How Much Of One's Cash Assets Should Be Put Into Precious Metals?

[m5215]

That, in my understanding is not necessarily correct. While there is no state sales tax on gold, silver or platinum, there is a Texas state sales tax on palladium and copper (source - paragraph 2). Palladium is definitely a precious metal, it is at a bid price of $2,162.00 as I write. In fact it is another one I am truly sad I never purchased a few years back. Whenever there are high world tensions, especially when Russia is pissed off at the world, Palladium & Rhodium will be way up. They are mined only in a few areas - Russia being one of them.

OK thanks for the correction as I was not aware of that. At the moment I am only buying silver.

 

[pronstar]

I think other precious metals are good plays from an inflationary/store of value perspective.

But from a SHTF perspective, I think silver and gold are tops…simply because there are publicly facing people and businesses who are equipped to deal with these two metals.


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[TheDan]

Currently, more like about $100... 20-1 ratio like U.S. coinage used to be.

"From the crustal abundance of precious metals, we can also see that the gold-to-silver ratio in the earth’s crust is about 1:19. This means that there is roughly 19 times more silver than gold in the ground."

How Rare are Gold and Silver? | Silver Bullion

Have you ever wondered why gold, silver and platinum are often referred to as precious metals? We know that these metals are used frequently in jewelry and bullion, but what makes these metals precious?

www.silverbullion.com.sg

It's not as straightforward as the abundance ratios unfortunately. Most of the silver that gets mined is a byproduct of copper and other mining. I doubt we'll ever see gold/silver valued strictly by abundance ratios ever again. Actual value is more of a calculation of desirability, usefulness, and abundance. Interesting stuff to speculate about.

The gold/silver ratio would certainly be tighter than it currently is without all the shenanigans in the futures markets, tho...

 

[TheDan]

here your preview to bidens gameplan

Canada's Trudeau invokes emergency powers to quell protests

Prime Minister Justin Trudeau invoked emergency powers Monday to quell the paralyzing protests by truckers and others angry over Canada's COVID-19 restrictions, outlining plans not only to tow away their rigs but to strike at their bank accounts and their livelihoods. In invoking Canada's...

news.yahoo.com

"freeze truckers' personal and corporate bank accounts"

This will be a thing here shortly once the dollar is gone. Ludicrous

yeah... goes back to the FedCoin discussion, but once we have CBDC it'll be a simple flick of a virtual switch for them to turn off the accounts of anyone they don't like. Probably could even geolocate everyone in proximity of a protest and do it. Don't even have to make positive IDs.

Everyone should be making a plan now on alternative ways to make transactions outside that system.

 

[Darkpriest667]

There are tons of cryptocurrencies that are used outside of the control of the central banking authorities. Cash is king in the underground economy righ tnow, but its more and more moving to cryptocurrencies like monero.

 

[Hoji]

Probably could even geolocate everyone in proximity of a protest and do it. Don't even have to make positive IDs.

Leave the phone at home kids

 

[69ChevelleLSX]

0 maybe a little silver for its ability to kill bacteria. To many good stocks to invest in besides gold. Also if things get so bad that gold is needed. The people with guns will take the gold.

 

[gll]

0 maybe a little silver for its ability to kill bacteria. To many good stocks to invest in besides gold. Also if things get so bad that gold is needed. The people with guns will take the gold.

Well, I guess there's no sense people with gold having guns then...

 

[cvansickler]

Not a fan of precious metals - especially in large quantities or in IRAs. Precious metals in IRAs lead to custodial issues and additional taxation. Precious metals could be used for bartering when the SHTF, but at that point, the valuation is arbitrary - those in the barter get to decide what the gold is worth.

As for precious metals - gold, silver, etc being hedges against inflation - they have not performed the way that they should have with this recent bout of inflation - https://www.morningstar.com/articles/1079353/the-inflation-hedges-havent-hedged

If you look at the historical prices of precious metals - gold, silver, etc. you see that there are massive fluctuations in prices in the 1930's gold was $700/oz and then for the next 40 years slowly dropped to $200/oz. Then from 1970 to 1974 shot form $200 to 1000 per oz and then back down to $500/oz in 1976. From 1976 gold shot up to $2300/oz in 1980 and the slowly lost value to 2000 at $400/oz. Since 2000 Gold increased in value $2000 and then dropped back to $1200/oz and back up to $1800. There are massive fluctuations over the past 100 years with precious metals. If you are holding precious metals for long durations - then you will probably partake in some of those fluctuations.

Last - if you try to sell gold to anyone other than individuals without a paper trail, you will create an additional tax with Uncle Sam.

 

[dmh]

I like the 1 gram & 1/10 of an ounce portioned out in card form of gold. When food gets stupid enough to cost an ounce, I will have been robbing people of they food.

My favorite precious metals are brass and lead...

 

[gll]

Not a fan of precious metals - especially in large quantities or in IRAs. Precious metals in IRAs lead to custodial issues and additional taxation. Precious metals could be used for bartering when the SHTF, but at that point, the valuation is arbitrary - those in the barter get to decide what the gold is worth.

