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Nickelless
Administrator
USA
5580 Posts |
 Posted - 06/09/2008 : 15:00:58
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I don't know if you guys are familiar with financial columnist and radio host Bruce Williams, but here's a letter that's appearing in his column this week:
Dear Bruce: Where is the best place to buy silver bars? They are for my little boy, who is almost 2 years old.
Every year, I invest $1,200 for my son. I keep records to show him in later years how money can work for him. Last year, it was a CD at 5.45 percent for 10 months. Is this a good idea? My wife and I are doing well; we both have 401(k)s, and I have an IRA.
— W.M, via e-mail
Dear W.M.: You can purchase silver bars at almost any coin dealer.
There will be a commission charge and, upon redemption, their value and authenticity may have to be re-established.
That said, I can’t imagine why you would do this. While it’s true that silver’s value has increased lately, almost any moderate investment in the marketplace will far outpace the possible gains in silver over the next 16 years. I say “possible” because it may never increase materially during that 16-year period. Metals can be purchased on a hedge, but as a straight investment it’s not a good idea.
You also mentioned that last year you bought a CD at 5.45 percent. Trust me: You’re not going to find anything near that interest rate this year. I applaud your savings, but I think that a steady investment plan, either directly in stocks or mutual funds, over the long pull would be far wiser and more profitable.
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Kurr
1000+ Penny Miser Member
2906 Posts |
Posted - 06/09/2008 : 15:08:20
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Danged ole deritive junkies. Pay them no heed. LOL. Didnt silver just do over 200% over like 5 years? They will do anything to keep money in the markets IMHO.
Theres no hostile takeovers or other silliness like it in what we are doing. And if the silver mine that pulled my silver goes belly up or is taken over or turns out to be run by the most scandal ridden bunch ever, well, MY silver doesnt care. Still hold to fair market value at the time I want to sell it.
I'll hold onto mine! |
The silver [is] mine, and the gold [is] mine, saith the LORD of hosts. Hag 2:8 [/b]
He created it. He controls it. He gave it to us for His use. Why did we turn from sound scriptural currency that PROTECTS us?
KJV Bible w/ Strong's Concordance: http://www.blueletterbible.org/
The book of The Hundreds: http://www.land.netonecom.net/tlp/ref/boh/bookOfTheHundreds_v4.1.pdf
The Two Republics: http://www.whitehorsemedia.com/docs/THE_TWO_REPUBLICS.pdf
Good reading: http://ecclesia.org/truth/government.html
A number of people are educated beyond, sometimes way beyond, their intelligence. - Tenbears
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Edited by - Kurr on 06/09/2008 15:16:19 |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 06/09/2008 : 16:18:43
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A while ago on Nightly Business Report there was some talking head giving advice as to where to invest,
the main items considered worth investing in-
Blue chip stocks.
He mentioned commodities but only to trash talk them (there could be a bubble forming in commodities, or so he said.)
I have said it before and I will say it now, the Wall Streeters don't push gold or silver since they can't make any money on it (churn-the-account wise).
Wise investors truly diversify their portfolio, that doesn't mean all stocks and bonds, but precious metals either physical or ETFs.
Also, as to the "next 16 years" of investment time, does Mr. Williams take into account inflation over the next 16 years or what the US dollar will do over the next 16 years, or will it always be roses and rainbows for the US Buck and Wall Street? |
Edited by - pencilvanian on 06/09/2008 16:21:31 |
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TenBears
1000+ Penny Miser Member
USA
1021 Posts |
Posted - 06/09/2008 : 17:12:58
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The year is 1929, and every stockbroker and many in the stock market are fat and happy. All money is being invested in stocks. Then, Black Tuesday occurs. I bet every one of those fat (dumb) and happy stockbrokers and investors wished they had a store of gold and silver on hand before the crash erased every cent of paper wealth they had. I don't care if silver and gold are poor investments as measured against the returns in the stock market. It is only prudent to hold at least a small store of wealth in precious metals against a rainy day (or decade as the depression turned out).
