13 votes

Is Gold/Silver in a Bubble soon to burst?

I'm considering purchasing silver coins, thanks to all those who have given me advice so far. But what is worrying me is this sudden spike in prices. It is obvious that the dollar is being devalued and it has been for some time. But how much of this increase in price reflects the actual value of silver compared to the dollar versus an over inflation of silver due to hysteria of the dollar crashing?

I guess the long and short of it is, should I invest in silver now or wait for the price to trough out and buy later? Obviously we all know to buy low sell high, and just looking at the charts, silver was at $4 dollars and now is at $35. That seems counter intuitive to be buying at such a high level.

Please give me your opinions.

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Except that you can not

Except that you can not "produce" gold. Stars don't "produce" gold within it's normal life span with fusion, only the energies associated with supernova are enough to produce gold. Which can be as high as the output of the star's entire lifespan. So I think we are stuck with the gold we have on Earth as it sits now. Sorry I know you meant to mine gold but I couldn't resist an opportunity to explain why gold and silver for that matter are and will always be valuable. There is a fixed amount so my advice to anyone thinking of buying precious metals "Get while the gettin's good"

want a short answer?

no one can tell you if its in a bubble or not until its already happened. everyone else here is just speculating yes or no.

Google "dollar cost

Google "dollar cost averaging."

DP is not the best place to seek advice on the timing of buying gold or (particularly!) silver. Bulls are most bullish after price increases. Before would be better. :-) When silver was selling for close to $50 an ounce, there were people screaming, "Buy, buy, buy now or miss the boat!" Well, the boat sank to $26 before bobbing back to $34.75 where it is as I type this.

Do as I say, not as I do. I did not dollar-cost average. I got in big at about $7 and added on at $17.20. The first was a "blood in the streets" situation. The second was at the pointy end of a long "pennant" formation on the charts.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

I think it is always worth buying

I don't buy it to gain value in paper money. I buy it to retain my wealth, and to make every effort to trade it with friends and local vendors. In California we have another industry (which we are also trying to legalize) that makes it a bit easier to trade Silver for. But, there are also farmers that are open to it.

The point of buying Gold and Silver, for me, is to transition away from paper money (fiat paper that is). At that rate there is always value to buying it, because you move wealth out of the Fed system, and into a decentralize sound economy.

You can also buy copper and nickel as a commenter posted below.

Again, I must bump my own Gold/Silver/Copper: http://www.membersmint.com/#freeindsun

There are likely better deals, or a company you prefer over this one, but it is worth checking out every avenue.

Jack Wagner

Study before you invest in anything.

Know this; banks are the biggest investors in the production of and holders of gold, silver, platinum and palladium.
So with that in mind your first question to ask yourself is what is your purpose for investing. Is it to try and bring down the bankers or is it to be prepared for a change in the money system. If it is to bring down the banking system, then your only option is to barter for goods and services, which is very if not next to impossible. If it is to be prepared for a change in the monetary system, well then I guess it is a wise thing to have some gold and silver on hand for the eventual change to come.
The second question however that you should be asking yourself it on what side of the market do you want to be on when change comes. If you are prepared sufficiently enough to have enough gold, silver, platinum and palladium stored up to sit back and just consume goods and services from you nest egg, then I would think you have little to worry about in the come of the change. On the other hand if you don't you will need to be prepared to have some good or service to produce or provide in exchange for the real money others have gathered together. Personally I don't have a lot of gold and silver, platinum and palladium. I have instead purchased a little land, have planted a variety of trees and care for livestock and wild animals that live on the land. In extremely harsh times, I think it is better to be primarily prepared to provide myself with the basics necessities that my friends, family and I will need. So I suggest that you buy seeds and plant.
grant

Poor man's silver

If you can't afford silver, and definitely can't afford gold, get yourself some nickels. I read the cost of nickel (the metal) is more than the nickel coin is worth, so go to the bank and get some rolls.

