Investing in Gold/Silver - way too late?



Man, buying gold during the 90s was the best thing I ever did in my life. If you look at gold on a 50 year scale, it hasn't disappointed it's investor. It's almost out the reach of the common man now, so silver deserves to be invested in. 3 years ago, I started buying my wife sterling silver jewelry instead of gold. Now, its value is up 40% and I look like a genius, lol. My only regret was not buying more gold when it was $275-$375/oz.. I knew better to but youth got to me in the end. Hard to think that one coin is going for 1.7k these days, lol.
 
crackp0t said:
Please explain more. That sounds like it would be a better area to invest in (if you even can).
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Okay, in reference to my post above.

There are 5 major stock markets in North America.

1. NYSE
2. NASDAQ
3. TSE
4. TSX
5. OTC

(Okay, number 5 doesn't really count but screw off, I'm really trying to keep things simple so this doesn't turn into a 2000 word essay. And yes, there are more than 5 but please screw off again.)

You don't see a lot of gold/silver producers on NYSE because regulatory requirements like sarbanes oxley make it too expensive for all but the biggest companies.

Same goes for NASDAQ.

Okay so that leaves three markets. You see a lot of junior metals on OTC but the BIG problem with Over-The-Counter is the LACK of regulation. There's a lot of crap and out-and-out scams on the OTC so institutional money for the most part stays away.

You need money from the big boys. That penny stock isn't going to $5 without institutional money coming to the party at some point.

That leaves the Toronto Stock Exchange (TSE) and the TSX (Toronto Venture Exchange). Think of the TSX as the junior little brother to the TSE.

Oftentimes, there is a progression, a company starts out on the "pink sheets" (OTC), gets a TSX listing and then a TSE listing. You never, ever, ever see a company climb the whole golden staircase from OTC to NYSE. It will get bought out first.

Now why do I mention the OTC a lot if it's crap and you should never buy there? Well, if you want to buy junior/medium gold/silver producers, you have to go Canadian (Toronto exchanges). For a variety of historical reasons, Canadians own the precious metals markets. But if you are American, it's hard to find a broker who knows how to trade in Canadian stocks (especially if you are cheap and use a discount broker, which means an idiot 18 year kids is trading for you, which means you are losing money in the long run, but that's another post).

HOWEVER, most TSX and TSE stocks DO trade in the OTC market, so if you are American, you find the name of the TSE/TSX company that you want to buy, head over to Yahoo finance, and find the OTC equivalent. Then you email that stock symbol to your snot-nose discount broker and tell him to buy.

Let's take a example: Northern Tiger is a junior that's looking for gold in the Yukon. It's got some money behind, a good management, some of the industry newsletter writers are hot and horny about it, yadda, yadda, yadda.

Go to Yahoo finance and the stock symbol is NTR.V, which is a TSX listing so you can't trade in it if you're a Yank. BUT we see the pink sheet listing is NTGSF.PK. So that's what you tell your discount broker (As a test, ask your broker to buy Northern Tiger and 19 times out of 20, he'll say he can't trade in it because it's a Canadian stock. Why? Because he's stupid. Otherwise, he wouldn't be a discount broker)

And that's the way you buy junior gold/silver penny stocks.

Now SHOULD you buy gold/silver penny stocks instead of bullion. That's the big question. And I'm not going to answer it, because I'm sure by now kiddies you've realized that I'm in a niche that is policed by the SEC. And it don't matter that I'm Canadian, the SEC is one government org you do not mess around with. So no more financial advice from me.
 
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My FIL dumped all his stocks no in his pension 3 weeks ago and bought a spread on the price of gold going up at 2:1. He was already long on a number of positions but has taken a huge gamble (depending on how you look at it). We're talking a mid 7 fig sum.
 
I was invested heavily in the dot-com boom ten years ago, and had a sense the gains were unsustainable. I was right, and lost a lot of money in 1999 because I didn't get out quick enough.

The gold price inflation is giving me the same feeling I had in 1999, and I'd not go there. It has nothing to do with any bias against gold, per se. I actually like the price this high, because I have an uncanny knack for finding it incredibly cheaply, and have made some nice money selling gold for scrap.

It must be time to start shorting gold.
 
Don't look at it as "investment" in terms of making a great return, but more as a hedge. As long as the prospect of the USD and other currencies dwindle, gold/silver will serve as good hedge protection against them. In that method of thought, it is not at all late.
 
In dollar terms gold still has a huge upside. The fed is considering QE3 which only inflates the supply of dollars and destroys its value.
 
I just pulled an all nighter researching and finalizing - I'm in! Just ordered US$19,923.45

Learned quite a bit through this so far:

Great forum at:
Gold is Money - The Premier Gold and Silver Forum -- Goldismoney I'm sure there's others (feel free to drop a few)

I ended up going through: Silver Gold Bull

Only a few dealers in CA and I don't want to deal with duty/etc. so this felt safer + there's tons of payment options including wiring USD directly no exchange BS. Research shows they give a shit about their customer base (phone call was informative - 'nick' seemed cool if you care to call. Online PR seems par and not influenced).

Got a good diversity re bars/coins - gold/silver (went with 14K on silver - 6K gold for now) *Got ALL Maple Leafs (seems our face value is $5 vs. $1 on the eagles? Probably doesn't mean much but..)

Realizing how much of a good move this is no matter what happens it won't go below what my USD is worth day to day in the long.

Cool experience so far. Not going to panic re news or drops/spikes over the next bit - like I said I kinda want to forget about it - however if shit keeps going well I might just dump the rest of my USD this way too.

Feeling good :).
 
Ask your broker to send you a monogrammed polishing cloth for those bars to use as a jizz rag. Most do.
 
While I have a bit of money in PMs , my personal choice is graded and/or antique silver/gold coins.

When you buy something that has numismatic value , you automatically purchase downside protection as these have significant trends for appreciation overtime, unlike most PMs.
 
drew.clarke said:
Bad idea in the long term, the US will be printing more money soon.
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There will never be a top in gold. That's because money printing, devaluations, currency dilution and proliferation of paper assets like stocks and derivatives will never stop.


too late to invest in gold or silver? = NEVER :note:

best time to get rid of USD = ASAP :ak:
 
avatar33 said:
When you look at the price of gold in the last 10 years, can you really see it going down anytime soon?

gold-price-10-year-chart-nov-2010.png
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If you used that same theory in 1980, it would have taken the next 30 yrs just to break even.

OODco.png


OP, why don't you just invest the $$ in building more information products? You will almost never see as good of an ROI in anything else in such a short time period.
 
I've got about 4k in physical gold and 4k in physical silver right now. I wanna drop more on silver for a better weighted average, but I'm only hedging a bet against the dollar and I plan on holding for a couple or more decades.
 
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