Buying Precious(semi) Metals? (1 Viewer)

What is your intent with buying the metals? Simply so that you don't have everything tied up in cash? If its as an investment you have better options, but the main reason I'd recommend against it is the prices are high right now. People always panic buy during times of crisis, so if you buy now, you're probably buying it at peak, or near peak, prices. If you bought around the holidays last year before Covid and then sold over the summer it would have been good....now....not so much.

You can see the prices fluctuations here: https://silverprice.org/silver-price-history.html

There are quite a few articles on the old google to read up on about why its not a great investment. There are limited circumstances where its a good "investment." The main issues are the price fluctuates, it isn't paying dividends, you can get greater growth out of other investments (even conservative ones), etc.....The reality is that if the economy tanks and the dollar craters, having money tied up in precious metals isn't going to help a whole lot.
 
If you're just going with "fun trinkets", then yes, it's a pretty solution.

I was led on by this...
I'm contemplating buying a bunch of silver (maybe gold) to diversify.
Which feels like investment level thinking. I already am thinking diversification because I'm in the backstretch of my career. The COVID debacle made me rethink how stable our society is, but even then I have zero concern about a full-scale economic collapse.

Owning precious metals has always been a economic-pullback safe refuge, so I have roughly 5% of my portfolio in gold (via an ETF). But I still own Tesla, so I'm basically a high-risk conservative investor - if there can be such a thing. :confused
 
If you're just going with "fun trinkets", then yes, it's a pretty solution.

I was led on by this...

Which feels like investment level thinking. I already am thinking diversification because I'm in the backstretch of my career. The COVID debacle made me rethink how stable our society is, but even then I have zero concern about a full-scale economic collapse.

Owning precious metals has always been a economic-pullback safe refuge, so I have roughly 5% of my portfolio in gold (via an ETF). But I still own Tesla, so I'm basically a high-risk conservative investor - if there can be such a thing. :confused
I get it. I'm sure I'm failing in the "investment" category compared to many. I do have a variety of different stock market accounts, deferred compensation accounts, pension portfolios, and clay investments... BUT when I say diversifying my poker bank roll, imagine I've got X amount of paper currency just sitting in a drawer, unused due to covid. As time rolls on, paper currency just loses value, whereas PMs at least maintain their purchasing power (value) over the years.

I'm not a doomsday prepper, and I don't feel the need for a tinfoil hat (aliens aren't spying on my thoughts). However, several people ITT brought up interesting points on post apocalyptic currency. I don't think an economic collapse is likely, but we are in very uncertain times. Should such economic strife occur, whereas the government and our economy are in doubt, I'd argue that PM's are a much more viable currency for trade and barter than paper bills (that might not be worth more than the paper they're printed on).

Let's put on our tinfoil hats and play doomsday prepper for a minute:
Let's just say that SHTF and everything is upside down. Government is trying to figure stuff out, get back on track, and you want to buy some chickens from a nearby local farmer? Sure, my stockpile of ammo and alcohol might be good barter items, sure. However, eventually we will get back to normal society, with an economy and system of money, etc... If you're that farmer, and have spare chickens to sell, are you more likely to accept paper money (that says "United States of America" on it) or equivalent value in pure silver coin? The paper money might turn out to be worthless, but the PM's will retain their value, no matter what economic system is in place down the road.

^now the above isn't why I purchased PM's today, but it's me following a "hypothetical" apocalyptic rabbit hole proposed by a few in this thread. :) Also, I've just consumed an entire pitcher of strawberry margarita from my favorite Mex Restaurant, and maaaay have recently watched "I Am Legend..."
 
I get it. I'm sure I'm failing in the "investment" category compared to many. I do have a variety of different stock market accounts, deferred compensation accounts, pension portfolios, and clay investments... BUT when I say diversifying my poker bank roll, imagine I've got X amount of paper currency just sitting in a drawer, unused due to covid. As time rolls on, paper currency just loses value, whereas PMs at least maintain their purchasing power (value) over the years.

I'm not a doomsday prepper, and I don't feel the need for a tinfoil hat (aliens aren't spying on my thoughts). However, several people ITT brought up interesting points on post apocalyptic currency. I don't think an economic collapse is likely, but we are in very uncertain times. Should such economic strife occur, whereas the government and our economy are in doubt, I'd argue that PM's are a much more viable currency for trade and barter than paper bills (that might not be worth more than the paper they're printed on).

