Questions About Buying Gold Or Silver

[Mr KLC]

I see all of these commercials about these companies talking about the importance of investing in gold and silver. As I see these ads, some questions come up. If you know the answers, please chime in.

1. How do these companies get their hands on all of this gold and silver where they can do national ads?

2. They show pictures of gold and silver coins. Do they send these to you, or do you just trust that they are holding them for you. If it is not being sent to you, what's to say that they are just throwing you a line, and your money is going to nothing?

3. They talk about the importance of having these items in the possibility there would be a financial crash. If there is such a crash, who is going to be around to accept these metals in trade?

4. If owning these metals are so important, why aren't they stockpiling it themselves instead of trying to sell it off to us?

[unusialsusp5]

I see all of these commercials about these companies talking about the importance of investing in gold and silver. As I see these ads, some questions come up. If you know the answers, please chime in.

1. How do these companies get their hands on all of this gold and silver where they can do national ads?

2. They show pictures of gold and silver coins. Do they send these to you, or do you just trust that they are holding them for you. If it is not being sent to you, what's to say that they are just throwing you a line, and your money is going to nothing?

3. They talk about the importance of having these items in the possibility there would be a financial crash. If there is such a crash, who is going to be around to accept these metals in trade?

4. If owning these metals are so important, why aren't they stockpiling it themselves instead of trying to sell it off to us?

because they make around 25% profit on each sale. it is only worth something if people continue to buy and sell it. a currency crash wouldn't be good for gold and silver either. it's mostly certificates of ownership that they try to sell you instead of physical gold for which they charge even more to get it to you. if you worked at rosland capital and didn't meet your sales quota you'd be quickly replaced. they are charging you juice to buy something that you think is worth something but more than likely doesn't really exist. when you cash out your gold with them they charge you again.

[Snowball]

KLC what they do is keep it simple and easy for those who are new to pm investments
or need help, like setting up a pm IRA, or what types to buy, those who like to have a
one-on-one account or sales connection, storage help, etc. They make money from this,
although it's not a ripoff per se, they are not scams, the markup is within a respectable range
for most, of course you are paying commission and the cost of their advertizing. You get
the same markup for lots of other things. I used to own a lot of pms. I bought through the
real discount channels, direct.. from the mints and wholesalers, and from private dealers.
I don't recommend hoarding, or an over-allotment to pm's. Especially not to gold and silver.
Gold and silver are totally manipulated by the financial elite, as are all assets, especially now
that the banks and exchanges are electronic, they just program the prices to go wherever
they want, and barring any major world event, their control is total. If anyone tells you
"comex is out of silver", or any such tales, they don't know what they are talking about
because they don't understand the very nature of financial control and how complete it is.

We also need to start agreeing with those who understand that the time for pm currencies
is over. There is no need for us to stabilize our currencies with rare metals extracted from the
earth. It's environmentally damaging and exploits native populations. We're in the 21st century
now, we can stabilize economies of exchange without these elements. They will continue to have
certain uses in jewelry and industrial applications. There are some elements which are likely to
be good investments, precisely because they are not included in the financial systems. One example
of where to buy these is here, although they are highly speculative.

[Sam Odom]

buy bags pre 1964 US coins... 10c & 25c

[funnyb25]

My buddy use to do that successfully all the time. Let me ask. Will get back to thread

[5918mike]

My dad started doing this when he couldn't get affordable life insurance due to his diabetes. He used money to buy gold coin as his insurance policy investment and if you go through a reputable dealer than yes it's legit, they send you the coins and you save them, preferably in a safe deposit box or your own home safe. You can buy coins, bars, and rounds.

[SharpAngles]

I've been stacking silver and playing a little bit with the gold:silver ratio for the past few years. Some guys like coins some guys like bullion but the main thing is hold the metals yourself and don't buy anything from the commercials unless you don't mind paying a premium. Also, don't believe anyone telling you silver is ready to explode to 1000/oz. They've been selling that fantasy for years and it's not happening any time soon.

