WHAT TO BUY GOLD OR SILVER

[Jyorsky]

Age old question if I have in my pocket money to buy

1 US BUFFALO GOLD COIN

OR

do I buy Equal amount silver eagles

As investment
What would y’all do??

 

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[Megalodon]

Neither qualifies as an investment IMO. At best, bullion is a hedge against a crash. At worst, it is speculation.

IMO, Put your money in a no-load diversified mutual fund in your IRA or 401K, or if you have maxxed them out, open a brokerage account and buy stocks that interest you. If you are new to investing, then open a target-date fund.

Correction - considering it is only Jan 2, I can't imagine that anyone has maxxed out their contributions for 2020.

Source: Over 50 years of personal investing.

 

[Johnnybravo300]

1/10th or 1/4 oz gold, the rest silver. Silver might spring in the not too far future.
Plus metals have far out performed stocks in the last 100 years...with 400 percent gains. Stocks dont retain value and you'll lose with inflation and the failing dollar.
Buy what is undervalued. Metals have no third party risk and you cant go wrong with them.

 

[Megalodon]

1/10th or 1/4 oz gold, the rest silver. Silver might spring in the not too far future.
Plus metals have far out performed stocks in the last 100 years...400 percent gains.
Buy what is undervalued. Metals have no third party risk and you cant go wrong with them.

Metals have certainly not come close to stocks over the long run. During some recessions, metals have outperformed stocks.
Metals require large price increases to break even since you buy above spot and sell under spot.

If confused about the difference between something so basic as speculation vs investing, then its time to do your research rather than asking questions on the internet. Vanguard, T.Rowe Price, Fidelity and many others have excellent websites and information.

 

[Johnnybravo300]

Gold has outperformed everything this year. Investment gold has done extremely well.
Or buy stocks that are 60 percent overvalued. Not a hard choice.

 

[Megalodon]

Gold has outperformed everything this year. Investment gold has done extremely well.
Or buy stocks that are 60 percent overvalued. Not a hard choice.

Simply untrue. My best mutual fund gained 48% this year and my worst, least risky did almost 23%.

There are many thousands of stocks and I don't recommend buying things that are overvalued. Look for low P/E, low P/B companies with little debt, good growth potential and/or decent dividends. They are out there. Holding gold in a safe gives you none of the advantages of compounding interest, capital gains or dividends. If retired, one can use the quarterly dividends for income. If not retired, they can be re-invested.

I would buy a CD before buying gold or silver.

 

[Johnnybravo300]

Numbers like that should worry anyone. Melt ups dont last forever.

 

[xr7ator]

Megalodon is correct!

 

[cudamark]

The gold and silver buying should be just part of a well rounded and diversified investment plan. I wouldn't exceed 5% of the total invested however. IMO, I would have both gold and silver with about a 20% and 80% ratio respectively.

 

[Professor of Engineering]

Interesting thread. I recently purchased 2 kilos of silver bullion, just for fun!

 

[GlenDronach]

If you are looking for precious metal as a LONG TERM STORAGE of wealth (sure, it can increase in value but it's not a wise investment), I'd buy silver.

The silver to gold ratio is 86 oz of silver to 1 oz gold right now. In the last 10 years it's dipped as low as 40:1.

I would continue to alternate between the two and increase my quantity by taking advantage of fluctuations in the ratio.

 

[Idahodutch]

If you are looking for precious metal as a LONG TERM STORAGE of wealth (sure, it can increase in value but it's not a wise investment), I'd buy silver.

The silver to gold ratio is 86 oz of silver to 1 oz gold right now. In the last 10 years it's dipped as low as 40:1.

I would continue to alternate between the two and increase my quantity by taking advantage of fluctuations in the ratio.

I agree with this. Anyone today that has the bulk of their capital in paper or digits, is a fool or blinded by greed. Silver and gold are money. Anything else is currency at best.
Idahodutch
Ps I am talking about today's scenario. Now is not a good time to risk, as the risk is too high. If you are keeping your savings in something other than money, you are at risk big time. Paper and digits are not money. If you have money other than savings an want to risk that, just be ok if you lose. If you are banking on winning, don't.

