Do any of you invest in gold and silver, and if so, how?

[Bob Nelson 35Whelen]

I always get the last words in any discussion with my wife, and it is always "yes dear, you are right".

As for lotteries, the is just an extra tax on stupidity. It is always fascinating to hear people not willing to invest money in stocks or funds due to the risk and then saying they have to buy lottery tickets because they might win.
I blame the schools...

@GuttormG
My wife kikes to get the last word in everything.
So I took her up to echo point and said now get the last word
Bob

 

[bashaw]

Gold is good for paying your annual taxes or major purchases, but can’t be broke down to buy a loaf of bread efficiently, so silver is better to hold for real day to day future currency.

Or hold any true necessity. Ammo, water, antibiotics, REAL value and bartering value.

When the shit hits the fan, we will have to file our Krugerrand on to gun powder scales, to buy that loaf of bread

 

[bashaw]

Money in the Bank, Stocks with Schwab, one push of a button we have nothing, gold you can sse & keep safe Real Estate the same, but it may take Lead to keep it

 

[Andrew62]

Watch the price and buy at 5 year low or like during COVID when it fell to record low.

Never understood why people panic buy when prices are at record highs.

Last year my buddy inherited 25 South Africa gold krugerrands. The 'spot' price was around 2775 which was very high at that time, it is 4794 today, so had I bought those krugerrands, I would be up 50,000 on an investment of 69,375.00. Sometimes the top keeps going up and up.

 

[dgr416]

I wish my dad had kept these 200 $20 gold pieces that a guy that worked with him pawned to him for $20 each .Gold was like $60 then in 1967 .I got to play with them on the bed like pirate treasure .He pawned them twice to my dad then to the pawnshop afterwards and they kept them .I couldnt find anyone to gold pan with in Alaska crazy .

 

[JimP]

40+ years ago I knew a old hermit who lived on the edge of the desert in Utah. He had a native American lady living with him that took care of his domestic needs. He had been a government hunter in the west helping to rid a vast area including Yellowstone National park of wolves. He claimed to of lived in a cabin there with a bull elk as his pet, we all called BS until he pulled a picture out and showed it to us with the elk in the cabin with him. He also traveled the world as a professional hunter that included India and the middle east.

Whenever he needed money you would find him in town at the bank cashing in a 20 dollar gold piece. Rummer was that he had coffee cans buried out in the desert full of them and that whenever he needed money he would head out to his deposits and collect a couple to cash in.

When he passed away there were treasure hunters all over his property and the surrounding area with none of them coming up with a treasure trove.

 

[Betterinthebush]

I love when emotions get in the way of rational investment thinking.

I was in NC at an auction and picked this up for $1. Don’t know what everyone else was thinking at the time, but Bill Clinton was, IMO, a President that was and continues to be very good to me.

This is how I, personally, prefer to invest I’m PM’s

 

[Altitude sickness]

Im back in when silver goes back below $40

 

[Rez Exelon]

I grabbed 20 Peace dollars today. At the time of purchase live spot was 82, but local store has it pegged at 78. They were charging the spot of the silver content (.7734oz each) plus a dollar. Compared to other stuff starting at a premium over spot of $6-10 I was good with that. Have a good opportunity to do a lesson on compromise with my daughter --- "Yes, the other designs were pretty but this is how much more it would have cost when all I care about is the metal".

If it does keep trending down the id definitely drop a few more bucks if I can find the Tokelau Magnum Opus series at a good price.

 

[Altitude sickness]

This current Gold and Silver market will continue to be volatile. Paper gold and silver and Comex usually set the price. But paper is being dumped in the west and physical metal being bought in the east.
Gold and silver arbitrage involves simultaneously buying and selling precious metals across different markets, exchanges, or forms (spot vs. futures) to profit from price discrepancies. There was a 22% difference Monday morning.

This gap between paper futures and physical value will continue until physical is valued separately in the market.

Bitcoin dropped all weekend and then gold and silver Monday. With a 17% climb by days end.

No central banks or large holders sold gold.

Gold dropping was a liquidity event. Someone needed liquid and dumped futures contracts.

The problem with that is when too many dumped the futures contract and the physical gold doesn’t move. There is a disconnect.

So paper is disconnected right now from physical gold. Either paper has to rise to meet physical gold, real value or gold has to fall to meet the futures paper gold.

Central banks and large holders of gold are not going panic and sell physical gold. Paper will be forced to rise to gold. Large physical gold holders know that futures gold promising future delivery of real gold isn’t worth what they hold in their hand.



Hopefully this was only a capitulation flush and the weak hands got forced out. And that was the bottom

OR !

It is a technical relief bounce more selling pressure exits. Hopefully we see futures and physical gold reconnect in value. And Bitcoin goes back above $82,000 and gold above $3300. and silver above $75 to show a continuation not a reversal. And holds for more than two consecutive sessions.

That shows risk appetite is still healthy.

And Iit depends what kind of buyer you are. if you’re a short term daily buyer for the quick gain or loss or shorting this is your game.

But if you’re a buyer to hedge against currency devaluations (dollar cost averaging). If you believe Central Banks will continue to devalue the dollar. And government debt is unsustainable. The current monetary system has structural flaws then the long-term holding of metal is a good idea. And it’s even ok to get in late on the rise.

