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Buy Physical or Shares

FFA

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#1
I recently diverted my 401k contribution to my brokerage account. I want to start buying miners stock. I'm wanting to diversify more.

I also currently stack silver and have a fair stack of physical.

I'm having second thoughts on buying stock and I am wondering if I should just buy more physical every payday and keep building my stack.

I see the economic storm clouds overhead and I'm wondering how bad will it really get. Will the electronic system shutdown and will I lose what I put in my brokerage account.

So in short, I'm a little paranoid.

Any suggestions and why.
 

Fatrat

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#3
Solid stuff first, then get more...
 

Treasure Searcher

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#4
Physical

Take a boating safety class, so don't lose it in a boating accident!
 
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#6
I put pretty much the same dollar amounts into metals and stocks monthly in order to diversify.
 

hoarder

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#7
If you don't hold it you don't own it.
Law of supply and demand. Supply of metals limited, supply of paper unlimited.
 

GOLDBRIX

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#8
......and I am wondering if I should just buy more physical every payday and keep building my stack.
Nothing wrong with that strategy , Dollar Cost Averaging over the long haul. JMHO
 

D-FENZ

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#9
I recently diverted my 401k contribution to my brokerage account. I want to start buying miners stock. I'm wanting to diversify more.

I also currently stack silver and have a fair stack of physical.

I'm having second thoughts on buying stock and I am wondering if I should just buy more physical every payday and keep building my stack.

I see the economic storm clouds overhead and I'm wondering how bad will it really get. Will the electronic system shutdown and will I lose what I put in my brokerage account.

So in short, I'm a little paranoid.

Any suggestions and why.
Welcome.

The metals, particularly silver have been in the dumps for a few years now. It seems like an excellent time to load up. Purchase physical silver discretely here. With the gold/silver ratio pushing 85 I wouldn't be buying any gold- in fact swap it for silver if you have any. You'll see.

There have been a couple of new members come aboard here lately. Very strange. It's been sort of an echo chamber around here for the last couple of years. Maybe it's just the google algorithms shuffling up some, but I take it as a sign of new money and interest signaling a bottom. We shall see.

Again, welcome. Keep us posted.
 

Rollie Free

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#11
Keep it diverse.
A few years ago during the run up of pm's there were some guys on here going all in on gold and silver. When every hour was a new high since the Hunt brothers it seemed a good idea. When it started falling we were encouraged to keep stacking as it was only a temporary setback before the big rise. Some members on here ended up losing the bulk of their retirement funds. While I wasn't hurt much as I have 10-15 percent of my total investments in G and S I still would have been money ahead to have put it in paltry cd's.

Don't get me wrong I love having physical but don't make it out any more than what it is, a smaller section of an investment folio. Don't fall in love with it to the point of making foolish decisions. I just stack now as a cool part of my kids inheritance.

Silver is relatively low for modern times. But, and this is a bigger butt than Hilary, silver and gold can go through years of stasis. Many years. It needs a trigger and certain conditions to be a pleasant investment. Frankly, those conditions are not something we should cheer on. Pm's are like a fire extinguisher. Buy, take care of it, and be ready if a fire strikes.
 

Silver Art

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#13
Physical.............It is pretty to look at IMO.
 

oldgaranddad

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#16
The more I think about it I think I will just stack on. If there is a currency collapse, physical would be the best bet.
Good choice. Stack all different sizes. If there is a currency collapse you won't be able to go and get change for your 1oz Krugerrand. You'll need multiple size for different uses.

An excellent book, a little outdated, but filled with lots of everyday practical advice is the tome by FerFal who experienced the currency collapse in Argentina first hand. https://www.amazon.com/Modern-Survival-Manual-Surviving-Economic/dp/9870563457 Look around and you can get a used copy really cheap. He has a whole chapter on selling gold a little at a time and how not to get ripped off or robbed afterwards.
 

Silver Art

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#17
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#18
In 2008 when silver bottomed at $10 it was very difficult to buy physical, so I bought the SLV ETF. Lucky for me the electronic markets did not fold, and I sold it later at about $16.50. Too bad I only bought the equivalent of about 1000 oz. worth of the ETF. I normally prefer physical, but if you want to buy on short-term dips or when you can't get your hands on physical, I have been known to trade ETFs, but it makes me a bit queasy. I have had bad luck with mining stocks.
 

pimples

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#19
Yes, physical is the right way. I also am not the greatest stock trader.
 

Silver Art

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#20
In 2008 when silver bottomed at $10 it was very difficult to buy physical, so I bought the SLV ETF. Lucky for me the electronic markets did not fold, and I sold it later at about $16.50. Too bad I only bought the equivalent of about 1000 oz. worth of the ETF. I normally prefer physical, but if you want to buy on short-term dips or when you can't get your hands on physical, I have been known to trade ETFs, but it makes me a bit queasy. I have had bad luck with mining stocks.
Yeah and back then, when you could find physical .999 silver, it was between $5 - $6 over spot. At least it was for me back then in 2008 whenever the LCS's had it.
 

FFA

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#21
I don't mind to trade. I have some experience with and have decent luck with. I'm a Physics guy so the math charts, patterns, and math come natural. I have even wrote some trading software.

