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darsemnos
Penny Sorter Member
96 Posts |
 Posted - 05/31/2010 : 22:47:10
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Would it make sense to keep gold, instead of a savings account. I have enough in savings that I could by quite a bit of gold. Would it make sense to convert much, perhaps even most of this to gold? The only big items my savings might go to is a car. I have a spreadsheet that breaks it down into smaller categories, but the biggest one, about half of what's in my bank account is just in a category with the very generic title "savings/vacation/furnishing. Basically big things I don't have any specific plans for yet, but that could reasonably be expected to come up, but that can also be planned for some time in advance. Might it make sense to convert most of the "car" and "savings/vacation/furnishing" funds to gold? I can still leave enough to maintain liquidity and the occasional car repair when needed.
The money is just sitting in a bank account now, making almost no money, so putting it in gold, where it won't be devalued might make sense.
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Nickelless
Administrator
USA
5580 Posts |
Posted - 05/31/2010 : 23:04:29
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Silver has a much bigger upside and it's much easier for people to make change for, in the event that whoever you barter with also has silver. First things first, make sure you have enough cash for several months worth of expenses. I ran into the problem several months ago (and it's taken me a while to dig myself out) of having put most of my available cash into silver but with no cash to fall back on for unexpected and regular daily expenses.
Having said that, whatever silver or gold you buy, DON'T STORE IT IN BANK SAFETY DEPOSIT BOXES. Here's a great thread that Copper Catcher started about that:
You must be logged in to see this link.
I keep my available cash at home in an inconveniently located spot in the house so it's not obvious to any would-be burglar who won't go through the trouble to see where inside I've buried the cash. I have most of my available cash in nickels (doubling-up for the copper content) and boxes and bags of quarters for more immediate expenses. |
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PennyPauper
Penny Collector Member
USA
395 Posts |
Posted - 05/31/2010 : 23:21:14
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Makes perfect sence.Find a honest precious metals dealer locally,which could take some time,educate yourself on how things work.Depends on what form you want your gold in.Don't rush in and buy any special or rare coins.Buy a small scale and learn how to figure gold content.For a exercise compare a necklace for sale in a shop versus its gold value.
You could always buy the gold etf's,easy to do but not the best option IMO.
Or there is silver.
But you shouldn't close your savings account and go all gold.It could lose value but will never be worth nothing. |
Available again! $100 of Copper Lincoln Memorials for $145 shipped. |
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Nickelless
Administrator
USA
5580 Posts |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 06/02/2010 : 16:43:46
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| Gold is a good idea, just make sure you have plenty of cash on hand for emergencies. Gold is at record highs there is no guarantee that it will stay there or go up, but in the long run its important to have some in case the US dollar tanks. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 06/02/2010 : 16:55:15
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quote:
Originally posted by Nickelless
Silver has a much bigger upside and it's much easier for people to make change for, in the event that whoever you barter with also has silver. First things first, make sure you have enough cash for several months worth of expenses. I ran into the problem several months ago (and it's taken me a while to dig myself out) of having put most of my available cash into silver but with no cash to fall back on for unexpected and regular daily expenses.
Having said that, whatever silver or gold you buy, DON'T STORE IT IN BANK SAFETY DEPOSIT BOXES. Here's a great thread that Copper Catcher started about that:
You must be logged in to see this link.
I keep my available cash at home in an inconveniently located spot in the house so it's not obvious to any would-be burglar who won't go through the trouble to see where inside I've buried the cash. I have most of my available cash in nickels (doubling-up for the copper content) and boxes and bags of quarters for more immediate expenses.
I agree with a lot of this, but would like to make a couple points of difference;
A) yes, silver has more upside, but when you are talking about "savings" (where the goal is maintaining purchasing power) versus "investment" (where the goal is profit) it is better to choose the more stable metal, which is gold.
B) keeping some cash in the house is a good idea in case of emergencies that may occur on nights and weekends, but it won't be covered under most fire and home insurance, so don't but all your eggs in one basket.
C)I disagree with the common coin hoarding - I'd rather have the gold and silver for my inflation hedge and the cash in 10's and 20's for maximum liquidity in an emergency (and also so you can carry it all out of the house at once if you need to). |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 06/02/2010 : 17:15:31
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quote:
Originally posted by AGgressive Metal
[quote]I'd rather have the gold and silver for my inflation hedge and the cash in 10's and 20's for maximum liquidity in an emergency (and also so you can carry it all out of the house at once if you need to).
