Posted on 08/04/2011 8:57:51 AM PDT by SeekAndFind
GLD and SLV claim to be physically backed but many in the know think they’re lying. I prefer DBS which is based solely on futures and I don’t have to worry about it. The problem with DBS is the way it’s taxed so I’m only in it in my Roth. Outside a Roth, create your own physical stash.
Taking profits? The problem is that gold is the only real money now. If you take profits, what do you put it in? USD, Swiss Francs, overseas equities, real estate (farmland?), ammo?
Another money metal is Pt which has been relatively flat.
Look at that volume spike just before noon!
PPT on the job? Dow off “only” 281 now.
If you have the money to buy GLD and SLV, DON'T!!! These are what as known as "paper gold" and "paper silver". Stay far, far away from these ETFs. Visit www.tfmetalsreport.com for the lowdown.
Hmmm, good question.
Took me a few minutes to formulate a response. Here it is:
Had to do some searching to find a refinery website. Visit: www.mygoldgram.com and look at the gold bars they sell. The bars come in a sealed case that is roughly the same size as a credit card. The case has a serial number and assayers certificate on it which confirms that it is indeed 1 gram (or whatever size/weight) of 99.99% pure gold.
If and when the dollar collapses and people are using gold and silver for commerce again, you are going to need small denominations of gold. At $1700/oz, a 1 oz. gold American Eagle coin is worth far more than a loaf of bread or an entire shopping cart of food. Personally, I don’t know anyone that spends $1700 in one trip to the grocery store. So, let’s say you go to the store and purchase $200 worth of groceries. How is the cashier supposed to give you your $1500 in change since neither you or the grocery store will accept paper money. Smaller denominations will be necessary. 1 gram of gold at current market price is worth $55. That is enough to buy groceries, or put gas in your car, etc. And trust me, if the dollar collapses and we go back to a gold standard and are using physical gold for commerce, people and businesses will accept that 1 gram of gold without hesitation.
Now, I don’t know if the dollar will collapse and that isn’t the reason I purchase gold. I purchase gold as means to protect my wealth (or what little wealth I have). I mainly purchase 1 oz. American Eagle coins and 1 oz. gold bars. I only offer the idea of 1, 2, 5, and 10 gram bars as a suggestion to people who cannot or do not believe they can afford spending $1700 for 1 oz of gold. The smaller sized bars are great for a small investor or somebody that is just getting started (which is what I did at first when it was relatively inexpensive 8 years ago). As things are now, the smaller bars can always be sold quickly at a pawn shop, on eBay, a jewelry store, or even resold back to a gold refinery.
Hope that makes sense. Sorry but I’ve been up all night working and need to get some sleep. Can’t really tell if what I said is sensical.
Regards.
Dear FReepers in the know- my husband and I have a bit of cash set aside. Will it be worthless in a few years? Should we buy land with it? Gold? Silver? I’m sorry if I sound clueless but, you know, we just work and save our little dollars, but I don’t want to turn around one day and it’s gonna be worthless.
Gold and silver aren’t really worth more, your dollar just buys less.
Thanks for the response. A lot of good information there. I will look into it.
I was refering to the gold chart In Yo-Yo’s WSJ link.
Retired, but in the same boat. Asset preservation with decent liquidity is becoming a tough thing to find.
Maybe not gold, but silver coins are readily available to even the small investor. Gold coins come in pretty small deniminations too, like 1/10 ounce (I think).
The ETF’s are probably fine...maybe I’m too paranoid.
What about our SEP and IRA accounts? What are the options? Thanks.
Swiss America can put your IRA or other “qualified” funds into physical gold.
Now, since they are qualified funds, you MAY NOT take delivery of the physical metal, they must hold it for you.
It gives you the inflation hedge against this bunch crashing the dollar, but if you think the system is going to collapse to the point that you’ll not be able to recover those assets from the investment company,
you might as well take the hit on taxes, take the distribution, and buy the metal yourself.
Don’t use/abuse gold like that. Just use junk silver (pre 1964 dimes and quarters, which are 90% silver) for buying food, small ticket items, etc.
Find a coin dealer in your area that buys and sells ‘junk’ silver. Most buy and sell very used coins based on their silver content. These are coins pre-1964, most of which were 80% silver. Do your homework as to what a silver coin is worth in terms it’s silver value rather than it’s face value. (Factor in sales tax if your dealer charges it)
A website that helped me understand things better in the beginning was;
http://www.coinflation.com/
Hope this helps.
BTW, you may not be able to buy groceries with a krugerand, But most will know a real siver dime when they see one.
Link #1 to physical gold in IRA
Link #2 to physical gold in IRA
I do have problems with the idea of owning precious metals in an account (that is, in your IRA) that is really partnered with the US Government. The feds could change the rules on your IRA, confiscating it and converting its assets into an account invested in risky and worthless US T-bills. Such a risk is known as a counter party risk. I don't trust the feds. Best to own your PMs outside of an IRA, so you own it free and clear. Best also to have physical possession of it, as well. Don't store it in a safe deposit box. Hide it in a safe place, in YOUR possession. Hope this helps.
Stay away from those Buggers, some that promote themselves as Gold and Metal funds, don’t even own any metal. If you are going to get into the metal market, take delivery of the physical metal, don’t rely on someone else to store it for you.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.