Should I buy Silver and Gold?

[peanuts]

And that kind of scares me. If they start to raise rates, will gold go way down? If they do raise rates and the gov't defaults on their debt because money won't be as cheap, will that make gold go even higher? People have been talking about a gold and silver bubble, and in the past, whenever bubbles are mentioned, they eventually happen and pop. If/When will that happen? I've been wanting to buy some silver, but didn't have the money. Now that I have some money, do I really want to buy? It's gone up 25% since I started saving up for some.

Raising rates is far far far away. The Ben Bernanke has said repeatedly "an extended period of time" when referring to the historically low interest rates. If it does come to the point where they need to raise rates it will be because their hand is forced due to inflation. But, at that point gold and silver should be much higher than now.

Everything is a "bubble" No price action is a perfect straight line. Gold and Silver bubble will be a reflection of the FED's actions to devalue our dollar. That is the real bubble... the money supply. When the spigots gets turned off, then gold and silver price highs are in sight, if not already reached. We are nowhere near that point. More money will be printed, QE cubed is right around the corner when nobody steps up to the plate to buy our bonds in June when QE2 burns out. That's why Bill Gross, the manager of the largest bond fund on Earth has gone from 12% of the portfolio in US 30yr treasury bonds in January to 0% in Feb, to -3% (short) in March!!! Here's the article:

http://finance.yahoo.com/news/PIMCO-bets-against-US-rb-3790514655.html?x=0

The best thing about silver is that you can buy it in increments of dimes, quarters and halves, currently about $3 for a dime, $7.50 for a quarter and $15 for half dollars. These all need to be dated 1964 or older, and are 90% silver. When you save up lots of money, then you can buy 1 oz rounds of .999 fine silver that are about $42 each right now, and get discounts when you buy rolls of them.

If you want to invest then you want to dollar cost average into your position. If you buy now, then buying for less in the future is a gift. Put a little bit away each time you get paid and then make a buy each month.

$50 silver seems to have a target on it.

[em26jamie]

Gold over $1450 an oz, and silver... holy guacamole! Over $40 an oz.

Copper not looking as strong. Only $4.26 per pound.

Few investments have been better over the past few months than gold and silver, especially silver.

And that kind of scares me. If they start to raise rates, will gold go way down? If they do raise rates and the gov't defaults on their debt because money won't be as cheap, will that make gold go even higher? People have been talking about a gold and silver bubble, and in the past, whenever bubbles are mentioned, they eventually happen and pop. If/When will that happen? I've been wanting to buy some silver, but didn't have the money. Now that I have some money, do I really want to buy? It's gone up 25% since I started saving up for some.

[peanuts]

Gold over $1450 an oz, and silver... holy guacamole! Over $40 an oz.

Copper not looking as strong. Only $4.26 per pound.

Few investments have been better over the past few months than gold and silver, especially silver.

[billyjoe]

Gold around $1415 and Silver, get this... $30.60!!!

But don't forget little old copper, either... trading at a whopping $4.28 per pound

Of course, those are all priced in USD. The printing presses must have been running all night.

Which would you rather have: a fist full of Benjamins or a fist full of gold?

Peanuts,
Silver is over 38.50 now. I'd like to have 10K stashed away in case of attack etc. but that would be $500 in coin face value if I can buy at 20X face value. Have been buying along the way . Got a roll of silver halfs for 8X face a couple years ago. Bought a bunch at 20X. I look at it as a chunk of my IRA.

-----------billy

[peanuts]

There are lots of places to which you can sell your gold... seems like every neighborhood and every hotel now has a Cash For Gold operation. The Jewelry stores are buying more junk jewelry than they are selling of the good stuff.

As far as where you can go to buy gold and silver... I would suggest that you go to your local coin shop and take cash with you... cash only. Eschew credit cards, keep your checks at home, did I mention to take CASH? Tell the shop keeper that you want to buy bullion and none of that marked up collector gold and silver. Don't get oversold, be smart and shrewd.

BUY AT THE LOWEST PREMIUM OVER SPOT PRICE THAT YOU CAN GET!!!!

Need spot price, then go to this link: http://www.kitco.com/market/

Store it in a safe place and keep your mouth shut about it, you braggart

[em26jamie]

I've bought from Lear Capital. I buy bullion from them as their mark up from the spot price is a lot less than places like Goldline. They will try to sell you numismatic coins like a St Gaudens with the line that they can't be confiscated like bullion, but the reason they're rare is because they were confiscated in 1930's. It's harder to determine the market price of numismatic coins, but bullion is easy.

