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Old 05-25-2008, 03:27 AM
 
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I gave up on the dollar in 2004. I've been buying metals ever since and I'm quite happy with how they are doing.

Anyone else do the same thing?
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Old 05-25-2008, 06:44 AM
 
Location: Los Angeles Area
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Owning metals doesn't generate income, so I haven't touched them.
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Old 05-25-2008, 08:38 AM
 
Location: Raleigh, NC
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Quote:
Originally Posted by UB50 View Post
I gave up on the dollar in 2004. I've been buying metals ever since and I'm quite happy with how they are doing.

Anyone else do the same thing?
Gold is money, unlike these green paper things. Problem is that gold can only be hoarded and stored.

The perth mint is a good way to buy gold offshore to prevent Uncle Sam from possibly getting their grubby hands on it. Only a few brokers offer this certificate program.

Silver probably has higher volatility, but there's supposedly less available in the ground than gold, so the ratio could go from 20/1 to 10/1

Hard to find good high dividend paying gold mining companies, but in the 70s some of the junior miners reportedly rose 10,000%.

If Fannie/Freddie get bailed out with a printing press, gold is going to 5-10K easily. IMHO no two ways about it.
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Old 05-25-2008, 09:04 AM
 
Location: America
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They are printing like its no ones business right now. If I can find the info from the treasury I will post it here later. What do you think is driving up gas prices? They are blowing smoke up peoples bums by telling them its speculation (I chuckle inside) but its inflationary driven by the devaluing of the dollar. Not to say speculation doesn't play SOME role in this, but it is far less than most think.
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Old 05-25-2008, 09:28 AM
 
Location: Raleigh, NC
9,043 posts, read 12,038,022 times
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Quote:
Originally Posted by Wild Style View Post
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They are printing like its no ones business right now. If I can find the info from the treasury I will post it here later. What do you think is driving up gas prices? They are blowing smoke up peoples bums by telling them its speculation (I chuckle inside) but its inflationary driven by the devaluing of the dollar. Not to say speculation doesn't play SOME role in this, but it is far less than most think.
I agree.

I think the disparity between gold and oil now (they're supposed to be approx 10-1) is driven partially by the fact that gold isn't actually money (yet) even though it acts as a money store that doensn't lose it's value. Oil is readily consumed and enjoyed and thus is leading the inflationary charge. Gold is likely a laggard due to its lack of utility in the marketplace, IMHO. Gas run-up is probably more complicated because refineries and global demand is involved, but global demand is partially fueled by monetary inflation anyway. The more you print (to a point), the more money there is to artificially bid up prices and therefore demand of commodities.

Good luck getting M3 information .
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Old 05-25-2008, 11:53 AM
 
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I look at gold and silver from a slightly different perspective.
I own Bullion and stocks and am not concerned about dividends in this catagory.
If that is at the top of your list buy Newmont Minning, a Blue chip producing miner.

Here is how I look at my investments in this area.

1. I consider my core holdings as an "Insurance Policy".
This is for ... "if and when" the wheels come off the cart ... not strictly for gains or income. Once I have met what I believe is the required amount to insure my future safety, I no longer have to pay any additional premiums.
Unlike most insurance policies, there will always be a cash out value and the premiums paid are not totally lost. People pay for all kinds of insurance policies and many recieve nothing in return.

2. For monies invested in precious metals for income, I trade both stocks and bullion. Last year alone I had gains of 20% in bullion and 50% in stocks.
Wouldn't that be considered as income in a taxable acct. ??
I dont generally trade bullion as it is far more difficult and expensive to do, but it can be done. In the case of last year I put the proceeds back into stocks.

My trading accts. are all tax deferred IRA's or tax free Roth IRA accounts. That way I do not have to pay annual taxes on Gains and can buy and sell quickly without dealing with the 30 day wash rule.
Volatility creates many opportunities for traders, and if you are pro-active in managing your investments you are then presented with an excellent chance to reap some very nice benefits.

3. Precious metals have been in an uptrend since around 2000/2001 and that is what I am interested in for my core position, not the daily up's and downs. I'll deal with those in my stock portfolio.

Who knows what lies ahead for our County..... Currency devaluations, Terrorist attacks, Peak oil, Spiking oil prices, Rampant inflation, Foriegn investors quit funding our voracious out of control spending spree. Etc. Etc.

For long term bullion lovers, I like the Perth Mint idea. It's just a little harder to put in place rather then buying from a safe US provider/dealer. A Quality Gold ETF or no load low expense mutual fund is probably the easiest way for the average investor to be invested.
I do think most investors should allocate a portion of Gold and Silver to their portfolios in one form or another.

Silverfox

Last edited by silverfox; 05-25-2008 at 12:54 PM..
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Old 05-27-2008, 05:28 AM
 
Location: Cicero, NY
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About 30% of my portfolio is allocated to gold, the other are spread between stock and currency(forex)
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Old 05-27-2008, 02:56 PM
 
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Default precious metals

well.... from what I´ve been reading It's not just a store of purchasing power or protection against the falling dollar (and the euro, which is also falling against gold) but also a superb way of generating wealth. It can also be totally anonymous and private… beyond the grasp of central banks and governments.

You can contact me if you want to know more about this. For me, I think it is a great investment !
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