To invest in Silver Bullion or Firearms?

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futures

Anyone who put $3038 + commision into a futures contract last week more than doubled their money if they sold MOC yesterday. 4/19/2006 silver went up 73 cents. At $50/cent, it went up $3650/5000 oz contract in one day. Prices uusally fall faster than they rise. So, BUYER BEWARE.
 
Don't put all your eggs in one basket! Diversify your investments.

That way, if one investment tanks, you may still come out ahead.
 
Gold and silver are good investments. Purchase gold coins and silver coins. Take possession.

Guns are also a good investment, but the caveat is they may all be illegal in the long term.

If you are willing to cross the line then I say go for it because you will make money. When that time comes I don't think that it will make any difference.

Quite a few of you have shown that you do not have the stomach for this type of investment by your previous posts on subjects dealing with legalities of ; i.e. sending guns to another state without an FFL; convicted felons owning guns after they have served their sentences, etc.
 
Gold and silver are good investments. Purchase gold coins and silver coins. Take possession. Way back when our monatariy system was based on silver.

Guns are also a good investment, but the caveat is they may all be illegal in the long term.

If you are willing to cross the line then I say go for it because you will make money. When that time comes I don't think that it will make any difference.

Quite a few of you have shown that you do not have the stomach for this type of investment by your previous posts on subjects dealing with legalities of ; i.e. sending guns to another state without an FFL; convicted felons owning guns after they have served their sentences, etc.
 
I have a good friend who recently pointed out that 5000 rounds of .22 ammo is only about $80 on sale.

I think the barter value of a litte 22 ammo may be worth its weight in gold or silver at some point.

A .22 is a great little round and 5000 rounds of it will go a long way.
 
For the curious, what options are available for those folks who may be interested in keeping a small ($1,000 or less) amount of precious metals on-hand, and don't want to worry about remelting/assaying? I've heard that silver doesn't generally need to be re-assayed, at least in, say, 1oz or 10oz pieces, but what about gold? Where would someone find more information on those "plastic, tamper-resistant packets of gold from Switzerland", etc.?

I.e., a trusted, easily-tradable, portable way to purchase a small quantity of precious metal which isn't subject to "collector" economics or expensive procedures on resale.
 
The "Oracle" Always Knows What He's Doing

One "B" share of BRK wiill give you his entire portfolio. Go for the silver. Hold on to every gun you have..you might need it sooner rather than later.

Before I get booted for topic content, just a regular prime rate money market account is pushing 5%. That tells me a lot. Saw my first $3 gas here in San Antonio yesterday.

Keep those guns.

Take Care
 
WeedWhacker,

Go buy US Silver Eagles. They are one ounce coins of pure silver. Small, easy to sell individually and recognized everywhere.

I would never get bars simply because a large bar can not be divided and small bars may or may not have recognition problems.

US Minted silver coins, no problem and you can buy them one at a time or in batches. They usually run two dollars over spot.
 
Best of both worlds:
goldak-x.jpg


In that excellent Venezuelan SHTF article, the author noted that plain stamped gold rings were much easier to trade than coins or bullion, since they were much smaller. He suggested stocking up on a modest supply of 24k rings.

I think I am going to purchase some small pieces of silver bullion, 1 oz or so, since it is an easy purchase given my current budget.
 
Back in 1999, I bought a bit of gold & silver coins.

You can buy 1/10 oz us eagles. They cost a few dollars over spot, but are in fact money.
 
I'd go with precious metals. Most of the guns I would consider to be investments are those highly desired by collectors. NFA weapons' prices have been climbing steadily since 1986-true. However, this is because of government distortion of the market. You could wind up in the situation of the folks who are still trying to push their weapons as 'pre-ban' in a vain attempt to recoup what they spent on them when the AWB was in effect.

I don't think that buying weapons whose only increase in value is due to government distortion of the marketplace can be termed 'investment. The true term would be speculation. This doesn't mean that it is necessarily an unprofitable activity. It just means that the rules are different. People make tons of money from speculating from a knowledgeable standpoint. People lose tons of money by mistaking speculation for investment.
 
So someone help me out here

I can run around in real estate and stocks, but metals confuses me a little. Not something we got into academically too much outside of history in finance classes. Thanks for some of the insights.

