investing in metals

[scarlett.penelope]

Hello everyone.

Even on TV, I see about investing in precious metals. They talk mostly about gold & silver. Well, SHTF that gold & silver are useless.

People with food aren't going to trade it to you as the gold & silver is useless to them.

I do have some of what I consider precious metals set aside: high-carbon steel, tool steel, & lead.

Just curious what others are thinking.

 

[scarlett.penelope]

Hello everyone.

Even on TV, I see about investing in precious metals. They talk mostly about gold & silver. Well, SHTF that gold & silver are useless.

People with food aren't going to trade it to you as the gold & silver is useless to them.

I do have some of what I consider precious metals set aside: high-carbon steel, tool steel, & lead.

Just curious what others are thinking to check this story.

thanks in advance for any help

 

[Andy in NH]

I don't see precious metals (gold/silver) as an investment, nor as a trade/barter item.

IMO, they are better used as protection/preservation of wealth during an economic crisis.

I have given silver coins away as gifts and in appreciation for favors.

 

[PaulR]

Agree.
If you are trying to protect against financial collapse: precious metals are a good investment.
If you are trying to protect against societal collapse: guns, back-up power, and canned food are good investments.

 

[peterk123]

Gold in particular is an interesting subject. There are different levels of SHTF. Historically, gold is awesome. People will always want it and it tracks with inflation. The same bit of gold that could buy a suit in the 1800s, will buy that same suit today.

Now, if we are talking end of days, zombie time, it's a different story. Ammo, water, fuel, food and shelter will be of greatest value. The likes of that happening is quite slim. And quite frankly if it does, I just need one bullet. No need for anything else.

 

[Fritz the Cat]

I just need one bullet

Can i have the rest of your ammo?

 

[NHCraigT]

View: https://youtu.be/6IqED0MzDdE?si=OvNrohhBZDn6GESq?t=1m3s

 

[richc]

People/society will always need a store of value. That's why money was invented.

Before currencies, people bartered. They'd trade goods they owned or made for other goods. That limits your market to those who have something you want or need. An agreed upon currency lubricates the wheels of trade.

Gold has been recognized, and is still recognized, as a universal store of value. As our currencies are debased and lose their value, gold stays the course.

There's a limited supply of gold in the world. All of the gold mined in history would fit inside a 75'x75'x75' cube. That's it. Enough to fill a football field to a depth of about 3 feet. Think about that.

Limited supplies, globally recognized store of value. Until and unless we reach end times, I see it having value.

 

[Varmint]

Hello everyone.

Even on TV, I see about investing in precious metals. They talk mostly about gold & silver. Well, SHTF that gold & silver are useless.

People with food aren't going to trade it to you as the gold & silver is useless to them.

I do have some of what I consider precious metals set aside: high-carbon steel, tool steel, & lead.

Just curious what others are thinking.

This is a very common comment.

My response would be that PMs protect against the SHTF scenarios that are much more likely, where the world doesn’t end but you need real money that the government can’t inflate away to nothing, or take from you with a keystroke. The scenario of the dollar going to zero is in fact an absolute certainty.

The world has seen countless of these scenarios in history, but has never seen a scenario where gold was worthless.

 

[07Mustang]

Gold has had value for around 5000 years.

 

[Rob Boudrie]

Two levels of SHTF:

1) Money still has values but the electronics is down. I remember trying to write a check (pre-debit card days) at a Sears Hardware for less than $20 and the manager was absolutely firm - "We will not accept your check without an electronic approval". If this happens I'll use my emergency reserve that will get me through a few weeks of groceries and gas.

2) Total collapse, dogs and cats living together, etc. Much less likely. If this happens, my concern shifts to trying to get prescriptions filled that keep me undead.

 

[TG Pioneer]

I always advise people to diversify their SHTF commodities. Ammo, food, various supplies, PMs are all valuable. The problem comes from the dope who only has a gold coin that was $400. I have a chicken, you have that coin. Guess how much the chicken is going to cost.

Buy smaller “junk silver” denominations of US coins (pre 1965) as you can afford to. I usually buy dimes, quarters, halves, and dollars. I can buy things with the small denominations and not attract much attention. I’ve been doing it weekly for years along with other preps as I could afford them.

 

[Rob Boudrie]

Junk silver is great for buying bread, beer, etc. since it is in smal units of $$ The next step up is 1oz rounds and sovereign coins.

But.... Junk silver is not a great way to buy silver if your purpose is investment, as the buy/sell spread can be significant. Apmex currently has it at $1.99 over spot ($2.99 for small quantities). If you try to resell it to a market maker you probably won't even get spot. There was a time when junk silver retailed for less than spot.

In a "type 1" collapse mentioned in my earlier post, US currently will be more liquid, and have more value, than junk silver. Most places won't have the knowledge to know what it is worth, and larger places will have low level employees, and even managers governed by corporate policy, who have no authority to "deal". Sure, the PMs will be welcomes at the mill, but we're talking serious post apocalyptic happenings before you can fill the can for your generator with a handful of junk silver.

If it's Weimar Republic style hyper inflation, the winners may not be the folks with a couple of $K of SHTF PMs in their house, but people with investment quantities (by that I mean tens or hundreds of $K) of PMs that are used to convert to currency as needed.

 

[whatluck]

Silver has significant medical, chemical, and scientific uses.

 

[Fixxah]

Galena is my PM.

 

[HooVooLoo]

Don't bother. Gold has been at historical highs for a while now. It CANNOT maintain above the 2K level for lomg...Not when the Fed is going to start lowering rates,

GTFO now if you have it.
Hear me now and believe me later.

 

[Varmint]

Don't bother. Gold has been at historical highs for a while now. It CANNOT maintain above the 2K level for lomg...Not when the Fed is going to start lowering rates,

GTFO now if you have it.
Hear me now and believe me later.

Lower rates is good for gold. Higher rates hurt gold cause it pays no interest.

So your post makes no sense.

 

[HooVooLoo]

Lower rates is good for gold. Higher rates hurt gold cause it pays no interest.

So your post makes no sense.

You heard me now, you will believe me later.

 

[HARRYM]

Gold ain't going anywhere but up. Will it hit the 3000 mark.....not out of the question at all. It will hit the 2500 mark easily.

And you hold Gold/Silver as a hedge, not as an investment.

 

[Varmint]

You heard me now, you will believe me later.

I heard you but think you don’t know anything about gold.

 

[HooVooLoo]

I heard you but think you don’t know anything about gold.

*Le sigh*



This is an unsustainable path. When the Fed starts dropping the banhammer on rates, gold will pull back.

Hear me now and believe me later...man. Watch out on the August or December contract on GC.

 

[Varmint]

*Le sigh*

View attachment 857552

This is an unsustainable path. When the Fed starts dropping the banhammer on rates, gold will pull back.

Hear me now and believe me later...man. Watch out on the August or December contract on GC.

I like your chart.

Here’s another one for you.

 

[tinhorn]

I like your chart.

Here’s another one for you.

View attachment 857566

*sigh*

Damn chart reminds me when, around '06, '07, I was raking in the dough and needed to invest in SOMEthing besides my business. Thought gold was too high. Bought real estate instead. Hahahahahaha!

Dammit.
.