Yep. Wealth preservation and maximization. When inflation runs away, fiat currency is printed out of control, and interest rates are high, land and house prices will crash. Buy real estate for PMs or sell PM, get cash and buy RE for cash.
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kruggerand $80 over spot
- Thread starter chucklenut
- Start date
Precious metals are not something to buy if you're looking to flip something for a profit in a day, a week, a month, or likely even a year. They're bought for the long-haul. They're real money unlike the fiat currencies most people save their wealth in; think of precious metals as savings rather than an investment. They're the only financial asset that is, in it of itself, wealth rather than some form of promise with counterparty risk.
That being said, precious metals are criminally underpriced right now, and I do mean that literally. Price suppression schemes, schemes which bullion banks like JP Morgan and Scotia bank have paid hundreds of millions of dollars in fines for conducting, they admit to doing, and they continue to do, keep the prices artificially lower than what the free market would otherwise have these metals priced at. This means that when, not if, these price suppression schemes end, the prices of precious metals will rise to match what the free market wants them to be which is much, much higher than what they are now. This means that precious metals are currently an investment as much as they are money.
An important note is that the fundamental way they manipulate the prices are by selling more contracts for precious metals (often called paper silver or paper gold) than there actually exists physical precious metal. Anything which introduces counter party risk, mainly buying the promise of precious metals from a third party, IE shares of an ETF like SLV or unallocated silver from a mint, instead of buying the metal physically and outright defeats the purpose of buying precious metals: to own real, inherent wealth without counterparty risk. Long story short, if you buy paper gold or paper silver then when it's revealed that there isn't any gold or silver to back up the contract you bought then you're just out of luck.
Have you lived thru hyperinflation? I have. You grow your own food and sell excess for PMs and maybe barter. You do not buy food.
The goal is come out wealthier at the end of it.
But you do you. Generations of people were wrong for hundreds of years when they stored wealth in PMs./sarcasm off
I'm not being augmentative, just trying to understand if perhaps I should invest in PMs. If I look at 10 years of gold prices, it looks like they were pretty flat for most of that and that they've gone up a lot since the covid stuff started. With traditional stocks, you'd expect that to reverse itself whenever whatever causes the run-up clears. Don't you think that'll be the case with gold too? Seems like the worst time to buy. Additionally, it looks like physical gold has at least a 7.5% cost if you never want to use that wealth, is that a valid point? I get it that you avoid the risks associated with someone else holding your gold, but 7.5% is a LOT.
Two totally different things. Investments can either grow or shrink exponentially. The idea of precious metals is to preserve wealth. Sure the price may go up or down some, but the buying power over time stays roughly the same. It's not a guarantee, and it's certainly not 100% wealth preservation, but throughout man kinds history precious metals have been the standard for wealth preservation.
If you buy $10000 of stocks today, 50 years from now you may be sitting on half a million dollars worth of buying power, or you may be sitting on nothing. If you by $10000 worth of precious metals today, it may be worth more or worth less in 50 years, but the buying power of whatever it is worth will be roughly the same.
checking it out now...