1) Seems many of you say to buy it physically. I can see the reasoning on it. However from my experiences buying is usually not a problem, selling is. So if I buy coin or bar, who is guaranteed to buy it? If the dollar falls so crazily and you wanted to sell some, who's gonna buy? I figure you have to transport it yourself to do the trade. So you figure many other metal holders may be out there pushing to sell too.

2) So why does GLD ETF sound good then if people say buy it physically? It does for me, but it is just a certificate of a share in gold, right?

To the thread, I don't really consider firearms investment grade items - and more like others say like cars, collectables, etc. It is not accessibly traded, and barriers to trading exist heavily by laws that are aimed at preventing exchange.
 
Take physical possession of metals: coins, ingots, bars. The 10 oz bars
of silver I have have more than doubled in price which is nice as an
investment. But if you're looking at "portable money" short of SHTF,
then 1oz silver coins and more preferably any weight of gold coins (1/10
thru 1 oz) are great. The US$ is losing value against all other major world
currencies, but precious metals are not. Even if you have US Eagles, they
are still a precious metal and can be exchanged for whatever other
currency in the country you land in minus a transaction fee.

It doesn't hurt to have coins from other countries --the Canadian
gold Maples are 99.9% pure unlike the Krugers.
 
Don't believe the hype, folks.

Precious metals are NOT a good investment over long term periods.
The price is volatile, and dependant as much on supply as on demand. What do you think will happen if a couple massive new gold or silver mines are discovered and the market is flooded? Your metals will become much less valuable overnight.
Metals are a high risk market better left to day-traders and survivalists.

Also, ALWAYS take delivery of marked, sealed metal pieces. The 'allocated storage' people... Have you SEEN your investment with your own two eyes? These companies could fold up shop and disappear overnight, taking your 'investment' with them, and you would have little to no recourse.


If you want a safe, secure, long term investment that will actually make returns consistently, invest in a diversified stock portfolio and government bonds. Real property is too volatile long term, and subject to non-market devaluing forces, like fires and floods.

If you must, buy good-or-better-condition military surplus weapons that have a following right now, like Swiss K-31s, Enfields, Mausers, and rarer variants of Mosin-Nagant rifles, as well as the milsurp pistols. The prices on many of these are artificially low right now, and as soon as the import supply dries up prices will surge, as happened with the Swedish Mausers, for example. NIB guns are a fair Long Term investment, but will take many, many years to accrue value as they are obviously still in production and can be had in a store.
 
For the curious, what options are available for those folks who may be interested in keeping a small ($1,000 or less) amount of precious metals on-hand, and don't want to worry about remelting/assaying?
Click to expand...

I'm a big fan of pre-1965 silver coins (dimes, quarters, halves). $1 face contains 0.714 ounces of silver, so if silver is $13 per ounce, you should pay $9.28 plus a small premium for 10 dimes / 4 quarters / 2 halves.

http://www.ajpm.com/htbin/silver.cgi
http://www.ajpm.com/htbin/gold.cgi

Also keep an eye out for pre-1965 silver coins on eBay.
 
$1000 is not even worth considering precious metals. I am a retired pawnbroker/bullion dealer and at the present time, I have more bullion than at any time during my career.
The dollar is toast.
We make nearly NOTHING.
Our debt is STAGGERING.
You WILL see FAR higher gold and silver prices. China is growing, India is growing....and the US only has a bunch of CONSUMERS.

You don't take "need" to a football game. You take a FOOTBALL.

As our standards decline, the Asians are expanding. WHEN they are self sufficient (from our loyal purchases of THEIR goods) they will then have an expanding consumer economy of THEIR OWN.

AND....at that point....they will not need us nor care about us ...except to buy our real estate from our broke asses with a depreciating currency based on overpriced houses, undereducated kids, and no factories.

YOU decide. Are metals foolish investments?

Tell me what is better. Listen to Bob Stinker on the radio and he'll tell you to buy no load mutual funds and that's ALL he knows.

Buy foreign bond funds if you buy bonds. SOME US bonds. But be prepared to see our dollar completely at the mercy of Asia in the very near future.

Buy some Canadian oil royalty trusts. SEARCH out the DECENT ones.

Get expert help if you do not know how to analyze them yourself.

But....do NOT expect this declining nation to be able to support the debt it has. Your kids ...should.... hate this generation for what we have ALLOWED to happen.

I have a full 50% in gold and silver bullion at present. The balance is in foreign bond fund and a COMMERCIAL ONLY reit (which I watch closely) and oil distribution and natural gas wells.

Stuff you NEED!

