topic Precious Metals in Personal Finance

Precious Metals

Anonymous — Sat, 31 Mar 2018 03:41:26 GMT

Any silver or gold bugs on here? I own both precious metals and it's part of my portfolio some of the gold I've got. Is coins and small bars my silver is mostly bullion.

Re: Precious Metals

Anonymous — Sat, 31 Mar 2018 05:51:01 GMT

@Anonymouswrote:
Any silver or gold bugs on here? I own both precious metals and it's part of my portfolio some of the gold I've got. Is coins and small bars my silver is mostly bullion.

I own quite a bit of gold and silver coins and bars.

Re: Precious Metals

Anonymous — Sat, 31 Mar 2018 13:53:48 GMT

I don’t own but should. It might perform well compared to other assets in the future.

Re: Precious Metals

UncleB — Sat, 31 Mar 2018 14:27:55 GMT

I'm a silver guy as well, although my own stack is likely very modest compared to most.

I'm embarassed to say that I've slowed down with making additions while I pay down 0% balances before they expire, but once those are taken care of I'll get back to business.

Re: Precious Metals

Anonymous — Sat, 31 Mar 2018 15:23:02 GMT

WOW! Real gold and silver owners! For myself I have regularly invested in precious metal stocks and done well (not for the faint of heart). Others on this board have questioned them as an investment but, I live in the middle of several mines and proposed new precious metal mining so I feel comfortable. Also, I pay attention. It is an area where you need to pay attention. Holding real gold and silver is better than sticking paper money in a mattress

Re: Precious Metals

Anonymous — Sat, 31 Mar 2018 17:53:53 GMT

@Anonymouswrote:
WOW! Real gold and silver owners! For myself I have regularly invested in precious metal stocks and done well (not for the faint of heart). Others on this board have questioned them as an investment but, I live in the middle of several mines and proposed new precious metal mining so I feel comfortable. Also, I pay attention. It is an area where you need to pay attention. Holding real gold and silver is better than sticking paper money in a mattress

+1 Agreed!

Re: Precious Metals

Kree — Sat, 31 Mar 2018 18:56:58 GMT

I've got a coin collection, more for the age of coins than the value of the metal, but I certainly pay attention to the composition when I buy.

I also will buy silver for friends and relatives when I don't know what to get them for birthdays and such. So many bars have such pretty designs on them, unique and appreciated gifts (atleast I think they are appreciated)

Re: Precious Metals

wasCB14 — Sat, 31 Mar 2018 23:00:35 GMT

I've gotten good investment returns overall, but have a mediocre track record when it comes to highly cyclical commodity extractors. I'd consider investing in them again at the right price, but do generally steer away.

I'm better with consumer stocks, financials, and real estate. I have the patience to take advantage of sentiment swings surrounding healthy companies with relatively stable earnings, but can't often get a very clear picture of what a mining or drilling company will be earning in two years.

As far as physical gold and silver, I did collect coins years ago (more numismatic than bullion) and still have most of the collection. It has some gold and silver, but it's more for entertainment.

I prefer real estate (via a closely held business, as well as publicly traded stocks) to precious metals as an inflation hedge. I like investments that hold their approximate value with inflation...but also put some money in my pocket without my needing to sell.

Re: Precious Metals

wasCB14 — Sat, 31 Mar 2018 23:21:29 GMT

@Anonymouswrote:
@Anonymouswrote:
WOW! Real gold and silver owners! For myself I have regularly invested in precious metal stocks and done well (not for the faint of heart). Others on this board have questioned them as an investment but, I live in the middle of several mines and proposed new precious metal mining so I feel comfortable. Also, I pay attention. It is an area where you need to pay attention. Holding real gold and silver is better than sticking paper money in a mattress

+1 Agreed!

There have been some long stretches where gold has trailed treasuries and even cash. Timing matters. Gold can rise quickly in value occasionally, but much of the time declines in nominal and inflation-adjusted value. Look at a chart that goes back a few decades and it's hard to trust it to be a reliable store of value (in the sense that price moves don't seem to correlate with recent or expected inflation).

