Help on gold...

[republicanbred]

Okay, my 18 year old daughter has $5,000 dollars sitting in investments and I would like to cash out and invest 1/2 in gold and 1/2 in something else secure for when the dollar collapses. We already have food storage enough so no need to spend it on that. Any ideas on what is best for an 18 year old would be appreciated!

[republicanbred]

Thanks...already have those as well:)

[republicanbred]

She wants to invest in something safe for when the dollar crashes. She knows she needs to get it out of her current investments.

[republicanbred]

Well, I believe in the American people, it is the American government that I don’t trust when it come to the dollar...

[republicanbred]

Thanks, I agree with you but we have lots of those things already.

[agere_contra]

I thoroughly recommend that she buy physical silver and gold. She should avoid coins with numismatic value - just go for standard coins and/or bars.

Neither gold nor silver are in a bubble. They are going up because the free market is beginning to realize the awful reality of the world fiat currency market - that it is all based on irredeemable debt.

All fiat currencies - especially the dollar - are going to painfully devalue within the next 18 months. As they do so, vast amounts of capital is going to rush into precious metals as people seek to maintain their buying power.

Precious metals have a long way to rise in both price and buying power. Gold will eventually rise to the level where 1 oz of gold will have the same sticker price as the DOW index. In other words it will rise at least eight times from where it is now.

Silver will do what Gold does, but faster/higher. I expect it to rise to about 16 times its current buying power.

Here is a link to a useful set of 10 or 11 short films about why Gold and Silver are good investments right now. They were made by a guy named Mike Maloney about a year or so back, when silver was ~ half the price it is now.

Finally: here is a picture of some of my private hoard of silver. The fiat currency in my wallet lost 5% of its buying power in the last twelve months. But the buying power of this silver has doubled. Hope this is helpful!

[Persevero]

What do you need to be independent in life?

A good working car.

A reliable computer/phone.

A piece of property.

A good job (so invest in a reasonable education towards one, even if it’s just getting some skills she can put to use, like bike repair or plumbing or dentistry or basic carpentry or whatever to employ herself. Some sheep and a spinning wheel, I don’t know).

A sewing machine, preferably one that doesn’t REQUIRE electricity. She could start a business maybe. Anyway, she could sew and/or repair her own clothes.

A good gun or two with ammo.

Decent quality clothes/shoes.

Good medical/dental care.

You’ve got some food/water stashed, so I think that’s about it.

[OB1kNOb]

I’d suggest silver over gold. 90% pre-65 coins. They have the smallest premium generally and if you look around enough you may find someone local who will sell it to you at spot price. At current spot price of around $35 you could acquire around 142-143 ounces for $5,000 which would amount to about $200 face value of pre-65 dimes, quarters, and halfs. Halves and silver dollars will likely sell at a premium over spot which can vary significantly by dealer. JMO.

[republicanbred]

Great insight...I appreciate it!

[Vermont Lt]

If she is working, put it into a Roth IRA. Then put the remaining amounts into a pretty stable, growth fund.

Gold is OK, but if you are doing that buy the small .10 ioz coins. Bullion or larger denomination coins are not going to do you well if things go bad.

Silver is also OK, but it has whipsaw swings that are not for the faint of heart. I watched my 18 year olds account’s silver holdings swing from $6,300 down well into the $5,000’s in a week or two. Now, she has owned it since it was about $14 a share, so she is fine—but she also doesnt look at it every day.

Depending on whether or not she is going to college might have a bearing on my decision as well.

There are simply too many variables to deal with to answer your questions.

[republicanbred]

This helps me alot! At least I know what prices are fair, I appreciate your help. Silver it is. I am convinced!!

[agere_contra]

While I remember: she should buy physical, hold in your hand silver. She mustn't buy into a Silver ETF - with honorable exceptions Silver ETFs simply do not have the silver they claim to have.

To diversify physical risk, consider buying/storing some silver/gold through BullionVault.com. This is 'bailment' silver/gold. You never see it, but it is audited, it is legally yours and it's out of Bambi's reach.

Mining stocks are a possibility, but historically they have been outstripped by the physical metal for decades. I greatly prefer holding the metal.

[Vermont Lt]

Stamps are for real pros. I have a fifty year old collection that is good for postage and not much else. Good, cool stuff too. Be very, very careful with any collectable if you are not an expert.