Get ready for the ride of your life. It will be interesting.

NO guns will be "investments." Except in the pleasure they give YOU.

Guns WILL be in demand if they are modern and use readily available ammo.

:)
 
I should amend that post to say that $1000 per month would be worth considering. But $1000 is a nearly insignificant amount to most of the world. US "workin stiffs" have a hard time with a grand, but the foreign investors realize that it now only represents an ounce and a half of gold.

Buy physical metal over time. You will be glad you did. Especially when India and China have eclipsed the US in EVERY arena.

We USED TO BE the best country in the world. No longer. Yes, we are the most FUN place to live, but the growth of China leaves no doubt that it is NOW the greatest "country." And with a dictatorial government, they can see to it that they STAY that way.

It's a new world, folks.
:(
 
Nathanael_Greene
silver dropped $2.13 in New York today. Somebody got hammered, no doubt.
Click to expand...
Silver and gold are constants. Where there is a change in the relationship between the dollar and silver, it is the dollar that has risen or dropped - not silver. This is what floating currencies like the dollar are subject to.

The steady fall in the dollar is one of the reasons it sometimes takes so many of them to buy a barrel of oil. But if you notice, even with these fluctuations, temporary level offs are rarely back to that of a year or two previous. This is the devaluation of the dollar, and why every decade or so since the late 1940s it takes five to ten times as many of them to buy certain items etc. A car is a good example; look at how mnay dollars it cost to buy a new car in 1950 compared to today.

wingnutx
In that excellent Venezuelan SHTF article, the author noted that plain stamped gold rings were much easier to trade than coins or bullion, since they were much smaller. He suggested stocking up on a modest supply of 24k rings.

I think I am going to purchase some small pieces of silver bullion, 1 oz or so, since it is an easy purchase given my current budget.
Click to expand...
This makes alot of sense. I think old worn low denomination U.S. silver coins are a good idea as well; specifically dimes, quarters, half-dollars and dollars. The ones with little or no collector value. Easily recognizable, and usable for small transactions.

--------------------------------------------

http://ussliberty.org
http://ssunitedstates.org
 
Odysseus,

I'll take an amateurish shot at answering your questions, or at least toss my thoughts your way:

1) Seems many of you say to buy it physically. I can see the reasoning on it. However from my experiences buying is usually not a problem, selling is. So if I buy coin or bar, who is guaranteed to buy it? If the dollar falls so crazily and you wanted to sell some, who's gonna buy? I figure you have to transport it yourself to do the trade. So you figure many other metal holders may be out there pushing to sell too.
Click to expand...

1. I don't think there's any guarentee that anyone will buy anything from anyone. However, gold has been a medium of exchange throughout recorded history. Seems like someone always wants the silly stuff.

2. Most large cities have bullion exchange houses. You walk in, give them your metal, and they give you dollars or a check. In smaller areas, coin shops serve the same purpose. Usually you sell for spot, buy at spot plus a small markup.

3. As far as competing with other common citizen types if you decide to sell, I don't think the average American holds much in the way of metals. Know anyone with a pound of gold? How about 100 ounces of silver. Those people are out there, probably a few on this board, but they're in the minority.

If the dollar drops and you want to sell, do you think most people would prefer to have a devaluing dollar in their hand, or an ounce of silver? Don't think you'd have a problem selling.

If you have gold or silver eagles, I can't imagine you'd have a problem getting rid of them. They're highly liquid. Ninety percent silver coins, war nickels, forty percent silver halves, etc. are slightly less desireable as they have to be refined to extract the silver. Same problem with sterling silver, not quite as desireable nor as liquid as pure silver.

All this is strictly personal opinion and worth what you paid for it. :D

Oh yeah, if you buy - take possession. Would you buy a gun and let the dealer keep it for you?
 
Let's see, do I buy $10k or $20k worth of gold and silver that pays 0% interest and no dividends year after year, or buy a CD at SunTrust where the current APY is 5.25%? Decisions,decisions, decisions.

I know what I paid for my coins in the '50s and '60s - face value - and I know what they've returned - zip, they just sit there. Okay, so they're worth more, they haven't put a penny in my pocket yet. I'd sell them, but it's too much work to haul them around.

Guns, now there's something you can get some use out of. :)

John
 
I believe lead, brass and copper may have the best value in the long run ( in the proper configuration :) ) Other good investments might include potassium nitrates or other base minerals.

Been a bit pessamistic recently.:cool:
 
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