Downsides to precious metals?

[WEE]

I haven't actually checked the numbers BUT, But, but.......
Yeah.....double. And it only took 40 years. Personally and IMHO.....THAT isn't my idea of a "good investment".

Aloha, Mark

If you started buying 40 years ago, 1984, gold was under $400. At today's price, roughly $2,200, that's over a 500% increase. Even if someone bought a little bit every year, it's way more than doubled. Sometimes, over periods of years, gold outperforms the stock market, and vice versa. From 1990 to 2020, the price of gold increased by around 360%. Over the same period, the DJIA gained 991%. Looking at the 15-year period from 2005 to 2020, the price of gold increased by 330%, roughly the same as the 30 years considered above. Over the same period, the DJIA increased by only 153%. Hindsight is always perfect, but investment diversification has always been a great strategy.

 

[DunRanull]

In a pinch you cannot eat them...

 

[Camelfilter]

In a pinch you cannot eat them...

Yes. Just like any other non-food item…

 

[billdeserthills]

In a pinch you cannot eat them...

You can do it one time

 

[ma96782]

Gold Leaf Ice Cream.

View: https://youtu.be/UojcQ4K1uLk?si=ssolpR3jPBYymRTo


Aloha, Mark

PS.....thank you WEE (Post #341).

 

[Kcee]

When I was studying finances back in the 1980s, I learned you should always keep 10% of your savings in precious metals.

I inherited my father's stuff, and I did buy a little myself to make the 10%. I have no idea what it's worth today, and I hope I never have to find out.

 

[ma96782]

Since this is suppose to be a Firearms Forum.
Forget about GOLD firearms.

View: https://youtu.be/4KM7ySNWuqU?si=ik-uLOEOYjdSLlYu


Why not "Platinum" in this form (P-09)?

View: https://youtu.be/GHVsHmVKGs8?si=z0hudtFzXZaIbEsh


Aloha, Mark

 

[Burt Gummer]

When I was studying finances back in the 1980s, I learned you should always keep 10% of your savings in precious metals.

I inherited my father's stuff, and I did buy a little myself to make the 10%. I have no idea what it's worth today, and I hope I never have to find out.

Its worth next to nothing. Let's do lunch. I'll bring a $50

 

[Burt Gummer]

The dollar is going to get wrecked, finally. People have talked about it for many years, but it is finally on the table.

View: https://youtu.be/Oi_WxifFTfc

 

[ma96782]

Could you weather the booms and bust?
As for Example : The buyers and sellers here.

View: https://youtu.be/m79vc2T0i98?si=fwS40L6d-TVfOObt


Mind you that (IMHO) in a typical Chinese Jewelry Shop, the margins over/under the typical quoted "market price" of GOLD is usually "tighter" vs here in America. And, without mentioning that the carat purity (of gold found in a typical SE Asian Chinese Gold Shop) is way closer to 24k.

Aloha, Mark

PE...which brings up the point.....where will YOU be selling your gold? If, America was to take a serious downturn in the economy (like China is currently seeing). It's not like a buyer (Pawn Shop, Jewelry Store or Currency Exchange) can be easily found all over the place here in America. Will YOU become the victim of "take it or leave it" because of a lack of competition?

 

[Kcee]

Its worth next to nothing. Let's do lunch. I'll bring a $50

Speaking of next to nothing, one of my brothers gave me his old wedding ring, and I also had one, and I went to a place to see what they were worth. Jewelry is horrible as far as losing value! I told the guy I would rather keep the rings to throw away myself. My ring fell down into my VW Bus' dash, and I found it some years later while I was waiting for a girlfriend, and I tossed it out the window into some bushes.

 

[ma96782]

My ring fell down into my VW Bus' dash, and I found it some years later while I was waiting for a girlfriend, and I tossed it out the window into some bushes.

LOL.....speaking of your "GF and Gold" story......

Here is my story......
I can remember when I got divorced (from my 2nd wife). During the divorce, she wanted to give me back her wedding ring (a simple 14k gold band). I told her to keep it or pawn it......I didn't care.

A couple of years later, she dared to contact me. She asked if I could loan her some money.

Oh yeah....what happened to that ring? Cough, cough, cough.....

Aloha, Mark

 

[Alexx1401]

Could you weather the booms and bust?
As for Example : The buyers and sellers here.