Anyone can afford silver

Find a good local coin shop that has no minimum purchase. Maybe you can't afford to buy 500 oz boxes of Silver Eagles or 1000 oz silver bars. Start small. Buy a few pre-1965 quarters or dimes. Avoid numismatic coins (any coin that is a collectors item that is selling for more than the content of the metal is numismatic).

Can't imagine buying fiat nickels for their metal content!

And Copper!

INFOGRAPHIC: Everything You

INFOGRAPHIC: Everything You Need To Know About Gold

Read more: http://www.businessinsider.com/gold-infographic-2012-3#ixzz1...

Don't

sell gold or silver no matter what they do to manipulate it. It's all smoke and mirrors to get people to steal their real money for fake money. This is how they take real money out of circulation.

NEVER GET RIDE OF YOUR GOLD AND SILVER!

Like Ron said to Bernake it's better to put gold and silver under the mattress it actually gains in purchasing power. Its good for savings.

You mean, don't get rid of it for Paper

You want to "get rid of your Silver/Gold" for goods. Keep the "real money" in your local economy. Trade it. Or at least, if you need to liquidate it, get rid of the paper money as soon as possible.

You want to save some as well, but if we don't use Gold/Silver as money than it has no value. Just holding onto it forever wont feed you or heat your house.

Start trading it around your local community and then you'll never have to worry about the value of the dollar.

Jack Wagner

Not only gold and silver

You make a very good point. Gold and Silver need to be exchanged between people. No need for it to have legal tender status for people to begin doing so. In fact the Constitution only requires that government make payment in gold and silver, the people being free should be able to choose anything they wish as money. Of course this idea was defeated by the bankers as early as 1792 with the whiskey rebellion preventing farmers from using whiskey to barter for goods and services. http://www.earlyamerica.com/earlyamerica/milestones/whiskey/
grant

I think platinum is the best

I think platinum is the best metal because it has some industrial demand. Even in the price of platinum will go down, I doubt it would go under $1300/oz, so your loss would be limited to that.

see this about gold http://www.blacklistedradio.com/?p=855

agree....and less chance of

agree....and less chance of confiscation vs. gold.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

imo, silver is going to move

imo, silver is going to move back to it's historical norm of 1:16 to gold. That puts it over $100, and much higher as Gold moves higher.

There will be bumps along the way, but I wouldn't get out of gold and silver until when and if you see the FED raising interest rates, and or the US begins to seriously deal with it's deficits.

The only caveat is if we have a 2008 style collapse. Events like this are normally deflationary as everyone scrambles for cash and nearly all asset classes decline in price.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Exactly right brother/sister?

I've been playing the ratio for awhile. Ive been playing the 1:13 ratio I normally see quoted but a 1:16 may be safer. It's hard to tell, but I'll tell ya where the hell else are you gonna put your money right now? In a mattress? In real estate? (I'm in real estate don't do it right now for anything other than raw land or in a rural area everything even in TX where I'm at is depreciating) With at least 8% inflation YTD? Losing money.... Same with a savings account with 3% interest (not to mention morally I don't want to do this when the bank is fractionally loaning money making more interest than the money I at least helped them to loan out). It's a terrible situation were in right now, especially young guns who make a good living like me. It all depends on what you believe will happen. If you think it's all gonna collapse and were totally screwed get guns, liqour,spices,seeds,land. If you think a lot of people will lose money but people won't lose their mind, I say silver (not really a gold guy ATM investing wise). I do both as I inherited land and make enough to do these two. But I guess even if one disagrees with my premise....what the hell else are you gonna invest in right now? Seriously I would like any tips always should be looking to grow your wealth. After all "it's for the kids!!!!"