Or you could try your luck on Skoreit.com.

[edward]

Personally, I'm quite heavily invested in gold and silver junior mines; producing mines, not holes in the ground. Although there are definitely ups and downs, the return has been fantastic over the last year and I expect it to be favorable for some time to come. There is a lot of interest in the ETF's, some of whom hold physical gold and silver. You can also buy buillion yourself if you are so inclined. One source for silver that you could look at is Great Panther Resources, www.greatpanther.com. Good luck!

[steelman]

Gold and Silver

Would anyone know what the best way to buy and invest in gold and sliver would be, to accumulate it for currency use down the road? China is getting rid of US dollars. I think it would be good to have some gold and silver in our pockets in a couple of years.

[peanuts]

Gold around $1415 and Silver, get this... $30.60!!!

But don't forget little old copper, either... trading at a whopping $4.28 per pound

Of course, those are all priced in USD. The printing presses must have been running all night.

Which would you rather have: a fist full of Benjamins or a fist full of gold?

[steelman]

NIce job Peanuts! I picked up some SVM Dec $12.50 calls on Friday

[peanuts]

Gold over $1400, silver over $27.50 today

I called the bottom in SLV at $8.50

I am HUGE

[riverbabe]

Peanuts,
I shoulda bought a bag of junk silver from these guys when you first started the thread.

http://www.cmi-gold-silver.com/90circulated.html

------------billy

I am awash in gold and silver jewelry. Gonna have to up the insurance if this keeps up.

[billyjoe]

Peanuts,
I shoulda bought a bag of junk silver from these guys when you first started the thread.

http://www.cmi-gold-silver.com/90circulated.html

------------billy

[peanuts]

i cannot believe how gold stocks have under performed the metal... atleast mine.. GG

I finally got it

The miners have been lagging in some respects, but they have to catch up eventually. Average consensus seems to say that they are able to extract for about $550 an ounce. If they are unhedged, then their bottom lines are tied directly to the price of gold. The problem is that many have been hedged in the past and are just now closing these hedges in order to realize the potential bigger profits.

I think that now is a great time to be buying the miners as their profits from full price exposure are not yet recorded on the books. But once the first report of these profits hits the wire, then miners will jump higher, and VERY fast. It will be a big jump higher, and will sustain itself over time.

[peanuts]

... and we already know the history of canada suppling goldbugs with fake gold.

Oh, so you mean that there is even less gold than what is actually reported? Seems pretty bullish to me.

...do you want to live in a world where all currency and debts are backed by gold? what should we do to the people without gold? should the farmers rise up and say,, if you own gold we will withold your food? or if somebody says,, buy all the gold you like, when the time comes,, i will simply come to your home and clock you and simply take your gold.

should your employer only pay you in gold. and what if the grocer decides you can only buy with gold,, how about if your cellphone co wants payment in gold? are we talking about a wonderful cured world? now,, seems to me that isnt a better world,, its a worse world.- but do what you like,,

gold bugs got nervous when they feered deflation was on the table and gold would no longer be needed,,,, now you gotta worry about a raise in rates.. soon another 'theme' will pop up and goldbugs will have to put that fire out..

i suggest goldbugs eat well and get some rest,, for this and the entire bubble is built on the gold bubble.

how many people have lived well without debt and without gold.----plenty.

The best time for America was pre central bank (FED) and when we were on a gold standard. These dates were 1913 and 1933 (or 1971 depending on what you consider to be USD=Gold) These were times of booms and busts, innovation, wealth creation, and expansion. The USD was firmly tied to a bi-metal currency of gold and silver. Gold lasted until 1933, silver until 1964. And here's a chart of inflation for you:



In 1913, 1 ounce of gold was equivalent to $20 USD. Today, that same 1 ounce of gold is equivalent to $1300 USD. Look at that chart again. Would you rather have held gold or USD?

Tag, it's quite obvious that you haven't got a clue when it comes to understanding gold. If you want to actually learn something, then post some real questions. As I've stated, and consistently proven, I've been doing considerable investigation to the bull market in commodities. You have much to learn.

Also, consider that the chart above only goes to 2006. In the past 2 years, we have increased the US debt to GDP ratio to WWII levels. Here, check it out:



If you really want to learn something about where this is all heading, then do your own research as to the real fundamental reasons why the Roman empire fell.

Owning gold and silver is for protection against the very things which I have shown above in chart form. Eventually, inflation and GDP:debt are going to make it impossible for anyone holding USD to maintain wealth. Gold and Silver will always be money. The greatest book ever written will teach you so much more than what I can accomplish in this simple post.