Let's put on our tinfoil hats and play doomsday prepper for a minute:
Let's just say that SHTF and everything is upside down. Government is trying to figure stuff out, get back on track, and you want to buy some chickens from a nearby local farmer? Sure, my stockpile of ammo and alcohol might be good barter items, sure. However, eventually we will get back to normal society, with an economy and system of money, etc... If you're that farmer, and have spare chickens to sell, are you more likely to accept paper money (that says "United States of America" on it) or equivalent value in pure silver coin? The paper money might turn out to be worthless, but the PM's will retain their value, no matter what economic system is in place down the road.

^now the above isn't why I purchased PM's today, but it's me following a "hypothetical" apocalyptic rabbit hole proposed by a few in this thread. :) Also, I've just consumed an entire pitcher of strawberry margarita from my favorite Mex Restaurant, and maaaay have recently watched "I Am Legend..."
If one type of currency isn't good why would another type be alright? If society has collapsed you can at least wipe your ass with paper money. If you're worried about the worst case scenario you should stock up on ammo, MREs, generators, etc....silver won't buy you anything that the almighty American dollar won't once we've entered a barter economy situation. There's nothing magical about precious metals as a currency, their value hinges upon what people perceive the value to be and their confidence in its utility as a currency, which at this point makes them no different from widely accepted paper currency.
 
I don't recall any episodes of the walking dead where they traded shiny coins, but I've only seen through season six.

I think it boils down to what gives you the most enjoyment, considering you have other bases covered and it's not like this is your 401k. Sounds like it's excess power winnings ;)

The question to ask is why not stack more clay! I think coins are cool but I think some of the poured treasure objects are even cooler. Apmex has some cool stuff.
 
A lot of posts in this thread telling you to buy different things. I vote for stocking up on all of the above. I like moar!!!
 
....silver won't buy you anything that the almighty American dollar won't once we've entered a barter economy situation. There's nothing magical about precious metals as a currency, their value hinges upon what people perceive the value to be and their confidence in its utility as a currency, which at this point makes them no different from widely accepted paper currency.
I don't necessarily agree with this, but it's a good thing I am not worried about some dooomsday scenario (so we'll never likely need to find out).

The reason I don't agree with your assessment, is that precious metals are traded in multiple economies around the globe, and seem to hold a set value over time. Whereas some country's paper currency value can evaporate overnight. Paper currency is localized to a country, PM's are globally recognized.

If you're talking about something like "The Road" (global apocalyptic wasteland), I'd agree, metals are likely meaningless, especially compared to more practical items like food, means of self defense, shelter, etc... But going down the rabbit hole of possible scenarios, it's far more likely to have an economic collapse, where the U.S. markets implode, your bank accounts evaporate overnight, grocery shelves are barren, and the government is unable to provide many basic services (but we're all still alive and walking around wondering where we will get our next roll of TP). In these scenarios, where there's some viable path to an eventual recovery, I can see folks needing to trade and barter for food/supplies, etc...

If I've got a crap ton of chickens on my farm, and my neighbor stops by to ask me to sell him a couple... Which is a more viable payment? Paper currency, which might be worth zilch when the government comes around, or precious metals, which have global (universal) value? I'm not giving up chickens for some green paper that might very well be worthless once the government gets their act together. But I can have confidence, that once a new society is established, that gold and silver will have value, whereas paper money (from the previous era) might not. One is CLEARLY better in these situations...

But again, I'm not buying the PM's for that reason. AND while I'm still a tad intoxicated, this might be a good time to watch Red Dawn (the orig)... "Wolverines!"

 
I don't necessarily agree with this, but it's a good thing I am not worried about some dooomsday scenario (so we'll never likely need to find out).

The reason I don't agree with your assessment, is that precious metals are traded in multiple economies around the globe, and seem to hold a set value over time. Whereas some country's paper currency value can evaporate overnight. Paper currency is localized to a country, PM's are globally recognized.

