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Precious Metals: 10 Things To Know Before Jumping Into Gold And Silver

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As the global economy became increasingly unstable during 2010, investors all over the world flocked to precious metals such as gold, silver, copper and platinum.  The price of gold set an all-time record high last year, and gold investors were euphoric.  Many analysts are projecting that prices for gold, silver and other precious metals will continue to soar throughout 2011.  But does that mean that everyone should just suddenly jump into gold and silver?  No, it does not.  Precious metals are not for everyone.  Just like any other kind of investing, it is absolutely crucial that you get educated before you get involved.  Investing in precious metals is very different from other kinds of investments.  There are significant hazards and pitfalls to watch out for.  But if you take the time to do it right, investing in precious metals can be very rewarding, and it can potentially be a great way to protect your wealth against the tremendous inflation that is coming in the years ahead.

The following are ten key things that you should know before jumping into gold and silver….

#1 Precious Metals Markets Are Highly Manipulated

Big financial institutions, and even governments, openly manipulate the precious metals markets.  This is an open secret that you should know if you plant to invest in precious metals.  Those who think that they can jump in and out of gold or silver and make a killing usually end up learning a very painful lesson.  Investing in precious metals should be done for the long-term unless you really, really know what you are doing.

So why is long-term investing safer?  Well, as we have seen over the past few years, the short-term manipulation of gold and silver prices usually gets trumped by the long-term trends in the end.

But that doesn’t mean that gold, silver and other precious metals won’t take some very significant short-term tumbles.

The following “mini-documentary” does an excellent job of examining some of the strange things that we have seen in the precious metals markets recently….

#2 The Long-Term Trends Are Very Favorable For Precious Metals

As the U.S. dollar has declined, gold, silver and other precious metals have been going up, up, up over the past decade.  Investors all over the globe have been flocking to the safety and stability that they provide.

Just check out the following chart which shows how the price of gold has risen dramatically over the past decade.  In fact, this chart is a little out of date.  At one point during 2010, the price of gold exceeded $1400 an ounce.  As you can see, those who have been investing in gold for the long-term have been doing very, very well….

Many analysts are extremely bullish on gold right now.  For example, Peter Schiff believes that the price of gold is going to eventually hit $5000.

So does that mean that what Schiff is saying is actually going to happen?

Nobody can tell you for sure what is going to happen.

But one thing is for sure – we are entering uncharted territory in world financial markets.  At this point, just about anything is possible.

#3 Gold Holds Value Over Long Periods Of Time

In ancient Rome, an ounce of gold would buy you a nice suit.  A hundred years ago, an ounce of gold would buy you a nice suit.  Today, an ounce of gold will buy you a nice suit.

Meanwhile, the U.S. dollar has lost well over 95 percent of its value over the last 100 years.

So which is better to hold on to for the long-term – U.S. dollars or gold?

#4 The Value Of The Dollar Is Going Down

Usually (but not always) when the value of the dollar goes down, the value of gold goes up.  As the U.S. government and the Federal Reserve have been flooding the system with new dollars, investors across the globe have been flocking to precious metals.

At some point in the years ahead we are going to be facing some very, very serious inflation.  When that time arrives, U.S. dollars are not going to be worth a whole lot.  But all of that gold and silver you have stored up still will be.

#5 Physical Gold Is Preferable To Paper Gold

When investing in gold, it is much more preferable to actually take possession of the physical gold than it is to have a piece of paper that says that you have invested in gold.  Someday when the financial system crashes, you may find that your “piece of paper” is not going to do you much good.

#6 Diversification Is Key

When investing in precious metals, it is important to diversify.  This spreads out your risk.  Some investors accumulate as many different precious metals as they can.  Others diversify by getting precious metals from a variety of dealers or by accumulating it in different forms – coins, bars, jewelry, etc.

It is always wise not to put all of your “eggs” in one basket.

#7 Accumulate Different Denominations If You Can

In the future, if you actually need to spend your precious metals you don’t want them all to be of the same denomination if possible.  For example, if you need to buy a little bit of food, you don’t want to only have high value coins.  Variety is a good thing, and accumulating different coin denominations is another way that you can diversify.

