Buying Precious Metals Options

[TheGrim]

Hi all, I've been watching the markets lately and have been purchasing silver myself.

My plan is to be a pirate..haha, no but seriously, what do you all think of acquiring PM's as a way to preserve on's purchasing power.



Grim

[Rev]

Hi all, I've been watching the markets lately and have been purchasing silver myself.

My plan is to be a pirate..haha, no but seriously, what do you all think of acquiring PM's as a way to preserve on's purchasing power.



Grim

you got that right... Silver will out prefourm gold. I have been following it for over a year now. PM's are the way to go for now but buying silver coins is good but not rare ones. the best pm on silver is GORO> look it up in Yahoo.

Rev.

[Cpt. Snot Rocket]

Personally, I would never touch PM's. The volatility is crazy. I know its gaining against a sagging US dollar right now but it still ain't worth it. If you bought gold in the mid-'80's it would be worth exactly half of what you paid for it. And lately the average annual return is around 4% and that certainly isn't worth the risk.

Gold and silver have little intrinsic value as opposed to realstate.
Also, gold/silver produce no income (like stocks do) and can be costly to store and insure.
If you must, then buy mutual funds through an IRA to avoid storage, insurance costs, and the tax penalty on any gains you might get.

Good luck! You'll need it!


This post has been edited by Cpt. Snot Rocket: 01/23/08 2:04pm

[PFC Mustangman]

We always put our money in a mason jar and buried it next to the ole oak tree.

[Kleerance]

I think it's a good hedge to the dollar. But precious metals have been rising for a while now so there is a slight possibility that you are a bit late to the party. Remember historically in every significant economic downturn basic materials and precious metals have fallen in price as well. That's because when the world's economic engine (United States) take a break so does the demand for these goods. Personally I would buy some asian currency instead (I'm short USD)

[Rev]

That is exactly what I would stay away from right now "Fiat Currency".

Listen to what Ron Paul has to say about it…

The best investment you can have right now is PM stocks in junior mining. Not so much gold but silver because the mass is already on to gold but not silver.

The recent "dip" in the markets right now makes it a perfect opportunity to jump in and make a killing this year… Silver needs to rise to 40$ oz so buying at 16oz is a still a bargain and silver is particularly exciting today because gold has just broken out to new highs of its own. $900 gold is starting to get global investors really excited about the precious metals again so when their capital starts to chase silver in earnest, its tiny market assures its gains will be fast and furious like usual. What an exciting time to be long silver and silver stocks!



Rev