"So this is how liberty dies, to thunderous applause"

I bought 2 properties last

I bought 2 properties last week for cash near the Atlanta area. One was a 3bed/2 bath 1 car garage just outside Atlanta built in 1984. Hardwood floors, big lot...needs about 10K in rehabs. I paid $25K. The other was a 2004 3 bed/2bath 1800 sq. ft 2 story. Only needs painting and some new carpets...downstairs hardwood floors. Paid $45K.

Both homes sold for over 100-175K just a few years ago. At the end of the day, people will still need a place to live. As the dollar loses value, rents will surely go up.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Those could work

I guess what I mean to say is that I wouldn't take out any mortgages that took a sizeable amount of my income per month (like more than 5-10%) as an investment in RE. If you can buy a house for cash, in a very distressed area like that, should be a good investment. Hard to see how it could dip below 25K. The second one could be even better, if you get 25 PSF and can pay cash go for it, especially a 2004, probably cost at least 100K to build with land aquistion costs. Especially if you're seeking to rent them out, my associate has been doing this with varying success past couple years. I just would not count on being able to flip them for a profit anytime soon, but renting could certainly work. I wish you luck and it sounds like a pretty decent deal!

"So this is how liberty dies, to thunderous applause"

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“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Buy right now.

Don't wait.

You are exchanging something of absolutely no value for something of intrinsic value.

Forget the price - just buy it, as much as you can, as soon as you can afford it.

"It does not take a majority to prevail but rather an irate, tireless minority keen on setting brushfires of freedom in the minds of men."

--Samuel Adams

You sure

got that right!

+1

"If we lose freedom here there's no place to escape to. This is the last stand on earth." -Ronald Reagan

When they took us off the Gold Standard they took away our money... in order to make it theirs. -OneTinSoldier

The elites

will gladly burst it at any time so they can scare off investors and buy up the only real currency we have for pennies on the dollar. hold out.

I maxed out all my Credit Cards

and spent all my Financial Aid FRN's on Silver in sept 2008 after I spent an entire sleepless week on youtube 1st learning about Paul and Schiff.

I was scared ...real scared, But as soon as my silver came in, I felt and saw it's intrinsic value...all of that angst went away and I felt I just made one of the best choices of my life.

Safety

I bought a few thousand dollars worth of precious metals for safety purposes. I know that if SHTF that I can use my silver to buy things and get by for a while.

Always diversify. Getting into PM is for the long game hedge against inflation. It is not something you get into for the month to month flux in price.

Some people do it for an investment. I do it for a safety net.

Look at it this way. If the dollar stabilizes, at worst case scenario you have a few thousand dollars of precious medals. But if the dollar implodes, you're left with a bunch of worthless paper or zeros and ones in some bank.

Pottawattamie County Iowa

"Capitalism should not be condemned, since we haven't had capitalism." -Dr. Ron Paul

Not a bubble

Silver looks pretty volatile. I wouldn't touch it if you are looking for a safe investment. Gold is stable and keeps going up. Because the value of gold is based on how people generally value it and people generally think of gold as a safe investment, that means it is. Staying with that same line of logic, the only thing you have to worry about is the fear of gold being a bubble.

Hello AtlasCrushed

In my opinion...

Gold is on sale.

Silver is currently on a FIRE SALE!

"If we lose freedom here there's no place to escape to. This is the last stand on earth." -Ronald Reagan

When they took us off the Gold Standard they took away our money... in order to make it theirs. -OneTinSoldier

Silver

Don't buy the paper only buy the bullion.

Gold/silver will stop rising in dollar terms...

...when the Fed stops printing dollars.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

No.

It's just that the Federal Reserve Note currency is so worthless that it's making commodities seem high in price.

It is so sad how many people don't get it...

A Federal Reserve Note hundred dollar bill is currently worth less that $4. In other words the Federal Reserve's credibility is so bad their bills are worth less than $0.04 on the dollar. The only reason anyone even accepts their credit is because the federal government's illegal "legal" tender laws and the fed monopoly on note issue. Silver doesn't go up in value, it is a measure of value, people get it completely backwards.