#8 You Cannot Eat Precious Metals

Investing in precious metals should be done only after you have gathered together an adequate emergency food supply.  If the global economy completely shatters, having gold and silver is not going to be good enough.  You are going to need lots of food for you and your family.  So be sure to take care of the necessities before you invest in precious metals.

#9 Do Not Advertise That You Are Accumulating Precious Metals

Don’t go around telling everyone that you are storing up precious metals.  That is just going to make you a target.  Investing in precious metals is something to be done quietly.

#10 Get Educated

I cannot stress this point enough.  If you want to invest in precious metals, you need to get educated.  People that do not know what they are doing are at much greater risk of getting burned.  Be smart enough to realize what you do not know.  Don’t be too proud to ask for advice.  Seek out reputable dealers.  If you take the time to do things right, then you will have the best chance for success.

The following video contains some more facts and figures about investing in gold.  I do not know anything about the organization that put this video together, but this video is well produced and it presents a lot of important information about gold in an entertaining manner….

  • Ernest Spano

    In gold we trust.

  • randy

    For the most part I agree with most of what I read here. The problem is that the word “invest” was used entirely too much, and if “investment” was the point, the article was lacking greatly in that there was no discussion related to the dollar. Buying gold when the dollar is low or buying when the dollar is high… this is important if one is “investing” in precious metals that are sold in dollars… If, however, one is protecting his/her wealth against inflation and/or the collapse of the dollar, then buying over time, cost averaging, is what it is all about. I think most reading here are into protecting wealth… “Investing” is a different thing and just because the chart shows an increase in the cost of gold means little if the cost of the dollar is not considered… buy metal for barther and to protect wealth… get professional assistance if you want to “invest”… paper, however, will soon be worthless…

  • Jon

    A lot of Americans have become so insulated from reality that they imagine America can suffer defeat without any inconvenience to themselves.

  • mondobeyondo

    I wouldn’t put my life savings in gold, silver or precious metals. Too risky. You can lose your shirt, and your pants and underwear.

    I’d place just enough to have my derriere protected in case our fiat cash currency hits the floor, and heads towards the basement. Precious metals markets are very fluid, and gold can come crashing down as easily as the housing market did a few years ago. Precious metals may/may not be in a similar bubble. I tend to think not. But be careful. Don’t become a homeless person feeding bits of Kruggerands to your children.

    But when all is said and done, and I’m standing at the roulette table in Las Vegas, I’d put my chips on gold. The dollar is a guaranteed loser.

  • bobcat

    Gold to hold

    Silver to spend

    Lead to throw

  • Excellent advice. Thank you for the free tuition.

    Gold is our foundation, the principal economy on which all others rest. Gold and Silver will always be worth their measure, but be wary of investing too heavily. It is not a money making vehicle for the retail trader. Store metals to gain generational wealth; something to pass to your children and give them a strong advantage. Even if it all breaks loose, this could be one of the best gifts you can give to allow for the continuity of your family line.

  • impeachRonPaul

    The dollar is doing okay. The Euro is in trouble. Copper is my pick for 2011

  • Yes, I agree with randy. “Investing” and “Protecting ones Purchasing Power” are two entirely different worlds. I am in the latter, even though I purchased silver and gold at considerably lower prices (which one might perceive as “making money” if I choose to sell it). It doesn’t matter what the price is, just keep buying what one can afford. It’s not an investment. But it should be clear for anyone who accumulates precious metal, BUY THE ESSENTIALS FIRST. Food, tools, and everything else needed when those things that we take for granted are no longer available. Then buy your silver and gold.

    The bottom line is the dollar is dying. Gold and Silver are alive and well. So there is no question on which of the two to have over the long, or maybe even, short term.

    My main objective is to be able to purchase the new currency, what ever that me be, with Gold. But who knows, maybe Gold and Silver will be the new currency. So better yet.

    And lastly, ALL currencies are nearing the abyss. Anyone who tells you differently is either in Denial or has a Normalcy Bias (or can’t afford PM). All three categories are running rampant.

    Buy Gold and SIlver. Bullion coins. Don’t waste good money on numismatic unless you have way more money than you need.

    Gold for after the collapse and silver during.

  • flubadub

    Good advice! Junk silver – pre 1965 dimes quarters and halves – is selling for approx. $2,200 per bag of $100 face value.

