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

[Axxe55]

Gold is good but it is only profitable when sold, a hedge is only something that can be traded for your needs something that can be bordered ?

Welcome to TGT.

Stop over in the Intro Sections and say hello to everyone.

 

[Glenn B]

When hyperinflation or even just regular inflation hits - as is currently the case with inflation - your cash becomes less and less able to buy anything as you did before and you need more and more of it to buy anything. Tell me about how great it is to generate cash flow when cash is hemorrhaging value. What do I care if I am getting cash, same amount in my pension as I was 6 months ago, that is worth 85 cents on the dollar compared to 6 months ago! (That 85 cents on the dollar figure is just pone plucked oiut of the ether for an example - the actual dollar's value may be better or worse than that but certainly is less than it was months back). While the value of cash has recently gone down, the value of gold has gone up and thus its buying power is better than that of an 85 cent cash dollar if your earnings have not gone up to match inflation.

 

[mongoose]

2 1/2" id oil field pipe is bringing
$2.90 a foot.
2" I'd is bringing $1.90 per foot.
My metals are now "precious".

I may need to start tearing down my stalls, barn, and fencing.

 

[Glenn B]

More inflation headed our way and on whom does Harris blame it - Russia potentially invading the Ukraine! has the Biden administration admitted even once that they are responsible for anything by which they have screwed the USA???

Harris: Americans will 'incur some costs' from Ukraine crisis as energy costs, inflation soar

Vice President Kamala Harris warned that Americans could feel some 'costs' of a Russian invasion of Ukraine, unwelcome news to many who are already bearing the costs of soaring inflation.

www.foxbusiness.com

 

[leVieux]

Right now bullion is a good hedge against inflation. I fully expect our dollar to further slide in purchasing power. There are those pushing to remove the dollar as the standard oil currency, and if that ever happens, we are going to be in some real trouble. I never understood the paper gold and silver. If I’m going to buy precious metals, I want the physical metals, not some promise to pay note that might not be honored if things get dicey. For those in Houston, US Coins and jewelry is highly rated and prices can’t be beat. They have unadvertised in store specials sometimes. In 2020, they gave away a free .999% pure silver one ounce silver eagles to I think the first 50 customers on Black Friday. Wife and I each got one. Money Metals is a good online source as well. They ship free at $500, and they will sometimes run pretty good specials on silver blanks or toss in a 90% coin with purchase.
Metals are up and so is ammo, but a little at a time isn’t as painful. Even just a silver round and a box of ammo per paycheck builds over time
Im debating the issue myself. I have two months to decide if I want to fund my Roth IRA for 2021 or use those funds for metals. The market can’t possibly keep the pace its been going, and I’m afraid that once the bubble does burst, that I won’t have enough working years to recover. I do not want to be working into my 70s

"Right now bullion is a good hedge against inflation." Usually, but we may be late to be buying now.

As to the o.p., most advisors (who are not selling metals) say 10% to 15% or 20% in routine times.

Right now, I wish I'd never have sold Gold.

There is no way to know for certain. I've learned that "fee for service advisors" advise against metals, BECAUSE they won't get any continuing fees from it.

"Caveat Emptor", both with respect to "metals" and to "advisors" !

leVieux
.

 

[leVieux]

I may need to start tearing down my stalls, barn, and fencing.

Not too soon. Around here in LA, our DemonRat Governor has shut down our "energy sector" except for production. We have pipe-yards full of drill tubing.

leVieux

 

[gll]

Selling something is exchanging it for (or perhaps converting it to) cash; not generating cash flow.

Tell that to any business that sells things...

 

[pronstar]

Tell that to any business that sells things...

There’s a fundamental difference between investing in an asset, and reselling goods.


Sent from my iPhone using Tapatalk Pro

 

[TheDan]

Tell that to any business that sells things...

Any business that sells things will tell you inventory is a liability. The business itself is the asset that generates cash flow. Money isn't really made with the things; a reseller is providing a service in curating and delivering goods.

 

[gll]

Gold has definitely broken through the $2k barrier (currently $2052), but today's real shocker is nickel...



I bought a 100lbs of Canadian nickels (.999 fine) about 4 years ago at about $5/lb, for a battery project I was contemplating and that I abandoned...

Currently trading at $17.32, nickel was at $12 just a couple days ago. The point isn't my investment, but the perceived advantage Russia has in nickel.

I'm not sure I see the issue, as Canada and Australia are major producers of nickel.

 

[TheDan]

I'm not sure I see the issue, as Canada and Australia are major producers of nickel.

