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Not how to but why I buy gold and silver

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    Not how to but why I buy gold and silver

    The boss man asked me to do a little piece on how to buy silver but I'm not here to persuade anyone, you make your own choices, this is why I buy silver and here is my take on it...

    Silver and gold has a very long history, much longer than any other kind of investment. it has been used as money before Jesus and to this day many cultures around the world use it to preserve wealth. It has value and people have known this forever, the Egyptians, Aztecs, central banks, entire countries you name it and they have adorned it, there must be a reason these entities of massive power hold gold.

    If you view silver and gold as a share of stock and a central bank and country as an inside buyer then the "inside" buying is and has been huge.

    In its present day it is very liquid and tradable, not as much as other investments but I can get funded just as fast as going to the ATM, there is a reason why your local coin store has been in business for 20, 30 years and longer.

    Gold is the favorite saving vehicle for the people of the second and third worlds, it has aided families in fleeing their war torn countries, Jewish and Vietnamese people just to name 2.

    I constantly buy/sell and treat precious metals as any other investment and as it's own business. Buy low/sell high and cost average, buy heavier when low and sell heavier when high will add to the bottom line.

    Silver and gold will not bring you an income and do not hold it for generous gains, buy to preserve and protect wealth, it is a savings vehicle that hedges against the dollar, it is playing the black when everyone is playing red, it is a true alternative investment. I could get the same and MUCH better results by throwing darts at other investment vehicles but I'm not looking for gains with this holding.

    Some may not agree with my thoughts but silver and gold have protected wealth for thousands of years, it has served me well and it has fully met my expectations of it
    retired in 2009 at the age of 39 with less than 300K total net worth

    #2
    Amen!!

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      #3
      Speaks for itself

      Comment


        #4
        That's a cool chart, Tom, but I think the OP was clear that precious metals are not an investment like other investments that you buy and hold. Precious metals (and other natural resources such as oil, lumber, natural gas, copper, oranges, gasoline, pork bellies, and diamonds) are hedges. That means they are instruments intended to be traded.

        Many people make substantial profits trading commodities and metals: I have a good friend who has traded coins and metals over the last 8 years, stashing away the profits, and he just paid cash for a brand new, $1 million +/- house with the proceeds.

        I'm jealous.

        There are all sorts of ways to make way more than the stock market averages - people are doing it every day.

        In Fornula 1, Mercedes, Ferrari, and Renault usually win the races. Does that mean those cars are "best"? For winning a Formula 1 race they are. For running around town, a Honda might work better. If you need to haul stuff, a pickup might be best. For energy savings, a Chevy Volt or Tesla.

        Just because the Ford F-150 is the number one selling vehicle in the US every year, doesn't by default make it the only vehicle solution.

        Different solutions for different financial needs/goals.
        Last edited by TexasHusker; 01-17-2017, 07:55 PM.
        Never underestimate the power of stupid people in large groups.

        -George Carlin

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          #5
          Originally posted by TexasHusker View Post
          Different solutions for different financial needs/goals.
          So what is the financial need, that gold is the right solution for? Protecting wealth from the collapse of your own countries currency?

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            #6
            Originally posted by 97guns View Post
            it is a savings vehicle that hedges against the dollar,
            Originally posted by tomhole View Post
            Speaks for itself
            Tom, thanks for the chart. I think it illustrates 97guns' point perfectly. Gold isn't an investment, per se. It is used as a hedge against inflation. That chart clearly illustrates that. Look at the lines for gold and for the dollar. If you wanted to preserve your money and had to choose between stuffing your cash in the mattress or burying gold coins in the back yard, the better choice would have been the gold.

            Personally, I wouldn't choose either as I prefer to invest my money, but the chart clearly shows why some folks look to gold.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

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              #7
              Originally posted by autoxer View Post
              So what is the financial need, that gold is the right solution for? Protecting wealth from the collapse of your own countries currency?
              For some, I suppose. For active traders, it is profit. Thousands of people worldwide are playing the gold trade every day. Sometimes multiple times a day.

              That's apples and oranges from buying and holding. Some people are into trading commodities who are quite good at it. That's why you have the Chicago Mercantile Exchange. Crazy place.
              Never underestimate the power of stupid people in large groups.

              -George Carlin

              Comment


                #8
                Originally posted by autoxer View Post
                So what is the financial need, that gold is the right solution for? Protecting wealth from the collapse of your own countries currency?
                There are several reasons to hold gold.

                1. Portfolio diversification
                2. A store of value/inflation protection
                3. Aesthetic or hobby interest
                james.c.hendrickson@gmail.com
                202.468.6043

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