Bullion? Anyone hoard precious metals?

I am wanting to get into precious metals (silver) as an investment. Researching currently and learning lots. Any members here on FHC have any knowledge to glean?

 

got some knowledge.. do you have questions? straight up if you want to get silver.. biggest problem with holding bullion is how are you sure what it purity is and value unless you are a chemist.. therefore easiest way I have found is old coins easy market out there if you need to sell ...buy it right look at estate auctions not off to commercials or store..

 

What is referred to as "junk silver" (pre 1965 US Coins) makes the most sense to me. It is easily recognized, readily traded and not as apt to be bogus. One of downsides to widely circulated coins is they actually can lose weight due to wear. They are worth about 11.6 times face value today.

 

I have been looking at buying from reputable dealers, possibly even with assay cards to ensure validity. I have just been reading about junk coins as a form of bartering. This aspect of hard currency is important to me because I don't really have a lot of faith in our banking system. I really like the break apart bars as they would be easy to "spend" compared to 1oz bars and no matter how you stack it, it's still an ounce of silver and valued as such.

I do understand that I pay a premium when buying from dealers, but it seems that the proof marks and such on the bars should be easily identified as legit? I'm going to be in this for the long run, so I don't mind paying a bit over spot. I was going to ask if you have a preferred place to make bullion purchases. I would like to pursue the "hobby" aspect of coinage and such, but don't have the time right now in life. This would be more from a strictly investment aspect.

I guess I'm just looking for things to avoid and possible good ways/places to purchase. I would like to supplement eventually with some gold bullion as well.

 

my experience in world wide travel is those proof marks are pretty easy to fake... because of my license and insurance requirements giving out advice I have to be careful on... your level of knowledge and asset would determine (quantities here) whom to recommend... assuming you are not a "qualified" investor.. I can make a few calls in am... first question if you don't trust banking system... we could get into a long discussion of the Fed the secrecy that surrounds its beginnings coming off gold standard the impacts of these decisions etc why the United states changed the laws from pensions to investment accounts 401ks and did not even teach people what that meant and my all time favorite investment advisors that charge a % of your assets not a % of their achieved returns most are salesman not advisors and all the rules that get put in place to protect the small guy which does protect them from complete loss but also gains

but in short if the system crashes why do you want silver to barter I assume.. in a barter system I personally believe find a good source of MREs much easier to barter with

 

I doubt that I am a qualified investor. I'm not looking to cash out a 401k or take a large inheritance and turn it into precious metal or anything. I'm looking to run it just as I would an IRA or savings accounts making small purchases regularly.

As far as bartering goes...silver doesn't spoil or have a shelf life. Also, I can grow or trap/hunt for food. If I am unable to do so, I suspect that silver should buy me some food or other supplies in event of....really bad stuff. Gold and silver were the cornerstone of commerce before we got tricked into paper money IMO. There is a feeling of security with precious metals that a bank statement can never give me. If things never go bad, history dictates that the bullion will always have value. Gold was revered by cultures before they even knew what "money" was.

Back to the banksters. I don't know them, they don't know me and I'm supposed to trust them to act in my best interests. I watched everyone in despair after they lost 50% of their retirement in 2008 by no fault of their own. Not for me. I am the captain of my own ship when it comes to retirement. I'll not rely on others to make it happen for me. I plan to have hard money. Whether this is a good decision or not I won't know till the time comes. But good or bad it will be based on my own actions and not reliant on the markets or an advisor.

I have been slowly stockpiling other forms of barter as well including ammunition and antibiotics. I guess my idea of a portfolio differs from most?

I don't want you to waste your time contacting folks on this. I'll likely settle in to a 1-2 oz purchase every week or two...peanuts for most people. I figure if I stick with that, I should accumulate a decent amount over the next 30 years.

Let me ask this though about proof marks... If it is easy to forge a proof, why is it not easy to forge coinage? Especially junk coinage?

 

Don't react to this as condescending
But here in lies the fallacy of bullion being U.S. currency - it isn't, and baring a meteor hitting earth it likely never will be
You can use a small fraction of your investing portfolio in metals to hedge against inflation but that is all your are doing i.e. trading some portion of silver for thousands$$ of useless dollar valued goods in hyper inflation.

