinking the currency and markets are on the verge of collapse.
I bought $500 worth of silver coins a few years back… figured if the world didn’t end, I pass them down to my kids. They ended up going missing when a roommate moved out. I had them buried in an old box of my parents old China wrapped in papers. Apparently the old roommate went through my stuff when I wasn’t around
Still, some people treat it as an investment… or go all in thinking the currency and markets are on the verge of collapse.
I bought $500 worth of silver coins a few years back… figured if the world didn’t end, I pass them down to my kids. They ended up going missing when a roommate moved out. I had them buried in an old box of my parents old China wrapped in papers. Apparently the old roommate went through my stuff when I wasn’t around
I bought $2700 worth of physical gold and $300 worth of silver, just to have something tangible. In the absolute worst case scenario, when everything has gone to shit, and no one can take the money out of ATMs, having small denominations of silver and gold may be useful. It’s kind of like insurance. Unlike $3000 worth of cash, it will hold its value instead of lose value. It’s nice to have a modest amount on hand for peace of mind.
Avoid having large Amounts of metals though, it will get lost or stolen. Or, if someone finds out you will be a target for robbery, and that could lead to murder. It’s a crazy world.
But beyond a few thousand in physical metal, do not invest in gold and silver. Over 30 years, had. you invested in stocks or real estate your money would have increased 20 fold!
If you buy $10,000 worth of precious metals, that means after 30 years you will have $300,000 in stocks versus the metal being worth 24,000 (assuming it keeps its value with inflation at 3%). So basically investing in precious metals would have cost you $276,000 dollars.
So long-term investing is just throwing your money away. Investing for the short term as a hedge isn’t very wise either. No one can really predict how gold will move. It is supposed to move inversely with Stocks, but this isn’t always the case. It is almost impossible to time the market perfectly, and this goes for gold as well.
$3000 in metal will not make a difference. For a true "shit-times" hedge, buy non-perishable food items and a firearm.
I disagree, $3000 will get you through a few weeks. Enough time for you to get sorted out. It’s better than nothing, and will prepare you for what will come next.But you definitely will need food and protection. even in some first world countries in Europe, there were many cases where people could not gain access to cash because the banks will not allow them to take out money. Greece, Iceland, Spain,Russia, Ukraine, Italy have all seen financial crises so severe that governments defaulted on debt or were financially devastated. More recently many Chinese had no accesss to cash because the banks refused to give them access to their funds. More instability in the future is likely to lead to more cases. Canada is not immune to all this instability, due to globalization.
Even if people have access to cash, it becomes worthless with hyperinflation. Then it becomes necessary to barter with something valuable. In the end though, the long run you will need to have access to a farm or at least a small plot of land to make your food. If you don’t have access to guns, then it’s pointless because your neighbors will find out and steal everything. Worst case scenario is something like The Walking Dead where everybody is after each other.
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Up your silver stock pile. You may need to trade in smaller denominations.
Yes, I plan to buy another $2,000 of silver in different denominations. A lot of people like to hold cash for sense of security and in case of an emergency. But the problem is that it loses value, and could lose almost all its value over time with high inflation.
When COVID struck, I tried to buy gold, but they were sold out. In a crisis, not only will precious metals be in high demand and increase in value, they will be extremely easy to liquidate and barter.
Precious metals should never be a major component of your investment portfolio, but they have their place. Like anything else, it has their pros and cons, and could prove to be beneficial. Just another tool in the toolbox.
I also am a HUGE crypto skeptic, but bought $4,000 so far, losing 40% of my money. I like the anonymity when sending money. Also the wild swings, which make owning it exciting. There may be a future for it, who knows.
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I'm with you, but I am in Kinross.
Not a ton. like $10k, but that when compared to $1.8m, my gold holding is not a big pert of the portfolio.
I sort of use it as a bit if bell weather to keep my eye on the ball when updating holding status monthly.
When K's value sinks usually all else perc's along, if there is perking to be done.
But if K is rising, look to capture the winners gains and trim them back to size, and sit with some of this cash in the account.
Both because things may get choppy.
And after thing get choppy, and settle down again, some stock can effectively be 'on sale' for short period.
And that is when having cash to buy stuff on sale is handy.
Anyone recommend a Canadian dealer with the lowest preiums over spot price? I would like to pick up some 1 ounce silver coins but the mark up is crazy .
Just searched online and came up with an average 35.00 an ounce when silver is at 26.00.
(TD bullion , Goldsilverbull, and that place in richmondhill)
Just searched online and came up with an average 35.00 an ounce when silver is at 26.00.
(TD bullion , Goldsilverbull, and that place in richmondhill)
Coins have a higher premium because they are more valuable as a collectible item. If you want coins because of their beauty and perhaps give as a gift, that's fine, but you will always pay a lot more. If you are more interested in using it for utilitarian purposes, such as using it as a hedge againt inflation, or keeping it in case of a crisis, then silver bars are a better option.
This place in Toronto has great reviews (4.7/5)
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