Looking to invest in precious metals, need advice

[zHorns]

Congrats zHorn on your impeding loss of precious metals virginity. Sounds like you got some good advice and have a "solid" plan.

IMO, the .999 vs. .9999 is largely irrelevant for purposes of investment and/or commerce. It might make a difference for people who intend to melt down and use the metal industrially, but why pay a premium for a state mint issued coin if that's your goal?

Thanks, I wouldn't mind owning some Silver Mooses, but was pretty set on Silver Eagles.

[Pennsylvania]

If you're concerned about hyperinflation, I'd forego the silver and buy gold, even grams.

[Black Flag]

If you're concerned about hyperinflation, I'd forego the silver and buy gold, even grams.

Yep, but if you really are worried by high inflation, buy goods today and forgo the gold - in hyperinflation, you won't live long enough to spend the gold.

[zHorns]

If you're concerned about hyperinflation, I'd forego the silver and buy gold, even grams.

I'm not so much concerned about it, but more so thinking about all possibilities.

Many folks made the point that gold and silver is not a good hyperinflation plan, since you can't make micro/minor transactions with an ounce of gold and silver. Junk silver may be better, since you can trade much smaller metal contents, but it stills worries me who in their right mind would trade supplies for silver/gold, I would only trade for other supplies.

Even during a collapse, I believe it would take months, if not years for another widely used currency to emerge for exchange.

It would be all about just having enough food to survive. Ultimately, storage (food, water, ammo) is king for hyperinflation.

[Black Flag]

Many folks made the point that gold and silver is not a good hyperinflation plan, since you can't make micro/minor transactions with an ounce of gold and silver.

but it stills worries me who in their right mind would trade supplies for silver/gold, I would only trade for other supplies.

Exactly.
Those folks have not thought the problem out deep enough.

In hyperinflation there will be absolutely no one to trade with for anything - if you don't have it already, you ain't getting it for any (nearly any) price.

Food will run out in the cities in 3 days.
The guy across the street has 10 dozen eggs.
Do you honestly believe he will sell those eggs for your "stupid" gold coin? - you can't eat gold

You may have to give him all your gold coins for a couple of eggs for the deal to go.

In the Wiemar, people were trading handmade, incredibly expensive grand pianos to farmers for a basket of eggs - a farmer could pay off his mortgage - a mortgage that sat on his farm for 150 years or more with a single egg.

Do ya think your silver dime is going to rate????

[Black Flag]

Gold/silver

So, what is the purpose of this stuff then if hell breaks out?

It is there to give you a head start when hell's economic water recedes.

It is not there to get you through hell, it is there for you to have a small head start in rebuilding your life.

So, you need to have what you need to get through hell, then that gold will be useful.

Eventually, a new money will appear, and you can trade your gold to buy that money - you will be so far ahead of your friends, you will be seen to be "rich" - you will be able to restart the local economy by your saved capital of gold

[MRoCkEd]

Does anyone have an advice?

Owning some silver is fine, but I highly discourage just throwing all of your hopes into precious metals.

Here is my advice to start (in order until you run out of money)
- Keep at least six months of expenses in savings as an emergency fund.
- Max out a Roth IRA for 2011 (you have until tax time) and 2012 at $5,000 for each year. I suggest a targetted retirement fund from Vanguard.
- If your employer matches 401k contributions, contribute up to the Max. Beyond if you still have more left over.

[Bern]

^ As I tell peeps all the time, never invest any funds that you think you might need in the next few years. PMs for me are preservation of excess wealth.