GOLD, 'nuff said.

dmdivris:2043227 said:
where can i go and buy some cash and put it in my pocket and walk away?
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I usually like to go to the bank to buy some cash to put in my pocket. They even give me a receipt after with how much I have left to buy from them until I'm out
 
I was surprised by the speed of this drop.... looks like a good buying opportunity for silver. Too bad I'm out of FRNs to exchange for them at this time.
 
Rob Boudrie said:
Can you do an in-person transaction with them (bring certified check; walk out with gold) or do they require you trust them by providing the money up front after which they arrange delivery?
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1. Call and make appointment
2. Bring FRNs
3. Walkout with PM
 
Gold

One of the things I don't understand about gold and gold stocks is, if a SHTF scene happens where do you go to redeem your gold? Do people honestly think someone is going to be at their job handing out your portion of gold that you have coming to you. Or do you actually get your gold as you buy it? Someone please tell me. At least when I go to my local walmart ect, and buy 1k rounds of .223 I walk out with them. I know I can't eat the rounds, but at least I can hunt for food with them!!! How does gold taste?
 
1) Buy physical that way no one needs to hand you your portion.

2) Throughout history there has always been a need to exchange work for goods. Trading chickens, eggs, apples, etc works but not very well. Once the shoemaker has a coop full of chickens he has no need for your eggs or chickens. Thats where PM's come into play.

3a) If a total mad max SHTF scenario plays out your gold will be worthless DURING the event. AFTER things settle down the need for trade and commerce will begin again and your PM's will have value.

3b) If a partial Argentina-like SHTF event hapens your PM's will still have value....in fact they may be the only thing of value.

4) Anyone that has the foresight to own gold most likely owns silver, bullets, beans, bandaids, etc. AND has heard this argument a million times before.


73rally said:
One of the things I don't understand about gold and gold stocks is, if a SHTF scene happens where do you go to redeem your gold? Do people honestly think someone is going to be at their job handing out your portion of gold that you have coming to you. Or do you actually get your gold as you buy it? Someone please tell me. At least when I go to my local walmart ect, and buy 1k rounds of .223 I walk out with them. I know I can't eat the rounds, but at least I can hunt for food with them!!! How does gold taste?
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Some of the gold ETF's are backed by physical gold, but no, you can't take delivery of them. They are a good way to get access to gold's upside without taking physical delivery.

However, as most of you who are buying know, the markup for physical gold and silver is huge right now. I'm seeing quotes at retail shops for $38/ ounce silver, and similar markup for gold. They are baking in the current volatility into the price. The online places are not a whole lot better, and many of them either hold it for you or take months to deliver.
 
Believe me when I tell you that I'm a novice in this area but I have some questions.

I've read that most issuers of ETFs don't have the physical metal in their vaults to back up the certificates they sell. I've read that it could be a low as 1 to 1000 or even higher; one ounce of metal to 1000 ounces on paper. They're selling something they don't have so if you were able to redeem your certificates for phyzz, good luck. In my opinion Exchange Traded Funds are nothing more than speculative "investments" not unlike pork bellies or anything else. Also, it's a lot of people's opinions that these ETFs are responsible for the manipulation of metals prices in the market. There was one article I recently read that says that there are actually two prices for gold and silver: Paper and physical. Isn't there a call out there to investigate the lack of metal in the vaults of these issuers? I know that in order to buy ETFs that the issuers have raised the margins higher and higher to help cover these deficiencies.

Inquiring minds want to know!

Rome
 
FraminghamCitizen said:
I'm seeing quotes at retail shops for $38/ ounce silver, and similar markup for gold.
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The premium for 90% silver pre-64 coins is much smaller, but the real issue is the round-trip pricing if you want to sell if you are contemplating the S not HTF. Sure, it would be cool to have all those coins when things go post-apocolyptic, but in reality, if you want to liquidate $50K or so of gold or silver for a major expense in a non-collapsing economy (kid's tuition, medical, etc.) the most practical option is an investment house, not the corner trader with the "we buy gold" sign out front. One problem with the metals is that the round trip commissions and buy/sell spreads can easily top 5% - vs a fraction of a percent for stocks, bonds, etc.
 
