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 Replies: 16 / Views: 2,055 |
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Pillar of the Community
United States
1026 Posts |
Precious Medals (PM)
If you are hearing all the talk on TV and news about PM be careful out there.
Precious medals are just like the stock market they go up and down by the minute. While I have talked about silver and gold I have been into coin collecting for many years and got into the PM some time ago. Over the years I have cost averaged my PM so I have acquired them at different prices.
Just like the stock market if you do not have the money to lose do not get into PM as you can make money and also lose money.
Right now Gold is at historical high values no one knows what will happen it could keep climbing up to $2000.00 per ounce and higher or fall back to $800.00 over night.
Just want to give those new out there thinking about jumping into PM be careful as you can lose money fast in PM so do not risk any cash you do need as family and food and shelter come first.
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Pillar of the Community
2224 Posts |
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Pillar of the Community
United States
4085 Posts |
Good advice. Anytime I see people talking about gold or stock prices going up or down like they are a certainty, I get worried.
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Pillar of the Community
United States
667 Posts |
The PM market is not investment in the true terms it is speculation. I like to call it an investment but we are speculating in reality.
Instead of me going over the terms you should look investment and speculation up so you understand the.
Yes we do dollar cost average to explain and losses. That means we have been in this market for many years buying most of our PM at very low prices as compared to the current market price. We usually add to our holdings each year.
Diversification is the key, panic could make you take a large gamble and dump 100% into the PM market which could be dangerous.
People back in 1928 & 1929 thought they would get wealthy if they dumped all of their money into the stock market. They though there was no risk after all the market had a 10 year run of going up.
While I believe PM will continue to do well I am cautious with the amount I invest right now. I still am buying PM's but not a time that I am dropping large amounts of money into one metal.
I too do not recommend dumping all of your available cash into PM at one time. And for certain don't put your mortgage, car payment and food money in either. Just speculate within your means and have some fun.
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Valued Member
United States
52 Posts |
My god...I'd love for silver and gold to fall back to what they were ten years ago!
I'd buy like crazy.
(I'm a silversmith and with the cost of raw materials, I can barely turn a profit on a piece of work)
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Pillar of the Community
United States
667 Posts |
This has to be hard on you folks right now. People sometimes forget that gold & silver is more than a place to park your dollars. These metals are actually used in everyday products and when they go up in price so do the products that use them.
Hang in their and good luck.
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Pillar of the Community
United States
830 Posts |
A lot of the gold buying now is with foreign central banks, those are strong hands, they won't be selling for at least a few years. They aren't like the ma and pa small investors that panic out with the first $100-$200 drop.
I'd like to see some pullback here too, to buy more gold and silver.
Snoman, I was wondering what you silversmiths were doing now.
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Pillar of the Community
United States
5832 Posts |
Watch out for Asia/Europe dumping profit taking overnight, its as fast or faster then it gain these past 2 days.
PM is very volatile, I have repeat that a few times at CCF.
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Valued Member
United States
361 Posts |
I only use money I don't need (if there is such a thing lol) to invest in bullion. I have been guilty of using more money than I could afford at the time to buy coins though.
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Pillar of the Community
United States
619 Posts |
Good points. It can be tempting to get PMs on credit, or with your utility money. Fortunately, I had all my bills paid up and still had money left over this month. I got some gold right before the big jump.
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Pillar of the Community
United States
931 Posts |
Absolutely gold could be at $1600 by tonight ( or lower ). The only problem with the market is it's current velocity. That is enough to make anyone who has lost money in the markets stop and think. However the economic basis for a rise in gold still exists and will for many years. If it goes down I believe that it will turn around again in the short term. All it takes is Bernanke to announce QE3, or Ireland to encounter headline problems and it will turn around again. Any gains that the market made due to QE2 are wiped out. all of those hundreds of billions didn't do a darn thing except to place bankers in the bonus plan again. I won't be selling any time soon and short or long term gold will hit $2000 and beyond due to world economic conditions.
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Pillar of the Community
United States
5832 Posts |
I agree if it ever goes below $1600 I'd pick up a few more AGE, and sell when it hits $2000+.
I also like to see profits in cash flow. Short term investment. LOL!
I am waiting for that moment for SLV to drop a little more, almost there. Day is still young.
My outlook with bullion is not the same as our collectible coins we cherish, from time to time I enjoy taking it out and look.
Edited by macmercury
08/09/2011 11:02 am
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Pillar of the Community
United States
1450 Posts |
Several of the "talking heads"on CNBC this morning were harping about how we need inflation at 6-7% for about 5 years to take care of the debt issues. I think that is the way the Fed will end up thinking too. These guys don't give a hoot if people starve to death because they can't buy food,all they care about is keeping the investments up.I can see the "special Congressional committee"freezing social security COLAs for 5 years and then the Fed ramping up inflation. There really is no humanity where there is greed. The sad part is,social security was not a voluntary program(it was originally,but not for most of us)Congress fritters the money away like a lottery winner,and then tells us we have been bad and have to live with out"excesses"(which are really their excesses.) If they try the inflation game there will be riots in the streets!
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Valued Member
Ireland
131 Posts |
You should never risk money you can't afford to lose in anything if you are sensible, Precious Metals included.
Any prospective investment should also always be preceded by due diligence - research different aspects and try to understand why something may or may not be a good investment.
You should also look into what steps would be needed to exit any investment and how long those steps might reasonably be expected to take.
Norm
p.s. Ireland is actually doing better than the MSM would have you believe, still plenty of pain to come but unlike the US we are at least currently attempting to address our financial issues.
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Pillar of the Community
United States
3294 Posts |
Of course, the Fed would probably tell us that 6% inflation was really 2% by not counting gasoline or food. You know, the optional stuff.
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Pillar of the Community
United States
4008 Posts |
Quote:
Several of the "talking heads"on CNBC this morning were harping about how we need inflation at 6-7% for about 5 years to take care of the debt issues. Check out the https://www.shadowstats.com web site sometime. There is a chart there that shows what inflation is today when calculated in the way that was used before 1995. It shows US inflation at 10-11% RIGHT NOW. The cooked book number used by the Fed is bogus and was created to make the Fed and their policies look better than they really are. Just like the 9% unemployment number that gets tossed around. This same web site has another chart for unemployment, as previously calculated, and it shows unemployment that is nearly double the official number. These guys have nothing to gain via faking the numbers... but the Fed and the government do. So, who ya gonna call? Bogus-Number Busters!  Quote:
If they try the inflation game there will be riots in the streets! Too late, Hock. The game is already afoot! |
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Replies: 16 / Views: 2,055 |
Posted 08/09/2011 08:58 am
