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 lasvegasshroomer
LV shroomery
Registered: 02/16/12
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Loc: Las Vegas NV
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 Investing in gold and silver bullion. Good idea? 
#15885865 - 03/01/12 03:08 PM (1 year, 2 months ago) |
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Hey Shroomery! New here! Wanted to ask what your thoughts are on investing in bullion for the longhaul. I can get gold 5% below cost or perhaps even cheaper if i go through a middle eastern refiner. Someone i know whats to keep a large investment of money that they want under the radar legitimate. I know they have always been saying this but my gold trader friend says gold will hike up 200+% over the next 5 years. Whut you thinkin?
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audiophoenix
Forever Young
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Re: Investing in gold and silver bullion. Good idea? [Re: lasvegasshroomer]
#15885884 - 03/01/12 03:12 PM (1 year, 2 months ago) |
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I would advise against putting ALL your money in precious metals but it's a good idea to have an investment for sure.
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saintphotios
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Re: Investing in gold and silver bullion. Good idea? [Re: audiophoenix]
#15892524 - 03/02/12 11:37 PM (1 year, 2 months ago) |
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Very good idea... investing in gold is basically placing a bet against the value of the dollar. So yes, I'd say do it. Would it have been better to invest in gold 10 years ago, probably. But the vast majority of the world's gold is being held in private ownership, and there's only approximately 20 years worth of gold left in the world's mines. So there's really nowhere for it to go but up in the long term.
Silver also good... some would say better. But both would be great investments.
As for 200% in 5 years... I wouldn't necessarily count on that. But over the long term you'll definitely come out ahead. The good thing about gold is if and when gold does temporarily go down in value, you can borrow up to 80% to buy more to make your losses minimal. A friend of mine has made almost $70,000 in profit in gold in just the past two years. Granted, he was buying a lot more than you probably will, but it's always a good bet with the dollar being in the declining position that it is.
Edited by saintphotios (03/02/12 11:40 PM)
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lasvegasshroomer
LV shroomery
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Re: Investing in gold and silver bullion. Good idea? [Re: saintphotios]
#15892584 - 03/02/12 11:53 PM (1 year, 2 months ago) |
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Quote:
saintphotios said:
Very good idea... investing in gold is basically placing a bet against the value of the dollar. So yes, I'd say do it. Would it have been better to invest in gold 10 years ago, probably. But the vast majority of the world's gold is being held in private ownership, and there's only approximately 20 years worth of gold left in the world's mines. So there's really nowhere for it to go but up in the long term.
Silver also good... some would say better. But both would be great investments.
As for 200% in 5 years... I wouldn't necessarily count on that. But over the long term you'll definitely come out ahead. The good thing about gold is if and when gold does temporarily go down in value, you can borrow up to 80% to buy more to make your losses minimal. A friend of mine has made almost $70,000 in profit in gold in just the past two years. Granted, he was buying a lot more than you probably will, but it's always a good bet with the dollar being in the declining position that it is.
Thanks for the insight! This is a lot of help! The way things are in the economy these days you cant ever be to sure on anything. I find that the information provided from others who are active investors themselves or know people who are active is the best. Got to know what you are getting into before you dump your money into something! Just like mushroom cultivation!
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PE, Koh samui, G teachers, B+ Love you shroomery!
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saintphotios
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Re: Investing in gold and silver bullion. Good idea? [Re: lasvegasshroomer]
#15892663 - 03/03/12 12:14 AM (1 year, 2 months ago) |
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Just keep in mind neither gold nor silver are short-term investments (although in some instances you get lucky and they behave like one). Buy gold as insurance against a turbulent economy. If you're planning on selling in 3 months, gold and silver may not be for you. If you want something to protect you from inflation and a devaluing dollar, I'd strongly recommend it.
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mm.
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Re: Investing in gold and silver bullion. Good idea? [Re: saintphotios] 1
#15898663 - 03/04/12 01:12 PM (1 year, 2 months ago) |
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Look at some long-term graphs, and ask yourself is this the best way you can think of to make money with your investments?
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 Lana
Head Banana
Registered: 10/28/99
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Loc: www.MycoSupply.com
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Re: Investing in gold and silver bullion. Good idea? [Re: saintphotios]
#15903085 - 03/05/12 12:31 PM (1 year, 2 months ago) |
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Quote:
saintphotios said:
Very good idea... investing in gold is basically placing a bet against the value of the dollar.
True. If the value of the US dollar rises, gold prices decline. If the US dollar gets weaker/declines, gold prices go higher.
This would solidify my decision if I were you
The Federal Reserve's Explicit Goal: Devalue The Dollar 33%
http://www.forbes.com/sites/charleskadlec/2012/02/06/the-federal-reserves-explicit-goal-devalue-the-dollar-33/2/
Good Luck,
Lana
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mm.
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Re: Investing in gold and silver bullion. Good idea? [Re: Lana]
#15903139 - 03/05/12 12:47 PM (1 year, 2 months ago) |
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Did the dollar devalue 70% in the last 10 years?
No, it didn't. there are obviously more significant factors at work here.
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 qman
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Re: Investing in gold and silver bullion. Good idea? [Re: mm.]
#15903202 - 03/05/12 01:08 PM (1 year, 2 months ago) |
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Quote:
mm. said:
Did the dollar devalue 70% in the last 10 years?
No, it didn't. there are obviously more significant factors at work here.
