Why would anyone invest in stocks when they can invest in precious specie?

[bamacre]

I invest all of my savings in silver, and I ordered silver for my graduation present. I'll never waste money in the stock market.

Whoa, that's not very bright. IMHO, silver is very bubbly right now. Oh I suppose if you plan on keeping it for a very long time, you'd be ok, but there are many other things that will make you more money in the long run.

 

[bamacre]

The only good gold is Glenn Beck Gold® . . . it's teh shiny!

I never understood why people relate gold to Beck. Beck is nothing but a tool. I mean, when exactly did Beck start telling people to buy gold? 2009? :biggrin::biggrin:

 

[bamacre]

There is no "rat", people like OP have no idea what they are doing and buy into the first thing they can grab. People who don't understand investments don't understand that gold is being subjected to the same highly leveraged speculation as houses. This has a huge influence on the price.

That's not "entirely" true. Gold, rather most commodities, started their bull run in ~2000, when Greenspan and the rest of the central banks started running the printing presses like never before. And while housing prices are still in the shitter, commodities have continued their success. Now, that is not to say that precious metals aren't a little bubbly, because IMHO, they are (silver especially), as a lot things are right now. My suggestion is, don't misunderstand the commodity market, and while you may not like precious metals, folks aught to respect them.

 

[bamacre]

*Makes note* 420 troll, done...

He's a little young, and a little naive, but a troll he is not. Some here like to laugh at his threads, myself included, but he's had a few that sparked some decent discussions.

 

[CallMeJoe]

He's a little young, and a little naive, but a troll he is not. Some here like to laugh at his threads, myself included, but he's had a few that sparked some decent discussions.

I think the quality Anarchist threads have been despite his participation, not because of it.

 

[JEDIYoda]

wtf? I don't think I have ever paid anyone to "manage" my stocks. It's $10 per trade and that's it. It's just a transaction fee.

Are you Anarchist420`s father??

 

[bamacre]

I think the quality Anarchist threads have been despite his participation, not because of it.

:biggrin: Well, someone has to light the fire.

 

[CallMeJoe]

:biggrin: Well, someone has to light the fire.

Is he lighting a fire or just blowing smoke?

 

[Kirby]

The only commodity I'd invest in is pork bellies.

BACON, BABY!! YEAAAHHH!!!!! :awe:

 

[LegendKiller]

That's not "entirely" true. Gold, rather most commodities, started their bull run in ~2000, when Greenspan and the rest of the central banks started running the printing presses like never before. And while housing prices are still in the shitter, commodities have continued their success. Now, that is not to say that precious metals aren't a little bubbly, because IMHO, they are (silver especially), as a lot things are right now. My suggestion is, don't misunderstand the commodity market, and while you may not like precious metals, folks aught to respect them.

I don't agree that the printing is a good correlation to the increase in commodities. I would far more agree that the leveraged products (through derivatives that are not monetary linked) created an enticing counter-cyclical investing product to .bombs and now to houses.

 

[werepossum]

You are partial to cream-filled assets?

LMAO!

 

[werepossum]

I never understood why people relate gold to Beck. Beck is nothing but a tool. I mean, when exactly did Beck start telling people to buy gold? 2009? :biggrin::biggrin:

As far as I can remember, Beck has always told people to buy gold. He also tells people to keep a year's supply of food; it's a Mormon thing, I think, always preparing in case there's a catastrophe. Gold is great for people who are more concerned with the return OF their money than the return ON their money (per Will Rogers) but not usually a good investment per se. Gold (and silver, and platinum) are not so bad if you really understand the market and are mostly trying to maintain money, but most people who invest in metals do not understand the market and consequently lose money to people who tell them to invest in gold.

 

[bamacre]

I don't agree that the printing is a good correlation to the increase in commodities. I would far more agree that the leveraged products (through derivatives that are not monetary linked) created an enticing counter-cyclical investing product to .bombs and now to houses.

I can't disagree with that, but I think we're both correct, we're not far off at least.

 

[silverpig]

I never understood why people relate gold to Beck. Beck is nothing but a tool. I mean, when exactly did Beck start telling people to buy gold? 2009? :biggrin::biggrin:

Google the Beck gold scam. There's a story.

 

[bamacre]

As far as I can remember, Beck has always told people to buy gold.

Really? I guess I just never really listened to Beck.

Google the Beck gold scam. There's a story.

