Today, Saturday I just bought a couple grand worth of Silver

[Tacitus]

I just saw this page (https://www.goldmoney.com/research/flight-into-dollar-intensifies), which believes that there is a massive flight from many foreign currencies into the dollar, and this demand for the dollar is causing the paper gold price to go down in terms of the US dollar, while demand for physical remains high.

[Caveat: Reader beware. I have no idea how good the linked information is. It just seems to align with what I'm seeing.]

 

[Tacitus]

Gold dipped to $1650ish...nothing available at the LCS (local coin store).

Then, gold goes back up to $1750ish...suddenly British Sovereigns are available at the LCS.

I guess someone came in and sold a bunch they were holding.

Some Sovereigns (not all, but most of them have St. George killing the dragon on the back):

 

[angie_nrs]

So, did you make a purchase?

I thought you might like this Tacitus.

 

[Tacitus]

Ha! I do like that!

And, yes, I did make a purchase. I was displeased that I did not have enough cash to buy more. They are probably sold out already.

Sovereigns are still around 4% premium, which is nothing. Krugerrands (1 ounce coins) were also at 4%. American Gold Eagles, which usually sell for around 4%, were selling at an 11% premium for whatever reason.

I love Sovereigns. They've been money for more than 200 years, and at the height of the British Empire they were made in mints in North America, Europe, Africa and Australia, which give them great recognition worldwide. And, they are about a quarter ounce (.2354 oz troy), so a more convenient size. Anything else less than a half ounce usually comes with a major premium.

The next best thing to get is the 20 Francs size, which is about a fifth of an ounce (.1867 ozt.)...the Euro before the Euro...many countries made that size of coin in Europe, so it is also well recognized...it was the main competitor to the Sovereign. It usually goes for a low premium as well. Nice to be able to buy a gold coin from 100 years ago, and only have to pay 4-5% premium on it...and nice to be able to get smaller coins, which are more useful (easier to sell, trade, or otherwise cash out of...a $300ish coin is easier to use than an $1800ish coin).

Some 20 Franc coins (French, French, Swiss, French...there are others as well...the Rooster is probably the most common):

 

[zoomzoom]

Gold dipped to $1650ish...nothing available at the LCS (local coin store).

Then, gold goes back up to $1750ish...suddenly British Sovereigns are available at the LCS.

I guess someone came in and sold a bunch they were holding.

When I encounter situations where there's nothing in stock (at a low price), I figure it's because the store has put it back in the safe to hold until prices raise again. They probably don't want to sell at either a loss or a very nominal gain.

 

[Magus]

I used to buy wedding bands, unless I've been robbed, there is a keyring full in an ammo can somewhere. I can't find the damn can, it has all my Nazi coins and stuff in it.
Why Nazi coins? 1 I like WW2 stuff 2 German silver 3 I have a Deutschmark I was going to laminate into my 98K stock, decided not to, its in pristine condition, people who f*** up history Irk me.

 

[angie_nrs]

I used to buy wedding bands, unless I've been robbed, there is a keyring full in an ammo can somewhere. I can't find the damn can

I hope you find that can Magus. Tis one of the downfalls of having physical assets. Ya gotta keep track of them and ya gotta keep em safe. However, I'd much rather that those responsibilites fall on me than on a bank that I don't trust.

 

[Tacitus]

When I encounter situations where there's nothing in stock (at a low price), I figure it's because the store has put it back in the safe to hold until prices raise again. They probably don't want to sell at either a loss or a very nominal gain.

As far as I can tell, my primary LCS does not want to make money by holding gold and betting on it rising...while risking that the price drops further, and they have to hold onto it for months, or longer. Too much cash tied up in inventory, not making them money. That's what their customers do, not them.

They want to move it, in or out, buying or selling it, as fast as possible, so that they can make money off of premiums, and not be at risk of fluctuating prices. They are about volume sales, in and out.

From what they have told me, when it comes to bullion coins (I can't speak to collector coins), if they hold the coins, they are not making money safely (on premiums), and they have risk of prices changing, so they have a wholesaler who purchases from them. They move sovereigns and 20 Francs fast, either to consumers, or to the wholesaler.

What they will do, is adjust premiums when prices go down. So, for the first week after a major price drop, their premiums will be higher. But, in the second week after a price drop, their premiums start to work their way to normal. As far as I can tell, they play the premium game, and the high volume game; they do not play the betting on prices game.

Regardless, even after a $100 gain, I still knew I was a buyer. Gold is not Bitcoin.

 

[angie_nrs]

Today I bought some Platinum on the dip. I don't have much of that in my PM collection, but it looks as if it's at a better price than gold right now. Plus, I do believe Platinum is more rare than gold. Something in my head told me that today was THE day to pull the trigger on it, so I did. I usually don't regret listening to my gut. This wasn't even on my radar of things to even look at today, yet I made the investment anyways.