 

[Clad2Silver]

ALL investments are risky. You can make or lose money with bullion, stocks or any other investment item. The key is to buy and be able to hold until the time is right to cash in at a profit. The OP wanted an opinion on bullion.....silver versus gold. Buy some of each and buy what you like whether its Eagles or junk 90% coins or gold bullion items including foreign bullion gold coins which can be bought for just a few dollars over spot. Then be prepared to wait...….

 

[Idahodutch]

ALL investments are risky. You can make or lose money with bullion, stocks or anything other investment item. The key is to buy and be able to hold until the time is right to cash in at a profit. The OP wanted an opinion on bullion.....silver versus gold. Buy some of each and buy what you like whether its Eagles or junk 90% coins or gold bullion items including foreign bullion gold coins which can be bought for just a few dollars over spot. Then be prepared to wait...….

Clad,
Today is a tough time and a good time. Bad that we don't use money as currency, because when you save, you are most likely saving paper or digits. Vapor, or toilet paper. Unfortunately we need to have some saved in this form to conduct daily transactions. The remaining savings should be money. Investing your savings, is huge risk. Only in est what you can afford to lose. Investing is gambling. For thousands of years people understood this.
Edit. Good that we can trade crap wipe and digits for money.

 

[Clad2Silver]

Clad,
Today is a tough time and a good time. Bad that we don't use money as currency, because when you save, you are most likely saving paper or digits. Vapor, or toilet paper. Unfortunately we need to have some saved in this form to conduct daily transactions. The remaining savings should be money. Investing your savings, is huge risk. Only in est what you can afford to lose. Investing is gambling. For thousands of years people understood this.
Edit. Good that we can trade crap wipe and digits for money.

I've put away silver and gold for many years and have made good money along the way by selling it at the right time. I still allot money each month to buy more bullion and will continue to do so. My holdings are approximately 75% silver and 25% gold.

 

[Idahodutch]

Paper currency, tokens, and computer digits are the investment. Not gold and silver. Gold and silver IS money. The bankers have 99% success rate at promoting this b.s. of the contrary.
Why do you think our constitution addresses this so specifically?
Don't be sucked into b.s. Stories. The really bad part is we have been raised in a society where you get paid in investments, not money. Time to wake up. Imho

Edit. So 99% of us are 100% invested. When something happens, it is the 1% who have the money.

 

[Idahodutch]

I've put away silver and gold for many years and have made good money along the way by selling it at the right time. I still allot money each month to buy more bullion and will continue to do so. My holdings are approximately 75% silver and 25% gold.

Clad,
Isn't it a good feeling to have MONEY saved. I make sure to have enough currency to not have to tap my savings; an emergency fund/6 months living expenses. Then have money saved. Then investments that are retirement, but I would get that out right now if I could. It may or may not be there when time comes, so I cannot count on it. It is an investment , a bet where we are still waiting to see who wins and who loses.
Idahodutch

 

[Megalodon]

I've put away silver and gold for many years and have made good money along the way by selling it at the right time. I still allot money each month to buy more bullion and will continue to do so. My holdings are approximately 75% silver and 25% gold.

Some people are not comfortable with stocks and mutual funds - but their real advantage is they generate income without the need to liquidate principal. I can live off the dividends from my stocks or re-invest them, which compounds year after year, decade after decade. All but one of my dividend paying stocks has highly appreciated - but I don't really care about that because I want reliable dividend payers. I certainly do not wish to sell them - that is killing the goose laying the golden eggs - in this case, reliable dividends. The no-load mutual funds generate some dividends as well and capital gains distributions without any action on my part. And those dividends and capital gains receive preferential tax treatment.

There are risks in everything in life, but many people overestimate the risk of investing in stocks and mutual funds. The real risk, IMO, is not investing. I taught myself over 50 years ago before my teens, by reading material from Fidelity, Vanguard, Price and others as well as research in the library - the way to research back then before the internet.

 

[FrostyMiner]

Shoulda bought 6 months ago...

 

[Idahodutch]

Shoulda bought 6 months ago...

I can remember when silver and gold started to move up some and thinking "Better get some", but I just couldn't get myself to spend $7.00 per oz. that was like just 12 - 15 years ago. I have acquired since, but not at that price. If you're thinking of getting some, you should just get it. If you wait for the rush, it will cost more and your choices of what you want may not be as good later if you wait.
Happy hunting. The Buffalos are beautiful and 24 karat. SD Bullion has done good by me. Very reputable. Paying by check can add a week to the transaction, but can save a fair amount.
Idahodutch