gold and silver as inflation hedge?

[beachbunny]

i'm just not seeing it

 

[Rich M]

Me neither. A couple years ago, maybe.

The guys who bought gold at $370 an ounce did good. I remember folks saying that it would never go higher. LoL they were wrong about that.

 

[Amos Moses]

GLD etf ytd is up 2.85% while the nasdaq is down 27% and s&p around 17%. There is definitely something to be said for metals as a good diversifier, but nowhere near keeping up with inflation.

*Not financial advice*

 

[ODB]

I know a guy who bought 10k of silver when it was $45 an ounce.

What hedge?

 

[beachbunny]

I know a guy who bought 10k of silver when it was $45 an ounce.

What hedge?

ouch

 

[eddielasvegas]

Au as a hedge, you bet. Silver, not with my money. Way more silver in the world, more volatile, 80:1 ratio to gold (for storage purposes) and crazy high premiums. The last one is the hardest pill to swallow.

Like another poster said, the major indexes are all down a lot since Jan. 1. Your dollar down ~8% (from CPI - figures don't lie, but liars do figures) and in reality inflation is well over 12%. Au is down 1-3% since Jan. 1.

That is how I use Au. In tumultuous times, it will fair better than most other asset classes.

And remember, if you can't hold it, you don't own it so I'd stay away from paper for Au/Ag. Solid mining stocks are a good option in addition to physical Au IMHO.

All the above is just my non-financial advisor opinion.


Eddie

 

[flatlanderhuffandpuff]

I know a guy who bought 10k of silver when it was $45 an ounce.

What hedge?

No hedge against buying at the top.

 

[IH8Cali]

I have no problem buying SOME silver coins for future exchange, regardless of what it's "worth" against fiat currency. It will always be of some value for bartering, can't say the same about paper money.

 

[ODB]

No hedge against buying at the top.

At the time he thought it was only halfway to the top…oof.

 

[WRM]

lead

 

[CorbLand]

Like most anything in this world, something is only worth what people are willing to pay for it and I dont see gold and silver being worth much when people are starving.

Water and food are your best investment.

 

[Bearwhisky]

Me neither. A couple years ago, maybe.

The guys who bought gold at $370 an ounce did good. I remember folks saying that it would never go higher. LoL they were wrong about that.

Lol good chance some other joker will be saying the same thing 2 years from now. “Remember when gold was under $2k? Cant believe that!”


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[Bearwhisky]

DOLLAR COST AVERAGING and DIVERSITY. Thats all you need to remember.


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[ozyclint]

Remember, gold's value is stable over time, a LONG time. That is one of the fundamental properties of real money. The gold price doesn't go up, the fiat value goes down.

 

[flatlanderhuffandpuff]

They are both good in the long run as a hedge. Some people think they are getting on a rocket ship to the moon and that isn't ever going to be the case.

Both have industrial uses which gives each a practical value but the biggest is the historical reason they held value. FIAT is going to die an ugly death and we will return to metals or we will be trading beans for apples.

 

[Btaylor]

lead

copperplated is even better

 

[TheGrayRider]

Gold > crypto.

 

[RS_Non-Res]

No investment is magical.
Gold went from something like $2400/oz to $1700/oz from Sept-21 to Mar-22 ... like a 30% drop in 6 months. Lots of panic buying and selling out there for that kind of volatility.
Consider holding gold as part of a diversified investment strategy and like @Bearwhisky said, DCA/Buy low-sell high, not the other way around.

 

[beachbunny]

 

[IH8Cali]

View attachment 414567

It's even better when you look at the 30 year. Compare that to the buying power that's in your 401k, had you bought a physical asset instead of "mutual" funds.