Silver & Gold

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Replied by FrankN on topic Silver & Gold

I completely agree with your diversification theme. I was more trying to comment on "precious metals are almost always a good investment".
1 year 10 months ago #1

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Replied by Wanderer on topic Silver & Gold

Hmm ... 50 years is a long time reaching back into totally different eras (1967 to 2017). My view would be looking at a much shorter time line and keeping your eye on the ball (maximum 5 to 10 years as our global world moves too fast to look at a longer time frame). Like most investments ... I believe we need to stay proactive and not just set them on automatic. When trends call for a portfolio realignment we adjust. No different than putting money into what used to be the Fortune 500 which has sure changed over the last 50 years. Also, globalization has changed the investment world along with precious metals. Look at the value of Lithium right now. If my memory serves me right, all of the major iron ore extracting companies in the US are now foreign owned (I live in the heart of iron mining country and one of the largest reserves of various precious metals is right under our feet - which for the moment has been kept in the ground by the activities of the environmental types - so we buy foreign). Not trying to sell precious metals but buying bank stock sure would not be my thing. Portfolio diversification could sure include: pharmaceuticals, utilities, financial institutions, food, automotive, airlines, retail (hmm), technology, precious metals, and so on. Goal is spreading the risk and paying attention. A time frame I might use for investments would be much shorter more like 10 years or less. Unlike the days when everything was done on paper and we were pretty much contained to the United States things were more stable but with the global world it is now all changed. Good old money market and Treasury Bills still exist (if you don't starve on the return) but do fit well in a blend of aggressive versus conservative (I recommend a person look at such a blend for safety). As an aside, my comments are based on "walking the walk" not just "talking the talk" from reading books and papers. Made a killing on buying Bank of America stock at $4.75 a share and holding long enough for the market to right itself and selling followed by investments in a little talked about utility MDU and capturing it's more slow growth, and so on.
Last edit: 1 year 10 months ago by Wanderer.
1 year 10 months ago #2

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Replied by FrankN on topic Silver & Gold

Moneyes wrote: By that logic, you think they would be hoarding water. Can't live long without good water.

For whatever reason though, precious metals are almost always a good investment.


I say they are generally as good of an investment as cash. If you look over 50+ years, precious metals have not been a great investment.
1 year 10 months ago #3

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Replied by Moneyes on topic Silver & Gold

By that logic, you think they would be hoarding water. Can't live long without good water.

For whatever reason though, precious metals are almost always a good investment.
1 year 10 months ago #4

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Replied by Joker on topic Silver & Gold

I gotcha! I know some people who buy hold and keep it in their safe (it's a big safe). They have enough to start a small country. I asked them once why they did this. Their answer was "if the world goes to crap, at least we will have something to bargain with!" I don't know how great of an idea that is, but they feel more secure that way.
1 year 10 months ago #5

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Replied by FrankN on topic Silver & Gold

Wanderer wrote: Gold has fluctuated around $1,100 to $1,300 an ounce over the last two years. In my view this seems to be relatively stable. One thing you could look at is some form of precious metals investments that may be comprised of several precious metals and potentially hedge your bet. As reviewed in other posts, precious metals may not be for the faint of heart. Made money myself but I looked at as going to a casino and if I lost it I was good with it. Not sure that works for everyone. Also, Gold and Silver like other precious metals is are investments you will want to monitor and not just buy and put on the shelf. Made a point of monitoring them regularly (generally every day although that may be over kill).


Do you know of any ETFs that track a similar performance to gold and pay a dividend?
1 year 11 months ago #6

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Replied by Wanderer on topic Silver & Gold

Gold has fluctuated around $1,100 to $1,300 an ounce over the last two years. In my view this seems to be relatively stable. One thing you could look at is some form of precious metals investments that may be comprised of several precious metals and potentially hedge your bet. As reviewed in other posts, precious metals may not be for the faint of heart. Made money myself but I looked at as going to a casino and if I lost it I was good with it. Not sure that works for everyone. Also, Gold and Silver like other precious metals is are investments you will want to monitor and not just buy and put on the shelf. Made a point of monitoring them regularly (generally every day although that may be over kill).
Last edit: 1 year 11 months ago by Wanderer.
1 year 11 months ago #7

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Replied by Joker on topic Silver & Gold

I am curious. In today's volatile market, do you think gold and silver are safer investments? The price of gold is pretty high and like you said, silver seems to be a more steady kind of growth. Even though the Dow is up, depending on the state of affairs with foreign policy, this may not last all that long. What's your opinion?
1 year 11 months ago #8

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Replied by FrankN on topic Silver & Gold

As long as its not too much of your total investment portfolio, I think that is a fine idea. Just make sure you have those insured and/or in a very very safe spot.
2 years 5 months ago #9

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Replied by Moneyes on topic Silver & Gold

Well, silver is less volatile than gold. I think it's always been that way because of the volume of each. So if you're going to go with precious metals like that, silver is a safer bet than some other options.
2 years 6 months ago #10

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Replied by FrugalFran on topic Silver & Gold

One of my goals for this year is to allocate a small amount of my investments to silver coins. I chose to go with coins because I just prefer to have the physical product on hand. I don't have a solid reason for choosing silver over gold and I may diversify that and buy both once I get rolling with it.
2 years 6 months ago #11

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Replied by Wanderer on topic Silver & Gold

Never held gold but have invested in precious metals and there is money to be made but ... you have to watch it as there are big swings in the market (global by nature). Not for the faint of heart!
2 years 6 months ago #12

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Replied by Goldbug on topic Silver & Gold

dank213 wrote: Anyone here invest in silver or gold? What are your current thoughts on the market and it's recent decrease?

I invest in gold (surprise!). I don't mind the recent decrease, because I hold it partly as a hedge against the stock market since it's value tends to rise when the market falls and vice versa. It is also a useful store of value as there's always a small demand for it.

Do you invest in certificates, stocks and miners, or physical gold? I've always prefered coins as certificated gold often has a yearly fee for safe storage, while coins can be stored cheaply in a bank safe and have a premium due to collectors' value.
Last edit: 2 years 6 months ago by Goldbug.
2 years 6 months ago #13

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Replied by FrankN on topic Silver & Gold

I can't disagree with you that we are at a dangerous state in regard to potential inflation as a result of the Fed. I do think there are many downsides to the gold standard and very few modern economies use the gold standard today.
3 years 2 months ago #14

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Replied by Finance Globe on topic Silver & Gold

Removing the US from the gold standard to a promise of value "from our economy" was the long term mistake.

The good: This caused inflation, which is good in the case that it spurs growth - people and business will not sit on money, but put it to use since it looses so much value over time.

The bad: Reckless money printing to keep inflation at a target, as the Fed has done over the past 8 years, has put us, in my opinion - at a very dangerous state.

Gold and other precious metals, and real hard assets, such as land, homes and some goods will hold their value in the test of time, while fiat currencies will only loose, or very likely will one day all become worthless, depending on the degree of inflation.
3 years 2 months ago #15

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