If it personally makes you feel better buying and holding some metal(they do kind of have a nice feel) by all means invest a little bit(10% or less of your portfolio) in metals.
Just remember you can't eat a bar of silver or gold so if the SHTF they may not even be that valuable(worst case scenario) or they are exchanged for thousands of worthless dollars(more unlikely best case scenario) to buy needed goods.

 

if that's what your comfortable with go ahead! as for most metal is can be copied but older metals can be tested but so can't fine art can be copied too the older metal is much like older paper had a different composition

 

I realize that if the situation were bad enough...not even precious metals will have value. A la The Walking Dead. But it will damm sure be more valuable than a Grant or Franklin. Always will be. Can't eat bullets either, but they will procure food one way or the other, right?

I actually find it confusing that people have more faith in what they see on a screen or folded paper in their pocket than silver or gold? If shtf bullion is worth more than any other currency besides maybe a truckload of Charmin and Crest. Are people going to be checking NASDAQ after an EMP event?

I suppose maybe I'm the idiot, but darned if I can figure out how?

I congratulate those who have faith in fiat currency. I myself, do not. I also refuse to become a slave to the DJI. I know there's money to be made there, but it's just too artificial for me.

Thank you for the insight and advice. I'll admit freely that I know diddle about "investing" and that's actually fine by me. I know lots of other stuff.

I'm not a true doomsday prepper, but I'm also not naive. The world is becoming a powderkeg.

 

I'm not an investing guru nor claim to be, I have as you do many of the real world skills that are/could be needed in a disaster scenario - but I don't figure to either expect that or want to live in a post apocalyptic world.
Clarification - you need to retire someday or provide long term security for your loved ones. you....
A. diversify your investments amongst a bunch of different markets and assume long-term trends will yield you the funds needed to retire comfortably..or
B. invest in precious metals that barely outpace inflation or other semi-secure investments because you believe the world will be such a chitty place that you'll have enough money to eek out a meager existence in it.

 

considering the state of our electrical grid and half the university on east coast have EMP or stuff to make them in their science labs your not crazy.. your trying to be prepared.. in case.. we're people that built fallout shelter crazy? I would say no..

 

not to derail the thread but what state would you consider the electrical grid in?

 

basod about the same as roads and bridges.. so a state of disrepair in the north east especially the Quebec to new York City corridor was put in with hydro (dams electric power there is called hydro) in 50s why we have brown outs in summer

reAL problem is in today's society how many can survive days without power.. losing power is not as big of a problem as people's response to it.. do you see Walmart and behavior of people when a hurricane is coming.. imagine 3 days without the AC in august!

 

I'm with ya on that one.
Heck, we couldnt do any worse than a couple of those hackers they feature every week...

 

I thought about saying that but thought better of it.... I knew Eric wouldn't resist the the temptation

 

I have lived in a hyperinflationary environment, and trust me, nobody was trading gold or silver. Worthless as it was, the paper money was still used. We went to the store with a backpack full, just to buy groceries. I once paid 18 billion for a freezer, which was the equivalent of $600 US. There were no functioning banks, just money traders. Holding US dollars was a crime ("economic sabotage"), and house to house searches were done to find it. The same can be done here for gold or silver, so if you hoard the stuff, don't let others know.

What was valuable were things like tools, or other useful hard assets. Basic skills (plumbing, electrical, welding, mechanic) were useful. Much that we do herre at FHC, and the stuff we do it with, will continue to be valuable in a bad economy. Gardening is a useful skill.

Anyone who think they will "live off the land," hunting and fishing, when SHTF is mistaken. The animals will be quickly killed off.

Buying gold or silver as a hedge is not a bad idea, but don't bet the farm on it, it is not truly an investment. It will at best hold its own in good times, and will be pretty hard to use in bad.

JMHO.

 

All I have to offer is simililar to what I offered in another thread. As interest rates rise, commodity prices tend to go down. Don't make your full investment all at once.

 

OK just for the record I am not a huge conspiracy mad planner... but in finance you are paid to analyze risk and returns.. I have found IME, it's not what you don't know... it's the things that you never even thought of.. so let's say the chance of an major disaster in your area is only 1 in 500.. it is still a risk that needs to be addressed...