What could one do with only 10 ounces of gold? Buy a few acres of land, a few farm animals, and feed your family! Sounds smart and prudent to me. |
"Rich," the Old Man said dreamily, "is not baying after what you can't have. Rich is having the time to do what you want to do. Rich is a little whiskey to drink and some food to eat and a roof over your head and a fish pole and a boat and a gun and a dollar for a box of shells. Rich is not owing any money to anybody, and not spending what you haven't got." Robert Ruark
there are too wild Indians...
there are too wild Indians...
there are too wild Indians...-----still taunted
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fiatboy
Administrator
912 Posts |
Posted - 06/09/2008 : 18:39:22
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Asking Bruce about metals advice is like asking Fiatboy about CDs. Seriously, what did he expect?  |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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Cody8404
Penny Hoarding Member
USA
602 Posts |
Posted - 06/09/2008 : 19:25:33
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Granted silver will never go up. If I buy an ounce of silver it will be worth and ounce of silver as long as I hold it. The silver will not grow. The dollar will fall and give the allusion the silver is growing.
I have also learned not to listen to the stock market information. Yes the stocks can float a little bit, but part of the being part of the FED and being allowed to be a bank is the members must buy enough stocks to keep the market going up. It isn't a measure of anything if we keep moving the ends. |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 06/09/2008 : 19:48:53
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Q: I was told to invest in gold and silver and that there was a big return on the investment. Is this true? How do I go about investing in precious metals?
A: First of all, I consider gold and silver to be speculations — not investments — especially if you're going to take possession of the metal. There is no question, however, that over the past few months, both of these metals have appreciated materially in value. People are investing in metals because they distrust some currencies. In general, if you want to invest a few dollars in gold coins, I have no great quarrel with that. On balance, you are far better served to invest in the securities of companies that either mine or refine these metals.
Bruce Williams, a financial adviser, answers consumer and personal finance questions from readers. Write him at Bruce Williams, Buyer's Edge, The Atlanta Journal-Constitution, 72 Marietta St. N.W., Atlanta, GA 30303 or e-mail buyersedge@ajc.com and put "comment for Bruce" in the subject line.
You must be logged in to see this link.
Guys like Bruce at best tell you to invest in a "few dollars" but they will only say that during a bull market. Back a few years ago he might as well had said you were nuts for thinking about it and to invest in Enron instead. |
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Think positive. |
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Kurr
1000+ Penny Miser Member
2906 Posts |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 06/09/2008 : 23:31:31
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quote:
Originally posted by Kurr
I think I have learned something that I already knew in the back of my head. Correct me if wrong, but in silver and gold instead of "investing" what we are really doing is "hedging" to stop the loss of buying power for a specific amount i.e. the purchase price at the time you buy it. Kinda.
Feel free (please) to school me if you can put it better.
Dude, you've hit the nail on the head. We're hedging against fiat currency inflation that we're starting to see happen. We'll see who's crying when we have our gold and silver rounds and everyone else has their worthless FRNs. |
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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jadedragon
Administrator
Canada
3788 Posts |
Posted - 06/10/2008 : 00:32:04
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Investing in gold and silver mining stock DOES NOT equal investing in gold and silver, nickel and copper directly. I live near Vancouver (home of the TSX Venture Exchange) and can tell you just from the local papers that mining companies can be incredably risky. Most border on scams (or are completely scams) designed to manipulate the stock price - not actually mine metal. Mining is just a business, like making cars or selling burgers. Sure there is some benifit in the stock price when metal prices rise, but there is a HUGE number of things that can wipe out your whole investment.