If you're talking about something like "The Road" (global apocalyptic wasteland), I'd agree, metals are likely meaningless, especially compared to more practical items like food, means of self defense, shelter, etc... But going down the rabbit hole of possible scenarios, it's far more likely to have an economic collapse, where the U.S. markets implode, your bank accounts evaporate overnight, grocery shelves are barren, and the government is unable to provide many basic services (but we're all still alive and walking around wondering where we will get our next roll of TP). In these scenarios, where there's some viable path to an eventual recovery, I can see folks needing to trade and barter for food/supplies, etc...

If I've got a crap ton of chickens on my farm, and my neighbor stops by to ask me to sell him a couple... Which is a more viable payment? Paper currency, which might be worth zilch when the government comes around, or precious metals, which have global (universal) value? I'm not giving up chickens for some green paper that might very well be worthless once the government gets their act together. But I can have confidence, that once a new society is established, that gold and silver will have value, whereas paper money (from the previous era) might not. One is CLEARLY better in these situations...

But again, I'm not buying the PM's for that reason. AND while I'm still a tad intoxicated, this might be a good time to watch Red Dawn (the orig)... "Wolverines!"

I guess we'll just have to agree to disagree. No country today still has a currency backed by the "gold standard." The US dollar is the world reserve currency and more than 50 countries directly peg their currency to the dollar. I'm still not sure why silver is of much use to chicken farmer in a scenario in which basic law and order have broken down. If its doomsday you want to prep for I'd suggest you prepare for the barter economy, a stockpile of silver won't help when Lord Humungus roles up and wants to be your leather daddy.
 
to the op: silver 1oz american eagles to start. stacking is another rabbit hole...

the 1oz silver krugerands are pretty cool too and a bit cheaper on the premium.

apmex, sd and other online are pretty solid sources. i have been avoiding gld 1oz bars for a while and focusing on older 1oz bullion.

I typically overbuy for discount then sell off some to buddies who just want a few barrels of slv and are too lazy to buy it themselves.
 
There is an intrinsic thrill to holding precious metals. It is hard to explain. It really isn't rational. But it is fun. If this is your quest, go shopping. Let's not kid ourselves about "investing" or "doomsday". You want fun - go buy some fun. And if you over pay, so what? How much is fun worth?

"investing" and physical precious metals do not mix well. It is a bad investment. The friction is high. The returns are terrible. And metals don't really offer protection from inflation or other forms of currency losses. If you really want to invest in metals, the ETF approach is best.

"doomsday" - what does that mean? The power grid goes out for a month? Armed mobs sweep the nation for a year? Nuclear war kills much of the population and irradiates the country side for the rest of your miserable life?

And what does that mean for each of us? "Old" folks are walking dead for the most part. A month with no meds is a disaster. Of course a month with no water will kill anyone. I laugh at city folks "prepping" - you are all dead sooner than later, no water, no food and lots of hostiles.

You want to prep - then go get some country spot with basic supplies. Land with structural water. Wells are for suckers. Food is an issue too. Sure you can have a year's food supply in your bunker and that will save you vs some forms of doomsday. Mostly you are prepping to live a little longer before you die.

As noted by others, pretty metals aren't useful at doomsday. I'd rather have a ton of basic hardware than a few pounds of gold and silver. Saws, axes, matches, candles, nails, screws, tools . You know, stuff that might save your life or make survival a bit better. Yes, firearms and ammo. Hunting as much as fighting, likely more. A case of good knives would be tradable. Cast iron cookware. Fire tools. I hope I am getting the idea across.

This borders on silly talk. The actual doomsday risk where you survive the onset is close to zero. This really is a strange sort of "fun". I think people living in bunkers hidden in West Texas are idiots, but if they are having "fun" well good for them.

You can all laugh at my corpse if things come to that -=- DrStrange

PS Just go buy a thousand bucks worth of silver. That is roughly 40 coins. Plenty enough to pacify your inner dragon horde needs. Who cares if you lose $100 - you are not selling anyway.
 
IMHBDO, People can live a while without a lot of stuff, including some medicines. But people die fast from infections of any kind. Antibiotics and especially simple ones like penicillin will be valuable. Neosporin will be prized. But that’s taking it to another level, where you expect to live more than a year after a “doomsday event”.
 
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