Investing in Gold and Silver, your thoughts?

[White Israelite]

So I am curious what everyones opinion is on investing in gold and silver? I am seeing a lot of commercials on fox news lately that are trying to get people to invest. Gold is about $1100 an ounce right now and silver is around $18.00 an ounce.

A lot of people have told me I should get rid of my US dollars and buy silver especially junk silver (pre 1964 quarters because they contained 90 percent silver), I was thinking of investing in stocks but i'm not sure at this point.

Others tell me maybe it's not a good idea to invest in Gold and Silver because if it goes down in value I will lose all my money and that it seems a bit too conspiracy like, thoughts?

[Aces High]

I would keep out of it!  It's like a divorced girl with kids, keep away!   

[mord]

many Gold dealers charge an extra 10% or more you shouldn't pay more then 2% if you need someone let me know.I get no commission just trying to help

[Aces High]

If you don't have money to lose, I wouldn't do it. 

[cjd]

The thought behind investing in gold and silver is that unlike paper money the metal will always retain some part of its value...My thoughts on the issue is if the dollar were to collapse what condition is everything else going to be in anyway... Moreover at that point  how much interest will people have in bartering with gold or silver...Commodities like food and tools would seem to be of even more value then a stash of gold coins...  Even the more reputable gold dealers say that people should only invest a portion of their money in gold and that investing in gold is not for everyone... Some of the dealers have fees that go as high as 30% on the transaction...People would need to hold on to the gold they buy for a while and hope the price rises to override the handling fees so gold is not good for a short term investment... Also in order for the entire picture to work you need to have a secure place to keep the gold or silver... Unless you actually have the gold or silver in your hands its not much better then paper money in a dooms day scenario... I would invest about 10 or 15 % of my money in gold but not much more then that...It sounds good to have something real like gold in your hands but in todays world the government would know who is holding recently bought gold. If they made it illegal to own gold they could call in the gold at a set price destroying the purpose of owning it in the first place.... Like every other investment out there investing in metals has its good and bad points... An old gambler I know always tells me he invests at OTB and in some cases his investments turn out better then mine... The way things are going now he might be  on to something.

[AsheDina]

Hi Meir : )
NO, invest in DRIED FOOD.

[Rubystars]

Dave Ramsay says don't invest in gold, you'll lose your butt (as he puts it).

I agree with AsheDina that dried food is a much better investment, especially in Florida!

[mord]

And firearms you need them and they go up in value

[Yaakov Mendel]

Personally, I prefer to invest in businesses that have positive contribution to society, that create jobs and real wealth, instead of pouring money into assets whose value artificially increases as a result of speculation.
 
And, by the way, it is safer and it is also the winning strategy in the long term with regard to return on investment.

[Zelhar]

Some of you mix too deference things: Investment vs. Stockpiling for catastrophic events.

I think investing in gold, silver etc. is dangerous. Gold is especially speculative as it has little to no industrial use, while silver and  platinum have extensive industrial demand. It also means that silver might fall vs. gold when there is a recession due to low industrial demand, and rise vs. gold coming out of the recession.

Any investment in commodity has a carry cost that eats into your investment, unless you can actually store the physical gold/silver yourself, that also comes with added risks or costs (vaults, insurance).

Now if you want to prepare to the apocalypse then stockpiling dry food, diesel, salt, arms and ammunition, water filters etc. is a better choice than gold. In fact their value would likely sky spike way more than gold would.

[cjd]

And firearms you need them and they go up in value

Yes, Under a worse case scenario firearms would be one of the best investments of all... Also I don't think it needs to be anything exotic... A serviceable  shot gun or rifle or even a normal hand gun would be in very high demand and good to have. Supplies of popular ammo would be worth its weight in gold. Even if things go slightly bad I could see an investment in some firearms paying off very well.

[cjd]

Personally, I prefer to invest in businesses that have positive contribution to society, that create jobs and real wealth, instead of pouring money into assets whose value artificially increases as a result of speculation.
 
And, by the way, it is safer and it is also the winning strategy in the long term with regard to return on investment.

Yes, I would also rather invest that way also and have done so for years... It seems however that the system is rigged... The numbers look great for a few months or a year and then tank overnight only to repeat the cycle...I won't say I lost money but the market is like following the carrot on a stick the prize is always out of reach... I myself don't see gold as being any better its just a medium allowing people to diversify some of their money. As far as stockpiling goods for disaster in todays world people need to be ready for anything.

