Is Now a Good Time to Invest in Precious Metals?

[maria13]

Hello everyone,

I need your suggestions on this question: Is it a good time to invest in precious metals like gold and silver right now, or should we wait for prices to drop?

[disneysteve]

It is never a good time to “invest” in metals. Metals aren’t an investment vehicle. They are mainly purchased as a potential hedge against inflation. They don’t generate growth. They don’t generate income. They’ve done fairly well in recent years because we were in a period of high inflation, which has now moderated. If you want to put a small piece of your portfolio in metals, like 5% tops, go ahead. Just realize it will be a drag on the overall performance of your portfolio.

I’m sure one of our metal fans will be along to give a much different answer.

[myrdale]

No. As DS stated there is never a good time.

Where are you going to keep this gold or silver? In your house? It is easily stolen or lost in a fire.

I've yet to find anyone who stated "I got rich investing in gold".

[QuarterMillionMan]

Ha-ha, only 3 precious metals fans here that I know, Frosted, QMM, and James. Prices may drop a little but I doubt it'll drop a lot. I'll keep buying it along with cryptos.

[Fishindude77]

Precious metals are promoted over traditional currency suggesting there is better value in having that piece of metal you can actually see, touch and feel, whereas your savings, investments, etc. are just numbers on your computer that could easily be wiped out.
Let's just say we have total economic collapse, all of our savings are gone, banks wiped out, etc. What good is that hunk of metal at that point?

You'd probably be better off with food or firewood, however gold is soft with a low melting point so I suppose you could mold it into bullets.

[disneysteve]

Precious metals are promoted over traditional currency suggesting there is better value in having that piece of metal you can actually see, touch and feel, whereas your savings, investments, etc. are just numbers on your computer that could easily be wiped out.
Let's just say we have total economic collapse, all of our savings are gone, banks wiped out, etc. What good is that hunk of metal at that point?

You'd probably be better off with food or firewood, however gold is soft with a low melting point so I suppose you could mold it into bullets.

Probably not a great choice for bullets. As you said, it's soft and has a low melting point.

Precious metals are beloved by doomsdayers, people who are convinced that the world economy is going to come crashing down "one of these days" and only the people with a stash of shiny bits of metal are going to be okay. Personally I don't buy into that mindset so I see no purpose in taking money out of actual investments to have it sitting on the sidelines in gold or silver earning nothing. I'd rather have my money working for me, growing, and generating income to live on, especially now that I'm retired.

[ua_guy]

Hey, you can buy your Gold at Costco now...no joke.

[disneysteve]

Hey, you can buy your Gold at Costco now...no joke.

You can also buy crypto from vending machines and at gas station mini markets but that doesn’t make it a good idea.

[myrdale]

Probably not a great choice for bullets.

Werewolves and vampires... maybe?

Either way it will still ventilate aggressors.

[myrdale]

Ha-ha, only 3 precious metals fans here that I know, Frosted, QMM, and James. Prices may drop a little but I doubt it'll drop a lot. I'll keep buying it along with cryptos.

Assuming the world doesn't collapse, when you sell your stock pile of gold, there are going to be tax implications correct?

[disneysteve]

Assuming the world doesn't collapse, when you sell your stock pile of gold, there are going to be tax implications correct?

Yes and because gold is not an investment vehicle it isn’t taxed as one either. Gains on metal held less than a year are taxed at your ordinary income rate. Gains on metals held over a year are taxed at your marginal rate up to 28% max. You don’t get the 15% (or lower) rate you’d get on long term capital gains on actual investments like stocks.

[ua_guy]

You can also buy crypto from vending machines and at gas station mini markets but that doesn’t make it a good idea.

Bro-coin purchased from a vending machine at a gas station? Might as well pick up the discount box of sushi next to the week-old corn dogs and really roll the dice! Makes buying gold at Costco look halfway sensible.

[disneysteve]

Bro-coin purchased from a vending machine at a gas station? Might as well pick up the discount box of sushi next to the week-old corn dogs and really roll the dice! Makes buying gold at Costco look halfway sensible.

You can sometimes buy bitcoin from Coinstar machines when you cash in your change.

[myrdale]

You can sometimes buy bitcoin from Coinstar machines when you cash in your change.

There is one of these at the local Ingles. There is also a scratch off lottery machine next to it.

The next time I go in, I'll ask the manager if anyone ever uses it.

[disneysteve]

There is one of these at the local Ingles. There is also a scratch off lottery machine next to it.

The next time I go in, I'll ask the manager if anyone ever uses it.

I wonder if they would know. I've used the Coinstar machines plenty of times but there are a lot of options of how to redeem your money. I wonder if the store owner knows which method people are choosing. I always get an Amazon gift card.