Gold and/or silver. Anybody hoarding, buying or partaking in these markets lately?

[springer]

Is anyone buying any silver or gold bullion, coins etc. for a rainy day? Seems like the market has been very good to these commodities the past few years.

What say you?

[Sejanus]

I have watched the metals market for a number of years now and used to have a number of physical bullion holdings. Yes the price is higher now than it was when I was more involved but I really don't regret not having any real holdings these days.

I have never seen the reason for the 'hoarding forever' mentality a number of people on precious metals forums have. Nice to have some as part of an investment portfolio but any more than that and you are closing yourself off to other investment chances and putting too many eggs in one basket. These are just some of my views forever and I am no expert.

[dbarberic]

I started buying into gold around 2005 in the ~$400-$500 range and quit buying with my final purchase at $760/ounce.

Silver I've been buying since around 2008 in the $7-$10 range with my final purchase at $15.47/ounce.

I own physical, CEF (Central Fund of Canada 50/50% silver & gold), and Fidelity's Gold Sector Mining fund.

Nedless to say, I've done very well with all of them and has been the single greatest investment I've made in my life. I still own it all and have not sold a thing. I've never had any other investments with returns greater than 100%.

I'm still bullish on both gold and silver, but I'd be nervous about buying in at these levels. The precious metals market is very volatile and its not uncommon to have price corrections of 20% or more in a single year. It requires a stong stomach. My low buy in means that I can sleep more comfortably at night even with the high volatility.

As a side note, my personal target for gold is $1,650 and silver $50. At that point I will probably sell half of my holdings (returns my original investment plus a gain and leaves some more in the market to capture more speculative gains).

[kareemthedream33]

Gold is at record levels -- not the time to buy.

[marcinthemiddle]

Originally Posted by kareemthedream33

Gold is at record levels -- not the time to buy.

x2!

[MonBK]

Originally Posted by kareemthedream33

Gold is at record levels -- not the time to buy.

At $20/gram I'm buying as much as I can lay my hands on.

[Brunotheboxer]

Buying Ag Eagles.

[kareemthedream33]

Originally Posted by MonBK

At $20/gram I'm buying as much as I can lay my hands on.

Do you run a gold business? I'm seeing gold as over $40 a gram right now.

[Brunotheboxer]

Originally Posted by kareemthedream33

Do you run a gold business? I'm seeing gold as over $40 a gram right now.

No he's an alchemist.

[kareemthedream33]

Originally Posted by Brunotheboxer

No he's an alchemist.

Bruno I hate to hijack this thread but I see you are from Boston/Cape Cod, are there ever any TRF GTG in that area? I live here now as a student.

[Numismatist]

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<--- I make money when it goes up, and when it goes down.

[MonBK]

Originally Posted by kareemthedream33

Do you run a gold business? I'm seeing gold as over $40 a gram right now.

That's why I buy at 20.

[Timber Loftis]

I recently sold all my crappy old gold rope and herringbone chains from the 80's. Does that count? :)

[Brunotheboxer]

Originally Posted by kareemthedream33

Bruno I hate to hijack this thread but I see you are from Boston/Cape Cod, are there ever any TRF GTG in that area? I live here now as a student.

Never been to one before.

[RedwinGV]

One word:
Diversification.



It just makes sense to be spread out some.

[Lion]

I personally think the price of metals is very high right now and would not invest. But I am a U.S. coin collector and spend my money that way...I specialize in early american copper. Also if you factor in inflation since 1981 the price of gold and silver lags behind those record highs!!!

[Zed Homme]

Anytime demand goes up with price you have the textbook definition of a bubble. However, I'm not sure when it will burst. Au prices have leveled off recently, but the palladium and platinum have growth potential...

However, copper and cotton have far out performed any precious metal in recent months...

[sea-dweller]

After the markets have risen so much, in such a short time, I elect to stay away...

[swissautopro]

Staying away from gold right now, but adding silver. The key will be getting out before this "bubble" bursts.

[Puffy]

Originally Posted by kareemthedream33

Gold is at record levels -- not the time to buy.

copy that. correction due

[LightOnAHill]

Each month I buy silver with about the same amount of money, whether it gets me more or less ounces doesn't concern me so much. I just like that it is a place I can put value and it'll hold or maintain some value apart from the Fed. It's the portion of my income that can't be devalued (essentially taxed) as the Fed prints money.

Gold? No, I'm not buying it refined, but I have recently purchased a several gold claims, so you could say I'm purchasing ore. For me, it has the likelihood of being my biggest investment return.

[springer]

Originally Posted by Zed Homme

Anytime demand goes up with price you have the textbook definition of a bubble. However, I'm not sure when it will burst. Au prices have leveled off recently, but the palladium and platinum have growth potential...

However, copper and cotton have far out performed any precious metal in recent months...

Thanks Chris, those are some very good "points to ponder."

[CashGap]

Originally Posted by Zed Homme

Anytime demand goes up with price you have the textbook definition of a bubble.

What you describe could be a bubble, or simply a failure of price to rise as needed with demand increases in order to reach a price equilibrium.

