Oh no…one of THOSE blog posts!
Not really. Actually, not at all.
You want doom and gloom information, go elsewhere. We’re all about keeping it positive. Right? And, for every person who claims the dollar is on the rebound, there’s probably a “gold bug” out there who says you should capitalize now, while prices are where they are.
Also, timing the market makes little sense.
But let’s get honest for a second. Here are a couple facts – whether we’re headed downhill as an economy or things are on the rebound – the following holds true:
Gold, Silver and Platinum are real, tangible items that you can hold in your hands. They store value.
So, let’s take a little different approach on your road to 10KaYear, as we talk about whether or not to stockpile precious metals in your basement. Let’s start with the “What” and “Why” for doing this:
A little at a time, as a hedge against the unknown.
Also, don’t ACTUALLY store it IN your basement.
AND, if you DO, don’t tell everyone.
Get started by knowing the basics
Gold is trading, as of this writing, at around $1575 an ounce. Platinum is a little more expensive: a little over $1600 an ounce. (Pay attention to that ratio: it’s right around 1:1. More on that in a few moments.)
Silver has always been cheaper than both – $28.75 an ounce (give or take).
If you were alive back in the early 1980s, you might remember when there was a bull market on both gold and silver (platinum, while also in a bull market, had been way out of reach for the everyday investor for a long time). Then it stopped, and you had a bear market for what seemed like forever. Then a bull market again. And so on, and so forth.
See chart one: Gold back in the day.
The historicals tell you…what?
Good question: if you’re an investor, the 1968-1999 chart over there probably tells you that you may have been better off investing in something else.
If you’re a saver, you probably had a little gold in your portfolio but, if you were saving during the Clinton Administration, you may have had money in things like tech stocks.
Timing the market in any situation is a tough, tough thing to do.
In any event, actually, historicals won’t matter as much as the info on the next chart…also from Kitco.
If you have an ounce of gold, it will be worth about as much, in US Dollars, as an ounce of platinum. And either of them will be worth about 50 to 60 times as much as an ounce of silver.
There’s your basic lesson – sure, there’s much more by way of macro-economics to this whole discussion. We could move to the Gold Standard (not likely), or there could be a movement for states to break off and have their own gold- or silver-backed currency (like the fine folks in Utah). But the reality is this: Gold, Platinum and Silver are all stores of value. So the real lesson, and the reason for this post: getting your hands on some.
How, Where and When to Buy Precious Metals
Two ways to get precious metals: one is to have a fund that is backed by metals, and the other is to actually HAVE the precious metals.
We’re going to recommend the latter: something you can hold in your hand (or have your safety deposit box hold in its hands) is better than something that is on a piece of paper.
Actually, that covers the “How” (order online or go to your dealer) and the “Where” (online, dealer). What about the “When?”
When? A Little at a Time…
We can’t stress that enough: we’d love to say we have all the financial answers, but we don’t. We’d also love to say that we have a foolproof means of protecting against things like inflation, currency meltdowns, or worldwide financial crises. We don’t.
And, in keeping with the positive nature of this site…
Well, if you start now, and set aside a little out of each paycheck, or a percentage of each side gig, and bought yourself something tangible…how do you think that will make you feel? Empowered? Safe? Secure? Like a kid?
Maybe what you’re looking for is all of the above, and a bit at a time.