[MeganC]

You don’t “invest” in gold or silver. Gold and silver are hedges...sort of like how a fire extinguisher in your house is there not so you can profit from it during a fire, but so you can USE it if you need it.

My family over the years bought a lot of gold and silver along a ratio of about 1 ounce of gold to one pound of silver.

Maybe we’ll make a nice return someday. Maybe not. Eithr way doesn’t matter because we bought our silver and gold as hedges of value against hyperinflation. So far, the past decade has proven us to be prudent.

To sum up: Spend money you won’t miss on silver and gold but don’t call it an investment or you’re setting yourself up for a potential disappointment.

[stuartcr]

Good for her

[vetvetdoug]

Why worry? The world ends tomorrow. I’d buy an expensive hooker for tonight with the cash.

[chuckles]

I look to the Bible for most answers of this magnitude. If she isn't Raptured, the Bible says gold and silver will do no good. We will beg to die but can't. Hiding from the wrath of God would be very difficult, If you ask me. If we turn our back on Israel, as Obama is doing right now as I type this, America will not receive God's blessing or protection.

Her best bet is to be Raptured out of here. Ammunition and food will be the money of the day during these trying times. Gold will only last a few days if that long. If someone see's your daughter paying with gold she will be killed and her gold taken. The people that don't have gold will acquire some within minutes. As society breaks down, we can't imagine the darkness in a human heart. Even family and friends will turn on her to get her food and gold.

IMHO, survival will be more luck than preparation and skill. If you read the 4 Gospels, almost all of the parables deal with Rapture and how to get Raptured. The 10 virgins is probably the most clear. 5 were wise and 5 foolish. The foolish virgins weren't ready to go so they were sent to "where they buy and sell"( that would be were you take the mark), and when they returned, the Bridegroom and the 5 wise virgins were gone. It's more important to be ready to go than to buy silver and gold.

We keep hoping for a solution to our problems, but as we can now see plainly, they are remote with the evil people in the world in power. What are the odds of balancing the budget? What are the odds Muslims find Jesus and turn from their evil? We are on track for Biblical conflagration and I don't see a leader to get us out. If we find one, he most likely will be the Antichrist.

I've asked many Christians in church, "Are you ready for Christ?" and they say, Oh no, I have grandchildren to raise, or I just bought a new dream house, or I retire next month, and many other feeble excuses. The Bible is plain. Jesus is our aim, our beloved, our central reason to exist. After all the tribulation in Revelation, the last comment is to pray Jesus will come. There is nothing wrong with preparation, but she should be preparing to leave and not experience the punishment in store.

[maine yankee]

The basics.

Winter is over. Buy an extra pair of winter boots(hiking boots or work boots) at end of season prices. A good carhart jacket and gloves. With the outlook on cotton prices, I’d also get socks and underwear.

If she plans on keeping her car, buy an extra set of tires. Also an extra case or two of motor oil the next time it’s on sale. Don’t forget filters,belts, and anti-freeze.

Also invest in knowledge. Take a first-aid course. How about a course on chain saws or mechanics ? The latest boy scout field manual. Platoon sargent’s manual.

[republicanbred]

Great ideas, thank you!

[sinsofsolarempirefan]

In 2001, Palladium was rocketing up due to fears that there would be a shortage when Russia stopped selling from its stockpile, then they announced that they would be selling again and the price of palladium crashed through the floor and still hasn’t recovered...

[yefragetuwrabrumuy]

Gold is both expensive and difficult to convert. What you should do is make a price list of things that will retain their value no matter what happens. Instead of raw materials, most of these will be technologies, and likely a combination of technologies. For $2500, you could assemble quite a kit.

A list of some of the things you might consider:

1) A column still. About $500, but can make alcohol when fuel is scarce.
2) A set of long range, say 20 mile, walkie-talkies. $100 or less.
3) If potable water might be a problem, pitcher water filters. $30/2.
4) A moped with a cargo trailer. About $600 + $200.
5) A propane camp stove. $40-60.
6) Bolt cutters. $25.
7) Good quality binoculars. $50.
8) Pocket fisherman. $20.
9) etc.

As you can see, this can be a lot more useful than a few chunks of metal.