Re: Precious Metals

Gardenhand — Sun, 01 Apr 2018 00:15:31 GMT

I believe physical silver at current prices is a great opportunity. With the industrial uses and medical equipment uses on the rise along with current silver to gold ratios being what they are, i believe it's just a matter of time before prices start to rise. If/when they do I think the masses will start to catch on and I don't believe that the silver etfs and other trading vehicles will be able to support the potential bubble this could create. This obviously would increase the demand for physical silver and the people collecting now will be rewarded in a big way.

I believe 50 to 100 dollars per ounce is a given in the next five to ten years and if the masses move in creating the etf breaking bubble then physical silver hitting 1,000 per ounce is not impossible before it's all said and done. I like small cap silver mining stocks for trading and physical silver bullion for a long term hold.

The best part about silver at these levels in my opinion is there is very little risk if any at current prices. The risk to reward is like no other investment out there. It's a once in a lifetime opportunity in my book.

Re: Precious Metals

Anonymous — Sun, 01 Apr 2018 01:14:11 GMT

@Gardenhandwrote:
I believe physical silver at current prices is a great opportunity. With the industrial uses and medical equipment uses on the rise along with current silver to gold ratios being what they are, i believe it's just a matter of time before prices start to rise. If/when they do I think the masses will start to catch on and I don't believe that the silver etfs and other trading vehicles will be able to support the potential bubble this could create. This obviously would increase the demand for physical silver and the people collecting now will be rewarded in a big way.

I believe 50 to 100 dollars per ounce is a given in the next five to ten years and if the masses move in creating the etf breaking bubble then physical silver hitting 1,000 per ounce is not impossible before it's all said and done. I like small cap silver mining stocks for trading and physical silver bullion for a long term hold.

The best part about silver at these levels in my opinion is there is very little risk if any at current prices. The risk to reward is like no other investment out there. It's a once in a lifetime opportunity in my book.

I also feel silver will be 50-100 dollars but it will take time. Numismatic Canadian coins are very attractive to me.

Re: Precious Metals

Anonymous — Sun, 01 Apr 2018 02:33:12 GMT

At present I've got a bit too much cash in the "mattress", so I've been thining about converting it to either Silver or Gold. That seems the most common, but what do people tink of Palladium or Platinum? Or even Gemstones?

Re: Precious Metals

wasCB14 — Sun, 01 Apr 2018 03:45:40 GMT

@Anonymouswrote:
At present I've got a bit too much cash in the "mattress", so I've been thining about converting it to either Silver or Gold. That seems the most common, but what do people tink of Palladium or Platinum? Or even Gemstones?

Gemstones, and finished jewelry in general, don't share the same small buy/sell spread that bullion has.

Buy $10k of gemstones and try to sell them back to the dealer. You'd be lucky to get $5k.

Buy $10k of silver bullion and try to sell it back to the dealer. You could get maybe $9.8k.

(Not that I'm a big fan of metals in general, as I've said.)

Re: Precious Metals

wasCB14 — Sun, 01 Apr 2018 03:55:00 GMT

@Anonymouswrote:
I also feel silver will be 50-100 dollars but it will take time. Numismatic Canadian coins are very attractive to me.

Any particular series? I have some Canadian proof-like sets. Mostly 1960's if I recall.

I mostly collected US coins, but also got a few late Roman pieces. If I picked up the hobby again I'd focus on ancients.

Re: Precious Metals

Anonymous — Mon, 02 Apr 2018 16:41:43 GMT

@wasCB14wrote:
@Anonymouswrote:
I also feel silver will be 50-100 dollars but it will take time. Numismatic Canadian coins are very attractive to me.
Any particular series? I have some Canadian proof-like sets. Mostly 1960's if I recall.

I mostly collected US coins, but also got a few late Roman pieces. If I picked up the hobby again I'd focus on ancients.

gold mapple leaf or silver.

Re: Precious Metals

wasCB14 — Mon, 02 Apr 2018 20:48:00 GMT

@Anonymouswrote:
@wasCB14wrote:
@Anonymouswrote:
I also feel silver will be 50-100 dollars but it will take time. Numismatic Canadian coins are very attractive to me.
Any particular series? I have some Canadian proof-like sets. Mostly 1960's if I recall.

I mostly collected US coins, but also got a few late Roman pieces. If I picked up the hobby again I'd focus on ancients.
gold mapple leaf or silver.