That is one of the issues with using global futures exchanges for setting prices. Paper contracts in London don't (or shouldn't) have anything to do with the physical price in local markets.

Even so, Russia produces between 5% and 30% of the worlds supply in just about everything. That's huge, and cutting that out is going to effect supply.

Nickle and copper have been doing crazy things well before this Russia stuff. LME basically defaulted on their copper contracts several months ago. Perhaps they are using Russian supply being cut as an excuse to hide other problems? Probably a little of all of the above.

 

[FNORD]

Safe to say that there are a couple of classes of investments that everyone hear agrees with and share in common.

They are base metals, physical, and base metal delivery systems.

Stack them deep.

Acquire shovels and boat anchor molds for the other options.

 

[Alpha.Geek]

AG under $20/OTZ now...
Still not a good price for "me" to buy, as I have seen it go under $15/OTZ since I have been watching,
and it went much lower.

My first pickup was in the $17-$18-range.

 

[gll]

AG under $20/OTZ now...
Still not a good price for "me" to buy, as I have seen it go under $15/OTZ since I have been watching,
and it went much lower.

My first pickup was in the $17-$18-range.

As a percentage, silver has fallen much more than gold. I might buy silver at $17-$18, but gold would probably have to go to $1.4k.

 

[HPFlashman]

If things go totally to crap with no outlook for improvement for decades (a real possibility) I don't see precious metals like gold or platinum of much value. Things like .22 LR, common handgun and rifle ammo, meds, food stockpiles, nicotine, alcohol and even Bic lighters might serve well though. Precious metals don't seem to me to be a hedge to a bright future as we claw our way out of the New Dark Age. I think that silver like old U.S. coins or Canadian Maple Leaf $5 coins would be best for barter. Nobody is going to be making change in a swap of a gold coin or bullion for a cured ham or bottle of antibiotics. A guy might do well to have a shoebox full of Canadian Maple Leafs. Better to have the exact change.

Sitting on a hoard of valuable metal won't enhance your survival in a famine or harsh winter.

 

[TheDan]

AG under $20/OTZ now...
Still not a good price for "me" to buy, as I have seen it go under $15/OTZ since I have been watching,
and it went much lower.

My first pickup was in the $17-$18-range.

Premiums are up 30%-40% from the last time it was this price. I suppose that is tracking with everything else. I think it's still going lower, but it's not going to stay there for long as the fed has $2T just sitting ready to inject into the next liquidity crisis.

It's a good time to pickup almost any asset class right now really.

 

[TheDan]

If things go totally to crap with no outlook for improvement for decades (a real possibility) I don't see precious metals like gold or platinum of much value. Things like .22 LR, common handgun and rifle ammo, meds, food stockpiles, nicotine, alcohol and even Bic lighters might serve well though. Precious metals don't seem to me to be a hedge to a bright future as we claw our way out of the New Dark Age. I think that silver like old U.S. coins or Canadian Maple Leaf $5 coins would be best for barter. Nobody is going to be making change in a swap of a gold coin or bullion for a cured ham or bottle of antibiotics. A guy might do well to have a shoebox full of Canadian Maple Leafs. Better to have the exact change.

Sitting on a hoard of valuable metal won't enhance your survival in a famine or harsh winter.

These things aren't mutually exclusive. Need all of the above. Starting with property you can physically control and cultivate is the most important.

 

[HPFlashman]

^ I am 74 and have a stockpile to see myself through The Big Die Off if things really go south. If Western Civilization breaks down I won't need precious metals 10-20 years down the road to join the new middle class. But you are right TheDan.

 

[Mohawk600]

I have both silver and gold............more imortantly...........I also have brass and lead. Which one do you think will be more useful as barter items if TSHTF?

 

[Alpha.Geek]

We are currently looking for property, but being the market-high as of late, it appears to be going down a bit, so we are waiting it out, sitting on a gain from the sale of our last house.

It starts at the with the most expensive areas, usually in big cities, which seems to be happening.

My father said he's seen stuff in Huntington Beach start to waver from market-top, and starting to drop again, so we shall see...

My lender said the houseing/property market corrects every 10-15 years, and the last market-low I remember was at the end of 2009.

I believe with the rate of inflation, and even the lefties knowing Biden's leadership is a dead-lay, I'd expect we might see another crash in 6 months to a year due to distrust of the current Federal Gov.-leadership...
(I recall a BUNCH of warehouses going up near my last employer's location as soon as Trump was elected, but I don't see many being built after Biden took office in this area.)