Gold and Silver

[Star43]

I can't afford to buy gold so I just buy guns instead. Also buy silver because it's pretty and it's something I can play with. Plus, it's kind of satisfying to carry around a bag of something that's heavy besides lead.

Very true, I feel the same way. Gold costs too much, and would not be functional if and or when the time came. You can always barter with small amounts of silver....if you needed some milk, or bread and eggs.......and you only have Gold, .....how can they make change for you ?? Not.

 

[Dan in MI]

I have always said junk silver (US coins) seemed to be the metal to buy for SHTF scenario due to smaller increments, but I do not see it as much of an inflation hedge. It just seems to hang around $20 +/- $5. While it doesn't lose, it really doesn't gain either.

What am I missing?

BTW _ I have seen gold in credit card form scored to break off in 1/2 and gram pieces for smaller purchases.

 

[KIR]

Boy I just don't know. My step father was a gold fanatic in the 70's. he would be rolling in his grave.
I have stayed conservative with my 401K which has gone nowhere in the past several years.
I am allowed to move stuff around myself but I have let them take care of investments in a conservative manner.

I am thinking about taking back the reins and move a portion into Gold and more into stocks.

Warren Buffet says he invests in stocks that pay dividends...make money while you sleep. Can't go wrong there...

 

[txramfan]

Berkshire Hathaway doesn't pay a dividend and also owns stocks that don't pay a dividend. They even own stock in foreign countries.
Full disclosure, my wife has own B shares of Berkshire Hathaway for years. Reading Warren Buffets annual letter to shareholders is educational and entertaining.

 

[KIR]

Diversity is the key. Don't put all your eggs in one basket. Real estate: bought a house back in '88. It increased 4X+ since then. Nice present for my son/G'daughter. Silver coins of various types and denominations which will be more negotiable if the SHTF scenario. Recently purchased a couple of Nevada Goldbacks. Mostly as a collectable, but as gold goes up so do these. Safe has a bit of ammo which should also be negotiable. I purchased 5K rds. of .22 LR for .04 ea. and while I gave half of it to my two sons, I still have plenty. Paper currency may not sound like a wise investment, but I have purchased older silver certificates, red seals and even came across some error currency that in demand by collectors.

 

[KIR]

Berkshire Hathaway doesn't pay a dividend and also owns stocks that don't pay a dividend. They even own stock in foreign countries.
Full disclosure, my wife has own B shares of Berkshire Hathaway for years. Reading Warren Buffets annual letter to shareholders is educational and entertaining.

All true, his own stock does not pay dividends as I also own some B shares which has risen over the years, and his advice about dividends still holds!

 

[DerekR]

I think buying real estate trumps all. At least it does around here. I have zero interest in precious metals, or crypto currency.

 

[Star43]

I have always said junk silver (US coins) seemed to be the metal to buy for SHTF scenario due to smaller increments, but I do not see it as much of an inflation hedge. It just seems to hang around $20 +/- $5. While it doesn't lose, it really doesn't gain either.

What am I missing?

BTW _ I have seen gold in credit card form scored to break off in 1/2 and gram pieces for smaller purchases.

Think of what you said. It's between $20 - $25, and it is there, and it is real. I am convinced the price of silver is sort of controlled, but they really can't make it go away.....it is real.. currency can come and go. Stocks can come and go. Crypto can definitely come and go ..Gold & Silver are real. I personally like Silver. The poor man's gold as it has been called.....but Silver is real.

 

[magpouch]

With the government adding a trillion or so dollars per month toy the supply, inflation IS going to happen. Metals are just another piece of the puzzle when it comes to investing.

For me metals can work in an "end of the world as we know it" event, but like most things you need to figure out how to keep it safe when there is no "law". I really think though, that if things get that bad most of us won't live through it. Those that do will appreciate food, alcohol, smokes and women more than silver or gold.

Again, just for me, the real value of metals is going to be during a hyper-inflationary period where the government is still "functioning" but inflation is in the double digit zone. Wiemar Germany-Argentina-Zimbabwe and Venezuela are all examples of hyper inflation. And also during those times that the price is high in relation to more normal times (normal bounces). Metals have intrinsic value but unlike other stores of wealth are easy to keep as "money" in your pocket. More difficult to do that with anything that has a shelf life or requires another item to work (cars need fuel, firearms need ammo) or takes up too much space to be very practical.

I first started purchasing (and holding) silver bars when it was around 7.50 an oz in the early 1990's. In around 2011 it bounced up over $50 and I sold enough to buy my house...

In the future, with our government currently using about 40% of tax revenue to support interest payments, and STILL creating trillions more in debt, its just a matter of time until inflation comes to the rescue of our government. Inflation will be the only way to pay the debt short of default. We all got a small taste of that in the last year or so and it will get worse, quite likely much worse. If you don't believe me just look at how bad they want to lower interest rates (because it affects debt obligations) saying that the economy is performing poorly, but most indications show its actually growing and that inerest rates should actually go UP. To me, THIS scenario is where metals are important, way more than any other SHTF event.

 

[Star43]

With the government adding a trillion or so dollars per month toy the supply, inflation IS going to happen. Metals are just another piece of the puzzle when it comes to investing.