Better to be a little late getting back in then predicting a false bottom

 

[VertigoBE]

This current Gold and Silver market will continue to be volatile. Paper gold and silver and Comex usually set the price. But paper is being dumped in the west and physical metal being bought in the east.
Gold and silver arbitrage involves simultaneously buying and selling precious metals across different markets, exchanges, or forms (spot vs. futures) to profit from price discrepancies. There was a 22% difference Monday morning.

This gap between paper futures and physical value will continue until physical is valued separately in the market.

Bitcoin dropped all weekend and then gold and silver Monday. With a 17% climb by days end.

No central banks or large holders sold gold.

Gold dropping was a liquidity event. Someone needed liquid and dumped futures contracts.

The problem with that is when too many dumped the futures contract and the physical gold doesn’t move. There is a disconnect.

So paper is disconnected right now from physical gold. Either paper has to rise to meet physical gold, real value or gold has to fall to meet the futures paper gold.

Central banks and large holders of gold are not going panic and sell physical gold. Paper will be forced to rise to gold. Large physical gold holders know that futures gold promising future delivery of real gold isn’t worth what they hold in their hand.



Hopefully this was only a capitulation flush and the weak hands got forced out. And that was the bottom

OR !

It is a technical relief bounce more selling pressure exits. Hopefully we see futures and physical gold reconnect in value. And Bitcoin goes back above $82,000 and gold above $3300. and silver above $75 to show a continuation not a reversal. And holds for more than two consecutive sessions.

That shows risk appetite is still healthy.

And Iit depends what kind of buyer you are. if you’re a short term daily buyer for the quick gain or loss or shorting this is your game.

But if you’re a buyer to hedge against currency devaluations (dollar cost averaging). If you believe Central Banks will continue to devalue the dollar. And government debt is unsustainable. The current monetary system has structural flaws then the long-term holding of metal is a good idea. And it’s even ok to get in late on the rise.

Better to be a little late getting back in then predicting a false bottom

Crap, could have used that info before my stoplosses kicked in on Monday morning and sold some positions at the bottom…

 

[Altitude sickness]

Most likely this correction was just a flush of tourists panic selling before it bottomed out

Watch the Shanghai metals market not the US market for signals.

 

[Altitude sickness]

And to be clear, I am not an expert or a soothsayer. I am simply passing along information I get from a close relative and other sources. Don’t use it as advise. Only conversation points. !!

 

[Rimbaud]

Just be careful, and patient. After extraordinary rallies, there tend to be extraordinary declines, and then there tends to be some more upward volatility. When something plunges with the ferocity of gold and silver, it sets off many structural forces (margin clerks, technical levels that are broken and used by pros to time exits, etc.) I have yet to see a good explanation for the recent downward move, and I have access to excellent market sources. Remember, silver is an industrial metal, and gold is the feel-good asset in times of economic duress. My own personal belief is that the markets are increasingly geo-political and that nations are using international markets to express policy, especially in fixed income markets. Moreover, since so many people in so many countries are dependent on markets to cover living expenses, one country can cause economic havoc for another. I cannot prove that, but it is my spidey-sense. I would approach precious metals with the same focus and risk awareness as a wounded cape buff.

 

[V.Veritas]

I've print screened this info from a video.
Interesting historical information.
On the left side is US information - time/duration for gold to move $1,000 US/oz.
If you translate the numbers in percentage it will makes sense since each $1,000 increade represents a smaller percentage increase from the base reference number (i.e. 100%, 50%, 33.3%, 25%, etc).
On the right side it is shown the hyperinflation graph in Wermacht Germany before WWII.
As the percentage growth decreases, the nominal raise increase exponentially.

 

[Altitude sickness]

Most of the volatility and risk is in ETFs and paper. That is what’s changing hands and moving up and down. Try to go by physical silver or gold for what the market says It’s worth right now. It’s really two different markets.

 

[Rimbaud]

Most of the volatility and risk is in ETFs and paper. That is what’s changing hands and moving up and down. Try to go by physical silver or gold for what the market says It’s worth right now. It’s really two different markets.

Investor sentiment might indeed be different, but the ETFS hold physical. If by paper you are using the old term for options/futures, even those prices and vol would be somewhat aligned with the underlying. Any big gaps between spot and securities/futures would be arbitraged. For most people, I suspect it is easy to charm the fangs out of rattlesnakes than it is trade or investment in metals at this juncture.

 

[Betterinthebush]

Any big gaps between spot and securities/futures would be arbitraged. For most people, I suspect it is easy to charm the fangs out of rattlesnakes than it is trade or investment in metals at this juncture.

I agree. Now is not the time to be buying metal. Too much unknown. Stock and bonds have legs.

 

[Altitude sickness]

@Rimbaud, I wish that were true. The ratio fluctuates constantly. But right now there are approximately 350 promises for future gold. (What I call “paper gold”. ) For each ounce of physical gold held. And even some ETFs are not 1-1. some are futures in mining companies etc.

At some point, somebody’s going be disappointed and force majeure will be used to settle up.

@Betterinthebush, it’s still a good time to buy physical metals. It’s not a good time to own metals in the market.

 

[Altitude sickness]

If this current rise in gold and silver holds for 3 consecutive sessions. Then there is still plenty of risk tolerance out there and more runway.

I think metal will be well over the $6300 JP Morgan predicts. But I hope I am wrong and the strength of the dollar comes back. Lowering metals prices. Most of us have the majority tied up in homes and the market. Not metal.
We need a strong dollar.

Many need a weak dollar to help exports. Especially the “wheat dollar”