[MassuhDGoodName]

The real value of gold and silver in times of crisis:

You can literally buy your life with gold and silver.

By owning gold, many Jews were able to bribe their way out of Europe in the 1930's and 1940's.

Read the Constitution of the United States of America.

It states that only gold and silver currency is allowed by law to be the legal currency of our land, and that only the Congress has the power to create and regulate this currency .

Our Founding Fathers knew from experience that precious metals always retained value, while paper money which lacked any backing in gold or silver, also known as fiat currency, held no real value whatsoever, and would always cause the collapse of an economy while enriching only a select few who printed and issued the paper.

Granted, no economic system works perfectly or offers constant growth with stability. 

However, fiat currency has only as much value and "purchasing power" as those holding it have "faith" in it being worth something.

Once the citizenry loses this "faith" in its system of government and/or its leadership, it becomes obvious that all the stacks of printed paper reaching to the moon and back aren't worth the paper on which they're printed.

The value inherently perceived in precious metals and diamonds since the beginning of recorded history, is based primarily on the immense costs in labor and time spent locating them, mining them, and refining them, as well as their scarcity and their physical characteristics.

In short -- You might not be able to preserve your current assets and wealth simply by investing in gold, but you might be able to bribe a governmental official or police officer into supplying you with a fake passport or safe passage out of a country which has become a death trap, if you can offer payment universally recognized as holding value.

Which would you prefer as payment for your services and goods ...

- A brand new crisp colorful U.S. Federal Reserve Note dollar?...

- A genuine Silver Dollar representing actual Silver Bullion Reserve in Fort Knox?

[MassuhDGoodName]

Re:  Dave Ramsay

I consider Dave Ramsay a charlatan of the first order.

Whatever he advises and says is first and foremost to enrich Dave Ramsay.

When a "talk-show" host berates one of his callers for not reducing his cost of living by moving to one of the "thousands of $75.00/mnth rent garage apartments available all over the Nashville area", I know I'm listening to a loudmouth carny  barker totally out of touch with reality.

I also am convinced that a large number of his "best success story callers", claiming to have achieved total freedom and financial security after they bought Dave's CD's and books, are all "shill" callers arranged and paid for in advance as part of his "show".

He speaks of wealth and freedom for all simply by following his methods and advice which he claims are all found in the Bible.

Yet, the concepts of capitalism and modern banking did not exist in ancient times, and the social-economic systems of the ancient world were all based on an unlimited supply of free labor, otherwise known as Slavery.

I have often heard wealthy Christians state that the reason they are wealthy and happy is because G-d chose to reward them for their Christian faith, but I've yet to hear the overwhelming majority of less affluent Christians state that G-d rewarded their Christian faith with illness, struggle, and debt.

Just my opinion.

[briann]

It may be a good short term or even mid term investment, but ultimately, it will crash.  Not sure when though.

However, its always good to have SOME of your investment in precious metals, ammunition, and other real items.  This is to guard against the worst case scenario, ie a nuclear holocaust.

[White Israelite]

I will invest about 10 percent of my paycheck into silver, I won't completely rely on it but it would be nice to have. Oh on a side note, I went to use the change machine at work and it gave me a quarter that says "1960" and it feels heavier than all my other quarters, I now have a quarter with 90 percent silver , that's worth about $3.72 cents, profit!

[White Israelite]

I bought 80 bucks worth of silver not long ago, ended up buying the silver eagle. I'm broke now since I had to pay off medical bills but hopefully next check i can buy another $200 worth.

They look pretty nice and hopefully will collect value with the rise of silver

[briann]

I will invest about 10 percent of my paycheck into silver, I won't completely rely on it but it would be nice to have. Oh on a side note, I went to use the change machine at work and it gave me a quarter that says "1960" and it feels heavier than all my other quarters, I now have a quarter with 90 percent silver , that's worth about $3.72 cents, profit!

Boy, that almost never happens these days.  There were people who used to search through huge amounts of coins to look for the pre-1965 coins.  Especially the half dollars.   I still have quite a few.

I also have the steel pennies.   THose are the greatest.  1943-45.  When copper was important for the war, they temporarily switched to steel.