For me metals can work in an "end of the world as we know it" event, but like most things you need to figure out how to keep it safe when there is no "law". I really think though, that if things get that bad most of us won't live through it. Those that do will appreciate food, alcohol, smokes and women more than silver or gold.

Again, just for me, the real value of metals is going to be during a hyper-inflationary period where the government is still "functioning" but inflation is in the double digit zone. Wiemar Germany-Argentina-Zimbabwe and Venezuela are all examples of hyper inflation. And also during those times that the price is high in relation to more normal times (normal bounces). Metals have intrinsic value but unlike other stores of wealth are easy to keep as "money" in your pocket. More difficult to do that with anything that has a shelf life or requires another item to work (cars need fuel, firearms need ammo) or takes up too much space to be very practical.

I first started purchasing (and holding) silver bars when it was around 7.50 an oz in the early 1990's. In around 2011 it bounced up over $50 and I sold enough to buy my house...

In the future, with our government currently using about 40% of tax revenue to support interest payments, and STILL creating trillions more in debt, its just a matter of time until inflation comes to the rescue of our government. Inflation will be the only way to pay the debt short of default. We all got a small taste of that in the last year or so and it will get worse, quite likely much worse. If you don't believe me just look at how bad they want to lower interest rates (because it affects debt obligations) saying that the economy is performing poorly, but most indications show its actually growing and that inerest rates should actually go UP. To me, THIS scenario is where metals are important, way more than any other SHTF event.

The worrisome part is as you say, the Govt. Keeps spending and keeps borrowing. They could not print the amount of paper to even account for part of these "trillions".It makes you wonder that the average guy has no idea what a Trillion even means.....and it keeps piling on. When you say "inflation" how can inflation even try to balance the mess. It is like one big balloon that sooner or later has to burst. How can it not burst ?? Only by the good faith of the American citizen??? To me the best thing is we still have some sort of government only so that there is some law intact. Without any laws at all, we are all in trouble.......we have to stay somewhat positive and try to have a balance in our own homes and communities ...To be able to barter with silver or buy with small increments of silver if the time came, would be ok if the dollar is gone. That would give us the time and the opportunity to reorganize if it was necessary. Let's hope we all can stay afloat for a while. Let's stay positive. We don't have much choice. Just try to be a little bit prepared. IMO.

 

[jimbo1096]

I started buying two dollar bills. They ought to be worth something, right

 

[Star43]

I started buying two dollar bills. They ought to be worth something, right

Sounds good...got to be worth at least 2 bucks....

 

[Dan in MI]

Think of what you said. It's between $20 - $25, and it is there, and it is real. I am convinced the price of silver is sort of controlled, but they really can't make it go away.....it is real.. currency can come and go. Stocks can come and go. Crypto can definitely come and go ..Gold & Silver are real. I personally like Silver. The poor man's gold as it has been called.....but Silver is real.

Actually what I said was $15-25. Where it has been floating since the mid 80's except for short term spikes. Which means my $16 in in 1985 is now worth $28. I understand the idea of having it just in case, but it's not a great investment. 80% over 40 years is not all that great. At a mere 5% it hit $28 in 1997 which translate to $107 today.

 

[Star43]

Actually what I said was $15-25. Where it has been floating since the mid 80's except for short term spikes. Which means my $16 in in 1985 is now worth $28. I understand the idea of having it just in case, but it's not a great investment. 80% over 40 years is not all that great. At a mere 5% it hit $28 in 1997 which translate to $107 today.

I thought I saw $20 - $25.....but yes I hear what you say. It's been floating around. I think it hit $27 this past Friday. Haven't checked today. But then again, that is how I feel about Silver. I don't check the prices every day, but I am glad I have some. I wish I had more. I just think it is more of a sure investment. But again, this is just my opinion.

 

[Mobuck]

"Diversity is the key. Don't put all your eggs in one basket."
Yupper. Hill ground, bottom ground, pasture land, crop land, rough ground for hunting. That's the 'diversity' I'm into.

 

[dickydalton]

Ammunition is the precious metal of the future.

 

[chm270]

I have always said junk silver (US coins) seemed to be the metal to buy for SHTF scenario due to smaller increments, but I do not see it as much of an inflation hedge. It just seems to hang around $20 +/- $5. While it doesn't lose, it really doesn't gain either.

What am I missing?

BTW _ I have seen gold in credit card form scored to break off in 1/2 and gram pieces for smaller purchases.

When I was a kid,1062, I could get two candy bars for a silver dime.
2024, I can get two candy bars for a silver dime.

 

[bigbillyboy]

Ammunition is the precious metal of the future.

I am in agreement .

 

[Star43]

When I was a kid,1062, I could get two candy bars for a silver dime.
2024, I can get two candy bars for a silver dime.

That is pretty darn close, but actually at silver melt right now, at least you may get some change back and be still enjoying your candy bars.....you know it would be pretty close as those darn candy bars have sure gone up. Then again every thing has gone up.......good analogy though !!

 

[Star43]

I am in agreement .

One would be hard to argue that.......Silver and ammo to protect your family. A true win-win !!