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View Full Version : GOLD AND SILVER...then what?




InPaulWeTrust
08-19-2008, 06:44 AM
I have been reading and learning now for a long period of time about the current flawed monetary system our current administration and the administrations of years past (Woodrow Wilson-current) has handled the economy by handing over all the wealth of the nation to the hands of a few elite bankers situated at the top of Mt. Fed-nai in D.C.

After several weeks and a few months of contemplating I have decided to bite the bullet to go ahead and buy gold and silver, and I think if I hold out longer I will incur the wrath of massive debasement of our current fiat FRNs.

Since making the commitment to purchase and get into gold, as there are for certain more experienced traders here than myself, what is the end value or return in the long run? I know no one can foretell the future except with the certainty that our current system will either collapse or hyperinflate before collapse at a given time in the either long term future or short term future.

Is this only to be used as a safety net? When does one get rid of commodities such as these for a more liquid networth? Wait until this entire mess clears up? I am a college student with limited funds, but I'd rather be on the safe side so I can have a safe future for myself and maybe my future family. What is the concensus?:confused:

Dr.3D
08-19-2008, 06:52 AM
I think you should think of gold and silver as holding their value rather than investments.
You have gold and silver just in case. If the dollar crashes, you will still have your gold and silver and it will be worth the same as it was in the past but the number of dollars it will purchase will be much greater. If the dollar deflates, the gold and silver will still be worth what it was in the past, but could be traded for less dollars.

Gold and silver are your backup in the event the dollar becomes worthless. They are like a safety net. You have them and hope you never have to use them.

rpfan2008
08-19-2008, 06:59 AM
Gold, Silver and LAND, they hardly go down. But since you are a "student with limited funds" you may not be able to consider the 3rd right now, I guess.

Paul.Bearer.of.Injustice
08-19-2008, 08:08 AM
Unless you have over 10K liquid, it's probably not even worth it.
No need to play safe when you have hardly anything to lose.

sirellyn
08-19-2008, 08:15 AM
Before 1913 people used to pay up to 50% of the cost of their land up front. The houses were usually fully purchased in 6-10 years.

Anything that looks like a "good buy" is next. It could be a commodity. It could be more energy stock. I personally want to get a good passive income going with foreign dividends. The point is though when you have money saved up you will be able to act on the good deals because you will have the money to do so. Just diversify, and don't blow all the money in one place.

InPaulWeTrust
08-20-2008, 08:03 AM
Thanks for all the info guys, I guess I'm going to hold out on buying any silver or gold then, since as it was said, if I don't have much to lose, what difference does it make...:D

I'm invested in foreign markets, 60% of my 401k is in emerging markets that pay big dividends...I also invest on the side on some blue chip overseas stocks. Thanks again guys.

voytechs
08-20-2008, 08:14 AM
Thanks for all the info guys, I guess I'm going to hold out on buying any silver or gold then, since as it was said, if I don't have much to lose, what difference does it make...:D

I'm invested in foreign markets, 60% of my 401k is in emerging markets that pay big dividends...I also invest on the side on some blue chip overseas stocks. Thanks again guys.

Consider this, even with your limited funds.

I heard 3 different estimates on the ultimate rise of Silver. $50/oz, $150/oz and even up to $500/oz (mentioned by Peter Schiff himself). $50/oz is very realistic, $150/oz I think is also realistic. The $500/oz I would say only if the absolute worst predictions come true.

That is how I gauge things.

InPaulWeTrust
08-20-2008, 08:21 AM
Consider this, even with your limited funds.

I heard 3 different estimates on the ultimate rise of Silver. $50/oz, $150/oz and even up to $500/oz (mentioned by Peter Schiff himself). $50/oz is very realistic, $150/oz I think is also realistic. The $500/oz I would say only if the absolute worst predictions come true.

That is how I gauge things.

In that case I should buy gold too, did he not predict $5,000/oz too?? Or is that under the worst possible climate also? I need some liquidity, if I invest about $1,000 in silver I'll still have plenty of liquidity left over, but is this a sound investment? Or should I also invest in Gold? Gold is just a tad too expensive at approx $820/oz.

voytechs
08-20-2008, 08:26 AM
In that case I should buy gold too, did he not predict $5,000/oz too?? Or is that under the worst possible climate also?

$2000 by year end or early part of 2009 and $5000 within 4 years. I have a YouTube link of this somewhere.



I need some liquidity, if I invest about $1,000 in silver I'll still have plenty of liquidity left over, but is this a sound investment? Or should I also invest in Gold? Gold is just a tad too expensive at approx $820/oz.

Let me put it this way. I bought gold at $860-$950 price range and silver at $15 - $18 per oz. And I consider myself lucky to have gotten it when I did.

Johnnybags
08-20-2008, 08:32 AM
In that case I should buy gold too, did he not predict $5,000/oz too?? Or is that under the worst possible climate also? I need some liquidity, if I invest about $1,000 in silver I'll still have plenty of liquidity left over, but is this a sound investment? Or should I also invest in Gold? Gold is just a tad too expensive at approx $820/oz.

Buy some 2008 uncirculated nickels at the bank, exchange your FRN's for 10 boxes of new nickels($100). They have 3 advantages.