    That’s probably the smallest denomination you can use. Trying to conduct transactions using a $1,400 or higher ounce of gold could lead to trouble for obvious reasons if things get really bad.
    Man, when I think about all those dimes, quarters and half dollars I counted on the kitchen table after collecting from my paper route customers in the early sixties. . . oh well.

  • Mark

    If fiat currencies are all going to be worthless, then why are the gold and silver dealers trading their gold and silver for fiat currencies? It makes no sense. Unless they know the whole thing is a hoax ala 1980. Those that bought in 1980 haven’t broken even yet.

  • Kevin

    impeachRonPaul – do you work for the Fed or one of the investment banks reaping grossly obscene profits from the carry trade Bernanke and Geitner are raping the American people with?

    Anyone that says the dollar is doing okay is ignorant or part of the system that is raping and pillaging the wealth of America.

    ESOD dude!

  • Matt

    God – Gold – Guns – Grub – got yours?

  • RonPaulforPresident

    The dollar and Euro are toast…Get physical and lead for your future

  • Both gold and silver are currently in range bound trading patterns of a long term up trend. This long term trend has not been violated to down side. Support is strong, as is tighter supply, with silver supply even tighter.

    The underlying fundamentals have not changed, if anything the macro economic picture has darkened more so. Which portends much more upside room for both metals to rise in valuations.

    Bear in mind that the global silver market is much smaller than the global gold market. Silver’s movement will be more volatile then that of gold’s. The monetary and fiscal policy that is in force by the present administration – that no change in that policy is forecasted or foreseen, these pull backs in price are the perfect opportunity to add to your position or as an entry point.

    We help Americans find jobs and prosperity in Asia. For details, visit

  • Physical Gold does not conform with a strict definition of the term ‘Investment’. Rather, in my view gold is a ‘safe haven holding’ and a protector of ‘purchasing power’. Two years ago I spent some serious time researching ‘physical gold’, and wrote a quite detailed 11 Blog Post series on my findings. Anyone interested can find the first of those 11 Blog Posts at, and the other 10 under the Blog category ‘Gold as an Investment’ at Broadly I agree with the contents of this Blog Post, although I am not as much of ‘conspiracy theorist’ as most.

  • the Bible says that the people that have gold an silver will cast it into the streets in the near future, a sure sign that it to will be worth …nothing

  • impeachRonPaul.

    You are a Idiot like all your socialists friends. You will be the sheep led to slaughter by your socialists cronies in office.

  • Michael

    Precious metals are an excellent tool to have in the toolbox. They aren’t the only tool but they are one of the most important that you can own.

    Over 70% of world currencies are tied to the US dollar; thus, they are doomed.

    Food, water filtration, weapons, precious metals and goods for barter are some of the tools in my toolbox. I suggest you consider preparing in a way thats suitable for you.

    My problem with metals; I find them to beautiful to sell.

    Keep stacking!

  • ganesh

    Silver is my pick as a long term investment which will bring you an average annual yield of around 8 to 10% in the long run

  • Westy

    The dollar is doing OK??? Try comparing it to Asian Countries rather than the Euro. Or for that matter even Canada or Australia. The dollar is down about 20% in the last 18 months.
    Food prices and commodities other than gold and silver are rising faster than the dollar sinks. Your copper is going up because the dollar will soon be worth nothing. It will be harder to trade copper for food than silver.

  • Lennie Pike

    Begin saving your Nickels. Doing it is the same as going back to before 1965 and saving your dimes, quarters, half dollars and silver dollars.

    All nickels are composed of 75% copper and 25% nickel. The price of nickel is at least $11 per pound. One nickel is worth about 7 cents right now, but will probably be worth many times that very soon.

    Saying this could mean fewer nickels for me but that’s o.k.

  • Lennie Pike

    Also, it could be that Nickels become an accepted and popular form of money for purchases when no one wants to accept paper Dollars anymore. That is if Bancors don’t become the accepted currency – they won’t for me.

  • Peter Courtenay Stephens

    You can only protect through “investment” the amount of assets that you apply to precious metals. if you apply 5% then you protect 5% of your assets. This my seem obvious but, I believe a lot of people think otherwise. I personnaly am protecting 60%.

  • DontTreadOnMe.

