Coins/ Silver question

[bbcard1]

I usually get $100 travel reimbursement every couple of weeks. For the last couple of months, I have been buying a silver round each time...sometimes it costs 30, sometimes it's 40, maybe some day it will be 20 or 50. I just don't worry about it. I particularlly like the Australian coins. I do think, for the average person, holding 5 to 10% of their savings in precious metals or other hard assets (some would say stones, but I think that is nuts) is probably sensible. Physical, not paper, of course.

Over the past year, I bought a little gold and haven't done bad or great....bought at $1500...saw it go over $2000 briefly, then back to $1600. I think Platinum may be a decent play (at parity with gold but much rarer), silver is fun but will always be volatile. I would not be shocked to see $100 or $15 silver.

If CDs were still paying 6% of if the stock market was not an absolute crap shoot, I would have probably never even thought about metal...and still don't in a significant way. .

OTOH, if I was that smart, I'd be rich by now.

[barrysloate]

If CD's were paying 6%, most of America would be leaving the stock market. Volatility may be great for the day traders, but for the average American who is trying to build a nest egg for retirement, it really sucks.

[basesareempty]

Not that I am some doomsdayer but if we ever have a full economic collapse in the US, paper currency will be almost worthless as it is backed by nothing. Inflation will go through the roof like WWII era Germany where you needed a wheel barrow full of German Marks to buy a loaf of bread. In this senario 90% silver coinage will have a lot of value and purchasing power.

[barrysloate]

And that's exactly why people are speculating in precious metals. However, doomsday scenarios rarely ever occur.

[bbcard1]

Personally, and I am no economist..in fact, every thing I do investment wise seems to be kind of wrong timing...but I think a deflation scenario is as likely as an inflation scenario. Our economy is a wreck, which would be very troubling if it were not stronger than most of the others worldwide.

[vintagechris]

As a person who stumbled into investing in silver and gold(my Dad's neighbor wanted me to sell some of his 90% silver on ebay in 2007) I can say have have done more than average research on it.

The advice you see in the thread is all good advice. I would say if you don't need the money, just hold it but I am also a person that believes everyone should have some gold and silver as an investment.

Silver was recently at $40 and then dropped to around $30, I consider that a good buying opportunity. There seems to be at least one sizeable correction each year, use it to buy.

If it goes to $50, it wouldn't be a bad idea to sell as there will probably be another correction to buy. Silver never just goes straight up or down and I doubt it ever will.

[Exhibitman]

Good advice all around. Having a small allocation in on-hand metals isn't a bad idea for us average joes, as a stop-gap against runaway inflation. That plus real estate [housing] and well-thought-out card collections will be enough hard assets for most people.

Barry, totally agree that if there was a 6% ROI w/o risks out there most people would be in it. That's why there won't be. Me, I'm devoting what I would have stuck into 'investments' to paying down my existing debts. I know the guaranteed ROI on that investment.