Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
If you've been paying attention over the last week, you've noticed that gold has forged ahead to new levels.
I was wondering what other people think--is this just gold continuing on it's upward (but sometimes halting) trajectory, or is it a larger signal that the other shoe is finally going to drop in terms of a deeper US or worldwide downturn?
Silver's low right now but it's tricky. I thought I had it nailed playing spot price and buying in the late spring and selling in the late fall when electronics manufacturing for Christmas ramps up and then rebuying in late spring. Sorta kinda worked that way but the greater lesson I learned from silver is that because it's a manufacturing material it's still heavily subject to private industry pricing control. Film manufacturers for the film industry kept a tight leash on silver prices for decades while film was still done on silver based film. When they switched to digital, silver jumped in price. Silver's tough to predict on the spot market.
In addition to this, I like to "scrounge buy" silver from other sources and sell it on the open market. I bought $140 worth of silver for 8 bucks that way. Yeah I know, $132 is hardly a retirement fund but I did it while on vacation and had nothing better to do while my better half was shopping, spending well beyond my profits that day. I did it by finding sterling silver spoons that an antique shop was selling for $1 a piece - not having any idea what they were selling. Yeah it sounds corny. I once joked to someone that the entire precious metals industry is a slightly more sophisticated form of rednecks investing in collectible plates. Sure it's more opportunism than an investing strategy and I wish they had more than 8 but it was still fun. The best part about sterling silver is it is still easily sold on the back end to craftsmen and artisans who use it. Artisans usually turn fine silver into sterling or coin silver anyway because adding the copper to it that makes it sterling/coin increases the durability of the silver.
I guess what I'm trying to say in an overly wordy way is no matter what it is, educate yourself on something and always be thinking like an investor and always keep an eye out for that thing and be ready to buy when you can get something for less money that can be later sold for more money.
Bienes- since you asked me, here are my thoughts. As I've stated before, I never buy gold or silver as an investment. ANYONE that tries to tell you they can time metals or stocks etc, is lying, or in Ripleys Believe it or Not! Imagine the Book they could write with that brain!
My gold and silver is strictly a hedge and an insurance policy, imo. I've always believed in a cost averaging method, continuing to buy at regular intervals, until I figure I have enuff. Otherwise, I'm just guessing, and I don't do that in metals, or real estate.
My overall GUESS is that more problems are coming down the pike of a serious nature. In most recent times, when that happens all metals increase in value. Remember, that is just a GUESS! I do feel it is good to have metals as an integral part of an overall investment strategy. Good luck. Rich
Does the rise in prices in the PM market signal another crash? I think no, it seems to me that gold and silver prices are lagging behind the news - they shoot up after there is a drop or perceived instability in the 'regular' markets.
Do I think we'll have another dip? I think certainly we should, given our policies and refusal to confront and realistically address our fiscal problems and irresponsibilities. But I could also see enough people being convinced that things are actually getting better to have a real effect in the economy and that things will get better before they get worse again.
For now I'm holding off on buying any significant (for me) amounts of PM's because I think it likely they'll dip back down again.
I plan to put most of my eggs in one basket - real estate investments - because I feel I've got enough education in that area and there's enough opportunity that I'll do better here than other investments. I'm diversifying only for emergencies since my primary focus is to grow rather than to keep what I already have. Just me, YMMV! I'd have a different strategy if I was rich. Hm, was that punny?
In ALL connotations, Rich should come with a capital R, imo... Rich
P.S. Most of my eggs are also in the RE basket, but not all. I'm still concerned about possible nationalization , rent controls, RE ownership laws changing, tax benefits being removed,,, etc...
Bienes- since you asked me, here are my thoughts. As I've stated before, I never buy gold or silver as an investment. ANYONE that tries to tell you they can time metals or stocks etc, is lying, or in Ripleys Believe it or Not! Imagine the Book they could write with that brain!
My gold and silver is strictly a hedge and an insurance policy, imo. I've always believed in a cost averaging method, continuing to buy at regular intervals, until I figure I have enuff. Otherwise, I'm just guessing, and I don't do that in metals, or real estate.
My overall GUESS is that more problems are coming down the pike of a serious nature. In most recent times, when that happens all metals increase in value. Remember, that is just a GUESS! I do feel it is good to have metals as an integral part of an overall investment strategy. Good luck. Rich
Thanks Rich. I use a buy and hold strategy as well, I've been holding it for 3 years now and slowly buying more.
Personally I think that because of the oil spill and the Euro crisis it's going to continue going up, at least throughout the summer.