    Your name “impeachRonPaul” says it all. He’s the only sensible person in Washington. You must be a F—–g Democrat.
    You say the dollar is doing ok. What planet are you living on? The dollar and the world ecomony is living on barrowed time. The big crash is coming and everyone better be prepared. Buy PM now, your dollar will be worthless.

  • DownWithLibs

    You forgot to mention the pushing of Numismatics by some not-so-reputable companies under the guise of “non confiscatable”. Yes, it is still on the books that the Gov. can take your gold if it wants to (of course they would need to know that you even own it!), but don’t get suckered in to spending $14,000.00 on one 1826 1/2 oz. something-rather under the assumption that it won’t get taken away because of the collector value. That was back in 1933 and, really, if the Gov. wants to take ALL of your gold, they will.

  • glenn benedict

    the dollar is stumbling the euro is to crash… end the fed and all the real problems go away…wake up America…throw the bums out and bury your head and thoughts to the constitution…we need that true foundation to build upon and rescue what is left of our civilization. gold guns and GOD

  • I have been saving nickles and pre 1982 pennies. The government passed a law in 2006 that prevents you from melting your money down. Because I suppose, it’s their money- not yours.

    I have also been accumulating silver, gold, and lead for those that think they can get my PM at a discount.

    Don’t worry about the government outlawing your silver and gold. Nobody is going to turn it in this time, because unlike the 1930’s, our populace is a little bit more educated and not very trusting of a government who counterfeits at will- and has been stealing from us for years. Got prison space for 50 million of us?

  • ben roberts

    So Thom,,in that case how are you going to store your physical material wealth and preserve it. I think its more likely that its the paper gold and silver that will be thrown into the streets,, don’t you? Or are you brain-dead Thom?? Has your faith destroyed your reason? God did not intend that Thom, I think you are committing the most egregious sin with your irrational interpretation of the Bible. Repent Thom !!!

  • ben roberts

    Keynes and the banker’s education system has done a wonderful job on the brains of some of you economic idiots. Your posts reveal your woefully ignorant understanding of even the most basic and simple laws of economics, not to mention common sense. Lies are very powerful and are the essence of your brainwashing and stupidity. Unfortunately, you are so damaged that you won’t even know to whom these comments are directed. But, those of you with half a brain will understand perfectly. Thank you for your exceptional perception and reasoning which I am sure did not come from Keynes.

  • ben roberts

    If you study long and deep enough you will evolve from a conspiracy theorist to a conspiracy factualist, and you will then have no doubts as to who is responsible for this mess and how and why they committed their crimes.

  • Vegas
  • Here are a few reasons why silver is better than gold:

    Here are a few ways to invest in both gold and silver:

  • guateguy

    I have read a few articles lately about a correction in gold/silver, that could be caused by the euro crashing. Can someone explain to me how the crashing of a currency might cause the precious metal market to correct. Assuming that I understood the article and it means it will “correct” downwards and not upwards. In my understanding the crash of the euro should obviously strengthen gold and not devalue it.
    I also understand that if it does correct downwards it would not stay down and would eventually shoot up to greater highs. But why would a crash cause a correction?

  • PC

    I wonder if that story about China shorting short-term silver and longing long-term silver contracts, is just a viral JPMorgan ploy to get people to buy tons and tons of silver even as the price is rising to $30 an ounce.

  • Susan

    There is is alot of things happening at the moment in the commodities market.

    But if you have a look at the copper chart, you will notice something very very interesting.

    Maybe it is getting long in the tooth?? who knows??

  • I don’t know much about gold investing but I do have good common sense and hate to be ripped off. If you buy gold, buy only physical gold. Paper gold is for suckers, but I heard it makes for good toilet paper if your desperate. Take the physical gold in your hand and make sure you have a certificate of authenticity for it. Then go have the gold tested by someone you trust. Is it really 24 K ? I’d cut the somebitch in half and see if it’s filled with lead on the inside. Never forget who your dealing with when buying gold, your dealing with financial institutions like Goldman Sachs, J.P. Morgan and Citigroup…cutthroat corporations who’s business is deception and casino type ponzi schemes and their ethical courage is lower than whale dung and are the most incidious forms of human debris ever conceived.

