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Barrio Bajo Señor
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Discussion Starter · #1 ·
But gold is nowhere close to a 20 year low, I’ve always heard that the dollar will soar before crashing and I’ve also heard gold numbers of $5 and $10,000


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Twisted, sick, smart***, occasionally sarcastic...
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I can't explain it but when I look at those bars something inside me stirs. I kinda understand why we give gold value. It almost seems ingrained in my dna.
To get back on track, how scary is it that our dollar is the strongest fiat currency out there. Kinda telling isn't it? The rest of the world is just as ****ed as we are.
So are we winning or losing the race to the bottom?
 

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The dollar is insane right now. Euro at $0.98. British Pound $1.15. This can't last forever. The U.S. Dollar us still the world's reserve currency but dollars are becoming too expensive. Our economy is weak, and getting weaker. Our debt is piling up. Inflation isn't going away. At some point the world is going to wake up and ask "why are we trading with dollars?".

When the dollar loses favor and countries start dumping them, that's when gold and silver will soar.
 

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Sounds like a good time to buy. We should look at the big investors holding currency hedges and see where they are shifting.

If they are buying gold and silver, there is your answer. They are billionaires for a reason.
 

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The Power of the Glave
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The dollar is insane right now. Euro at $0.98. British Pound $1.15. This can't last forever. The U.S. Dollar us still the world's reserve currency but dollars are becoming too expensive. Our economy is weak, and getting weaker. Our debt is piling up. Inflation isn't going away. At some point the world is going to wake up and ask "why are we trading with dollars?".

When the dollar loses favor and countries start dumping them, that's when gold and silver will soar.
The "death of the dollar" has been predicted for decades now. I remember during the "oil shocks" of the 1970's. And it was the common mantra back then, also. The talk today is just more of the "same old, same old".

The U.S. economy and government still remains the strongest in the world. The "safe haven" for foreign investors to park their money.
 

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I do not understand gold/silver very well.

My issue with metals is buying physical gold/silver has a big markup over spot. I was watching a video where buyers were paying $4-9 over spot for silver coins in cases. So if spot is $19 they were paying $23-28, which means they are selling at an even greater spread.

Silver isn't heading toward $30 plus anytime soon. So how can it be a good investment? Even if the spot price doubles to $36, you only make $6 if nobody pays a premium?

What am I missing here?
 

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Well coins have had work done to them in the printing press. Work that can guarantee they are genuine. Blobs of silver shot and generic bars sell for less.

When you exchange other currencies on the market, the bank charges over the exchange rate.

If something were to happen, would you take payment in silver shot or Eagles?
 

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I do not understand gold/silver very well.

My issue with metals is buying physical gold/silver has a big markup over spot. I was watching a video where buyers were paying $4-9 over spot for silver coins in cases. So if spot is $19 they were paying $23-28, which means they are selling at an even greater spread.

Silver isn't heading toward $30 plus anytime soon. So how can it be a good investment? Even if the spot price doubles to $36, you only make $6 if nobody pays a premium?

What am I missing here?
If you don’t think silver will ever rise enough to cover the premium you pay today, don’t buy it. I’m of the opinion it will rise. A lot.

Having gold and silver makes me sleep well at night. Watching my 401k dwindle gives me a lot of heartburn.
 

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You're not missing anything.
He’s missing accurate information. You can buy silver for 23.18/ oz ( AJPM rounds right now). AJPM will purchase rounds for 20.83. The price only needs to go up $2.35 to break even. If silver doubles ( from. $18.83) , you would presumably make ~$16.48/ oz.

You have to decide for yourself. But making decisions based on false information isn’t wise.

You should also factor in that if the investment doesn’t make 10% per year or so, you are losing value measured in constant dollars.
 

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Terra Nullius
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I do not understand gold/silver very well.

My issue with metals is buying physical gold/silver has a big markup over spot. I was watching a video where buyers were paying $4-9 over spot for silver coins in cases. So if spot is $19 they were paying $23-28, which means they are selling at an even greater spread.

Silver isn't heading toward $30 plus anytime soon. So how can it be a good investment? Even if the spot price doubles to $36, you only make $6 if nobody pays a premium?

What am I missing here?
Not missing a thing. The house always wins. The only way to win at precious metals is to emulate the house.
The scrappers hit the flea markets with their gram scales and pay about 80% of scrap, divided by the purity of the metal.

sterling is .925, European silver mark can be 800, for .800 percentage. 14k is .585, etc.

If you pay the pickers spot rate, they will be your new best friend.

Lesson my girlfriend taught me at the market last week: if you see a gold ring in a group of jewelry on a table,
and the vendor doesn't look like he knows what he is doing, don't ask how much the gold ring is. Ask how much the group of rings is. We nabbed a 10k men's ring with $240 melt value for $15 two weeks ago.
 

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Golfer
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I do not understand gold/silver very well.

My issue with metals is buying physical gold/silver has a big markup over spot. I was watching a video where buyers were paying $4-9 over spot for silver coins in cases. So if spot is $19 they were paying $23-28, which means they are selling at an even greater spread.

Silver isn't heading toward $30 plus anytime soon. So how can it be a good investment? Even if the spot price doubles to $36, you only make $6 if nobody pays a premium?

What am I missing here?
Buying PMs reminds me of the baseball card craze 30 years ago. My kids would go down to the card store and pay the the Beckets book price but when they wanted to sell, they'd have to do it at a huge discount - if the store owner would even buy them back at all.
There is a PM shop near me. His customers are few but his buy-sell spread is many. His customers might be adults in years but in brainpower they are just kids buying baseball cards.
 

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Barrio Bajo Señor
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Discussion Starter · #14 ·
Buying PMs reminds me of the baseball card craze 30 years ago. My kids would go down to the card store and pay the the Beckets book price but when they wanted to sell, they'd have to do it at a huge discount - if the store owner would even buy them back at all.
There is a PM shop near me. His customers are few but his buy-sell spread is many. His customers might be adults in years but in brainpower they are just kids buying baseball cards.

Central banks and ALL countries are kids too then
 
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