[CappinTerp]

Hey KLC, Do NOT buy these gold coins! The intrinsic value of them also includes the printing and distribution of them. You would be better off buying Gold Bullion......but then you have to worry about storing and insuring them. The best thing to do is to buy gold in the commodities market,either spot or futures. Sam is right about coins minted before 1964,but that just has to do with silver,all coins minted were 99.95 % made of silver...1/2 dollars,quarters, and dimes. Or to a lesser extent buy stock in Co. that mine the stuff. By far,your best bet is to go to the futures market and buy or sell gold(when you think the time is right) ......A lot of money can be made shorting these things!!!!!

[CappinTerp]

One more thing..............do not SELL puts or calls!!!! Yes,you will get some $ up front,your risk is much more exposed !!

[RoyBacon]

Hey KLC, Do NOT buy these gold coins! The intrinsic value of them also includes the printing and distribution of them. You would be better off buying Gold Bullion......but then you have to worry about storing and insuring them. The best thing to do is to buy gold in the commodities market,either spot or futures. Sam is right about coins minted before 1964,but that just has to do with silver,all coins minted were 99.95 % made of silver...1/2 dollars,quarters, and dimes. Or to a lesser extent buy stock in Co. that mine the stuff. By far,your best bet is to go to the futures market and buy or sell gold(when you think the time is right) ......A lot of money can be made shorting these things!!!!!

I partially disagree. Sure, mix in some bullion. But US minted coins have advantages. US coins are considered currency. You can put 100 $50 cold coins in your pocket and travel anywhere in the world without disclosing you are carrying more than $10k.(100 $50 coins is worth $130k)

US minted coins always carry a premium to bullion. Usually about $51-$55 per oz these days. Coins can also appreciate. I just bought a Morgan silver dollar for $44, nearly triple what the silver is worth. Sam had a good idea which is to buy silver coins pre 1964. They were 90% silver and can be bought close to the value of just their silver content.

[Goat Milk]

I partially disagree. Sure, mix in some bullion. But US minted coins have advantages. US coins are considered currency. You can put 100 $50 cold coins in your pocket and travel anywhere in the world without disclosing you are carrying more than $10k.(100 $50 coins is worth $130k)
US minted coins always carry a premium to bullion. Usually about $51-$55 per oz these days. Coins can also appreciate. I just bought a Morgan silver dollar for $44, nearly triple what the silver is worth. Sam had a good idea which is to buy silver coins pre 1964. They were 90% silver and can be bought close to the value of just their silver content.

You really want to be carrying 130k of valuables on you when traveling?

[RoyBacon]

One more thing..............do not SELL puts or calls!!!! Yes,you will get some $ up front,your risk is much more exposed !!

As long as I'm dissenting might as well disagree with this too.

If you own 100 oz of gold you basically have $125k doing nothing. Dead money. But wait, you can sell a $1,500 call, that basically says you will sell your gold for $1500 an oz to the option holder as long as he exercises his option by Jan of '18. He will pay you $10k in cash, now. The net result is your $125k earns 8% and your only downside is you have to part with your gold if it is higher than $1500. (admittedly if gold soars this strategy will produce a few dam its)

[RoyBacon]

You really want to be carrying 130k of valuables on you when traveling?

Heck no...but us pseudo conspiracy buffs think of 'what if the country tanks and we have to high tail it?'. What if currencies fail or the banking system breaks, a natural disaster or even a riot that turns the landscape into a near war zone, the trillions of debt turns to quintillions, a N. Korea atomic attack on NY or some other disaster.

[Snowball]

N. Korea atomic attack on NY.

impossible. The only chance an intercontinental ballistic missile has of ever
hitting the US is a full-scale launch of thousands by Russia. In any event,
there is no guarantee that gold and silver will be worth more than government
currency in exchange for goods and services in the event of war. Dollar value
is likely to rise during war, and equities fall.
The dollar is likely to be driven higher by Trump policies, including higher interest rates
which are very bad for pm's.

