Precious Metals

[red-beard]

Gold seems to be standard currancy. What about other options?

Silver -
Platinum -
Palladium -

I'd prefer to be thinking in terms of something physical than something in certificates. I'm not thinking just about inflation, but the possibility of a currency meltdown.

[emcon5]

I deal in lead, friend.

[red-beard]

That has me worried too. You can't eat gold.

[Pazuzu]

Aluminum or steel.

When society shatters, gold will be a diversion (it's hard to separate into coins, and is useless as a commodity). Steel however...steel is what someone uses to REBUILD society. It's used to make better anti-zombie swords, and add kewl stocks to their anti-zombie shotguns.

[red-beard]

Interesting, Aluminum used to be more expensive than gold.

[on2wheels52]

Originally Posted by red-beard

That has me worried too. You can't eat gold.

No, but people have been able to trade it for something to eat for the last 5,000 years or so. I expect it to be of some value in our lifetime.
I have the two "p"s as having more industrial value. No one has offered me any palladium for sale the last 25 years. I see a bit of platinum but has always been plainly marked. I don't have a test for either of them. It's getting tougher to fool me on gold & silver.
Jim

[HardDrive]

I'm sticking with ammo thanks.

[MikeSid]

Palladium?

Didn't The Band play there in '71?

[imcarthur]

I just came into the market through the backdoor & I find myself in control of a stash of the real thing - gold & silver. Coins, bars etc.

My initial research tells me that physical gold & certs are being bought & hoarded by big & smaller investors. It is in a demand slump in the manufacturing sector & the jewelery sector. The mines are digging due to demand. Advances are assumed with some downward spikes in the short-term but a steady march up.

Silver is more dependent on industrial usage. It has been in decline. They jabber about the gold to silver ratio & how silver is undervalued & therefore theories say it should rise.

I am still learning. Pay careful attention to the actual in-store buy/sell difference. Keep your bills with the product & keep the product sealed. This helps with resale.

Palladium & platinum? Just shiny metals.

Some research:

Kitco
Kitco Silver

Their forums show that there are some really strange people that collect gold . . .

Ian

[imcarthur]

And here's the real deal:

[imcarthur]

And . . .

[red-beard]

For silver I'm leaning towards "junk silver" coins.

For gold, American Eagles.

[on2wheels52]

Originally Posted by red-beard

For silver I'm leaning towards "junk silver" coins.

For gold, American Eagles.

r-b, in the '80's I saw a lot more intrest in 'junk silver' than today. Reasons I don't like it as well as .999 oz's? It's a PAI to count & roll (esp dimes). You have to look at every one to make sure no post-64's (or Canadian) coins are in the mix. You go to sell and the buyer wants to inspect also. Silver dollars are ok but have < an oz. How do you price 'sliders'? I'm a lot happier dealing with 1 oz stuff.

"Their forums show that there are some really strange people that collect gold . . ."

I meet interesting people in all phases of the pawn shop business.
Jim

[competentone]

For "insurance" against a currency melt-down (which will happen when the Chinese, Japanese, or Saudis decide they don't want to hold our dollars anymore) some gold coins and junk silver (pre-1965 U.S. silver coins) will probably be the easiest to trade for food and other survival needs. (I like the idea of "lead" -- and devices to launch that lead -- for basic survival/protection in the turmoil that will come when the U.S. dollar collapses.)

For investment right now, if I had any extra U.S. currency (which I don't at the moment), I'd be buying physical palladium. Being a hard asset it will maintain its value during any currency meltdown. As an industrial metal, it will have plenty of uses in any economic recovery. Palladium is also likely to be used in fuel cell technology, which I think is going to end up being the way auto makers meet zero-emission vehicle requirements.

Copper would probably be a good buy too, though you would have done better if you had bought around $1.50/lb when I said to (right here on the forums) some months back.

[red-beard]

I'm thinking, 5%-10% "lead", 5-10% "lead reworking components", 40-50% silver, 30-40% gold, 5-10% dried food stuffs.

[turbo6bar]

Originally Posted by red-beard

I'm thinking, 5%-10% "lead", 5-10% "lead reworking components", 40-50% silver, 30-40% gold, 5-10% dried food stuffs.

How much of your net worth is going into this plan?

Thinking about this a little, and I'm wondering if it would be better to focus on surviving before maintaining wealth. Have a well drilled for on-site water. Install 10kw of solar panels to provide power. Become a better farmer. Secure a share of locally-raised livestock. All will have to be secured with weapons. Hire mercenaries.

Not saying you guys are wrong.

[red-beard]

Solar Panels, and windmills are coming. Water may be a problem "here". I expect if there is a "serious" issue, I'll have to move.

[red-beard]

Originally Posted by turbo6bar

how much of your net worth is going into this plan?

20%

[turbo6bar]

20% is serious money. Are you diverting all cash assets to hard currency or are you selling other assets?

[competentone]

Originally Posted by turbo6bar

20% is serious money. Are you diverting all cash assets to hard currency or are you selling other assets?

20% isn't necessarily "serious money."

If I put 20% of my net worth into hard assets, my remaining $80, while at risk to the ravages of inflation, wouldn't really worry me too much.

On the subject of inflation (which is what we are talking about when considering buying metals), I'd still stand by my comments (made against "bond" investments) about a year ago.

Too bad I didn't take my own advice and buy copper -- my net worth would be $200, instead of $100, if I had:

Posted on 12-30-2008:

With the literally trillions of new dollars being created, we all know that price inflation will be the end result.

In my opinion, it is better to start buying "stuff" -- even if one is early in such areas and experiences further devaluation of that "stuff" while the economy slows -- rather than risk getting caught in the inflation trap that is sure to come.

What worked best in the 1970s and 1980s? We are in for even worse inflation than seen then.

Heck, I'd suggest buying tons of copper @ $1.40/lb and piling it in the back yard before I'd suggest lending money to corporations at "low" interest rates.

You want "stuff," not "IOUs" payable in devaluing paper money.

Corporate Bonds. Anyone investing?