The overall path for PM related instruments seems to be up in the near future. It's a lot easier to buy and sell dips and flips when it is going up. What hurts is when it is going down and you get tripped up.

I'm just paranoid over a total meltdown.
 

andial

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#23
A real classic imo.
That was one of Andials first big guns he used on me when I was new.
For a moment I was licking my chops thinking oh damn here we go then he hit me with the punch line and I was like Feck this guy!
Good Tymes!
 

pimples

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#24
Forget the pricing in dollars, it used to be an ounce gold per acre , or, an ounce of silver per day of work ($125ish), and, 30 ounce silver per month($3000), an finally like a 5 to 1 dow gold ratio for stock valuations, etc, etc. .. pricing in metals.... used to also be 16 ounce silver equals one ounce gold...($1200/16=$75ish?)per ounce silver old school.... I've been gathering again, but only paying $. 59cent over spot.
 

ttazzman

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#25
been in pms ..since the late 70s....done physical...big stock...etc...etc...etc....each method has its own pros n cons.

purely my opinion .......but first decision is are you going to keep things on the books or off the books (records-taxable-etc)
 

D-FENZ

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#26
.......but first decision is are you going to keep things on the books or off the books (records-taxable-etc)
If you deal in the physical realm you can have it both ways. Pay cash and keep the receipts. Buy low and sell high if possible. But if push comes to shove and you have to dump lower than your buy-in... well... you do have the receipts. Of course I've never done this but it seems possible enough.
 

Rollie Free

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#27
Forget the pricing in dollars, it used to be an ounce gold per acre , or, an ounce of silver per day of work ($125ish), and, 30 ounce silver per month($3000), an finally like a 5 to 1 dow gold ratio for stock valuations, etc, etc. .. pricing in metals.... used to also be 16 ounce silver equals one ounce gold...($1200/16=$75ish?)per ounce silver old school.... I've been gathering again, but only paying $. 59cent over spot.
Why and how does one forget the pricing in dollars? We don't buy or value silver in silver. We don't buy things with silver. What was practiced in some other millenia is no longer valid.
 

Weatherman

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#28
My view is unchanged from earlier in the year. I bought more WPM stock this week.

My view is that we should buy physical silver (or gold) to store securely as insurance against the financial disaster we will know as the transition, and to preserve some real wealth for the other side. However, I do not buy physical silver with an intention of selling some of it at $35 (a double!), or $50, or $100, or another higher fiat price. The buy-sell spread on physical is not as good as for stocks, and it is a PITA to move physical to sell (especially if in a rush during a financially difficult time). For funds that I allocate to investment for buy low now and sell higher later, I much prefer to buy good quality miner stock through a brokerage. I expect to gain significant leverage as the price of silver rises, and I can liquidate any of it in a moment with a simple sell transaction. My favorite choices now are WPM (primarily silver) and RGLD (primarily gold), but I also like PAAS and AEM. All of them are backed by real metal in the ground. They pay higher dividends than I can get as interest in a bank savings account (so waiting for the price to move higher isn't as painful as it would be with physical), and they provide far more leveraged appreciation than physical or any bank can offer. I recognize a risk that TEOTWAWKI could happen without warning and over a weekend, so I may not be able to liquidate my mining shares, but that is a risk I am willing to take with some of my investment funds. YMMV so DYODD, and do it the way that works best for you.
April 2018: https://www.goldismoney2.com/threads/silver.596/page-68#post-1369792
 

Peter52

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#29
Good choice. Stack all different sizes. If there is a currency collapse you won't be able to go and get change for your 1oz Krugerrand. You'll need multiple size for different uses.

An excellent book, a little outdated, but filled with lots of everyday practical advice is the tome by FerFal who experienced the currency collapse in Argentina first hand. https://www.amazon.com/Modern-Survival-Manual-Surviving-Economic/dp/9870563457 Look around and you can get a used copy really cheap. He has a whole chapter on selling gold a little at a time and how not to get ripped off or robbed afterwards.
Multiple size for different uses: I don't know.
During a bank holiday situation, or a currency crisis, for everyday expenditures you can use very tiny pieces of gold, but it is much more handy to use silver.
 

keef

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#31
I recently diverted my 401k contribution to my brokerage account. I want to start buying miners stock. I'm wanting to diversify more.

I also currently stack silver and have a fair stack of physical.

I'm having second thoughts on buying stock and I am wondering if I should just buy more physical every payday and keep building my stack.

I see the economic storm clouds overhead and I'm wondering how bad will it really get. Will the electronic system shutdown and will I lose what I put in my brokerage account.

So in short, I'm a little paranoid.

Any suggestions and why.


We live in a time where rule of law means nothing. So unless you are speaking directly to an insider here no one is in a place to give sound advice.

What is gold/silver worth in a totalitarian world dictatorship? About as much as a Trump Harry Winston diamond encrusted cuff link.
 

hoarder

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#32
What is gold/silver worth in a totalitarian world dictatorship? About as much as a Trump Harry Winston diamond encrusted cuff link.
If we have to think on those terms, it should include the question "What is your life worth in a totalitarian world dictatorship?". As long as we're alive, gold and silver probably have value.