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Originally Posted by JFK
Having an oz of gold or silver, is not a good investment at all.
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Who said they're supposed to be investments? If I want to invest, I'll put money in real estate or stocks or in a business not in a metal like gold or silver. Gold and silver are simply money, an alternative to fiat currency and, over time, a superb store of value. A lot of people have forgotten since dollar was taken off the gold standard.
Today, the paper notes you carry around in your wallet are technically just currency (not money) and as you've seen with all this QE, totally subject to abuse and dilution of value.
For that reason, many investment advisors recommend everyone should have at least 10% of their liquid assets in the form of gold or silver as an insurance policy. There's so much debt in the world and in particular the US, that id say its pretty crucial today.
Then again, if I look over the ten year period from 2001 to the nearest peak at 2011, Gold went up around 600% and silver around 1000% - so even if you do call it an investment, I'd hardly say that was a poor performance.
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We see people pretty much daily, trying to sell their wafers, that they bought when the metal was high, now when they need money
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Sure but in any market you have buyers, you have sellers. Do you see people daily selling their stocks? No because stocks are not a physical asset. The basic rule is buy low and sell high but people have a tendency to buy something when its already gone higher and gets some media attention rather than buying when its on sale.
End of the day, the whole point of owning physical gold and silver is basically to own an asset that has "zero counter party risk". If you own it, you carry something with an intrinsic value that isn't linked to any banking system, central bank, government, counter party etc. It's a total pain in ass because security and storage is a nuisance but it's one of the very few ways to own an asset that isn't tied to a counter party in one way or form.