As I am nearly FIRE, I felt that my investments needed some diversification, as well as insurance against inflation. While googling for just that, I read some interesting articles pointing too the historical role of gold and silver as protection from inflation. Essentially dollar goes down, gold/silver goes up. It isn't always linear, and that seems to be a good thing for early investors since inflation fears send lots of people scrambling toward the metals, and their values sometimes shoot disproportionately high, but the overall trend seems to be there.
Then the articles would usually discuss ways to own the precious metals (PM's). There are mining stocks and ETFs to consider, but what I found most interesting was that most local coin shops buy and sell the physical stuff at a relatively small mark up over the daily spot price. You can also buy it online from a company called Kitco.com. You can buy big ugly 100 oz bars of pure silver presently at around $12.50 per ounce or some smaller beautiful gov't and privately minted bars and coins. Gold can be bought in 1 oz coins and bars too. I think gold was at around $650.00 per oz.
Storage is something that I'd be concerned with, and obviously others too, since I saw a website that had suggestions on how build a modern day treasure chest for burial. This was called "midnight gardening".
From what I read, they are taxed as capital gains. I'm too chicken to mess with the taxman much, but for those of you who can sleep with one eye open, there are also some not so subtle suggestions that since there is no paper trail surrounding the purchase, or sale, that they are essentially only taxed if you decide that you want them to be.
Also, not really my biggest concern, but it looks like the Y2K survivalist types suggest that PM's are the likely replacement if the dollar totally crashes and burns, or if any of their other world rocking predictions come to pass.
I would like to hear the downside to PM's, as there seems to be plenty of people writing articles who maybe like them just a bit too much, but not many contrarians on the subject. Thanks
Then the articles would usually discuss ways to own the precious metals (PM's). There are mining stocks and ETFs to consider, but what I found most interesting was that most local coin shops buy and sell the physical stuff at a relatively small mark up over the daily spot price. You can also buy it online from a company called Kitco.com. You can buy big ugly 100 oz bars of pure silver presently at around $12.50 per ounce or some smaller beautiful gov't and privately minted bars and coins. Gold can be bought in 1 oz coins and bars too. I think gold was at around $650.00 per oz.
Storage is something that I'd be concerned with, and obviously others too, since I saw a website that had suggestions on how build a modern day treasure chest for burial. This was called "midnight gardening".
From what I read, they are taxed as capital gains. I'm too chicken to mess with the taxman much, but for those of you who can sleep with one eye open, there are also some not so subtle suggestions that since there is no paper trail surrounding the purchase, or sale, that they are essentially only taxed if you decide that you want them to be.
Also, not really my biggest concern, but it looks like the Y2K survivalist types suggest that PM's are the likely replacement if the dollar totally crashes and burns, or if any of their other world rocking predictions come to pass.
I would like to hear the downside to PM's, as there seems to be plenty of people writing articles who maybe like them just a bit too much, but not many contrarians on the subject. Thanks