On investing in PMs...

[placerman]

On investing in PM's...

If you could go back in time to when silver sold for 4 dollars and ounce, or when gold sold for 300 an ounce, would you have purchased them then?

Most here would say of course but in reality most wouldn't because somehow it goes against human nature to buy and hold I think. Most would have just convinced themselves that it was still too high or there were better deals out there, or something else...

Too many are convinced that they are too expensive and wont touch them even now.

The problem is now the paper currencies of the world are on the brink of collapse. Its being reported on far to much to just ignore anymore.

I really think that in 10 years people will look back on this time and say why on earth were they so stupid to not see what was about to happen?

Many if not most of the major players are predicting 2000 an ounce gold by the end of 2010 and long term several are openly predicting 5000 dollars per ounce plus by 2020. Incidentally those same people predict 400 an ounce silver in the same time frame.

I guess if you don't believe it, fine but I do.

We will see who was right in ten years wont we?

 

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[jim4silver]

Re: On investing in PM's...

I would agree in part and say if a person did not have any silver/gold, anytime is a good time to start buying to have a core position to serve as "insurance" against future world events that could ruin dollar value and other investments.

But if a person has a good core position (the definition of this is open, but I would say 25-50% of one's liquid net worth in PMs) but wants to add more, now may not be the best time to add to your position, especially if money is a bit tight.

Although we are in a dip now based on the past few weeks rise, many believe (me included) that a further retractment is coming before the next BIG up-leg. Nobody really knows for sure what is going to happen, especially in the short term. I believe gold could break down into the 900s and silver to 12-14 before the next big rise.

The people who bought gold at 800+ in 1980 and held it for 20+ years lost a huge amount in value due to inflation over the years. Some would say it would have been like buying gold back then at around 2300 per ounce (due to inflation), so you would still be underwater now value-wise even at 1200 per ounce.

I think the economy, etc, is far different now than back in 1980, so I don't think our recent high is anywhere near the high gold will reach in 5 years (or less). I also think silver will break its old record high at some point in the next 5 years.

If a person believes the pundits who say how low the real supply of silver is, then silver would probably be a better bet from this point on than gold. I don't know if I believe the shortage stories some pundits keep preaching. But I hope they are right because I will be betting on silver in the future years (along with gold).


Jim

 

[Bank Runner]

Re: On investing in PM's...

I remember those years. No one cared about silver... I was in college and had been a coin collector as a boy. I had just read about CRHing for the first time and was raking in what I thought was an unbelievable amount of silver (others put me to shame though on the CRH board). For this reason (and my small budget) I purchased very little silver. I did manage to purchase a coupe sheets of Canadian Silver bullion, which I got at an unbelievable price on a dutch eBay auction (pennies over spot). I also purchased 1 tube of American Eagles. I purchased many .2361 ounce gold Panamanian balboas for around $72-77 a coin. I felt had nothing to lose as their currency was based on the dollar (fixed exchange rate of 1 to 1 since 1904), and they were stamped $100. I did the same thing with a $200 Australian commemorative gold piece, with the exchange rate, I was still making money just buying the coin for exchange. In my view this put us on the gold standard again for a couple of months... I also purchased 3 ounces of platinum, which was around $350 if I recall correctly. If platinum is within $100 of the price of gold, I would always buy platinum instead.

The platinum has long been sold, but I still have all the silver and gold bullion.

 

[GrayCloud]

Re: On investing in PM's...

No faith in paper at this time. Yes I am converting all I can to Metal.