Why do you prefer silver over gold, and how do you recommend getting that $5-$8k exposure to precious metals you mentioned? Goldmoney, ETF, something else?
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Why do you prefer silver over gold, and how do you recommend getting that $5-$8k exposure to precious metals you mentioned? Goldmoney, ETF, something else?
I prefer Silver over Gold because it is actually much more rare. It is used in over 1,000 processes from solar energy, medical applications, car windows, cell-phones, water purification, etc. About 1/2 of the silver that gets mined gets used up by industry. As time goes on, the increasing use of industrial silver is outpacing the supply of silver being mined. Shortages of supply and increasing demand means silver will be going way up. Most of the rest of it gets bought up by large banks and investors. There is only a small portion of silver that gets bought up by small investors. Right now it's $15/oz. I think I'm going to be extremely happy when it's $120+ (which is being very conservative). It's going to take 2 - 5 years, but you have to be in your position before the big move - otherwise you will miss out.
That being said, the amount of $5,000 - $8,000 in silver could be broken down 50/50 between silver and gold. A lot of this is "what if," because nobody really knows exactly how the wheels are going to come off of the world's economy - but a lot of people are saying it is coming; more and more every day. You can use up the silver to help maintain your current lifestyle if/when barter becomes necessary for daily living. There could easily be a time when the banks go on a "bank holiday" because of margin calls across several asset classes - they just won't have any money to loan and/or give out. Liquidity problems and credit freezes are likely to happen. (It's also a good idea to have a couple grand in cash in small bills.) This will also create a serious shortage of all kinds of resources (gas, food, clothing, etc.).
Gold is used more for a long-term store of wealth value, and can come in handy when paying off things like mortgages and other debts. IF there's a major currency crisis, precious metals will explode upwards while everything else collapses. If you don't already own your house, you could pay it off. If you don't have a house, you could go a long ways towards buying your first home (which is where I'm at - being unwilling/unable to go into deep debt with a big mortgage). For houses/real estate you'll need more like $10K - $12K at todays prices. If you hold 1,000 oz of silver, I hear it creates "life-changing wealth" through a currency collapse. I'd like to change my life for the better. I also think it will be better for me if a lot of other Americans do the same thing, and change their lives for the better.
Worst case scenario: I saved my money in the form of precious metals and end up selling them back in 10 years for no profit. It's a guaranteed no-lose investment, if you time your sale for a normal upwards move. Best case, you come out with $30K, $50K, $100K or more.
In the recent crash in Venezeula, gold and silver prices moved up about 2,400 times (not %). In that case, gold actually outperformed silver - but you're not going to buy food, gas, and pay your rent with gold - you'll use fractional silver.
And, obviously, I'm not a very wealthy person in today's world. So, an ouce of gold for $1,200, or a 10 ounce bar of silver for $150 ??? If you have the money, get some silver and put the rest in gold. Many of the big fund managers have recently advised clients to change their holding of precious metals from 5 - 10% of their portfolio up to 15 - 20%. That's a very reasonable and doable move for most people with significant investments. Personally, I much prefer the real shiny to a promise on a piece of paper, or a digital asset which can be manipulated by big money.
How do I recommend getting a position in silver and gold? I buy what I can, when I can from bullion dealers: APMEX, SDBullion, Golden State Mint/Silver Shield, JMbullion, etc. A little web research on your own part is best, then sign up for the emails and they'll send you notice of special sales. There's also a yearly SteemIt silver round that's been put out for the last 2 years. Or, go to your local pawn shop and get to know the people there - you can sometimes buy silver and gold rings/jewelry for the cost of their weight, or find small bars, coins, and rounds. Wherever you live in the world, there's usually a shop in town with a sign, "We Buy Gold." Go and talk to them. To me, it's always preferable to hold the real thing in your own hands and have it when you need it. If the bank shuts down my account and debit/credit card, I'll be WAY better off than most people I know.
Thanks that was really helpful! Where/how would you recommend I go about getting $10k of silver and/or gold?
I highly recommend Lynette Zang and ITM Trading. They have a great YouTube channel with contanct information and the best educational videos: https://www.youtube.com/user/itmtrading
Or:
American Precious Metals Exchange
https://www.apmex.com/
They also accept BitCoin for payment if you set up their wallet.
If you have an IRA or 401(k) check this page out: https://www.apmex.com/ira-benefits-gold-ira-silver-ira
Thanks for all of the info, and sorry for so many questions! Hopefully you have time to answer one more...
What do you think of goldmoney.com for precious metal investments? They are heavily promoted by people on Steem but just wanted to get your thoughts as well.
I can't speak about their services from any personal experience, but I am somewhat familiar with some of their ideas. I like the idea of having your precious metals value held for you on a debit card that you can take and spend anywhere, as you like. And, I like Mike Maloney - he's one of the more knowledgable and gifted communicators when it comes to teaching other people about the precious metals market. I don't know of any reason not to use GoldMoney, if that's what you are interested in checking out. I've never heard any bad news about them.