Precious metals?

[Pike2350]

I wasn't sure if this should go with the retirement or 401k thread...but it's sort of another "investing" question.

Who here has purchased precious metals? Do you physically own it or do you own a fund (I've seen a few different ones that deal directly with precious metals)? Where do you buy/sell it? What metals?

I am looking at purchasing some precious metals (physically) to hold in my safe instead of cash (well instead of as much cash) to hedge the inflation that is going on, and I feel will continue for quite a while. I have never bought any before, so I'm starting to research it a little. It seems online may be cheaper (like many products), but I have not actually checked locally yet.

I am likely going to be going with a few 10oz silver bars and a few 1oz coins. It seems this gives me the best versatility in cashing out if needs be. From what I found online, from reputable sites are approx. $270 for the 100oz bars and $30 for the coins (varies on mint and such)

So, I thought it might be a good discussion....since we can't put all $ into retirement and need some "In Case of Emergency" $$$ supply.

 

[Unimog]

I don't really have any advice, but a little second-hand experience: My mother bought an amount of gold and silver in small ingots and coins several years ago. She bought quite a bit above strike price, so it has taken a few years to get back to break-even, unless you assume that the certified ingots are worth much more than strike (bad assumption from what I have seen).

 

[Pike2350]

I don't really have any advice, but a little second-hand experience: My mother bought an amount of gold and silver in small ingots and coins several years ago. She bought quite a bit above strike price, so it has taken a few years to get back to break-even, unless you assume that the certified ingots are worth much more than strike (bad assumption from what I have seen).

I've been under the assumption that to purchase you will have to buy above strike price. I'm still learning and researching however. I kind of assume this premium above strike is more or less the commission.

I'm not as worried about breaking even....more hedging against inflation. I currently have $1k in cash in my safe and originally was going to put more in...but I realized, with how things are going currently, in another year, that $1k will only be worth $9XX. At least with precious metals, even with the $30 premium (about what I'm seeing on the price above strike for a 10oz bar) It will be worth close to the $1k, if not more depending on economic factors. I am also seeing that Silver is about $5 less per oz than it was last summer...so I'm hoping it's kind of a "bargin" right now.

 

[Stephen]

 

[N-Smooth]

Does ammo count as a precious metal? Seems like it

 

[UNSTUCK]

I have nothing of real value to add, but if you're looking for "emergency funds" is metal the way to do it? In a real emergency do people still want gold? Only half joking, but keeping a few gallons of drinkable water in there might get you further than the metals would. Think I'd stick to cash. Emergency funds should never be thought of as investments.

 

[Spork]

Does ammo count as a precious metal? Seems like it

Easily liquidated, has demand, yea I think it's a good investment. about 15 years ago I bought 9mm for $5 a box so it's done pretty good if I had invested in it vs Novell stock...

 

[Kiel]

I remember buying 9mm for 12 a round. Glad I did

 

[1969honda]

I know of someone who actual has a small home safe full of mini bottles and gold coins. Idea being everyone wants a little relief when shit hits the fan and life goes south. Drink away the problems or use it as an antiseptic.

Gold because every 3rd world country I've been to values it more than anything but food and water. As crazy and useless as a chunk of metal seems to me, its the oldest form of currency.

I know of a time when a gold wedding band was used to buy information for a mission. Why you ask, because gold is universal and almost untraceable. The source refused to accept cash or other goods for fear it could be traced, noticed or stolen easily.

 

[ID Bronco]

Cigarettes are the best form of emergency currency in my opinion. You can trade for nearly anything with them.

 

[Cody]

Cigarettes are the best form of emergency currency in my opinion. You can trade for nearly anything with them.

haha, like in prison?

I find beer and whiskey to have a fairly universal trade value amongst most people I associate with.

Really though, somehow vaping has been able to supplant smoking as the stupidest thing you can possibly be seen doing. I never thought I'd see the day when I'd see someone smoke and say "well, at least they aren't vaping". But here we are.

 

[Stephen]

haha, like in prison?

I find beer and whiskey to have a fairly universal trade value amongst most people I associate with.

Really though, somehow vaping has been able to supplant smoking as the stupidest thing you can possibly be seen doing. I never thought I'd see the day when I'd see someone smoke and say "well, at least they aren't vaping". But here we are.

When you make smoking cigarettes' look like a rational choice, you know you're doing something wrong.

 

[Houndoc]

I really question that gold and silver are a predictable hedge against inflation.

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

 

[glockman]

One of the guys on my shift is a precious metals and rare coins dealer. He stopped buying about a year ago and said the premiums are just ridiculous now. He actually started buying crypto coins to satisfy his itch. I'm holding off since he's made a small fortune and isn't buying right now. I am investing in ammo from now on though. I'm buying 1k primers per month for the rest of my life.

 

[YouKnowWho]

My advice is invest in more than just precious metals. Strategic metals have a decent market as well. When I last invested in either, I retained physical possession of them. When used for online trading there are companies that give you the paperwork verifying ownership, yet keep physical possession, to make trading easier for you. That is a double edged sword as they can allege you own the gold, but the gold may not exist in anything but paper alone. I have heard of that happening. Ideally I suggest taking a couple college courses on investing, and consider all options.

As for strategic metals, look at what is happening now with cobalt, titanium, and other metals. Their going rate have compounded exponentially in some cases. Some of the basics metals like copper & aluminum are no-brainers. You can either buy when cheap and sell when the market goes up or retain until there is a strategic need. Or even if you need for your own use.

Now this piece is completely a matter of personal choice- learn how to gold pan. Sounds crazy, I'm sure. But I know I have found some nice gold in my time, even a few nuggets. There are clubs you can join that have claims or claim access, and there you keep what you find. There you can meet some really cool people, have totally awesome times with group digs, and the memories last forever. Or, as I have found, you just might make a killing. Such as the New 49'ers out of Happy Camp California. Pay a few grand for lifetim membership, and go prospect on their claims. I speak highly of them as I know the founder Dave McCraken, and he's a totally awesome guy. However, I focus on that group as I have personally seen prospectors find gold nuggets the size of a man's fist. Ok, that was back in the day when you could legally dredge on the Klamath river, but still, the gold IS there, and it can be huge. Back then that nug sold for around $5-6,000, I think. Today, try $38,000. I'm not joking. $38,000 ain't pocket change. Well, maybe for Herzog and yroc (tic), but you get the idea.