Physical Gold or Silver Thoughts

[swk7907]

Hi,

I own a few commodity and material funds or etfs as part of my portfolio. I also own GLD. I haven't been thrilled with any of them as I don't feel they have been performing as well as they should be (probably a function of trading and management fees).

Does anybody own physical gold (or other metals) as part of their portfolio? What is your experience? Do you own it at home, in a safety deposit box or at a storage vault with the company you bought it from?

If there is already a thread that discusses this I apologize and please merge it. Just curious to get some people's thoughts around here.

Thanks!

 

[COcheesehead]

I figured out long ago that if things get bad, you’re more likely to gain value from trading a few bottles of whiskey than a few bars of gold. Just my two cents.

 

[copyright1997reloaded]

Hi,

I own a few commodity and material funds or etfs as part of my portfolio. I also own GLD. I haven't been thrilled with any of them as I don't feel they have been performing as well as they should be (probably a function of trading and management fees).

Does anybody own physical gold (or other metals) as part of their portfolio? What is your experience? Do you own it at home, in a safety deposit box or at a storage vault with the company you bought it from?

If there is already a thread that discusses this I apologize and please merge it. Just curious to get some people's thoughts around here.

Thanks!

As the cryp* folks are learning, if you don't physically posses it, you don't really own it.

Also, just as we've learned about normal investing, a diversified portfolio of end-of-the-world-as-we-know-it approach to what things are needed is recommended.

(I have about 5% of my assets in PM's, both via ETF/miners and physical.)

 

[Car-Guy]

I had a bunch ($xxx,xxx) but sold it a year or so ago... Made a nice chuck of change... Silver takes up too much room but gold is not a bad idea IMO, although I wouldn't put a lot of money in it anymore. YMMV

 

[erkevin]

I physically hold gold and silver. I am a numismatist and collecting precious metals is just a sidebar hobby from that. I do not consider it an investment. More as a store of wealth. I keep it in a safe. In total, my precious metal's store is less than 2% of my PNW.

 

[ownyourfuture]

In March 2017, I decided I wanted some exposure to silver. Since I collected coins for a short period in the 1970s,
I decided to go that route. Started buying ‘lots’ of 1964 JFK 1/2 $ on E-Bay (90% silver)

Just short of 1 year later, I reached my target of 1400 coins. Average cost $6.81

Today, in lots of 10 or more, they sell between $10 & $12.
For whatever reason, if you sell them 1 or 2 at a time, you can get up to $14 or $15. I keep them in a large safe. At present value, they represent about 1.5% of my net worth.

Shortly after I started buying, someone mentioned that I should be careful, because counterfeiting is an issue.
Each time I received a lot, I’d take a sampling of them to a friend who owned a coin shop in town for many years. They were all legit.

An easier way to go about it would be buy boxes of American Eagles.
These carry a large premium.
IOW: You'll be paying a lot more per ounce for the silver.

Currently selling @ $20,000 for 500 one ounce coins.
https://www.bgasc.com/product/2022-...OFhULOTSKkZTqtJXOHhoCYwsQAvD_BwE&gclsrc=aw.ds

 

[rk911]

I figured out long ago that if things get bad, you’re more likely to gain value from trading a few bottles of whiskey than a few bars of gold. Just my two cents.

agree. you can't eat gold or silver if the world becomes Thunder Dome. stock up on non-perishable food and bottled water. they will be the new currrency.

 

[Katoslake]

agree. you can't eat gold or silver if the world becomes Thunder Dome. stock up on non-perishable food and bottled water. they will be the new currrency.

Thinking lead in various denominations is also in the category of precious metals

 

[W2R]

Hi,

I own a few commodity and material funds or etfs as part of my portfolio. I also own GLD. I haven't been thrilled with any of them as I don't feel they have been performing as well as they should be (probably a function of trading and management fees).

Does anybody own physical gold (or other metals) as part of their portfolio? What is your experience? Do you own it at home, in a safety deposit box or at a storage vault with the company you bought it from?

If there is already a thread that discusses this I apologize and please merge it. Just curious to get some people's thoughts around here.

Thanks!

I don't think that right in the middle of a financial crisis (recession? inflation? whatever we have going right now) is a super great time to re-evaluate my asset allocation or add something new to me like physical gold or silver.

I'd suggest waiting until we are in peaceful, prosperous times, and read a LOT about various aspects of owning physical gold and silver, such as tax implications, storage, volatility, and so on. Then when you have finished, read a LOT more about them. Then if you are still wildly enthused about buying physical gold and silver, ask your truest and most faithful friends about them. Then go have a beer and think about something else. But that's just me, you do you....

 

[Jerry1]

I used to think it would be good to hold gold. I have a few ounces that I bought a long time ago when gold was around $300/oz. However, now that we’re finally seeing a significant increase in inflation, gold did not seem to track up as I would have expected. If it doesn’t go up with inflation, something has changed. Not sure I’m interested any longer.

 

[wingfooted]

There’s just nothing like holding a few double eagle gold coins in your hand. They are heavy, feels like real money. A tangible certainty and not just a promise. Completely different than having funds in a brokerage account or a precious metal ETF.

 

[yhoomajor]

My physical Gold holding is roughly 2% of my $ denominated assets. Some of it I inherited. To me its generational insurance (passed down to me) and I plan to pass it to my kid. I don't count it as liquid asset, but do know that it can be used as such in times of global reshuffle.

 

[Sunset]

I found a couple of 1/2 dollar with Kennedy on them, 1966 & 1969 at the coin machine that refused them.

Now I know they are worth more than 50 cents each

As for gold/silver, I don't view it as an investment or even hedge during zombie times.

