Anyone here purchase physical Gold and or Silver?
- Thread starter Shadowfax
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Barry
Member
I'm really not sure why anyone would want to do this. As the attached article shows, long term returns for stocks and bonds are higher than gold, and gold's standard deviation of returns makes it a riskier asset (e.g. it's volatility, is higher than these 2 other asset classes). If your planning to trade gold, and apparently don't know this, and/or you're asking on an audio forum about investment advice whether this is a good idea --- good luck. Exactly what is your financial goal?
How Does Gold Compare With Other Common Investment Options?
How Does Gold Compare With Other Common Investment Options?
The reason why investors invest in Gold is for portfolio diversification purposes. That does not mean that they have to physically own (and store) bullions or coins.
Shadowfax
Well-known member
- Thread Author
- #5
I asked here mainly because I thought people with enough spare cash for HE Audio might also have diversified investments. The FIAT system could/likely fail for several reasons and if it does, paper money and Gold Paper will be worthless. If you are paying attention globally, many other countries are moving back to a Gold Backed Currency while the US has apparently squandered a lot of it's Gold. They can't just keep printing Trillions of dollars out of thin air and think it can be sustained. Why do you think there has never been an audit of the Federal Reserve and Central Bank since the 50's? Physical Gold no matter how it is currently performing could end up being the only savings many people will end up with if they have it in their hands.
I’ve never been tempted to buy gold. Would rather just stick with a low cost S&P 500 index fund. I usually like a good REIT, but with interest rates, likely not good now.
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the professor
Well-known member
I know several people that have a little physical gold - guessing 2-3% of their portfolio so not much. Not so much as an investment as SHTF money. They have bought 1oz gold coins. Easily buyable and sellable.
One thing to consider though is as it is a physical thing, you do have to pay state sales tax on it when you buy it. That's a heavy premium in most states. Here in Oregon is a great place to buy things since there is no sales tax.
One thing to consider though is as it is a physical thing, you do have to pay state sales tax on it when you buy it. That's a heavy premium in most states. Here in Oregon is a great place to buy things since there is no sales tax.
Barry
Member
Well, if you're concerned about a doomsday scenario, maybe it makes sense for you. You have to determine what your exit plan is if it doesn't happen and how much you can afford to put at risk given the volatility of the asset. There are a few other things I might worry about that are maybe more likely to happen. Good luck!
Have you built your bunker yet? If not, just make sure to design it so you have room for your gold.
mep
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I think if you are actually going to buy gold and keep it at your home, it would be a great idea to go on public forums and let people know that. FB would be a great site to make that public and make sure you post pictures while you are on your next vacation so people know when you aren't home.
puroagave
Active member
don't choose one with a substantial office property portfolio, that market is in the toilet.
Dizzie
Well-known member
I have used the gold miner ETFs: GDX (major miners) and GDXJ (junior miners). In the past gold used to be a good hedge against the market. But for several years I have found the ETFs failing to go up when the overall market corrects sharply. They provided no hedge. I have also found them failing to rise as much as the overall market when the market went up. IMO precious metals are not the counterbalance they used to be. :dunno: I do not recommend the ETFs
So, how do a few oz help you when the US dollar "fails", meaning it is no longer accepted as legal tender? "the FIAT system could/likely fail for several reasons and if it does, paper money and Gold Paper will be worthless."
What then, with your gold? Trade it for bread and wine? What will you do with it, what's the scenario and strategy you visualize. I am truly interested.
That is often when you should buy, if you are a speculator.
Shadowfax
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- Thread Author
- #17
Isn't it interesting how on any forum when someone asks a question and specifically asks for those with experience or positive suggestions, many of responses are not helpful and attempt to belittle the OP? We can Always count on you, MEP, to be "That Guy" to have nothing positive to contribute and always try to make yourself look good by trying to make others look stupid.
Now, are you seriously trying to compare me talking about a few ounces of gold with people who apparently have Money, along with ass comments about Facebook, with all the Gear you just told everyone who can view these forums is sitting at your house?
Shadowfax
Well-known member
- Thread Author
- #19
Good questions with many possible answers. One as said before, diversification if all goes well. Bread and Wine would also be a good trade depending on the wine and vintage. How about trade it for your life when all the bullets are gone. I realize my scenario leans towards possible doomsday, but isn't it always prudent to prepare for the worst if it's not all that difficult? I can't talk about world events here so I will leave it at that.
mep
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How are a "few ounces of gold" going to hold you up if/when SHTF? You also could use some thicker skin and sense of humor. You might need that in your bunker.