"Numismatic" refers to coins with a collector value that greatly exceeds their face value or melt value. For an extreme example, think of a rare silver dollar from early America that collectors might buy for $100k or more, even though it only has about an ounce of silver. Condition is usually important, valuation can be very subjective, and they can be hard to sell quickly at a fair value.

"Bullion" is the more accurate term for coins like the Canadian Maple Leaf, which are generally valued according to their metal content, and appeal to people who are more interested in the metal than the history, or the desire to have a complete collection.

There can be grey areas in this distinction. Silver coins from 1900 or 1950 in terrible shape may have some limited collector appeal, and yet may trade for not much more than their melt value.

Re: Precious Metals

Kree — Tue, 03 Apr 2018 13:53:40 GMT

@wasCB14wrote:
@Anonymouswrote:
@wasCB14wrote:
@Anonymouswrote:
I also feel silver will be 50-100 dollars but it will take time. Numismatic Canadian coins are very attractive to me.
Any particular series? I have some Canadian proof-like sets. Mostly 1960's if I recall.

I mostly collected US coins, but also got a few late Roman pieces. If I picked up the hobby again I'd focus on ancients.
gold mapple leaf or silver.
"Numismatic" refers to coins with a collector value that greatly exceeds their face value or melt value. For an extreme example, think of a rare silver dollar from early America that collectors might buy for $100k or more, even though it only has about an ounce of silver. Condition is usually important, valuation can be very subjective, and they can be hard to sell quickly at a fair value.

"Bullion" is the more accurate term for coins like the Canadian Maple Leaf, which are generally valued according to their metal content, and appeal to people who are more interested in the metal than the history, or the desire to have a complete collection.

There can be grey areas in this distinction. Silver coins from 1900 or 1950 in terrible shape may have some limited collector appeal, and yet may trade for not much more than their melt value.

I've got a 150 year old Dutch gold 5 guilder coin. Last time I checked it wasn't selling for much more than melt value either. Definitly lots of grey areas.

Re: Precious Metals

Anonymous — Tue, 03 Apr 2018 15:39:33 GMT

Kree ... very interesting. Would have figured there would be some value based on its age for sure?!

Re: Precious Metals

Anonymous — Tue, 03 Apr 2018 15:54:29 GMT

@wasCB14wrote:
@Anonymouswrote:
@Anonymouswrote:
WOW! Real gold and silver owners! For myself I have regularly invested in precious metal stocks and done well (not for the faint of heart). Others on this board have questioned them as an investment but, I live in the middle of several mines and proposed new precious metal mining so I feel comfortable. Also, I pay attention. It is an area where you need to pay attention. Holding real gold and silver is better than sticking paper money in a mattress

+1 Agreed!
There have been some long stretches where gold has trailed treasuries and even cash. Timing matters. Gold can rise quickly in value occasionally, but much of the time declines in nominal and inflation-adjusted value. Look at a chart that goes back a few decades and it's hard to trust it to be a reliable store of value (in the sense that price moves don't seem to correlate with recent or expected inflation).

While I follow your comments I have a hard time finding real estate a more comforting alternative.

As I mentioned precious metals is not for the faint of heart. I have done well since I watch it regularily (daily or more and I don't run ever time there is a swing). In truth, I have found real estate to not be comforting. My past has involved being part of large residential developments, shopping malls and golf courses. Turned down investing in apartments. Any way, I feel more comfortable with precious metals. In my distant recent past I worked with a civil engineer on mapping gold deposits so I am comfortable in such a world. You need to remember it is about your own expertise and comfort for risk (which I know you understand) and real estate is not my idea of comfort! Was involved with some investment in residential developments with money stuck in infrastructure and no one came so I have had my fill and I have walked the walk (one only needs to look at the crash of 2008 which I am sure you have).

Re: Precious Metals

wasCB14 — Tue, 03 Apr 2018 18:00:01 GMT

@Anonymouswrote:
Kree ... very interesting. Would have figured there would be some value based on its age for sure?!

Age plus gold can sometimes mean scarcity, especially if a lot of the coinage was melted and the gold reused. Scarcity plus collector demand can mean numismatic value.

However, age alone really means nothing.

For example, think of how big the Roman Republic (and later Empire) was. Think of how long it lasted, and consider that each Emperor wanted to create new currency with his face on it. Think of all the low-denomination copper and copper alloy coins they would have needed.

The coins can be historically interesting, but many exist in vast quantities and have limited collector demand.