 

[Supervisor42]

Today I bought some Platinum on the dip. I don't have much of that in my PM collection, but it looks as if it's at a better price than gold right now. Plus, I do believe Platinum is more rare than gold. Something in my head told me that today was THE day to pull the trigger on it, so I did. I usually don't regret listening to my gut. This wasn't even on my radar of things to even look at today, yet I made the investment anyways.

Good shot!
And for watching the market!
People may slack up on buying gold jewelry in a downturn, but every gas-car made nowadays, will have your Platinum in it's catalytic converter.
I did some work at a plant years ago that made them, and when they brought in a pallet of the stuff that was only one-foot tall, it was flanked by 2 guards with M-16's slung on their shoulders!

 

[angie_nrs]

Dang, I wish I'd have waited until today to buy that platinum that I bought earlier in the month. PM prices have dipped, which is weird considering all the talk about foreign entities dropping the dollar. I might have to think about another small purchase very soon. I can't believe that these dips will last long when the dollar starts to plummet. I have no doubt that it IS coming, especially considering inflation is still on the upswing. Strange how MSM isn't talking about that, no?

I think one day I'll be very happy about my purchases. I'm already doing better than my IRA investments, even with this recent dip in PM's. Plus, I just feel better having metals in hand rather than paper on the market. Last year I substancially decreased our IRA investments and am putting that money toward PM's. I have not regretted that decision.

 

[BBLife]

I mined Gold for years for fun. Melted it all and made a doorstop out of it so it at least is paying for itself while it sits on the floor holding the door. In a different post I mentioned the wife found a half ounce nugget under a rock in the creek on our property. I panned a little working up the stream and found a good number of "flour" flakes and 2 nuggets that were about the size of a fat deer tick. Not going to go crazy digging but it is a blessing to know I do have it here on the property. Found one copper vein in a different area but no silver.

 

[Neb]

.... I have not regretted that decision.

Same here.

Ben

 

[Supervisor42]

Dang, I wish I'd have waited until today to buy that platinum that I bought earlier in the month. PM prices have dipped, which is weird considering all the talk about foreign entities dropping the dollar. I might have to think about another small purchase very soon. I can't believe that these dips will last long when the dollar starts to plummet. I have no doubt that it IS coming, especially considering inflation is still on the upswing. Strange how MSM isn't talking about that, no?

I used that same strategy when buying Exxon stock. I call it "stepping down the stairs".
It was down a bunch so I bought a bunch. It went down some more, so I bought some more. Repeat. $69, $60, $59.
That's the only way to guarantee that you buy at the bottom of the dip.

 

[angie_nrs]

I agree Sup. Being a buyer and not a seller, which is pretty typical of me anyways......I look at it two ways. When it goes up, I can do a happy dance b/c I just made money on my investment. When it goes down, I buy more b/c it's on sale and who doesn't love a good bargain? So, either way I feel good about it. Some think that buying PM's is a gamble. I don't. It's way better than going to the casino. If history is any indication of what's going to happen, then I'm feeling pretty good about my PM's. Plus, they're fairly liquid. I could go to a pawn shop and get rid of them anytime I want to.....if I wanted to, or sell them back to the place I bought them from.

I just went ahead and topped off the full order I wanted to place at the beginning of the month. At the time, they were low on stock and didn't have everything I wanted. I had an unexpected windfall this week, so I turned it into platinum.

 

[Neb]

I agree Sup. Being a buyer and not a seller, which is pretty typical of me anyways......I look at it two ways. When it goes up, I can do a happy dance b/c I just made money on my investment. When it goes down, I buy more b/c it's on sale and who doesn't love a good bargain? So, either way I feel good about it. Some think that buying PM's is a gamble. I don't. It's way better than going to the casino. If history is any indication of what's going to happen, then I'm feeling pretty good about my PM's. Plus, they're fairly liquid. I could go to a pawn shop and get rid of them anytime I want to.....if I wanted to, or sell them back to the place I bought them from.

I just went ahead and topped off the full order I wanted to place at the beginning of the month. At the time, they were low on stock and didn't have everything I wanted. I had an unexpected windfall this week, so I turned it into platinum.

Yes but the tricky part is determining when the price is "down". The Princess and I planned to buy more fold when the price dropped to $1250/ ounce. That never happened. Now we throw more money into fold when there is money in the budget and the trend is down over the last week.

Ben

 

[BBLife]

PMs are really only good for short term economic downturn or as an investment that you do turn back to cash when needed and the value is higher than when it was purchased. In a SHTF situation where society crumbles and people are just trying to stay alive, PMs may have value in the onset of the situation but if all you have is a bunch of gold to offer to someone that needs food in trade for water or other things then you may buy a $2000 carton of eggs with your gold bar because I know I would not care in the least for some shiny metal if I needed "stuff" to live. I'm investing in infrastructure now. I did invest in Gold back in the early 2000's but sold it all when it hit $2000 an ounce just like I sold my house when crazy people offered 3 times it's value.