But coins won't end up as ashes if there's a fire. That's why I feel more comfortable with larger-denomination coins such as quarters and (when I haven't cashed them in) halves as my emergency cash. |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
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jtm3
Penny Pincher Member
USA
187 Posts |
Posted - 06/02/2010 : 17:18:39
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| I save my birthday money and earnings from odd jobs by using silver as my medium. Aside from the inflationay protection it gives it also gives you that satisfaction of spending money, even though you are saving as well. |
Copper Cent Hoarding Wiki
coppercenthoarding.wikia.com
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/02/2010 : 19:22:18
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quote:
Originally posted by darsemnos
Would it make sense to keep gold, instead of a savings account. I have enough in savings that I could by quite a bit of gold. Would it make sense to convert much, perhaps even most of this to gold? The only big items my savings might go to is a car. I have a spreadsheet that breaks it down into smaller categories, but the biggest one, about half of what's in my bank account is just in a category with the very generic title "savings/vacation/furnishing. Basically big things I don't have any specific plans for yet, but that could reasonably be expected to come up, but that can also be planned for some time in advance. Might it make sense to convert most of the "car" and "savings/vacation/furnishing" funds to gold? I can still leave enough to maintain liquidity and the occasional car repair when needed.
The money is just sitting in a bank account now, making almost no money, so putting it in gold, where it won't be devalued might make sense.
Going from a bank account to gold with the majority of your money is a big step that you ought to really think over. I have never advised that anyone put most of their money into precious metals Especially money that they may need over the short term (less than five years). Gold is doing fine now, but if it took a big hit and you needed to sell it to pay short term expenses then you stand to lose more than what the dollar may devalue by. I have seen many a stacker selling their precious metals in destess sales.
I do feel more confident in gold than silver now. Silver may have more up side potential, but it also has more down side, IMO. |
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Think positive. |
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Nickelless
Administrator
USA
5580 Posts |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/02/2010 : 20:29:35
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quote:
Originally posted by Nickelless
quote:
Originally posted by Ardent Listener
Silver may have more up side potential, but it also has more down side, IMO.
How much of a downside could there be by buying at today's prices? I don't think any of us see it going much lower without huge premiums.
There could be a lot. At least enough not to put your short term saving into either silver or gold. Don't get me wrong, I'm holding PMs too but they aren't a sure bet over the short term yet. |
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All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 06/02/2010 : 20:55:21
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quote:
Originally posted by Ardent Listener
quote:
Originally posted by Nickelless
quote:
Originally posted by Ardent Listener
Silver may have more up side potential, but it also has more down side, IMO.
How much of a downside could there be by buying at today's prices? I don't think any of us see it going much lower without huge premiums.
There could be a lot. At least enough not to put your short term saving into either silver or gold. Don't get me wrong, I'm holding PMs too but they aren't a sure bet over the short term yet.
Fill me in, Jamie. What could happen that could make silver plummet, assuming that's what you're referring to? |
Visit my new preparedness site: Preparedness.cc/SurvivalPrep.net
--Latest article: Stocking up on spices to keep food preps lively
---------------
Be prepared...and prepared to help: http://www.survivalblog.com/charity.html
Are you ready spiritually for hard times? http://www.jesusfreak.com/rapture.asp |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/02/2010 : 21:09:13
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| We could see a re-run of 2008. A falling stock market and the world going even deeper into this recession with even higher unemployment. I have no crystal ball, but after over 30 years of holding silver I have learned to never believe that silver can't take a dive over the short term. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Nickelless
Administrator
USA
5580 Posts |
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AGgressive Metal
Administrator
USA
1937 Posts |
Posted - 06/03/2010 : 10:39:33
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| From $20 price-tag for physical to a $14 re-sale value if it drops to $15 is a 30% haircut. |
And he that hath lyberte ought to kepe hit wel / For nothyng is better than lyberte / For lyberte shold not be wel sold for alle the gold and syluer of all the world.
-Caxton's edition of Aesop's Fables, 1484 |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/03/2010 : 11:58:12
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quote:
Originally posted by Nickelless
What I'm saying is how much of a drop could it be compared to how much it could go up in the long term? The only drawback I could see is if I needed money, but I'm just buying silver with money I don't need and am budgeting other cash for expenses. I really can't see ever trying to "flip" silver for a profit.
Just curious, Jamie, are you just buying and holding silver, or do you ever try to flip physical for a profit?
I have flipped physical for a profit several times. I will not go into details, but I have been rather successful doing so. I ask, why not flip if it is with precious metals that you don't feel you need over the long haul? Others here are involved in stocks or other investments in addition to their PM stacking. But if you feel more knowledgeable about PMs than stocks why not put some 'return' capital there instead?
But at-last, my 'profits' were only converted back into precious metals and diamond jewelry for my wife.
You and I appear to agree that one should have some cash handy for the short term expenses of life. Nickels make up a part of that for me, but I won't go there  about that since doing so might hijack the thread. |
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All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Zyll
Penny Pincher Member
USA
214 Posts |
Posted - 06/03/2010 : 13:19:00
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| I do have a savings account for emergency short-term liquidity, and physical silver and gold, and paper cash available, and a retirement account invested in mining stocks, and base-metal pennies and nickels... in short I've got my fingers dipped in several areas. I agree that physical metals could act like a savings account...but only the account you put long-term inaccessible savings, and not the one you use for monthly checking overdraft protection. |
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Gold instead of savings account
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