View: https://youtu.be/m79vc2T0i98?si=fwS40L6d-TVfOObt


Mind you that (IMHO) in a typical Chinese Jewelry Shop, the margins over/under the typical quoted "market price" of GOLD is usually "tighter" vs here in America. And, without mentioning that the carat purity (of gold found in a typical SE Asian Chinese Gold Shop) is way closer to 24k.

Aloha, Mark

PE...which brings up the point.....where will YOU be selling your gold? If, America was to take a serious downturn in the economy (like China is currently seeing). It's not like a buyer (Pawn Shop, Jewelry Store or Currency Exchange) can be easily found all over the place here in America. Will YOU become the victim of "take it or leave it" because of a lack of competition?

Not sure how others do it but my metal is just the same as the money in any other "saving". If dollar does finally crash will not matter how much cash people have if its worth almost nothing. Will the metal be worth much more? Who knows. I just long ago figured what do I have to lose turning some of the cash we were sitting on into metal. If both are one day worth nothing? So be it.

 

[WEE]

Not sure how others do it but my metal is just the same as the money in any other "saving". If dollar does finally crash will not matter how much cash people have if its worth almost nothing. Will the metal be worth much more? Who knows. I just long ago figured what do I have to lose turning some of the cash we were sitting on into metal. If both are one day worth nothing? So be it.

Historically, precious metals have retained value in economies that have crashed. If that day comes here, I would rather have gold and silver in my safe then cash in a credit union or bank.

 

[nwfirepdx]

I was going to get a small set of PMs once as a hedge against all situations, but I don't believe they are generally considered a good, sound investment from a purely financial POV when purchased outside of an index fund (usually as part of a diversified hedge) for when times are not apocalyptic. The issue/concerns in normal times, is liquidity and the fees to find a buyer, in addition to the price fluctuations with mines and tech advances needing or not needing certain quantities of a substance among other things.

But, theoretically they would survive all currencies in such a situation as they have an inherent rareness and value depending on what industries are functioning. I never did purchased a raw PM but feel it would still be nice to have a few in the go bag with the local currency for a diversified bag portfolio of sorts. So, it could go in either the money pouch or in with the other PMs (e.g. the lead investment pouch) From that view point they are a great and versatile investment.

 

[Camelfilter]

...which brings up the point.....where will YOU be selling your gold? If, America was to take a serious downturn in the economy (like China is currently seeing). It's not like a buyer (Pawn Shop, Jewelry Store or Currency Exchange) can be easily found all over the place here in America. Will YOU become the victim of "take it or leave it" because of a lack of competition?

As a hedge for wealth portability, the point is to not HAVE to sell PM's when the market is unfavorable.

Point being, have "enough" preparedness to get your family thru difficult times, to be able to survive into favorable market conditions.

If such isn't the case, then PM's still have value. What value? Whatever you decide upon selling or trading them for. Otherwise use fiat.

Buy low.

Sell high.

 

[ma96782]

For the Costco Gold Bugs out there. I ran across this vid on YouTube today (05-15-24).

View: https://youtube.com/shorts/vIhmr8Hd-Sw?si=aaMHm6xhPb7sSCsR


Of course, I don't know the exact date when it was filmed and gold prices vary day by day. In other words, don't take his price as the GOSPLE for today's price.

Yahoo Finance says gold was $2394.50 today.

Aloha, Mark

PS.....I wonder what he could get for it. IF, he sold it on the same day. THAT would be interesting (to me).

 

[Alexx1401]

For the Costco Gold Bugs out there. I ran across this vid on YouTube today (05-15-24).

View: https://youtube.com/shorts/vIhmr8Hd-Sw?si=aaMHm6xhPb7sSCsR


Of course, I don't know the exact date when it was filmed and gold prices vary day by day. In other words, don't take his price as the GOSPLE for today's price.

Yahoo Finance says gold was $2394.50 today.

Aloha, Mark

PS.....I wonder what he could get for it. IF, he sold it on the same day. THAT would be interesting (to me).

He paid about $20 over "melt" for the bar but as he said he got points for the buy. So as long as he pays the bill that month that is a good price for those wanting to buy gold. Place I have been buying from for a while normally has gold for around twice that price over melt premium. See it around $40 to $50 over melt or spot price. Now as far as selling? This too varies. If someone goes to sell metal there is "spot price' or melt price but, many will pay more for "nice examples" All in what the market is and who wants it. Not really something to use like day trading. Best to use metal as a way to hold onto money as a hedge on inflation. Also like all investing not wise to put all the eggs in one basket.