Real Estate Investor · Frisco, TX, TX · Member since 2010 · 388 posts · 138 votes
On another thread there has been some discussion on buying silver. Since I have been wanting to buy but am unsure I thought I would start a different thread for that. Here is my question. I go online to a site like:
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
15y
Gold seems to be slowly clawing it's way back up after the drop last week...I wonder if that was just profit-taking last week, or did it really have to do with other factors. It's fascinating to watch.
When I look at the charts it seems to have shown a consistent pattern over the last eight years. A big spike, then a big drop of 5-10%, then a smaller increase, consolidation at that price for two to three months, then repeat.
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
15y
Originally posted by Matty M:
Originally posted by Rich Weese:
Matty- $32? Gut feeling or solid research? I don't invest in metals, but I'll buy a bit if it EVER drops below $35. I just don't see it.
We're getting there. It's at $39 today. I am relieved about the pullback. I am also relieved that the media was calling 49 the top (which means it's not of course).
LOL, once the mainstream media become gold/silverbugs, then we will know it's time to sell!
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
15y
Originally posted by DAVID GAGE:
Matty- Great post and thanks for the insight. I'd like to see it dip down again and I will put some skin in the game. Thanks Dave
I will say this for ultra short term. The way silver bumped up today I will not be surprised to see it down to 32 this week. That should shake out the rest of the weak hands.
Developer · Member since 2010 · 72 posts · 31 votes
15y
Matty, nice to see your strategy. My father asked me what I am going to do with my "hoard"... He was laughing a bit at me when I bought it, then one day I told him to look at the prices. He stopped laughing. Recently he asked me when I am going to "buy that farm". I replied that when the price of RE goes down enough and the price of my "hoard" goes up enough I will do a swap. He quietly replied that it does not seem like it will be too far off...
Nice to see my dad see the light about inflation, spending, etc.
Investor · Seattle, WA · Member since 2011 · 84 posts · 10 votes
15y
I bought in 2008 and had a strong feeling to sell. I texted my husband on 4/30 but forgot about it when I got home from work. Now I wish I had. Selling now would still be a good gain but not as good and my gut is telling me not to. Now I guess I'll hold on, I'm just nervous it will keep dropping.
Handyman · THUMB, MI · Member since 2010 · 72 posts · 14 votes
15y
I just got done reading the "Rich dad poor dad guide to investing in gold and silver"...I must say that it is a great read and i recommend it highly. Anyone else read it yet? It was written in 2008 so some of the predictions in the book have proven true. The author likes silver big time and predicts HUGE things to come.
Los Angeles, CA · Member since 2008 · 557 posts · 70 votes
15y
Originally posted by DAVID GAGE:
I just got done reading the "Rich dad poor dad guide to investing in gold and silver"...I must say that it is a great read and i recommend it highly. Anyone else read it yet?
One thing I didn't like about it was how it felt like it was written to evoke fear to support an agenda. Which is easy to conclude as true, because Mahony actually sells bullion, and at higher premiums that many other dealers. I think he is very accurate, just like Kiyosaki. But he is also getting rich the same way most people during the original California gold rush did: "By standing on the side of the road selling picks." Online bullion dealing can be a modern day "pick"
That said I found it a good read. I read it in 08. It is part of what got me started. There is a lot of good information on why metals will do well. A lot of it makes sense.
He does have some crazy sounding calls in that book. I believe he mentions that silver may equal the price of gold?
I love his ratios and how takes the dollar out of the equation to look at the purchasing power of metal.
Handyman · THUMB, MI · Member since 2010 · 72 posts · 14 votes
15y
Originally posted by Matty M:
Originally posted by DAVID GAGE:
I just got done reading the "Rich dad poor dad guide to investing in gold and silver"...I must say that it is a great read and i recommend it highly. Anyone else read it yet?
One thing I didn't like about it was how it felt like it was written to evoke fear to support an agenda. Which is easy to conclude as true, because Mahony actually sells bullion, and at higher premiums that many other dealers. I think he is very accurate, just like Kiyosaki. But he is also getting rich the same way most people during the original California gold rush did: "By standing on the side of the road selling picks." Online bullion dealing can be a modern day "pick"
That said I found it a good read. I read it in 08. It is part of what got me started. There is a lot of good information on why metals will do well. A lot of it makes sense.
He does have some crazy sounding calls in that book. I believe he mentions that silver may equal the price of gold?
I love his ratios and how takes the dollar out of the equation to look at the purchasing power of metal.
Matty, I know what your saying about the author having an agenda and have to agree. That said for me being a newbie to the precious metals scene I found it to be an eye opening read. You must read it using your "filter" if you know what i mean. :mrgreen:
Tin- For me I think silver would be a good hold in a crappy economy with a weakening currency. I like to think of it as a safety net if our government fails us. How will your tenants pay you if our government does fail? With paper thats worth nothing? Sounds extreme I know but Obama has tripled the deficit in the last 3 yrs.($14.3 trillion) and unless that stops I will be a holder of precious metals. Have to protect your wealth as best you can. :wink:
Beverly Hills, CA · Member since 2012 · 1 post · 0 votes
14y
I know I am late to this discussion but I still wanted to put my 2 cents in. I personally do not trust/believe in paper silver and gold. My position has always been that I purchase physical precious metals as this is one of the few investments where you receive a tangible item of value and not just a simple sheet of paper. When purchasing physical silver, I also try and buy items that trade as close to the spot price as possible. With that said I like silver bars/rounds and 90% silver coins. With bars and rounds you are not paying the extra premium associated with government issued coins. Hope this helps.