Yeah, Goldline. Heard all about it. It's amazing to me that people don't understand the difference between purchasing gold/silver and buying numismatic coins. I actually own a few myself, but only because I found them at bullion prices.

 

[Anarchist420]

Whoa, that's not very bright. IMHO, silver is very bubbly right now. Oh I suppose if you plan on keeping it for a very long time, you'd be ok, but there are many other things that will make you more money in the long run.

I plan on keeping it for a long time (at least 2 decades for most of it and if I'm sure I made a lot off of it), unless hyperinflation occurs before then or if competing currencies become legal tender before then. Hyperinflation could very well happen and precious metals protect from that.

I realize that silver may eventually go down, but that will only be for a short while--I don't think it stays down for a long time.

One probably shouldn't invest all of their money in precious metals, but they should invest a good percentage of their money in it.

 

[ConstipatedVigilante]

Anarchist, this is the worst possible time to invest money in precious metals. Their price is heavily inflated right now because smarter people bought a lot more several years ago. Those people are going to get out of the market and your metal is going to be worth half of what it is today.

 

[werepossum]

Really? I guess I just never really listened to Beck.

Yeah, Goldline. Heard all about it. It's amazing to me that people don't understand the difference between purchasing gold/silver and buying numismatic coins. I actually own a few myself, but only because I found them at bullion prices.

I listened to him several years ago, although I can't say I'm a regular listener or viewer. His research is excellent, but everything he sees points to the coming apocalypse. I certainly believe that a societal breakdown is possible, but I don't believe it's particularly likely, and a year's worth of food and gold would just be setting oneself up as a target unless you are geographically isolated and well armed. Since I don't expect a societal breakdown and don't choose to live geographically isolated, I see no reason to horde gold, so my tolerance of his well-meaning advice is fairly limited. Besides, there have always been doomsayers, and always will.

Regarding Goldline, they are supposedly the worst at trying to shift you from bulk gold to high profit coins, which would lose any special value if in fact there is a total societal breakdown and are almost universally considered to be a poor investment when gold is high. If someone is trying that hard to do something against your interests, why deal with them at all?

 

[Thump553]

I just don't understand this gold hysteria of the last decade or so. It makes no sense when inflation is so low. The only thing it ties into is the rise of Faux News/Glen Beck et al. I do recall a news story that a hedge fund has been driving up the price of gold futures and is way over leveraged, which is supposed to be why the gold price rise basically stopped in Jan and started coming down.

Back in the late seventies inflation was insane-I was earning 18% on one year bank CDs. Lots of "investors" got absolutely slaughtered when the gold bubble burst. It will burst again, the only question is when.

 

[bamacre]

Back in the late seventies inflation was insane-I was earning 18% on one year bank CDs. Lots of "investors" got absolutely slaughtered when the gold bubble burst. It will burst again, the only question is when.

Think about those 1st two statements.

 

[Throckmorton]

Considering there are a lot of precious metals that are required for solar panels and batteries and electronics, doesn't it make sense to invest in those? There is a finite supply so value has to increase...

 

[ShawnD1]

Considering there are a lot of precious metals that are required for solar panels and batteries and electronics, doesn't it make sense to invest in those? There is a finite supply so value has to increase...

We've been saying that about iron and aluminum for hundreds of years yet it never seems to run out and it's still dirt cheap.

 

[silverpig]

Considering there are a lot of precious metals that are required for solar panels and batteries and electronics, doesn't it make sense to invest in those? There is a finite supply so value has to increase...

So invest in mining companies.

 

[matt0611]

Considering there are a lot of precious metals that are required for solar panels and batteries and electronics, doesn't it make sense to invest in those? There is a finite supply so value has to increase...

Silver is used in a lot of electronics I think.

 

[Thump553]

Considering there are a lot of precious metals that are required for solar panels and batteries and electronics, doesn't it make sense to invest in those? There is a finite supply so value has to increase...

Yes (and the same is true for gold) BUT (and its a huge but) industrial demand is only part of the demand for gold and/or silver. The current price runup is not due to increased industrial demand but rather to "investment" demand. So the natural market for gold and silver is presently vasted overstated. When (not if, but when) the bubble bursts the "investment" demand will not only disappear, it will turn into additional supply as "investors" dump their gold and silver in a declining market. The price will drop dramatically but gold and silver will never be worthless because of the industrial demand.