[thegmanifesto]

I was talking to a bunch of my friends over the weekend about all commodities mostly Gold and Silver. (Their eyes were mostly rolling to the back of their heads, but that is neither here nor there.)

I was curious to know how many people on here own physical Gold or physical Silver or Both.

Post responses below and hit up the poll.

(Side note: I always wondered how people on here did these polls, and I finally figured it out.)

[rudebwoy]

Own Silver and still collecting. Why did your friends roll there eyes? I rolled my eyes when people were preaching about Gold in 2005, now look where it is at!

[thegmanifesto]

"Why did your friends roll there eyes?"

I don't think people get it.

Which is kind of funny, because have always thought Commodities are easier to understand than stocks.

[hydrogonian]

I don't know much about it, other than the principle that buying assets when they are hot is a bad idea. So, if a lot of people are talking it up then its probably a good idea to either find something less hot but which will also generally rise in tandem with those metals (other metals, petroleum, etc..Im not really sure) but not crash so hard due to any type of hype fueled bubble. I've also read that there are a lot of problems with gold investment.

Here's an article by one of the few investment 'gurus' that I actually trust and respect. His focus has always been real estate, but he recently just came out with a book about investing to preserve your money in a hyper-inflationary economy. I haven't read it but I hope to. If your an investor, then any of his books are a safe buy. He's an anti-hype details oriented type of guy when it comes to investing.

Disadvantages of gold as an inflation hedge by John T. Reed

I noticed that you linked to Jim Rogers on your facebook page. He's great too, as you probably know. His books are good reads. In his first (?) book, Rogers, as a 50+ year old man, takes his 28 year old hot blonde fiancee on a motorcycle tour around the entire world with no support, crosses every continent from tip to tip, and gives invaluable investment lessons along the way while investing in stock markets that barely exist at the time in Europe and South America (ground floor)...

Edit: I see on your blog that you read Adventure Capitalist. I haven't caught up with that one yet, but mean to. Above, I'm referring to the prequel to that one.

[emh]

Not directly but I have holdings in a mutual fund that owns gold and silver.

[DanDeLaCruz]

Own both and still stacking, also have my money heavily invested in commodities. Been doing great for the past few years since I started...

Actually I've stopped traveling for the moment so I can concentrate on making money and putting more money into my investments, I actually canceled my Brazil trip to do this... it's tough, I need my travel fix, but I'm positive it will pay off in the near future...

[Lief]

I own both gold and silver. I also own PM stocks. I have owned both since about 2002-03. I am planning to buy more.

None of my friends own physical gold. If you bring up precious metals people think you're a wacko.

[thegmanifesto]

hydrogonian -

Interesting article, I am going to have some of my crew look into it.

DanDeLaCruz-

Yeah, I have been going investment bonkers as well. Looking on playing this Japan tragedy.

Lief-

"If you bring up precious metals people think you're a wacko."

No doubt.

[The_CEO]

Back in 2003 some guy cornered me at a party and told me how he was hoarding as much silver as possible. He also mentioned that his shirt has holes warn in it from the hammer of the hand gun that he always wears in a holster. He was a wacko, but i'm guessing he's a loaded one by now

[rudebwoy]

Silver is down today, looks like JPM is trying there best to suppress it. I will ride the wave for a bit and see how it goes, I have given up on paper money - I fully expect there will be a financial crash.

[Samseau]

Bought silver back at 19$

http://tfmetalsreport.blogspot.com/

The only blog you need for precious metals



I also believe that silver and gold prices will drop in the immediate future, silver back under 30$, between Japan's earthquake and the announcement of QE3.

Make sure you own some precious metals before QE3, that will be when the real bull market for gold and silver arrives.

[thegmanifesto]

Anyone been following silver?

Parabolic.

Gold at fresh highs as well.

Should be giving everyone a little extra walking around money.

[Samseau]

(04-20-2011 01:36 PM)thegmanifesto Wrote:  

Anyone been following silver?

Parabolic.

Gold at fresh highs as well.

Should be giving everyone a little extra walking around money.

Don't have the money yet, not gonna sell silver unless the Govt cleans its act up. I don't think it will happen so I'm just gonna keep my silver till the next world currency is introduced

[rudebwoy]

Silver hit $45 today...buy buy folks

[truedat]

Less than 1% of the US population owns physical bullion, so there is lots of room from growth especially with all the inflation thats about to hit. I put half of my liquid in bullion in the last year and am working on a plan to start earning in BRL's. Bullion is going to go up for sure (probably 15-20% in the next 12 months at least). Buy it.

