Precious metals are still great investments

[Potemkin]

I'm not at all discouraged by the previous gold crash. Even the bargain-hunting pushed gold above 1,300 $ and I allow myself to hope for it to climb above 1,500 $ again.

To me, the signals, the signs are becoming clearer... this was a profit-taking short-selling dip. Perhaps the silence before the storm as someone wrote on a blog that I read a short while ago...

If we take account of a few key facts, indeed - precious metals are still very good investments:
http://www.primevalues.org/market-watch/why-still-believe-value-pms.htm

If I was a Cypriot, I'd like to have silver or gold in my hands...

Knowing that the Fed is keeping interest rates "tied down" until 2015,... makes me believe they are going to let go of the inflation after that. That's when we'll all be glad to have bought gold and silver!

Also, there might be a rally coming right now:
http://www.bullionbaron.com/2013/02/more-on-capitulation-in-gold-silver.html?m=1

The Gold GOFO just turned negative. Although I'm still learning about PM's... a bug, but no expert - I admit - From what I understand this could signal the next bull run:

It's strange that we're all worried about precious metals' prices in dollars. Why not worry about the worth of dollars?
It's deceiving to believe that this crash destroyed the REAL worth of these metals.

This "GOFO" might be a signal to "go for" it, so I'm into investing again

What I find interesting now is platinum: it didn't crash. Unlike gold and silver. Probably because there are no platinum ETF's.

It's great to own a bit of platinum now.

If the "gold era" were over (as the media, Roubini and others are saying), then why are platinum, palladium still holding on so well? Because the crash was artificial.

I don't think I have any doubt about investing in precious metals any more, no matter what the news are saying...

Following the agonizing news in the media and watching gold price fall for months... fearing my stack like for my kids, I now feel like I finally "found god" and believe in the price recovery.

Cheers :beer:

 

[Unobtanium]

Potemkin,
I see you have been hand-wringing quite a bit about the price of gold and silver.

Save yourself a lot of worrying. Gold will rebound back to 1500 and above, and likely well above. If you have purchased within the last year or two, just sit back and relax a bit and just wait. You won't regret your purchases. No need to worry. Don't make this harder than it is.

If you are a newbie, then it is best to be in this for the long run, and in today's climate gold will do well in the long run, and as such you shouldn't be worrying so much about that.

Save the short-term price fluctuations for the seasoned short-term traders, and don't lose any sleep as a newbie over the short term fluctuations because you are in it for the long run.

If you still tend to worry about prices, then stick with gold only and stay away from silver.

Stack PMs on a regular basis, relax, and enjoy the ride.

By the way, platinum did "crash". Gold went from $1900 in Aug 2011 to $1200 in June 2011. Platinum went from $1900 in Aug 2011 to $1300 in June 2011, and it even went through a much wilder ride than that in 2008.



Gold:

Platinum:

 

[pmbug]

Well said. "Investing" - seeking a return - is best done in the paper casinos. Saving (hedging against currency malfeasance) is best done with physical metal. Dollar cost average your purchases if you can.

 

[Potemkin]

Well, not that much of a newbie, just that I don't have a finance background and don't understand much from the charts. I've been collecting silver since I was a kid and buying gold in the past 2 years... Also: I'm reading, researching almost on a daily basis.

I bought gold several times above 1,700 $, so I was quite nervous as it collapsed.

But when watching the signs... I still think it was a good idea. I'm keeping it all and as soon as I have more fiat to spend on it, I will buy more!

Too bad I missed the 1,180 $ minimum, but I hope it gets there again, I'm on the waiting list for getting salary and will buy a few ounces more

Instead of studying a lot about gold, I gave more attention to the financial system, money etc... and one just can't trust the rest at all, so pretty much almost all you have left are PM's and land!

 

[Potemkin]

Well said. "Investing" - seeking a return - is best done in the paper casinos. Saving (hedging against currency malfeasance) is best done with physical metal. Dollar cost average your purchases if you can.

Right! It's saving...

But I think PM's can also increase profit: I'm thinking of silver investments...

 

[Jay]

I bought silver when it was ten dollars an ounce. I bought silver when it was 35 dollars an ounce. I got silver "free" by going through tens of thousands of dollars worth of change from various banks. It's all just sitting there. It hasn't gone anywhere. It hasn't increased in volume, it hasn't decreased in volume. I don't think about it. I like the remark someone on here made in response to "how do I know when to sell?" (don't know who, PMBug, DCFuser, Don'tdebase mebro).... thats gonna be my kids problem....

 

[benjamen]

Investment:
Buying an asset that gives you a stream of income.
Examples: rental property, dividend stock, buying a part of a small business

Savings:
Buying something that will maintain it's purchasing power despite money printing.
Examples: Gold, Silver, farm land

$.02

 

[Potemkin]

OK, OK, but savings can also bring profit and therefore they can also be investments. Why do we say "invest in property", "invest in real estate", "invest in silver"?

 

[Unobtanium]

Well, not that much of a newbie, just that I don't have a finance background and don't understand much from the charts. I've been collecting silver since I was a kid and buying gold in the past 2 years... Also: I'm reading, researching almost on a daily basis.

I bought gold several times above 1,700 $, so I was quite nervous as it collapsed.

But when watching the signs... I still think it was a good idea. I'm keeping it all and as soon as I have more fiat to spend on it, I will buy more!

Too bad I missed the 1,180 $ minimum, but I hope it gets there again, I'm on the waiting list for getting salary and will buy a few ounces more

Instead of studying a lot about gold, I gave more attention to the financial system, money etc... and one just can't trust the rest at all, so pretty much almost all you have left are PM's and land!

Keep reading and also hang around here for a while Potemkin, you will be a pro before you know it!