RE: Looking into precious metals

You are viewing a single comment's thread:

Many people who invest in precious metals are gold bugs who probably have never sold any, don't trust FIAT currency and own guns and prepare for the zombie apocalypse or some crap. Get a few opinions. The government has seized gold and silver before and will do it again when they need money.

Just looking at the price and making a decision based on if it is near its all-time high is a poor investment strategy for anything, precious metals are hardly any different.

Asides from market conditions (technicals and fundamentals) that influence everything on the market, mining precious metals and their industrial uses is the most important factor influencing price.

In the case of silver, there are actually a ton of mines that are simply mothballed because the price is too low to make mining it worthwhile. So the price of silver has a ceiling because when it reaches a magical price, many silver mines will open back up (oil also follows this pattern).

The thing about precious metals is you can store them underground forever and people can't really steal it since unrefined ore isn't very valuable or easy to move around.

I get a feeling most people investing in silver cannot afford gold, have some whacky economic theory, or are buying showpieces and collector's items like coins or whatever. Collectors are rational, but that's a little different from precious metals investing. I recommend just buy the cheapest certified bullion to start with.

Platinum is heavily influenced by industrial needs. A while ago because of its use as a catylist, especially for fuel cells, there was a massive price surge. However, it turns out it wasn't as rare or as important in industry as thought. It's still rare and important, but markets were hyped. I feel it will fall into the silver trap. Demand is relatively arithmetic and so is the supply.

Palladium I feel will end up where platinum is. Both of these don't have the 1000s of years history of silver and gold. Palladium is the newest to the mix.

Gold...gold...gold, this one is the best. Nothing bad to say about gold. Out of all the precious metals always go with gold.

Certificates and other derivatives are fine, too. Actually, they are the cheapest especially if you plan on trading and not just stockpiling it until you die or get robbed.



0
0
0.000
3 comments
avatar

A very interesting comment , Gold you say is the deal but there is no scarcity there either , at some point they will reach deeper layers under the ground and find way more gold , therefor crashing the value , also the market , like precious stones is controlled , i ve heard Russia has special diamonds 10x harder than our regular diamonds and they ve got millions of them in a specific area , that says it all, Any markets can be rigged and they are .
I read you dont go for silver but considering the low price of it to me it is a great investment .
Thank you for your insight

0
0
0.000
avatar

There are definitely more gold reserves out there. The price may also be capped when it becomes more economically viable to mine. Unlike silver, we aren't even close to that number yet.

Another huge red flag with silver is distribution. It has been cornered a few times. It's impossible to do this with gold.

Silver also spiked 8 years ago because its use as an antimicrobial agent became trendy. However since then we have found out copper and a few far cheaper base metals like zinc are no more toxic and just as or more effective. So silver's industry demand has dampened.

Gold on the otherhand has extremely unique properties.

Diamonds are a well known market manipulation and can be produced artificially. Their value is intrinsic.

The microdiamonds are harder than gemstone diamonds, but not 100x. Are you thinking of carbon nanotunes? Thats just graphite and only expensive in large perfect quantities.

0
0
0.000
avatar

Yes i get your point that is why i wont buy official coin silver but rather have a collection , it is beautiful , useful and is worth more than the plain metal .
For the diamonds in russia it is a very odd story , i dont know what to believe , it still turns in my head but it was like super diamonds they found out of nowhere and nothing like those on earth anywhere else .

0
0
0.000