[cool]

I bought silver at $33.

I've been waiting for a correction to buy more, but the price just keeps rising.

It's a high quality problem.

[rudebwoy]

I don't believe there will be a correction, the Silver train is moving fast and I think the "powers that be" want to slow it down.

They want people to buy there useless stocks, bonds and mutual funds.

[shanefalco]

I bought both silver and gold back in 2005 at $6.50 and $420. At one point I was about 80% silver and 20% gold. I sold out of all almost all my silver, I'm about 95% gold now.

When I bought years ago, I was a little naive about the PM markets. Today, I wouldn't buy any silver because the price of silver is too volatile, and can be manipulated. I would still buy gold now, but I plan to sell within the next 2-3 years.

For anyone considering buying silver, make sure you have an understanding of selling it. I got out of silver because I found out that you'll lose a considerable amount of money when you try to sell silver (in addition to taxes). What do I mean, check out this site:

http://www.coinflation.com/coins/1921-19...Value.html

The current melt price for silver is $36.10. Dealers are currently paying
$32.40.

http://www.apmex.com/Category/17/90_Silv..._Bags.aspx

If you're looking at buying eagles, they are currently selling for $52.65, but buying back at $48.56.

http://www.apmex.com/Category/160/Silver...Prior.aspx

So when the time comes to sell silver back, you lose money. Also, buying at $52.65, you're essentially buying something that is only worth $36 on the open market price.

Compare that to gold, where spot is 1507.70 and the buy price is $1,546.50.

http://www.apmex.com/Category/290/Gold_E...Prior.aspx

Dealers will consistently buy back silver at a lower price, but buy back gold at a higher price. For those who think gold is too expensive per oz. Look at buying the smaller denominations 1/10 oz for example.

With any investment, I wish you all good luck!

[truedat]

Kitco is buying silver @ $46.52 /oz. Not sure why you would want to sell it at melt price? Do you dispute their buy price?

https://online.kitco.com/selltokitco/sel...ml#bullion

[shanefalco]

(04-23-2011 09:12 PM)truedat Wrote:  

Kitco is buying silver @ $46.52 /oz. Not sure why you would want to sell it at melt price? Do you dispute their buy price?

https://online.kitco.com/selltokitco/sel...ml#bullion

The melt price is essentially the price of silver because silver is an industrial not a monetary metal (Unlike gold which is still held by central banks/IMF/etc). It can be used as a gauge as to whether silver is under/overvalued. Many silver newsletters push junk silver as an investment. Junk silver is the 90% silver bags of coins. Right now, if you were going to sell those bags, you will take a loss because the price you are selling is less than the melt price. The dealer can take those bags and melt them down and make a decent profit.

I don't dispute Kitco's price. Their price is what they are buying for a 1oz (100%) silver bullion. It pretty much matches what the spot price is for KITCO silver. If you try to sell Kitco another mint's brand, you might now get that price. There's a good chance that it will be lower. But if you notice, that price is basically what the spot price is. You don't get a premium for selling it. That's why I mentioned the difference between selling silver and gold. Silver you might get spot and lower. Gold you will usually get a premium.

Also, like I said earlier, the melt price is essentially the price of silver. The melt price for a 1oz round is probably around $40, and you can buy a 1oz round for $48.02, a 20% premium over what you can consider the true price of silver.

[glassjawed]

Can you guys give me a good source for buying gold and silver on paper?

On a separate note, I´m interested in holding some foreign currency. Would just doing a trade on forex would be the best way to do this?

[Samseau]

(04-23-2011 07:48 PM)shanefalco Wrote:  

I bought both silver and gold back in 2005 at $6.50 and $420. At one point I was about 80% silver and 20% gold. I sold out of all almost all my silver, I'm about 95% gold now.

When I bought years ago, I was a little naive about the PM markets. Today, I wouldn't buy any silver because the price of silver is too volatile, and can be manipulated. I would still buy gold now, but I plan to sell within the next 2-3 years.