Gold is a global "currency", and we have seen all paper currencies lose tremendous value relative to gold for the past 12 years.
Gold was trading at $250 oz in 2001, and that was a 21 year low in price and marked the bottom for the bear market. Did the dollar devalue 70% in the last ten years? No, is the answer.
Purchasing power of the dollar is most likely down 35-40% from ten years ago, we can look at things like oil, copper, food, and other natural resources to measure the decline.
Is gold overvalued in this environment then? No, in fact gold is extremely undervalued relative to the amount of paper currency. In 1980 when the gold price spiked to over $850oz, the gold value of the US holdings actually surpassed the amount of paper, thus gold was overvalued.
Today, we have trillions and trillions more US currency and the same amount of gold, thus fair value most likely will see $10,000 oz if not higher, (the printing of money will not stop anytime soon). Just because a asset goes up 6 fold does not mean something is overvalued,
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cateyes
Registered: 12/16/03
Posts: 2,754
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 Re: Investing in gold and silver bullion. Good idea? [Re: lasvegasshroomer]
#15945174 - 03/14/12 08:04 AM (1 year, 2 months ago) |
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all of the people that i respect in the metals markets are saying the Chinese have been buying gold for years and keeping it on the low and only once did they make an announcement they were in possession of much more then analysts suspected... their goal is to have a currency based on gold some are saying and if this is true then gold and silver and other metals will be more valuable due to basing the yuan on gold and the strategic importance of many metals. several analysts are calling copper poor mans silver and silver will definitely move in sympathy let alone it's strategic importance in industry. in my minds eye silver stands a better chance of rising more proportional to its price then gold but i've been reading what my favorite gold bulls have been saying the past three-four weeks and i'll tell you the market itself will only stand so much manipulation before the lid blows and i feel it's gonna blow. i've owned sliver since 2006 at $9.21 and i've been studying gold mining stocks who the Chinese own in upwards of 60% of total shares now... the markets burned the Chinese once and it'll never happen again. during the last depression people who owned metals used them to buy city blocks of homes not just single homes as prices collapsed and finally stabilized.
i've discovered we are going through a classic cycle only this time the transfer of wealth has been so significant many Americans are going to be in serious trouble and metals may be the best way to hedge. Somebody posts that the feds intent is to debase the dollar by 33%? where has the writer of that article been for Christs sakes? this figure is laughable as inflation figures are a total joke, i mean a serious joke... 2% +/- inflation Ben says? i guess Ben doesn't eat, fill his tank up with gas, pay an electric utility bill or buy cotton and other commodities like that. Bernanke is a nightmare but the feds printing of 100 billion dollars a month was a necessary evil in order to prevent markets in general from collapsing. "quantitative easing" he calls it!!! another way of saying he's trying his best to cover losses in the derivative markets... why do you think Bernanke got the job in the first place? because his thesis was on an economic model many felt would have prevented the last great depression... well guess what? his play by play is failing miserably and if history records all of this accurately he and Greenspan will go down in history as total abortions. waqtch C-span and listen to Bernake give testimony and get a feel for his hogwash. even the congressman and senators who quiz him tell him he makes no sense but he'll just sit there with this stupid grin on his face and never be honest in statements. and cool trick that Greenspan played on the middle class by removing food, energy, specific commodities and other bullshit from the inflation calculation equation... it's pathetic man and it's going to get painfully worse like i said to such a high degree i'm really worried for others... my shit is golden...
silver...
Kensho  
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ChaosOne
Hunter
Registered: 04/26/10
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Re: Investing in gold and silver bullion. Good idea? [Re: cateyes]
#15954215 - 03/16/12 05:52 AM (1 year, 2 months ago) |
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After watching the first season of Alaskan Gold Rush I went out and spent about $10K Aust on Gold - got about 7 ounces at a bit less then $1,300 an ounce.
Following that it got up to about $1,900 an ounce in a few months - since then it has dropped.
Still not a bad investment for when the zombie apocolypse hits if you get it in bullion - that and guns....
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Pandora5a
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Re: Investing in gold and silver bullion. Good idea? [Re: ChaosOne]
#15954219 - 03/16/12 05:58 AM (1 year, 2 months ago) |
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I don't understand this gold thing at all. If the economy goes to shit and we cant use paper money anymore, I am not giving you ANYTHING for that brick. If it's not food or weapons it's going to be useless.
Enjoy your bricks!
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ChaosOne
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Re: Investing in gold and silver bullion. Good idea? [Re: Pandora5a]
#15954224 - 03/16/12 06:11 AM (1 year, 2 months ago) |
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Wiccan_Seeker
gold foil hat admin
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Re: Investing in gold and silver bullion. Good idea? [Re: Pandora5a]
#15954351 - 03/16/12 08:41 AM (1 year, 2 months ago) |
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Most of us gold/silver bugs who do believe in a crisis dont believe in a sudden total complete turning to shit of everything.
Lets say a hyperinflation strikes March 25. It rages until April 20. Then a new currency is issued, the Neodollar, at a hundred thousand old dollars to one Neodollar.
Each buck you had (wallet cash, savings, retirement plan) has evaporated to a thousandth of a cent. However, if you owned gold before March 25 and held on to it to April 20, hooray, your purchasing power has remained intact. Your $1500 coin is now worth 1500 Neodollars, and not 1.5 cents.
After April 20, life goes on, the difference is that the goldbug has a starting capital and the one relying on dollars comes up short.
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