...um, what the heck is going on?

Are the world economies and currencies SO darn weak?
wow, just wow.

silver is about to hit $50 usd/oz. soonish,
it was $10 bucks in 2008 and $17 a year ago.


What are YOU doing??

- Buying
- Selling
- Holding
- or going short?


I'm holding and thinking of getting some more but still
not sure at these obscene prices, BUT it keeps climbing
every single day, what gives?!!  

If it passes the historic/symbolic $50 mark this will change
EVERYTHING and after this I will not be surprised to see
$100+ oz. in a year (and $10 gas and milk) sigh.

If I had any $$$, Id buy silver, & If I had a Butt Load O $$$, Id buy silver And gold, I wouldnt buy any paper tho, IF I was buying, Id want to have it in my hot little hands. Id bet thers more Paper ilver out there than there is silver to cover it. IF thats true & IF that ever came out, Then tons of that Paper would be worth nothing, wouldn't it?

While spot prices for precious metals have risen dramatically, there are problems for the common person in owning the metals directly.

First is storage and security, and of course, the cost of insuring it.  One of my clients, a gazillionair, had his home burglarized about 3 years ago.  The thieves actually stole his safe, and he lost about $1 Million in gold bars and coins.  The police finally got the guys, but my client only got about 1/2 of the gold back, and he had foolishly let his insurance lapse, so he had no coverage for what was lost.  Insurance isn't cheap for precious metals coverage.

Next, like all commodities, you have no gain until you sell it.  So if you get joy out of just watching your stash grow in value, great.  But you have no money in your pocket until you part with the metals.

In a similar fashion, you have no return on your investment until you sell it.  If you keep it for eons, waiting for the next bump upwards, that's great too, but again, you have no return on your investment in any real sense.

The final chapter to my rich client's story is that he learned his lesson and sold the metals themselves, and stayed in the percious metals arena by buying mining stocks of quality mining companies.  These stocks fairly well parallel the prices of the metals themselves, but have none of the storage and insurance problems inhereent in owning the metals, and pay a nice dividend while you hold the stocks.

Been holding onto some silver coins just as a hedge in case of ultra inflation. Silver/gold and other metals will hold value no matter what while paper money can loose it's value. Never did expect silver's value to jump up to over $45.00 per oz., should of bought some last year when it was around $17.00/oz. I've three or four German coins from 1921 during the killer inflation period. They are made out of pottery because metal cost too much for small coinage back then. Maybe we will see the goverment produce a wooden nickle soon .

I've three or four German coins from 1921 during
the killer inflation period. They are made out of pottery
because metal cost too much for small coinage back then.

wow, i'll research  those, sounds really interesting, rare and expensive.

On a related topic. Dave Ramsey committed on Hurricane Katrina. He said the hottest "currency" after Katrina was bottled water and ice. I think, back in the time of the Roman Empire some people worked for salt, hence the term "not worth his salt". I believe my minister brought this up once. Anyway if you look on CL under the barter section it will surprise you what people will trade for. I know you are talking about precious metals, but I thought this was interesting.

http://www.coinflation.com/coins/silver_coin_calculator.html

A guy at a coin shop offered to sell me a 50 cent piece, worn so bad Lady Liberty was a skinny girl, for the Princely sum of $16.00 a week or so ago.. If I had some money, I woulda bought that thing..

Thanks for the advice JERRY!!!!

I decided to just hold and not buy more for the time being
and look what happened, haha.



...I think I'll wait till it hits bottom ($18-22dlls?) and then
buy some more as a mid-long term savings instrument.