A bubble is defined as sustained increases in price beyond intrinsic level, but that assumes that the unit of price is not rapidly devaluing as most currencies are.

So one contrarian view is that the price of gold is NOT dramatically rising, rather, that confidence in currency is rapidly falling and reflected in the amount of currency required to purchase a constant value of gold.

So while I don't think we are in a precious metals bubble, it remains to be seen if currency is in a panic or if it is seeking its new equilibrium.

[springer]

Originally Posted by CashGap

What you describe could be a bubble, or simply a failure of price to rise as needed with demand increases in order to reach a price equilibrium.

A bubble is defined as sustained increases in price beyond intrinsic level, but that assumes that the unit of price is not rapidly devaluing as most currencies are.

So one contrarian view is that the price of gold is NOT dramatically rising, rather, that confidence in currency is rapidly falling and reflected in the amount of currency required to purchase a constant value of gold.

So while I don't think we are in a precious metals bubble, it remains to be seen if currency is in a panic or if it is seeking its new equilibrium.

Thanks Sam, another great post on what is, or might be occurring with the precious metals market. I tend to agree with this, "So one contrarian view is that the price of gold is NOT dramatically rising, rather, that confidence in currency is rapidly falling and reflected in the amount of currency required to purchase a constant value of gold. The printing presses are definitely at full speed ahead!!!

[Ebruner]

I'm a rare coin and precious metals dealer, and I buy and sell relitively large volumes of both metal in bullion and scrap form. Up, down, sideways, it doesn't matter. I make money either way, just like my Chris a few posts back.


-Eddie

[etownrolex]

silver all the way baby

[tnt]

Will exit out when gold touches $1725/oz.

No silver for me.

If there is more room to go up, I would say gold.

I think, platinum would be next leg for investment, if later in their findings that there are more demands for it. Not counting they do ever use for currency trading or not.
what I can foresee is platinum probably 1 and 3/4 to double prices of gold in future.

Anything rare on earth, that would definitely increase to skyrocket especially things that grand advantages.
birth > dead => over population -> which certainly produces more demands.

[GothamG8or]

In my opinion there is a difference (both in motivation and in practicality) between buying metals and actually taking delivery of the physical product and buying investment vehicles (etfs, futures, stocks, etc...) that are either directly indirectly tied to the metals markets.

Having the physical metal as an "investment" (to me anyways) seems like a lot more about protecting against and 'end of the world' type scenario. I view it as less of an investment due to the transaction fees & potential cost of storage. I do not buy physical metals personally because of this. I am presently overweighted in some metals investments (mainly ETFs) which are very liquid & have low transaction costs. To me, it is a much more efficient way of 'investing' in this market. I have just started gradually selling into this amazing rally but am by no means taking it all off the table. It's been a great run & there is enough uncertainty in the world to make me believe it will continue.

Just my 2 cents

[Zed Homme]

Originally Posted by CashGap

What you describe could be a bubble, or simply a failure of price to rise as needed with demand increases in order to reach a price equilibrium.

A bubble is defined as sustained increases in price beyond intrinsic level, but that assumes that the unit of price is not rapidly devaluing as most currencies are.

So one contrarian view is that the price of gold is NOT dramatically rising, rather, that confidence in currency is rapidly falling and reflected in the amount of currency required to purchase a constant value of gold.

So while I don't think we are in a precious metals bubble, it remains to be seen if currency is in a panic or if it is seeking its new equilibrium.

Valid points, but I still disagree. The price of gold was below 300/Oz less than ten years ago, and while it is no secret that major global currencies are in trouble, I don't think they're in that much trouble. The driving force behind gold's incredible rise the past three years have little to do with the actual use of the metal or it's supply. However, national banks (like china) are stocking up as a hedge against the dollar. Also a very large amount is going to the creation of etfs which will be sold to small investors that are wary of the dollar or stock markets. As the price has been rising the demand for these etfs has grown hence my belief that a bubble is forming. Of course this is just my opinion and if I knew things with more certainty, I'd be arranging now to short the metal. Problem with bubbles is we can never really confirm they exist till after they've burst. Nor can I tell you how much farther the metal is gonna rise till the bottom falls out. I couldn't confidently recommend a hold or a sell, but I think the moment for entering this market has passed.

[springer]

Originally Posted by GothamG8or

In my opinion there is a difference (both in motivation and in practicality) between buying metals and actually taking delivery of the physical product and buying investment vehicles (etfs, futures, stocks, etc...) that are either directly indirectly tied to the metals markets.

Having the physical metal as an "investment" (to me anyways) seems like a lot more about protecting against and 'end of the world' type scenario. I view it as less of an investment due to the transaction fees & potential cost of storage. I do not buy physical metals personally because of this. I am presently overweighted in some metals investments (mainly ETFs) which are very liquid & have low transaction costs. To me, it is a much more efficient way of 'investing' in this market. I have just started gradually selling into this amazing rally but am by no means taking it all off the table. It's been a great run & there is enough uncertainty in the world to make me believe it will continue.

Just my 2 cents

Thanks for your 2 cents Goth! Great info and one needs to consider all the aspects as you noted, before investing.