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Which Is Better To Invest In? Silver Or Gold?

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Ed_B's Avatar
United States
4008 Posts
 Posted 09/01/2012  5:35 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
If you have a substantial investment just get out when it looks like its going to be another MF Global.

If that were possible, that would be an effective way to protect yourself. Unfortunately, when an investment company goes belly up, it tends to do so VERY quickly. By the time we hear that it is in trouble, it is already too late to get your money out of there. It's a bit like a sudden market pull-back. We could all avoid those if we had the time to react. In most cases, though, we do not.
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basebal21's Avatar
13014 Posts
 Posted 09/01/2012  6:00 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply
Very true we often dont have a lot of warning. I do my stocks myself at the moment, so I've put in sell orders that activate at certain levels if the stocks crash like that on companies I have a decent amount in. I'm not really concerned about any of them going belly up and I would still lose money, but its better than losing it all. I would imagine a stock broker would have a similar option to at least protect some of the investment but the risk is certainly real and why investments should be taxed lower than assured income
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mkfarm's Avatar
United States
667 Posts
 Posted 09/05/2012  8:33 pm  Show Profile   Bookmark this reply Add mkfarm to your friends list Get a Link to this Reply
I am in favor of a diversified investment strategy that includes the speculation with PM's. To me 100$ stock or PM's is dangerous.

each and everyone has their own sound reasons between gold and silver. I like that part to be balance too. However even I move it around when it makes sense.

In 30 years I have never had a problem converting either stocks or PM's into cash when needed. In fact even with all of the automation we have today, I can convert PM's into cash on the same day, I can't do that with stocks.

With today's uncertainty I'm not to sure that my stocks will hold over over the short term. If I was going to retire soon I may really have to think about how much I want in stocks.

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Ed_B's Avatar
United States
4008 Posts
 Posted 09/05/2012  11:18 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
I do my stocks myself at the moment, so I've put in sell orders that activate at certain levels if the stocks crash like that on companies I have a decent amount in.

Same here, BB. Stop loss and trailing stops are the way to go in a volatile market that is prone to the occasional crash. It's not a perfect strategy but then, what is? At least it limits big losses when we get one of those gut-wrenching plunges.


Quote:
I am in favor of a diversified investment strategy that includes the speculation with PM's. To me 100$ stock or PM's is dangerous.

I agree 100%. When investing, as in life, moderation seems to be the key.


Quote:
I can convert PM's into cash on the same day, I can't do that with stocks.

True, MK. But then there is a "settlement date" issue with stocks. I understand where this rule came from but it seems a little outdated, especially when one can buy and sell with a few mouse clicks and our brokers hold BOTH the stock and the money! It isn't as if there was a problem with 2 parties involved or they had to wait to be paid.


Quote:
If I was going to retire soon I may really have to think about how much I want in stocks.

Yes, that is a concern. A large loss just before or after retiring can be a real portfolio buster. Trailing stops and stop loss orders work well here too.

On the other hand, bonds have a lot more risk then bond buyers are getting paid to accept. I'd be REAL careful with them as well.

On the 3rd hand, lol, I have no worries about maintaining a decent PM hoard as insurance against financial Armageddon. It might or might not be the financial answer I seek but we won't know that until AFTER the SHTF. I know that I trust the solid value of PMs more than I trust the supposed value of paper with ink on it that is whipped up out of thin air and in any amount the Fed wants.
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basebal21's Avatar
13014 Posts
 Posted 09/06/2012  12:51 am  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply

Quote:
On the other hand, bonds have a lot more risk then bond buyers are getting paid to accept. I'd be REAL careful with them as well.


Id actually be interested to know if these are even making money anymore when you factor in inflation
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nod2003's Avatar
United States
3294 Posts
 Posted 09/06/2012  09:29 am  Show Profile   Bookmark this reply Add nod2003 to your friends list Get a Link to this Reply
What inflation? The gub'mint says we have no inflation. ;)
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Gothic Florin's Avatar
United States
2541 Posts
 Posted 09/06/2012  7:47 pm  Show Profile   Bookmark this reply Add Gothic Florin to your friends list Get a Link to this Reply
I don't know anyone who loaded up on silver and gold in 2002 and actually got "profit" of the last 10 years. My time horizon is 50 years, and precious metals have never beat equities over a 50 year rolling period going back to 1820.
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Ed_B's Avatar
United States
4008 Posts
 Posted 09/06/2012  7:55 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list Get a Link to this Reply

Quote:
Id actually be interested to know if these are even making money anymore when you factor in inflation

I agree. Historically, bonds have provided a positive cash flow that was in excess of taxes and inflation. I'm pretty sure that is not the case these days. Stocks and funds are beating bonds handily these days. I have a few mutual funds that are earning between 9 and 16% in 2012. That's WAY better than the 1.6% being paid for the US 10-year Treasury Bond.


Quote:
What inflation? The gub'mint says we have no inflation. ;)

Yep and if they are saying it, it MUST be true! Never mind what we all know from our trips to the gas station, the grocery store, the doc's office, the dentist's office, the college tuition office, the insurance office, the car dealership, the travel agent, our attorney's office, our accountant's office, etc, etc, etc.

Reality can be quite a shock to anyone who tries living in Fantasy-land.
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mkfarm's Avatar
United States
667 Posts
 Posted 09/06/2012  7:57 pm  Show Profile   Bookmark this reply Add mkfarm to your friends list Get a Link to this Reply
Now you know one.
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GoThunder's Avatar
United States
830 Posts
 Posted 09/07/2012  1:14 pm  Show Profile   Bookmark this reply Add GoThunder to your friends list Get a Link to this Reply
Here's another.
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