“During the entire time I held that gold and silver I NEVER had a year’s supply of food. Today I have a lot of food and a lot of other preps but no gold and silver. Ask me if I believe I am better prepared today or when I had 150 pounds of precious metal in safe deposit boxes!!! Now, I believe in PM's and if things get really bad I am willing to trade some food for junk silver, silver rounds and gold. I am not willing to buy another 150 lbs of PMs and wait another 22 years to get my money back. At some point in the future things will get better (I hope! They could get so bad we are all dead). But if things get better it is likely all of you who invested in PMs will get the opportunity I had and that is to hold your PMs for years and years without any hope of ever getting all your money back.”
UrbanMan replies: Okay “Mr. Anonymous I don’t believe in PM’s”, your point is taken and certainly valid. My plan is to have PM’s pre-need, meaning I am holding mostly Silver, junk and bullion, in case the dollar collapses and I need to buy something when fiat currency is not accepted.
I am not holding such a vast amount as to put a burden on me if I have to execute an emergency Bug Out.
At some point we preppers prioritize our procurement and readiness, however I am comfortable with the amount and types of food I have put away; the type of firearms and amounts of ammunition I own; and the general other preps I have undertaken.
I just think we are looking at PM’s from different perspectives: You - as a valid or invalid investment; and me - as a small part, but a necessary component of an overall SHTF insurance plan. I hope this is all for nothing,...I hope to pass my silver bullion, silver coins I have compiled for silver melt value and the tiny amount of gold I have onto my family decades from now.
I do believe in PMs. I do not intend to "purchase" any in the foreseeable future. My reasons are very simple. I am no longer young enough to wait if the value of gold or silver drops. For someone much younger then me it isn't the worst idea I've heard of. But for me I think there are better ideas. My choice is storable food and a handful of other necessities. My "rant" on PMs is nothing more then a warning or a simple attempt to let others learn by my experience. The message is simple: If you buy PMs at a high price and the price drops you may have to sit on your PMs for years and years before you can even get your money back. Keep in mind that I was lucky and bought a lot of gold for $235 an ounce and a lot of silver for about $5 an ounce. But I had to hold onto my PMs for decades and even when I sold them at a really high price I actually lost money when compared with investing in CD's or the stock market.
ReplyDeleteWhat would I do different? I would have bought a very small amount of gold/silver. If I intended to use it for barter or for a genuine TEOTWAWKI event I would have bought only silver and mostly junk U.S. silver. And with the rest of my money I would have invested it carefully or bought a nice five acre piece of land or paid off my mortgage, etc.
My intent with my comments was and is to simply suggest caution and not to be negative.
Having said all that, I will admit that the future looks grim. If we aren't already in a depression we will be soon. Some kind of economic collapse seems inevitable and worse when there is chaos and confusion the predators (like China and Russia) take advantage of the situation so it could devolve into a world war. So if I were 20 or 30 or so I would indeed buy some PMs. Not a lot at this price but some.
One last point: If TSHTF I am willing to trade a cup of wheat or rice for an ounce of silver. If it gets really bad the price will go up. When I decide I no longer have a surplus I will no longer trade. With rice selling today for 50 lbs at $16 I am an advocate for buying rice not silver. Doesn't mean I hate PMs it simply is a fact of life that right now PMs are very expensive compared with other things I can invest in.
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