Which precious metal(s) to invest in?

[JHZR2]

Originally Posted By: helix_rider
Originally Posted By: yeti
helix -- in your OP, you asked for "any comments/tips/suggestions ?" jhzr2 responded accordingly.


Sir, you are correct. JHZR2 - please accept my humble apology. I am sorry for the sharpness of my response and I hope that there are no hard feelings. I could've/should've worded my response very differently. I was wrong and that is why I am publicly apologizing - i'm one to openly admit when I am wrong, and this is one of those times.


Anyway, Yes I realize that with prices up it's not the best buyer's market. But, what if this is only the beginning? What if prices of precious metals continue to rise? Then I will have missed out on more than I already have.

Even if I do buy now and the price drops later, in time the prices will go back up, i'll just have to be patient.


No worries. My comment was based in the cycles that this stuff goes in, which can be extremely long. Gold bottomed when? 98-2000ish? There was a lot of doom and gloom then, as multiple central banks were selling gold stockpiles and people thought it would become worth very little.

Obviously folks who bought back then have done quite well... But at the same time, folks who bought in the early 1980s still may not have recouped all their money in an inflation-adjusted manner, so see why it is a tough thing that you need to be keenly aware about? IMO there is far less risk in equities of high quality companies, where at least the dividend may pull you up/out of a hole in time.

Ive done quite well over the last few months with DJP. Bought it in the summer.

 

[javacontour]

I keep about 5% of my portfolio in the USAA Precious Metals and Minerals Fund (Ticker USAGX)

When it grows faster than my portfolio, I sell a little bit, if the rest of the portfolio is growing faster, I buy to keep it at about 5% of my total holdings.

Precious metals MAY be PART of a well diversified portfolio, but no one investment should be all of your holdings. Just ask the Enron folks who invested everything in their company stock.

Spread it around. Unless everything collapses, you should be fine. If everything collapses, you have bigger problems than what the value of your portfolio might be.

 

[Kestas]

I remember the gold fever when it hit $400 per ounce some 15-20 years ago. The price stayed flat for about ten years after that.

 

[Spazdog]

Originally Posted By: wallyuwl
Originally Posted By: Spazdog
Why would anybody be considering gold now?

The old adage goes, "Buy low, sell high."


Because gold is cheap compared to what it will be. The fed just announced it will print another $600 billion by April, on top of the $1.7 trillion it has printed in the last two years. Inflation is coming. So gold (and other commodities) will go up sharply. Gold in particular, though, seems to be in high demand by both investors and nations. It is quickly turning into the world's reserve currenty, instead of the US dollar.


I think it's artificially high right now. Spurred on by certain talk show hosts that have people rushing out to buy Swiss gold coins and when the price tanks, they'll lose thier collective butts like all those people who bought silver high in '79-'80.

 

[CivicFan]

Originally Posted By: Spazdog

I think it's artificially high right now. Spurred on by certain talk show hosts that have people rushing out to buy Swiss gold coins and when the price tanks, they'll lose thier collective butts like all those people who bought silver high in '79-'80.


When you start seeing vending machines selling gold and people start asking about buying gold on oil forums, it is time to sell the gold you have.