  • As central banks prop up their crumbling financial system by printing more and more money, the big boys are heading for the life boats and are buying gold. Lots of it. They can’t print gold and economic law dictates money will flow to the currency which is able to retain it’s value. Don’t worry about gold taking a breather from it’s steep climb. It has nowhere to go but up. As more and more countries, banks, ETF’s convert fiat currency to gold, there will be a super spike once delivery shortages take place. As there are a hundred ounces of paper gold for every real gold. It should be quite a show shortly. To me the risk will again be the government stepping in again to outlaw ownership of gold. That’s the only card they have left to play.

    I am buying the dips and loving it. Short the he’ll out of Gold Bernanke. I love to go shopping when there is a great sale on.

  • Does anyone else think the Federal Reserve is paying off brokerage firms to short gold? They short the gold funds and then the Fed reimburses them for their losses, off the books. Why else would they be so stupid to keep shorting gold in the middle of a ten year bull market in gold. It’s about as smart as walking into a buzz saw over and over.

  • #8 You Cannot Eat Precious Metals ~

    Yes, you CAN!

    You can eat gold leaf:

    And, silver is an antibacterial antiseptic and disinfectant:

  • Owen

    Think about it, what would you rather have — food , water, shelter, guns and ammo or a pile of gold that no one else wants as much as want those primary building blocks for sustaining life itself? Gold and silver are heavy. When we reach that time in the future, is there any doubt that that is what the rich will do with the wealth that they have plundered from their fellow man? One day, this is cease being theoretical and the evil plan that has been hoisted on the people of earth will run its course. A dying man, yes even a rich one, will have no need for gold or silver. Get right with your Creator His Way now because tomorrow may be too late!

    • Mindanao

      A dying man will not need food either.

  • dippity doo

    owen cant read…

    “#8 You Cannot Eat Precious Metals

    Investing in precious metals should be done only AFTER you have gathered together an adequate emergency food supply. If the global economy completely shatters, having gold and silver is not going to be good enough. You are going to need lots of food for you and your family. So be sure to take care of the NECESSITIES before you invest in precious metals.”

    gold is not heavy for the value it contains,
    silver is heavy in that manner.

    the rich buy gold, the poor buy silver.

    gold and silver have always been money, and someone will always want them (the rich for their greed, the poor for their value).

    stop speaking out of your ass to make some point that seems logical to only your own perspective.

    precious metals is where you put your labor as a store of value instead of (toilet)paper ‘instruments’, AFTER you have goods, resources and a secure system of sustainability in which and where to thrive in uncertain/unstable/chaotic times.
    (as if this isnt already logically readily apparent and obvious to any thinking man)

    so stop blathering on about knocking something down which your Creator and the Constitution demanded human beings were to use as money.
    (as if the reasoning to why isnt currently transparent enough)

  • That is totally correct. Everyone should own a little gold and/or silver for a rainy day. We are going to have plenty of those in coming years. Store non perishable foods as well.

    Economy 2/3 of which is based on consumer spending can not be sustained, period.

  • Gerryw

    Someone mentioned not trusting the Brokerage houses. It is true. Just this earnings season, they pick winners and losers, even with companies with great earnings, using a pretext of some flaw, that when you analyze it, is minor. They create the selling by selling and others follow. Later they buy back in. The commodities are the same way but at least it has value versus paper and a promise. Lack of confidence has been created bty those who worry confidence is failing. What a downward spiral.

  • Owen

    Doo, excuse the rather poor job of proofreading on my previous post, but I was in a hurry to get to work that morning. It appears your post could have used a little more proofreading as well. Don’t get me wrong, I do believe in the value of owning some silver and gold which I have owned both since I began collecting coins 50 years ago (gold and silver were much cheaper than). I also believe in stockpiling guns and ammo. But in spite of these interests, I consider food and water to be so much more important. My previous post is based on the misuse of riches as recorded in the 5th chapter of the Book of James, specially verse 3: “Your gold and your silver have rusted ; and their rust will be a witness against you and will consume your flesh like fire. It is in the last days that you have stored up your treasure!” This is what is going on today. It is massive fraud on the global level and the chief victim is the laborer who must work for his daily bread (most of us). In the book of Ezekiel, you will find what people will do with their gold and silver in that day: “They shall cast their silver in the streets, and their gold shall be as an unclean thing; their silver and their gold shall not be able to deliver them in the day of the wrath of Jehovah: they shall not satisfy their souls, neither fill their bowels; because it hath been the stumbling-block of their iniquity.”
    You see, Doo, my trust in not in anything material. It is in my Savior God who has already rescued me. In the coming evil days, things will be much worse than you can ever imagine. I doubt gold or silver will be of much use for “the Lord is my rock, my fortress, and my deliverer.”