As for precious metals - gold, silver, etc being hedges against inflation - they have not performed the way that they should have with this recent bout of inflation - https://www.morningstar.com/articles/1079353/the-inflation-hedges-havent-hedged

If you look at the historical prices of precious metals - gold, silver, etc. you see that there are massive fluctuations in prices in the 1930's gold was $700/oz and then for the next 40 years slowly dropped to $200/oz. Then from 1970 to 1974 shot form $200 to 1000 per oz and then back down to $500/oz in 1976. From 1976 gold shot up to $2300/oz in 1980 and the slowly lost value to 2000 at $400/oz. Since 2000 Gold increased in value $2000 and then dropped back to $1200/oz and back up to $1800. There are massive fluctuations over the past 100 years with precious metals. If you are holding precious metals for long durations - then you will probably partake in some of those fluctuations.

Last - if you try to sell gold to anyone other than individuals without a paper trail, you will create an additional tax with Uncle Sam.

And yet, governments, including our own continue to hoard gold... and, gold jewelry, above all other continues to be the most valued...

I do agree that gold is a poor investment, even if you manage to buy low and sell high... and, there are few scenarios where gold would be a significant component of barter in SHTF.

I've only bought silver during one period around 1986, when silver was ~$4.50, and gold in the same period at ~$450 and then again in late 2018 at ~$1250, but I would still consider those purchases as poor investments... Their advantage over stocks is that they are in my possession and are assets of value lost to oversight.

 

[HPFlashman]

I bought a good amount of Canadian $5 Maple Leaf coins about 8-9 years ago. (It is safely buried way out in the north 40 so I don't much worry about some Mod tracking down my IP. But Mods are a good sort, for the most part.) I figured they'd hold their value and worst case I could spend them in Canada and they'd have to take them. Right. I live in Florida and hate cold weather. I also figured that silver coins would be better than gold ones in bartering for scraps of food in a post-apocalyptic world. No food vendor would be making change for gold coins and I might be able to swap a couple Maple Leafs for a can of Spam and not have to worry about a capitalist shafting. But I think a little clearer now. If things really go way, way south like a Mad Max situation then bartering will be an iffy prospect. Far better, I think, to stockpile food, ammo, meds and books. Become self-reliant and independent. It is not implausible that the Orc's will go ape-shit when the grocery store shelves go empty and the whole of Western Civilization does a big ka-Whoosh virtually overnight. Pardon my doomshine, but I have been to Pakistan and West Memphis, Arkansas. Detroit too. But that was in 1970. I hear that large parts of that city are idyllic now with forests and deer.

Factoid: Gold is easier to cast into bullets than silver.

 

[Axxe55]

I bought a good amount of Canadian $5 Maple Leaf coins about 8-9 years ago. (It is safely buried way out in the north 40 so I don't much worry about some Mod tracking down my IP. But Mods are a good sort, for the most part.) I figured they'd hold their value and worst case I could spend them in Canada and they'd have to take them. Right. I live in Florida and hate cold weather. I also figured that silver coins would be better than gold ones in bartering for scraps of food in a post-apocalyptic world. No food vendor would be making change for gold coins and I might be able to swap a couple Maple Leafs for a can of Spam and not have to worry about a capitalist shafting. But I think a little clearer now. If things really go way, way south like a Mad Max situation then bartering will be an iffy prospect. Far better, I think, to stockpile food, ammo, meds and books. Become self-reliant and independent. It is not implausible that the Orc's will go ape-shit when the grocery store shelves go empty and the whole of Western Civilization does a big ka-Whoosh virtually overnight. Pardon my doomshine, but I have been to Pakistan and West Memphis, Arkansas. Detroit too. But that was in 1970. I hear that large parts of that city are idyllic now with forests and deer.

Factoid: Gold is easier to cast into bullets than silver.

Lead is easier than gold or silver.

The Melting Points of Metals | Metal Supermarkets

A metal’s melting point is the temperature at which it begins to transform from a solid into a liquid. Learn the melting points of aluminum, copper, brass, iron, steel, & more.

www.metalsupermarkets.com

 

[HPFlashman]

^ Yeah but...if you have gold you might as well do something useful with it after SHTF, right?

 

[Axxe55]

^ Yeah but...if you have gold you might as well do something useful with it after SHTF, right?

Silver for werewolves, and gold for zombies?

 

[oldag]

or

 

[alwho421]

when shtf doesn't matter what you got.
Your ability to defend will be everything.
Access is everything

 

[pronstar]

when shtf doesn't matter what you got.
Your ability to defend will be everything.
Access is everything

I think a big part of defending, is becoming a gray man and the ability to hide in plain sight.

Don’t be a target.


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[glenbo]

My father and a few of his old friends were talking about the Great Depression of the 30's, which they all lived through. They remembered two of the most valuable trade items were alcohol of any kind, but whiskey of any kind was best, and makeup for women. They were all too poor to afford any of that but it was popular with anyone who had something to barter for it.

 

[gll]

My father and a few of his old friends were talking about the Great Depression of the 30's, which they all lived through. They remembered two of the most valuable trade items were alcohol of any kind, but whiskey of any kind was best, and makeup for women. They were all too poor to afford any of that but it was popular with anyone who had something to barter for it.

Who doesn't keep a few cases around for the apocalypse?