For anyone considering buying silver, make sure you have an understanding of selling it. I got out of silver because I found out that you'll lose a considerable amount of money when you try to sell silver (in addition to taxes). What do I mean, check out this site:

http://www.coinflation.com/coins/1921-19...Value.html

The current melt price for silver is $36.10. Dealers are currently paying
$32.40.

http://www.apmex.com/Category/17/90_Silv..._Bags.aspx

If you're looking at buying eagles, they are currently selling for $52.65, but buying back at $48.56.

http://www.apmex.com/Category/160/Silver...Prior.aspx

So when the time comes to sell silver back, you lose money. Also, buying at $52.65, you're essentially buying something that is only worth $36 on the open market price.

Compare that to gold, where spot is 1507.70 and the buy price is $1,546.50.

http://www.apmex.com/Category/290/Gold_E...Prior.aspx

Dealers will consistently buy back silver at a lower price, but buy back gold at a higher price. For those who think gold is too expensive per oz. Look at buying the smaller denominations 1/10 oz for example.

With any investment, I wish you all good luck!

In spite of all what you posted, there is one itty bitty problem:

If Gold goes up, Silver goes up

By converting your silver to gold you've lost cash because Silver is undervalued compared to gold: silver has an industrial use whereas gold does not (although this could change sometime in the next ten years); silver is more manipulated compared to gold, which means silver has more upside potential (why would they manipulate the prices to be artificially high? JP Morgan is trying to hold a monopoly on the supply of silver... if prices keep rising they won't be able to afford it anymore)


I think you made a bad choice. Of course I could be wrong, this is all speculative at the end of the day, but inflation supports all precious metals (see 1979) equally. There's no reason to dump silver if you think gold will increase. They rise together and fall together; they are alternative currencies and are profitable due to the dollar's debasement

[Samseau]

(04-24-2011 09:52 AM)glassjawed Wrote:  

Can you guys give me a good source for buying gold and silver on paper?

http://inflation.us/reviews/

[shanefalco]

I sold off the rest of my silver this week at $46. I decided to get out because I heard 3 different guys at work tell me they recently bought a bunch of silver. It's like Joe Kennedy's old saying, when the shoeshine boy starts giving you stock tips, it's time to get out of the market. Plus, after speaking with numerous reps, a lot of companies are shutting down productions of their industrial equipment due to falling demand.

I do believe that the silver price can still increase, but I'm convinced we're headed for a major correction this year. I wouldn't be surprised if the price goes down to around $20. If it drops that much, I think it'll stay there for some time due to the slowing demand for its industrial use and all the people spurned from investing in it because they were burned by the sharp drop in price.

I'm keeping all my gold, but I won't purchase any more of it. I think that price will also have a correction, but it will not be as severe as silver. I bought so long ago that a 20% price decrease doesn't bother me.

[rudebwoy]

(04-30-2011 12:31 PM)shanefalco Wrote:  

I sold off the rest of my silver this week at $46. I decided to get out because I heard 3 different guys at work tell me they recently bought a bunch of silver. It's like Joe Kennedy's old saying, when the shoeshine boy starts giving you stock tips, it's time to get out of the market. Plus, after speaking with numerous reps, a lot of companies are shutting down productions of their industrial equipment due to falling demand.

I do believe that the silver price can still increase, but I'm convinced we're headed for a major correction this year. I wouldn't be surprised if the price goes down to around $20. If it drops that much, I think it'll stay there for some time due to the slowing demand for its industrial use and all the people spurned from investing in it because they were burned by the sharp drop in price.

I'm keeping all my gold, but I won't purchase any more of it. I think that price will also have a correction, but it will not be as severe as silver. I bought so long ago that a 20% price decrease doesn't bother me.

I respect what you are saying, but most people have no clue about precious metals. Yes they hear that gold is increasing but people feel it is too expensive to buy and what good will it do. Silver is still not talked about as much as gold and people I know will tend to buy the stocks (ETF's etc) instead of the actual silver. I have tried to educate some of my friends but they do not seem that interested, I mean what could go wrong in there minds.

Silver is very much undervalued, I am sure you know the 16:1 ratio to Gold. Which would put Silver just under a $100/oz, which I feel it will reach by end of summer or year for sure. I do not confess to know how the markets work, they are manupilated that much I do know.
But the Chinese are buying precious metals like no one business, so that will only drive the price up and the demand for Silver is limited.