Owning gold or silver bullion

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ron45's picture
ron45
Status: Bronze Member (Offline)
Joined: Mar 12 2010
Posts: 40
Owning gold or silver bullion

I've tried to read what I can find on this forum on this subject. Most threads are of the `yes it is',` no it isn't' variety. I haven't paid much attention to financial matters and how bullion prices react to various situations. Common sense says if the system dies then gold or silver will be good to have. 

What is the conventional wisdom concerning PM's value fluctuation in failing economies? How has it behaved in the past?

 

Ron

pete37's picture
pete37
Status: Member (Offline)
Joined: Mar 15 2011
Posts: 4
Generally, rise, rise,

Generally, rise, rise, rise....crash....dead cat bounce.....fall, fall....stabilize...

We are at the second rise now IMHO, with the biggest rises yet to come.  It is very difficult to predict where prices will be in the long term, other than to say, stable with preserved purchasing power.

Personally, I believe that in a failing economy situation, PMs offer a hedge against rapid inflation and deflated currency value, whilst also presenting an opportunity for good capital growth, IF you are the smart money.  Ie. bought before exponential growth.  Otherwise you are merely a speculator with potential to lose out overall.  Now is still a good time to buy IMHO, but time is very rapidly closing the door.

ron45's picture
ron45
Status: Bronze Member (Offline)
Joined: Mar 12 2010
Posts: 40
Thank You Pete, I'm thinking

Thank You Pete, I'm thinking along the lines of PMs as a medium of exchange if/when our economy tanks. Are there things might go wrong to make this an ineffective strategy? i.e. the fall fall part. Or, is fall fall ref. to speculating on fluctuations in an ongoing economy? If the financial system crashes would gold or silver increase in value, stay the same or go down? I realize it's an impossible question in some respects. Opinion is the best I can hope for I guess.

 

Ron

docmims's picture
docmims
Status: Platinum Member (Offline)
Joined: Jun 17 2009
Posts: 644
On this site PM's are

On this site PM's are treated as a survival tool, not an investment per se.  along that mode silver coins both 90 percent junk silver and 99 percent silver eagles fit the bill.  If you try buying a bag of groceries with gold you will run into the problem of what to take as change.  Think of PM's along the lines of the spare batteries and food you are storing, not as an income producing asset.

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