Ok I'm Confused About Gold/Silver - Help!

[Nicketas]

,.,.

[weatherbill]

Gold and silver is a hedge agaisnt the falling value of the dollar.
you can buy gold and silver online from reputable companies such as kitco.com or apmex.com

with kitco, you can also open up an e-gold account for trading. That's for experienced traders though.

Say last month, you invested in 1 oz gold at $800 per oz and sold today at $890 on ebay, you would have made $90.
The value of the dollar goes down when there is instability. Instability shows up in the price of gold going up with different signs, such as war, or coming war or the federal reserve increasing the money supply to help failing banks, which is what is happening now.
When the fed increases the money supply above the production of the american people, it makes the dollars you already have, worth less, so buying Gold and silver keeps the dollars you convert at the time, their value.
If you buy gold at a high price, it may come down and then if you are not seeing the big picture at this time, you could be tempted to sell for a loss, thinking the price will continue to go down, but if you know the signs and economics, you can trade gold and make money, but that's tricky, so the best for people is to simple use it as a store value becasue the dollar is on a long downward trend.
Say a year from now, your gold is worth $1200 per oz. Well if you bought at $800 per oz, and you wanted a certain lap top that was worth $1000, you could cash that gold piece in with $200 profit and a new laptop.
On a bigger scale, say the economy went into a full fledged recession, gold would probably shoot up to $1500+ per oz. The price of gas could come down, from the economy slowing and supply increasing, therefore, you would make some very good money and could use that gold, once resold on ebay, to buy gas for the whole year, insread of that origional $800 only gettign you gas for 7 months....... so there isa conversion factor involved with gold as well and as it gains value, you can cash it in to get more of the things you want.....though some products would become more expensive as the dollar depreciates, your gold appreciating would keep pace with the prices going up.

[Cleaner44]

The simple answer is to own and store some of your money in silver and/or gold. Convert it to cash as needed for spending. Why hold cash that is losing value when gold and silver are gaining value.

[Kingfisher]

The simple answer is to own and store some of your money in silver and/or gold. Convert it to cash as needed for spending. Why hold cash that is losing value when gold and silver are gaining value.

Well put! Check out.........../www.coloradogold.com/

[FreedomFirst]

Well, you COULD spend pre-1965 dimes and quarters but no one would take them for more than face (except knowledgeable numismatists).

I suggest, if you haven't got the money for gold at the moment (like me), go to your local coin dealers and ask for junk silver. Pretty much it's old silver dimes, quarters, half dollars, and dollars that are too worn or damaged to be sold for numismatic value. Same as buying gold, but you pay $12/oz vs $890.

I'm also currently hoarding pre-1982 cents for their copper content. It's not much, but it's something I could profit from in the future when melting down cents becomes legal.

[diesirae]

The simple answer is to own and store some of your money in silver and/or gold. Convert it to cash as needed for spending. Why hold cash that is losing value when gold and silver are gaining value.
If this is your only rationale, then there are better options. Gold is a very conservative hedge, and one which (if you buy right now) might end up being a bad investment over the long term.


Well, you COULD spend pre-1965 dimes and quarters but no one would take them for more than face (except knowledgeable numismatists).

I suggest, if you haven't got the money for gold at the moment (like me), go to your local coin dealers and ask for junk silver. Pretty much it's old silver dimes, quarters, half dollars, and dollars that are too worn or damaged to be sold for numismatic value. Same as buying gold, but you pay $12/oz vs $890.

I'm also currently hoarding pre-1982 cents for their copper content. It's not much, but it's something I could profit from in the future when melting down cents becomes legal.

You'd need a lot of cents to make any real cash doing that...

[FreedomFirst]

^^^ If I keep throwing them into pickle jars for 10+ years, it'll amount to something...

[Dave Pedersen]

gold and silver are money. always have been always will be.

paper is paper. always has been always will be.

[Nicketas]

,.,.,

[homah]

I'm also currently hoarding pre-1982 cents for their copper content. It's not much, but it's something I could profit from in the future when melting down cents becomes legal.

Apparently you can do this with nickels as well and it's even easier than pennies because you don't have to inspect each one. Nickels have been made exactly the same way since 1946. According to coinflation.com, a nickel presently has a melt value of 6.22 cents.

[diesirae]

gold and silver are money. always have been always will be.

paper is paper. always has been always will be.

In economics, they are both money :)


So in essence, even if it costs more than the current dollar, it should be seen as a solid-value investment that grows as the dollar market shrinks?

Also, can anyone speak about storing gold in your own home vs. an external gold bank/company?

Could I do both?

Anything that is not denominated in USD$ is not affected by inflation directly. That doesn't mean they are solid investments.

Don't store gold in your home; think about storing cash in your home, and act appropriately.

[FreedomFirst]

Apparently you can do this with nickels as well and it's even easier than pennies because you don't have to inspect each one. Nickels have been made exactly the same way since 1946. According to coinflation.com, a nickel presently has a melt value of 6.22 cents.

Thanks! It will only be one or two here and there at first but again, after 10+ years...

The irony in all this is that I found a nice silver dime in the register at work this evening :D

[Vancouverite90210]

LIST OF ALMOST ALL COIN AND BULLION DEALERS EN LOS ESTADOS UNIDOS (http://www.pcgs.com/dealer/displaybyspecialty.chtml?uid=313&specialtyid=2&specialty=Gold%20Coins)

THE NUMBER ONE SITE FOR EVERYTHING GOLD, SILVER, BASE METALS YOU NAME IT IT'S HERE (http://www.kitco.com/)

JIM SINCLAIRS SITE...DAILY COMMENTARY ON GOLD.....EVERYONE READS THIS SITE (http://www.jsmineset.com/)

http://files.meetup.com/512809/ron_paul_gold_coin.jpg