1. Simple answer - its up to you
2. More involved answer: You are always taking a chance buying PMs but:
a. If you are in it for the long run - the dollar value of them will be more in 20 years than now. See answer 3.
b. If you are trying to make a fast buck (nothing wrong with this) - you need to do homework to see the events shaping the prices.
3. Long answer: As long as the current administration keeps hating America by grabbing unauthorized powers that kill our economy by controlling businesses, the dollar is going to drop in value. Hence, logic dictates PMs will be worth more of the losing-ground dollar. So you will actually get what appears to be a profit b/c the number of dollars per oz are larger. But the numbers are not an indicator of value!
The recent rise of silver to 50.00 an ounce was not near the early 1980s record b/c the dollar was worth so much more back in the 80's. I think the silver price in 2011 dollars would have had to be 81.00-83.00 an ounce to actually reach the 80's peak of 1980s-value-dollars at 50.00.
However, even if the dollar completely collapses as current admin trends seem to favor, PMs will be/are universally recognized as having intrinsic value. History proves this. Therefore PMs are a smart investment.
Earlier this year when silver hit the 2011-dollar-value high of 50.00/oz, I know there was talk of the government stepping in and restricting the buying of silver in some manner. I find it interesting Soros dumped his tons (you read that correctly) of silver onto the market and the price then dropped to around where it is. I am not sure even the amount he had was enough to stall the global climb, lower the price, and make it so people stopped buying it. I notice gold held its own - people still buying. Not sure why/how.
Historically, it took quite a few less oz of silver to equal an oz of gold than it does now. By all historical records, this means silver SHOULD be quite a bit higher than it is. So I have to admit, as much as I do not like conspiracy theories - I have to wonder what powers-that-be are (are they?) messing with the market somehow? I know large investors do not actually handle the PMs but do it electronically with numbers. The manipulation was something having to do with restrictions on the way the large investors could buy.
My opinion is that the dollar is going to keep failing as long as things in DC are the same as they are now. I personally think if DC can be washed clean, then the dollar might be able to regain ground and the PM prices would reflect this by dropping.
This is a summary of what I get from reading and putting time into studying this.
One other note I would make is that a well-known coin dealer friend of mine said when silver prices are up, he trades in silver for better grade key coins. He does not believe these will lose value, but gain. I do not know if the value of these would hold with a dollar collapse or not. I would suspect they might. I know if I had traded in on keys back in the 80's I think relative value of the keys did rise.
Am I right or am I wrong in all of this? Time will tell so it looks like we are back to the simple answer number 1
Posted 06/26/2011 09:02 am
I have not stopped buying silver coin. I have started looking around more before I buy so as to seek out the best deal possible. Why pay Joe 30x face when Bob has offered you a sack full of "old worthless money" for 10x face because he does not want it and knows you like that kind of stuff.