  • Ken Sack

    Owen, there are many scriptures about for seeing bad times and preparing for them. Didn’t Christ say don’t tempt God by acting irresponsibly. Why are bible quoters so irrational?

  • Fredo

    Don’t be confused Owen.

    “Your gold and your silver have rusted ; and their rust will be a witness against you and will consume your flesh like fire. It is in the last days that you have stored up your treasure!” is talking about greed of keeping wealth to yourself. Wealth is useful only if you can exchange it for your survival and a bit of luxury. No one can bring it to the next world. It’s still be here on earth for the future archilogist to discover.

    “They shall cast their silver in the streets, and their gold shall be as an unclean thing; their silver and their gold shall not be able to deliver them in the day of the wrath of Jehovah: they shall not satisfy their souls, neither fill their bowels; because it hath been the stumbling-block of their iniquity.” This is talking about armageddon where nothing matters. No amount of wealth can save you. However if you survive it, you need food and water to survive not gold and silver. Eventually gold and silver will be accepted as means of exchange for food and drinks if the other have surplus for exchange. After this the rise of new fiat currency.

    This article is about protecting your wealth/hard-earn money/survival during hyperinflation and gold & silver is the best hedging tool.

  • Owen

    There is nothing wrong in being prepared, in fact, I would say the wise man is instructed to be prepared. I would understand why Christians are often perceived to be irrational, but I would argue that they have an incredible advantage over those who rely on only human reason. The Bible is actually God’s revealed plan of the ages. Growing up, history was my passion – I read everything I could find on history. I was especially fond of the ancient period, Greece, Carthage, and Rome. I even won 1st place in a state high school competition on ancient history. Unfortunately, having grown up a Catholic, I knew very little about the Bible, especially prophecy at that time. When I did begin to examine the Bible for myself, it was through prophecies fulfilled in the ancient world that I first recognized what the Bible actually was. Now we are living in the most prophesied era of world history and I am finding that searching is enabling me to see what is now happening in our world and what will soon be occurring – history in advance, if you will. ” So you also, when you see these things happening, recognize that the kingdom of God is near. 32“Truly I say to you, this generation will not pass away until all things take place.” Luke 12:31-32.

  • John Sullivan

    @ Patrick McCoy

    Do you know what socialism is, or is it just something you throw at anyone who differs in opinion from you?

  • Owen

    Fredo, I concur with your point about the need to protect one’s material wealth as much as one can. Gold and silver would help, but having water, food, seeds, the means to generate one’s own electricity and the means to protect those material goods would be much better, do you not agree? This is especially true if the price of gold and silver is being manipulated as they seem to be. However, I am convinced that one would not be ready to face this crisis until one recognizes that it is predominantly a spiritual crisis and that spiritual preparation is far more important than physical preparations.

  • GrayFoxGreen

    My Grandfather(a wise old German) had a saying that “one bag of Gold,Two of Silver”.He received it from his father who heard from his father when they came over to America.The bags of Silver to buy day-to-day foodstuffs if needed and a bag of Gold to start over somewhere of need be.His saving ways were stories of Legend in the family(he had seven children total by both his first and second wives and out lived his Much younger second wife by 15 years!).They never went hungry,but there was many times they ate very plain food.Having such a frugal mindset might be the best solution for everyone(me included).

  • Great tips on precious metals. Getting educated is the key. Thanks for the information.

    International Silver Network

  • Robert Parsons

    One question I keep asking, and no one answers: If I buy a 100 oz. bar of silver at a spot price of $30 an ounce, and the dollar value falls to 50% of its current value, when I sell the silver bar, do I not receive an amount that is 50% lower than when I bought? I know that is true, so my question is what do I do to make the investment worthwhile? Sell it to China, or Canada, or some other country with strong currency? Any investment made with American dollars will simply have to give a return that reflects the deline in the dollar. Why does no one ever address this?