[Goat Milk]

Heck no...but us pseudo conspiracy buffs think of 'what if the country tanks and we have to high tail it?'. What if currencies fail or the banking system breaks, a natural disaster or even a riot that turns the landscape into a near war zone, the trillions of debt turns to quintillions, a N. Korea atomic attack on NY or some other disaster.

LOL

Not gonna happen

This is America not the Mid East

Days of depression are finished

Won't be any economy like that as long as we are alive

Guaranteed

U.S. dollar gonna get stronger and stronger every year starting now.

You can quote me on that.

[RoyBacon]

Certainly hope you guys are right.

The banking misstep of 2009 saw gold soar from around $750 to nearly $2000. The world has 40% more debt today than it did in 2009. The dollar may strengthen, mostly because every other country in the world is in an even deeper crap hole.

Gold may do nothing. A guy would be crazy to have more than 20-25% in gold, 15% is about right.

In 1960 gold was $25 an ounce. It now cost on average about $900 an ounce to mine. It's increased in value steadily for 7,000 years.

[Snowball]

Certainly hope you guys are right.

The banking misstep of 2009 saw gold soar from around $750 to nearly $2000. The world has 40% more debt today than it did in 2009. The dollar may strengthen, mostly because every other country in the world is in an even deeper crap hole.

Gold may do nothing. A guy would be crazy to have more than 20-25% in gold, 15% is about right.

In 1960 gold was $25 an ounce. It now cost on average about $900 an ounce to mine. It's increased in value steadily for 7,000 years.

That's right, Roy, but there is nothing unique about it, because everything else went up too.
It's just a commodity, the added risk with gold is that the Federal Reserve sees it as competition
they don't like, so they can short it whenever they want, keep it from ruining the rep of the dollar.
This is another reason why eventually bitcoin will be crushed. Central banks don't want the competition.
There is nothing as powerful as a central bank which makes moves to protect the value of its currency.
Things can get real ugly, real fast for commodities and counterfeit currencies.

[RoyBacon]

That's right, Roy, but there is nothing unique about it, because everything else went up too.
It's just a commodity, the added risk with gold is that the Federal Reserve sees it as competition
they don't like, so they can short it whenever they want, keep it from ruining the rep of the dollar.
This is another reason why eventually bitcoin will be crushed. Central banks don't want the competition.
There is nothing as powerful as a central bank which makes moves to protect the value of its currency.
Things can get real ugly, real fast for commodities and counterfeit currencies.

Except central banks can collapse too. Hard to compare gold to BTC(see gold has increased steadily for 7,000 years). However not that far fetched to see another financial problem. We already use .20 of every tax dollar to pay the interest on the $19 trillion dollar debt. What if rates went from 2% to 8%? Then it would take every tax dollar just to pay the interest. Think that might be a problem?

You can ignore the fact that there are many many potential trip wires out there or mix in some precious metal as a hedge. And hope you never need it.

[CappinTerp]

As long as I'm dissenting might as well disagree with this too.

If you own 100 oz of gold you basically have $125k doing nothing. Dead money. But wait, you can sell a $1,500 call, that basically says you will sell your gold for $1500 an oz to the option holder as long as he exercises his option by Jan of '18. He will pay you $10k in cash, now. The net result is your $125k earns 8% and your only downside is you have to part with your gold if it is higher than $1500. (admittedly if gold soars this strategy will produce a few dam its)

I understand what you are saying,but my main point is that when you buy a put or a call, you know what your downside is.( the total price which you payed) But in selling them...you are exposed to any major event,which could cause drastic change in the price......and then you get hammered !!


On this topic,for anyone new to this : Bear markets are much more powerful than Bull markets......For example,what it takes to go up in price in a bull market over a 10 month period,can all be wipe out in just 6 weeks in a
Bear Market!! ...........Hope all make money and happy hunting.

[hostile takeover]

Some guys I know listened to all the "experts" when gold was $1800+ and silver in the $40s and bought a bunch of coins.

I figure it will get back there some day, but if you listen to the commercials they will make you think it's going to happen this year.