I am still buying whenever I can. I grabbed some the other day for $32 per ounce of silver, out the door. Not bad. And there will always be people willing to trade for silver and gold. That’s basically how the nation functioned before Nixon screwed things up.

Silver and gold will always have some value. Can we say that about stocks and bonds? I don’t think so.

Silver, gold and brass.
 
If someone has the money to buy some silver, it is probably a good time. Gold makes me nervous.

All the other basics are good to buy now... rural land... food... guns... ammo... fuel sources (forested land)....
 
Rob, I bought 1 ounce silver rounds of .999 silver. I think that the manufacturer was ENGELHARD. I used to buy only the American Eagle Silver Dollars but recently changed to any 999 silver. I have been buying from the same dealer for quite a few years now so he is getting to know me. I hope to give the Silver American Eagles to my employees for their Christmas gifts. We’ve been doing that for a long time. I wonder how many people saved their coins over the years.
 
Rob Boudrie said:
the most practical option is an investment house,
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Agreed, which is why I also buy SLV and GLD for speculation, though a couple of miners look good if you are opportunistic. I would like to have some on hand, though, because owning gold that is stored in a vault under the Thames doesn't do a lot for you in a bad situation.
 
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FraminghamCitizen said:
Agreed, which is why I also buy SLV and GLD for speculation, though a couple of miners look good if you are opportunistic. I would like to have some on hand, though, because owning gold that is stored in a vault under the Thames doesn't do a lot for you in a bad situation.
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Holding does not mean you don't get to use an investment house for large liquidations in times of .not.SHTF. You can have SHTF protection, and still have the ability to liquidate through conventional channels during normal times even if you possess. Small scale private sales are unlikely to net you the same amount as redemption through a trading house at about 96% of the price you could buy the same metal for.

Proprietary rounds will sell at a larger discount to brokers other than the one whose name is on the rounds - but you can do OK round trip sticking with one investment house.
 
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Cabinetman said:
Is it possible that there are two prices for metals? One for physical metal and one for paper metal? Seems that that's the course the markets are taking.

Rome
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Sure, paper metal is only worth what it is written on......[smile] Physical is the only way to go.....[wink]
 
Bob J said:
Sure, paper metal is only worth what it is written on......[smile] Physical is the only way to go.....[wink]
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There are costs and risks with each. If you have metal on deposit with a brokerage firm, you don't have to worry about physical security, and selling is done with one phone call or on line transaction - with no shipping, authentication of the metal, or delays.

Years ago, that explanation would probably have been enough. History has since taught us that large name brand financial firms can go bankrupt (Lehman Brothers) and that just because a firm is name brand/multi-billion doesn't mean the assets you are allegedly buying are really there (Madhoff). Add to that the fact that if you are an early successful investor in a firm that turns out not to have enough metal to back the paper, and get out in time, you are at risk of a clawback suit.

On top of that is the fact that brokerage house assets are registered and under supervision of the US government,which means they can be seized; taxed upon transfer; etc. There are lots of elderly folks in "spend-down" mode who probably wish they had a portion of their assets if "off books" form. No, I'm not advocating tax evasion - but society has not yet collapsed. Yet.
 
If the precious metal isn’t in my hand (or safe) then I don’t feel like I own it. As was discussed above, the government can confiscate my assets stored off site any old time they want. The government has confiscate precious metals before. Do we really think that they would not do so again?

Maybe I will never cash in my silver and gold. If I don’t then my kids should inherit a good amount of metals. If I ever need them to get by, I can cash it in. But the decision is mine, not the government’s.
 
Maybe I will never cash in my silver and gold. If I don’t then my kids should inherit a good amount of metals.
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This is one reason to hold it in paper form. If you hold it personally your heirs bear the burden of inventorying and reporting all of that gold to the govt so it can take it's share, and if they forget to do this, the common good might suffer as it could inadvertently pass without the govt taking it's cut [smile]

Likewise, if you get into Medicaid spend-down mode, you might forget about that asset and switch over to Medicaid before you have depleted your legacy. And let's not forget the importance of making sure that contingency fee attorneys checking your assets to see if you are an interesting target getting a full accountin as to how much gold is in the pot at the end of the rainbow.
 
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