    • Silver is going to decline to near non-existence due to the fact that most of it has already been mined, and we use it industrially.

  • Jason

    To answer the question about silver, I think the answer is that silver and gold are your hedge against inflation and you see the prices jump very fast with inflationary economic times. Like silver, in the past 6 months it went up 50% in value to the dollar. If I sell my silver I bought at $19 last year, I will get $29 for it now.

  • FlyBy

    Robert Parsons,


    You would tend not to. Simply because, as the dollar deflates, precious metals INflate.

    So, to keep it simple, if you buy one ounce of silver for $30 now and the dollar devalues 50%, it is highly likely that the value of silver has gone UP also, either as a direct or an indirect result. And I BELIEVE it usually tends to do so by a near proportionate (equal) amount. (Still studying how all this works out in the wash.) So, your one ounce of silver formerly worth $30, with the falling of the dollar, is now worth $60, even as $30 in cash is now effectively only worth $15.

    (Which, in turn, means that your current $60 return on the silver is “really” worth $30…which, yes, means that by buying that ounce of silver, you have simply prevented a loss of your net worth, you haven’t really profited any – ASSUMING that the devaluation of the dollar and the inflation of precious metals occurs at the same rate, which, again is typically they way it tends to happen, I believe. Not “impressive” but better that than suffer straight losses as strict dollar transactions decline and decline and decline in value.)

    Hope this helps?

  • Calvins Man

    Gold and silver bullion are not true “investments” so much as they are a way to preserve your wealth. They “don’t go to zero”, so to say. You are not protected from wild fluctuations but over the long term, they are a hedge against paper money. Gold and silver stocks are a different animal. I would never advise someone to buy gold and silver to make money, but rather to preserve what they have.

  • Robert

    Gold is a good part of a diversified portfolio. All or none type bets usually don’t work out. There is no reason why gold and silver should be less that 25% of a persons portfolio. The 100% equity portfolios of the past were never a good idea. The brokerage houses and mutual fund companies has us brainwashed.

  • Visitor

    Two more “propaganda” videos. Most people who deal in precious metals act like salesman who lie and exaggerate to scare people into buying their products. Almost every website that I visit that emphasizes precious metals has a certain amount of BS.

    One of the few good sites is here:

  • William Bolton

    If gold and silver and other metals are something to beware of then why have the huge international mining conglomerates been stealing properties with those metals in them by using the satellite data that became available starting in the 1960s? One after the other the gold, silver and copper reserves that could have paid the national debt if we had mined them have been given away by the US government and all of them bought in on the low price stock of those companies and their families got stock packages too. They never tell the people that own valuable properties what is there and get them for a fraction of their value. In October the US Government gave away the largest known copper reserve in the world for absolutely nothing! The EPA turned down applications to mine that property by Americans and now it is to be strip mined and shipped overseas for creating jobs elsewhere.

  • well well, so many gold silver and precious metal sellers willing to take my worthless Federal Reserve Notes off my hands and sell me some valuable metal instead. Strange, as bad as they saw the economy of the FRN is gonna be you’d think they themselves would be stocking up on that thar precious metals instead of selling it for worthless FRNs. LOL. People, it’s a scam

  • Dear Theeconomiccollapseblog,
    Thanks for the above, What do we say about investing in physical gold vs. investing in a gold ETF? We say “Ain’t nothin’ like the real thing, man!” Of the four ways to invest in precious metals today, the one that, to us, easily makes the most sense is investing directly in the physical asset. This can be achieved by purchasing physical gold bullion coins and bars or rare gold coins and junk silver bags.
    BTW great blogpost

  • Chris

    Has anyone hear even seen the cover of an economics textbook?

    Please, do everyone a favor. Crawl into your bunkers, and don’t come out until we tell you it’s safe.

  • alan

    Just kind of thinking out loud…I have some silver but don’t want to buy gold because its too high. My other problem is how much does a chicken cost in gold? I just ordered some chicks at about $3.00 each, I can buy a lot of chicks for $1600. If we have a overnight collapse food and ammo will be golden.
    If we hyper inflate I think it will be over quick and gold will be worth whatever someone trades you for it. So I suppose it may depend on how the end plays out. Never under estimate the power of the bankers!

Finca Bayano

Panama Relocation Tours



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