 

[angie_nrs]

PMs are really only good for short term economic downturn or as an investment that you do turn back to cash when needed and the value is higher than when it was purchased. In a SHTF situation where society crumbles and people are just trying to stay alive, PMs may have value in the onset of the situation but if all you have is a bunch of gold to offer to someone that needs food in trade for water or other things then you may buy a $2000 carton of eggs with your gold bar because I know I would not care in the least for some shiny metal if I needed "stuff" to live. I'm investing in infrastructure now. I did invest in Gold back in the early 2000's but sold it all when it hit $2000 an ounce just like I sold my house when crazy people offered 3 times it's value.

I'm betting you haven't read this whole thread.

 

[BBLife]

Not all 18 pages. Just the last 2. But, since you mentioned it, I'll go back and look to see why.

 

[Supervisor42]

Not all 18 pages. Just the last 2. But, since you mentioned it, I'll go back and look to see why.

Don't feel bad.
I sentenced myself to homework also, and I can tell you that 18 pages takes a long while to read every word...
But I did .
Very much valuable info.

 

[lonewolf]

PM's may be okay as an investment in the good times but post SHTF only an ***** would swap shiny metal for food.

 

[bkt]

I'll save some of you from all that reading.

1. Some of us don't buy PMs as an investment. We realize the dollar - and all other currencies - are dead. PM is real money.
2. You don't barter with PMs in a SHTF situation. There are plenty of other more practical things to barter with.
3. Keeping PMs is a store of wealth. This will come in handy after the dust has settled.

 

[lonewolf]

IF the dust settles.
the world will be a vastly different place after TSHTF than it was before.
each to their own I suppose, I put my money in tools and seeds and clothing.

 

[zoomzoom]

each to their own I suppose, I put my money in tools and seeds and clothing.

And after you have all the tools, seeds, clothing and other essentials covered but still have revenue that exceeds expenses, what do you do with the excess $$$? For me, a percentage of that excess goes into precious metals.

 

[lonewolf]

And after you have all the tools, seeds, clothing and other essentials covered but still have revenue that exceeds expenses, what do you do with the excess $$$? For me, a percentage of that excess goes into precious metals.

I'm looking for land, to be used either for growing food or growing firewood.

 

[zoomzoom]

Land/real estate is often a good investment (depending on what you paid for it). They're not making any more of it.
Do you have any sort of financial "nest egg"? If so, do you keep it in cash or an account invested in the stock market?
If you have/hold cash, it's losing value due to inflation.
If you have it invested in the stock market, that can crash without notice or warning.
Having some of your nest egg invested in precious metals, you're a bit more protected from potential losses of cash investments. It doesn't need to be a lot. Myself, my holdings in precious metals is only about 5% of my total portfolio. My financial advisor said that's about right for me.

 

[lonewolf]

no stock market, cash only.

 

[angie_nrs]

For me PM's are just a part of a diversified plan. I have land, tools, equipment, food, ammo, IRA's, cash, etc. etc. etc. But I still have income and I don't want ALL of it sitting in an account. I have enough there to take advantages of bargains when they present themselves, but I really don't trust the banks. I also don't trust the dollar right now even though I also have cash available in my plan as well. I will not be running to the bank during a crisis.

I really don't expect to ever use my PM's. They are purchases I have made for my kids. I think those PM's will be more valuable to them in 50 years than giving them a box of cash. If I ever have to cash in those PM's, then the S has hit for fan in my world. I like the privacy PM's offer b/c the gov doesn't know about it and can't tax it any further. It will hold value no matter what happens.....at least more so than cash would. Every country around the world will buy PM's even if they won't take the dollar.

I like land too, but having too much land can cost you. You have to lay out the money to buy it and then you have to pay taxes on it. It drains money from you while you wait for it to increase in value. And if you don't live on it, your taxes could be very significant. Right now in my area, land is at a premium. I'll wait for the market to crash before making an investment in land. If taxes weren't an issue.....I might jump in sooner. With PM's, I just have to lay out the initial price of it and then I can give it away or sit on it and it doesn't cost me a thing to wait for it to appreciate.

 

[Supervisor42]

no stock market, cash only.

I don't "play" the stock market, but I own lots of stocks.
They provide income by sending me money every 3 months in the form of dividends.
This is something PM's cannot do.
There are a lot of different things to invest in and you are right, much learning is needed before wandering into the minefield called 'stocks'.

 

[Tacitus]

PM's may be okay as an investment in the good times but post SHTF only an ***** would swap shiny metal for food.

There many events to prepare for. Only in some of them will people refuse gold as being worthless.

Diversity in prepping is not a bad thing.