Those metals don't seem to counter inflation, and certainly don't earn dividends or interest each year.

Interestingly, some guns I bought 5-8 years ago have doubled in price. Most stuff I buy goes down in value.

 

[dmpi]

I have a few pre-1933 gold coins and maybe $1000 face of pre-1964 silver. For me it's a hobby not an investment. I love coins but if you have too much it requires a UL safe which by itself can cost thousands. And even if you have a safe you might be forced to open it under duress. If you got hold precious metals I would hold gold or platinum and I would keep them at the bank's safety deposit box.

 

[Sunset]

I have a few pre-1933 gold coins and maybe $1000 face of pre-1964 silver. For me it's a hobby not an investment. I love coins but if you have too much it requires a UL safe which by itself can cost thousands. And even if you have a safe you might be forced to open it under duress. If you got hold precious metals I would hold gold or platinum and I would keep them at the bank's safety deposit box.

Bank safety deposit boxes are not safe.
They get robbed/stolen from and the bank has no responsibility for the contents.

I'd rather have 2 safes at home, one the robbers can force me to open with cash, documents, and bunch of collectible looking coins that are of low value.
And another really hidden safe with the good stuff.

 

[dmpi]

Bank safety deposit boxes are not safe.
They get robbed/stolen from and the bank has no responsibility for the contents.

I'd rather have 2 safes at home, one the robbers can force me to open with cash, documents, and bunch of collectible looking coins that are of low value.
And another really hidden safe with the good stuff.

I don't like the bank safety deposit box either because there's an annually fee & bank branches can come and go and forget to tell you. The two safe thing is a good idea. But it's hard enough to place and set one safe let alone two. I've been trying to think up a good way to hide a safe. I think a floor safe would be good if you have access to a concrete slab like in your garage. But they're very small, unheated and can flood.

 

[Sunset]

I don't like the bank safety deposit box either because there's an annually fee & bank branches can come and go and forget to tell you. The two safe thing is a good idea. But it's hard enough to place and set one safe let alone two. I've been trying to think up a good way to hide a safe. I think a floor safe would be good if you have access to a concrete slab like in your garage. But they're very small, unheated and can flood.

But gold and silver don't care about being cold or flooded.

The decoy safe doesn't have to be well hidden, just stick it in a closet is good enough.
Thief won't care about documents, just the cash and decoy coins.

 

[old medic]

Since I collected coins for a short period in the 1970s,

My Grandparents turned me on to old coins about the same time.. They played "Penny Poker" a couple times a week and had coffee cans full of change. Any winnings went into a separate can for sorting. It stuck with me and to this day, I still sort my change before spending it. Occasionally still find stuff. Also found some metal detecting. I have a box with 30-40 Lbs of wheat penny's that I want to sort through, probably half as much in silver.
Not a lot for a portfolio, more for SHTF, sits in the safe, and hopefully we will never need it.
Like COcheesehead said, other things may be of more value... Brass and Lead are my precious metal investments.

 

[tmitchell]

I figured out long ago that if things get bad, you’re more likely to gain value from trading a few bottles of whiskey than a few bars of gold. Just my two cents.

When I was a kid I bought a bar of silver for $9. I think this was around 1980. Today it’s $23.43. I’m not sure about the math but I’m pretty sure that lags behind stocks. Maybe even bonds.

Over the years and especially after 2008 I acquired a little more bullion, all of which has gone down. Last year I decided to unload my $10k worth of junk silver (meant to help during apocalypse according to sellers) and I bought crypto “just to see”. Well, we all know the story there. I could have given it to SBF and lost it all but instead I’m only down like -60%.

If I had bought $10k worth whiskey instead at a minimum I’d have a great party during the end times, or swap for some canned beans if I were intent on pulling through nuclear winter. Maybe I’m just a bad investor?

 

[DrRoy]

I have some silver and gold coins, but primarily as part of a collection, not really as an investment.

 

[Badger]

Never been interested in accumulating gold as an investment or hobby and I don't see it as being useful for Armageddon.
If I wanted a hobby with coins I would get those cardboard coin holders that have cutouts for each year and collect pennies or nickels.
For Armageddon I would stock up on dried beans and rice for bartering. If things got bad I bet I could trade a pound of beans for a pound of gold.

Cheers!

 

[JoeWras]

I liked coin collecting. I also inherited a good bag of pre 64 quarters and dimes.

It was all just too much.

Just recently sold it all except for a few special coins. The remainder are not investments, more sentiment.

I put the proceeds into a T-Bill.

 

[JoeWras]

Speaking of inheriting. This should be a consideration of anyone who has a lot of physical metal. There are both good and bad aspects of it.

My concern was giving the family a problem or project to deal with. I didn't want to burden them, or have them accidentally give them away, or firesale them.

 

[jimbee]

When I was a kid I bought a bar of silver for $9. I think this was around 1980. Today it’s $23.43. I’m not sure about the math but I’m pretty sure that lags behind stocks. Maybe even bonds.

According to this calculator, your silver didn't even keep up with inflation.
https://www.bls.gov/data/inflation_calculator.htm

 

[erkevin]

I used to think it would be good to hold gold. I have a few ounces that I bought a long time ago when gold was around $300/oz. However, now that we’re finally seeing a significant increase in inflation, gold did not seem to track up as I would have expected. If it doesn’t go up with inflation, something has changed. Not sure I’m interested any longer.

Jerry, the main reason that gold hasn't been the inflation hedge as it was in the past is the strength of the US Dollar. However, the dollar has sunk a bit recently and gold has made small moves upward.