I hate to see the stock brokers pushing the mining co's over the product like they are in any way related at all. No one is going to wipe out my hard metal collection through fraud, bad management, or crazy promotion scemes. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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Alpacafarmer
Penny Pincher Member
130 Posts |
Posted - 06/10/2008 : 08:56:59
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| I really think of Silver as an investment. There is less silver available than gold at the present time. Silver is used ( computers, cell phones, TV's, cars ect....) silver is being consumed faster than it is being mined ( about 100,000,000 million ounces a year deficit)Most of the Gold ever mined is still available most of the Silver is gone. Silver would be cheap at $50 anyone that thinks silver is going back to $10 is the same person that thinks gas is going back to .99 |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 06/10/2008 : 18:45:00
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quote:
Originally posted by Kurr
I think I have learned something that I already knew in the back of my head. Correct me if wrong, but in silver and gold instead of "investing" what we are really doing is "hedging" to stop the loss of buying power for a specific amount i.e. the purchase price at the time you buy it. Kinda.
Feel free (please) to school me if you can put it better.
Stop to consider the $20 gold piece.
At one time it could be exchanged for $20 paper money.
During the 1950's and 1960's a numismatic $20 gold piece could be bought for $60 paper money.
At the lowest price during the bear years of gold a $20 gold piece could be had for $250 paper money.
If buying gold isn't a way to hedge your bet against inflation I don't know what is.
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Steiner
Penny Collector Member
Canada
278 Posts |
Posted - 06/10/2008 : 20:08:43
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Well I think Brucy has a screw loose, but hey who doesn't.
I am sinking at least $100 a week into my silver stack, Rounds, bars, eagles, maples, 90% or 80%. Doesn't matter, just need to keep my numbers up. I round this out with gold, nickel and copper also.
In a while it will be " Look who's laughing now."
Keep stacking guys!
Steiner
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Steiner |
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Alpacafarmer
Penny Pincher Member
130 Posts |
Posted - 06/10/2008 : 20:27:41
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| Someone once told me that in 1900 a $20 gold piece would buy you a very nice suite and in 2008 a $20 gold piece will still buy you a very nice suite. |
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redneck
1000+ Penny Miser Member
1273 Posts |
Posted - 06/10/2008 : 22:38:51
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| I think Bruce Williams has his head up his A_ _ or more likely up Wall Streets A_ _... |
Edited by - redneck on 06/10/2008 23:02:20 |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 06/16/2008 : 19:30:17
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| Buy silver and other PM's...you cant go wrong whether it's in silver bar/round form, 90% silver, ASE's or some other form. Get your hands on what you can! |
My hobby: collecting real money 1 copper cent or nickel at a time.
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fb101
Administrator
USA
2856 Posts |
Posted - 06/16/2008 : 21:27:53
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| I think silver/gold is good until the trade deficit turns permanently into a trade surplus. Somehow, I suspect that won't be in the next few weeks... |
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kavajava
Penny Collector Member
USA
490 Posts |
Posted - 06/18/2008 : 12:10:39
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Silver you physically hold is not someone else's liability, as stocks, bonds, even bank balances are.
It is a hedge for some, insurance for others, an investment to still others, and some just like holding it and looking at it.
I guess I fall into all of these categories. |
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Nickelless
Administrator
USA
5580 Posts |
Posted - 06/19/2008 : 05:18:30
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quote:
Originally posted by fb101
I think silver/gold is good until the trade deficit turns permanently into a trade surplus. Somehow, I suspect that won't be in the next few weeks...
Or like never going to be a surplus, in the case of nothing backing FRNs and the U.S. government's spending habits. I think people like those of us on here are the only fiscally sane people anywhere around at the moment. |
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 |
Edited by - Nickelless on 06/19/2008 05:25:02 |
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mooski
Penny Sorter Member
USA
61 Posts |
Posted - 06/30/2008 : 02:36:08
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Hi,
The last time I checked - you can't print silver or gold.
Nobody has a "printing press" that will make silver or gold, nor will anyone be dropping silver or gold from helicopters anytime soon.
But the current chairman of the Federal Reserve...
-M |
Sorting and hoarding in Seattle, WA |
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Nickelless
Administrator
USA
5580 Posts |
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Columnist advises against buying silver bars
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