1)2008 is more than likely the last year the nickels is 75/25 copper/nickel ratio so the last year has collectibility.
2) If inflation soars, your coins are going to be worth more simply because of the metal content, although illegal to melt it does not matter.
3) They are always worth what you paid nominally

As it is now they are priced on Ebay at a 50 to 60 percent premium all day long, you are already ahead if your bank is gracious enough to find some for you. Good luck

Mahkato
08-20-2008, 08:33 AM
Don't "bank" on silver and gold going up xxx% in a short time. Sure, they could, but they could also go down xx% quite rapidly too. Get some PMs, but don't completely raid your emergency fund to buy them. You can sell PMs if you run out of cash, but what if the market price for the PMs is way down when you need cash? For example, if you bought $1000 worth of silver in March, and desperately needed cash right now, you might have to take a loss of $250 or more.

pacelli
08-20-2008, 08:48 AM
Thanks for all the info guys, I guess I'm going to hold out on buying any silver or gold then, since as it was said, if I don't have much to lose, what difference does it make...:D

I'm invested in foreign markets, 60% of my 401k is in emerging markets that pay big dividends...I also invest on the side on some blue chip overseas stocks. Thanks again guys.

I'd encourage you to also look into stocking tangible goods such as food, water, etc. in the event that we encounter food shortages. I understand that you are only interested in the economics, however in the event that our dollar crashes or we expand our interventionism, we will be dealing with rationing as we did in WWII. It will be more difficult to buy things from the store when all food and gasoline is rationed, and as some recent events demonstrate, rationing causes shortages. I'd think of long-term storage of basic needs as a long-term investment.

jack555
08-20-2008, 12:13 PM
Hey, I reccomend silver eagles from bulliondirect.com if you are looking for a place to buy silver. That or up to 1.00 over spot for nice generic 1 ounce .999 silver rounds locally or 2.00 over spot for eagle locally (maybye 2.50 since spot is so low).

muh_roads
08-20-2008, 12:53 PM
$2000 by year end or early part of 2009 and $5000 within 4 years. I have a YouTube link of this somewhere.

Foreign central bank intervention is preventing this from happening. It is more likely $1200 by March 2009 & $1600 by the end of 2010.

The inflation and decline of the US will be a long and slow process for the next 40-50 years as Jim Rogers said. Central bankers around the world won't let hyperinflation hit us all in one fall swoop. We are far more important to the rest of the world economies than Zimbabwe.

Fear mongering hyper-inflation won't happen.

InPaulWeTrust
08-20-2008, 01:29 PM
Foreign central bank intervention is preventing this from happening. It is more likely $1200 by March 2009 & $1600 by the end of 2010.

The inflation and decline of the US will be a long and slow process for the next 40-50 years as Jim Rogers said. Central bankers around the world won't let hyperinflation hit us all in one fall swoop. We are far more important to the rest of the world economies than Zimbabwe.

Fear mongering hyper-inflation won't happen.

So Jim Rogers is predicting a few more periods of artificial booms and busts before the blinding drape falls down and exposes the truth worth of the current monetary and economic policy?? There can be many in a 40-50 year period based on cyclical analysis.

InPaulWeTrust
08-20-2008, 01:32 PM
I'd encourage you to also look into stocking tangible goods such as food, water, etc. in the event that we encounter food shortages. I understand that you are only interested in the economics, however in the event that our dollar crashes or we expand our interventionism, we will be dealing with rationing as we did in WWII. It will be more difficult to buy things from the store when all food and gasoline is rationed, and as some recent events demonstrate, rationing causes shortages. I'd think of long-term storage of basic needs as a long-term investment.

Thanks for the advice but I don't have room for such storage, or money for that at the moment. I think that before something like that occurs there will have to be something extremely major happen around the world and the US. I feel as if yes there are a lot of bad things happening and I am not turning a blind eye on it, but with bad comes good too, so where chaos occurs, sometimes opportunities and better things arise.

Maybe someone will step up and realize(Ron Paul and many others have) what is exactly going on (knowing the chances of that happening are slim to none) and at least help slow down the mess of debt we are in.

muh_roads
08-20-2008, 02:28 PM
So Jim Rogers is predicting a few more periods of artificial booms and busts before the blinding drape falls down and exposes the truth worth of the current monetary and economic policy?? There can be many in a 40-50 year period based on cyclical analysis.

Yes there will be many. Keep buying on the dips. But only buy with money you don't need. Don't look to get rich quick on a month to month or even a quarter to quarter basis. You will still probably do far better than any savings account or CD interest a bank can offer as time goes on.

danberkeley
08-20-2008, 02:32 PM
Foreign central bank intervention is preventing this from happening. It is more likely $1200 by March 2009 & $1600 by the end of 2010.

The inflation and decline of the US will be a long and slow process for the next 40-50 years as Jim Rogers said. Central bankers around the world won't let hyperinflation hit us all in one fall swoop. We are far more important to the rest of the world economies than Zimbabwe.

Fear mongering hyper-inflation won't happen.

That would mean that we will be going down the hole for the 40 to 50 years. THAT WOULD MEAN that our economy will take 40 to 50 years before it starts to recover! How is this better than letting our economy collapse NOW and letting it recover in 5 to years? This whole "soft landing" approach is terrible in the long run.

muh_roads
08-20-2008, 02:42 PM
That would mean that we will be going down the hole for the 40 to 50 years. THAT WOULD MEAN that our economy will take 40 to 50 years before it starts to recover! How is this better than letting our economy collapse NOW and letting it recover in 5 to years? This whole "soft landing" approach is terrible in the long run.

It just means we will all be poor for a very long time...lol Nobody is going to be a zillionaire overnight...the power elite don't want that shift of power to happen too quickly. Those who get out of the dollar will slowly do better over time than those who don't. But we are all going to hurt.

So long as fresh currency keeps getting pumped into the system and inflation among other countries continue to make our own dollar falsely appear stronger, it will be enough for the media to spin and say things are fine as unemployment hits people one by one.

After the credit card bail outs get here, then the retail bail outs come up next. Then comes an all new FDR-like proposal..."The New Deal 2" if you will...which comes after the retail bail out don't work. Bubble-after-bubble, we will have just enough to survive and those who produce will have just a little more.