Real Estate Investor · Amarillo, TX · Member since 2008 · 547 posts · 214 votes
14y
We just had a murder for hire in Texas, and the killer was paid in silver bars, 3 100oz bars to be exact. Guess silver is worth ALOT more then I realized!!
SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
14y
Originally posted by Richard Hannah:
I know I am late to this discussion but I still wanted to put my 2 cents in. I personally do not trust/believe in paper silver and gold. My position has always been that I purchase physical precious metals as this is one of the few investments where you receive a tangible item of value and not just a simple sheet of paper.
I agree. The only manner in which I invest in gold or silver is holding the actual metal, then I keep it locked up in a safe or bank deposit box.
It's interesting how some people who don't trust paper currency will gladly pay for a piece of paper that says they own some metal, somewhere.
And besides, I actually enjoying looking and touching these shiny metals.
Developer · Member since 2010 · 72 posts · 31 votes
14y
Just curious, how many people do you know that own and control (have possession of) gold or silver? Paper, contracts, shares, ETFs excluded, we are talking only about the heavy shiney stuff.
Just an informal poll...
I will start and say that two years ago it was 6, and now it has grown (same group of people) to 13-14 that I know of. People have found reasons to buy.
Midlothian, VA · Member since 2012 · 38 posts · 7 votes
14y
I'm the only person I know of in my circle of friends.
I bought physical back in 2007 or so.
Most everyone I know, if they have any spare money, it's in cash.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y
I regard silver and gold equally. I own both and have reccommended to my friends for over a year. About half now own some. I will continue to buy and hold. I believe in a few years, there will be a huge bubble in gold (yes- I've read both Bubblequake and Aftershock) and I do plan on cashing in on 50% of it at that time. We have to crash first (2013-2016) and then a few years to re-stabilize. Rich
Midlothian, VA · Member since 2012 · 38 posts · 7 votes
14y
There's also a second level to the equation.
Everyone thinks in terms of the US when thinking about Gold.
BUT, gold is a global trade. AND it's local value is dependent on the value of the USD relative to other major currencies.
For example, say Europe turns around and gets better. That means the US dollar loses strength(does down) which means gold goes up for Americans.
Contractor · Denver, CO · Member since 2009 · 399 posts · 166 votes
14y
I don't know if this belongs on this thread, but if the DOW goes up like it did over the past couple of days, I would have expected silver to go down. It did the exact opposite and has followed almost the same increase as the dow. Is there no connection here? Gold did the same thing.
Only thing I can think of is every time one of the banks props up the financial markets either here or in Europe, investors quickly run to purchase stock to profit off their move. This would indicate to me that gold/silver are being purchased as an investment? Or are people hedging their market bets at the same time by buying gold and silver and thus the coinciding spike in prices? Or is it simply coincidence?
I'm rereading John Ms last post and maybe it is because of the investment in the Eurozone that pushed the dollar downward causing the spike that we see in gold/silver here in the US?
Developer · Member since 2010 · 72 posts · 31 votes
14y
Emilio,
Money is being printed (created out of thin air with no backing) at a crazy rate. Debt must be paid for, and there is too much debt to ever be paid. Politicians want to kick the can, try to delay the inevitable default so they can get re-elected, thus they are all in support of "stimulus". Look where the money goes: to banks which are still broke and will still need more (because they pay the politicians to get the money, best investment ever), to stocks, timberland, precious metals, commodities. You are seeing that money needs to go somewhere because if you just hold it it declines in value (that is what printing does to the value of dollars, inflation). Timberland, commodities, metals and to some degree stocks are all being bought not because people think the economy is improving (tho some do... despite all evidence being to the contrary) but because they are trying to buy real assets which do not decline in value relative to the dollar and hopefully maintain or appreciate in value. It is the early stages of a hyperinflationary boom right now, when the common man on the street figures it out (likely will not figure it out, will just instinctively go buy stuff to get rid of his paper dollars) then it will be near the end.
Read "When Money Dies", you can google it and find it online. This has all happened before, people do not change, history does not repeat but it sure rhymes...
Learn what happened before, do not say "it cannot happen today, we are too smart, too interconnected, "they" wont let it happen", etc. Think critically, analyze information, do not listen/ watch/ read mainstream media as they are at best misinformation cheerleaders and sometimes pump and dump crooks or worse (see Faceflop, or Faceplant, or whatever you wish to call it for most recent example, or just watch Cramer...)
Learn history, learn to think, compare. Understand that human motivations do not really change, thus actions and results can be predicted to some extent and that is why history seems like it repeats.
San Francisco, CA · Member since 2008 · 65 posts · 9 votes
13y
One more comment - can I get comments on where people are storing their gold/silver? I have read home vaults, banks, but have not heard anyone mention commercial vaults: http://goldnews.bullionvault.com/gold_buy_112720092
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
Originally posted by Wai Fung:
One more comment - can I get comments on where people are storing their gold/silver? I have read home vaults, banks, but have not heard anyone mention commercial vaults: http://goldnews.bullionvault.com/gold_buy_112720092
Thanks.
I bury mine under the second oak on the left and nail a board to the tree that reads: "Note to self... This is where you buried yer gold".