Gold, Silver and Other PMs

Top 62. Jul 12, 2000 6:10 PM

» Kirk - Gold Plated books?

Was the literature worth it?

-- posted by Kirk

Top 63. Jul 12, 2000 6:27 PM

» Happy - As it turns out, the literature was not worth it.

As it turns out, the literature was not worth it.

-- posted by Happy

Top 64. Jul 12, 2000 7:29 PM

» Rande - POG nearing the 270s.

POG nearing the 270s. Deflationary.

-- posted by Rande

Top 65. Jul 13, 2000 12:41 AM

» JenL_2 - Fred.....

..You said on another thread that you had between 2-3% of your portfolio or the equity portion of your portfolio in Gold and other precious metals. What is your rational behind that allocation, and would you recommend it to others?

BTW - Congratulations on graduating "Clickable Links" school!......Jen

-- posted by JenL_2

Top 66. Jul 13, 2000 6:30 AM

» FCSTECKIII - Jen

Appreciate your questions. Actually, my weighting
in PM's is currently around 2.5% broken down into
70% Silver Bullion (100oz Englehard Bars) and the
remainder in Gold Mining stocks. There's a chance
that I 'may' add some Gold Bullion (Maple Leaf's)
in the very near future ...

I plan on handing my Silver Bullion (and possibly
any Gold Bullion) down to my children (talk about
long-term) ...

The Gold Mining stocks are used for 'short-term'
plays and are not intended for buy and hold ...

Clearly Jen, this is one sector that most people
should avoid, however, I would like to point out
some 'interesting' items ...

Currently, Warren Buffet has accumulated nearly
144-Million Ounces or roughly 25% of all 'above
ground' silver. His average price per ounce is
approximately $4.75. One has to wonder why the
greatest Value Investor of all-time took such a
huge position in the semi-precious metal ...

One can make some very impressive gains in Gold
Mining stocks as was the case last year during
SEP/OCT period and JAN/FEB period of this year.

Since Gold is still in a Secular Bear, you need
to be IN and OUT very quickly. Most of this hot
'action' is caused by short selling more than a
change in sentiment ...

The divergence between Gold/Silver and the S&P
500 is now at an all-time high. I myself have
never witnessed anything like it. Yes, it can
widen further, but not forever (IMHO) ...

XAU to S&P 500 Divergence Chart:
http://finance.yahoo.com/q?s=%5Exau&d=my...

One final note. I do not recommend people buying
Gold coins with numismatic value if all they're
looking for is bullion value. The premiums are
just not worth it. -Thanks Jen

-- posted by FCSTECKIII

Top 67. Jul 13, 2000 6:33 AM

» Whirlwind - gold

Is not a very good metal to speculate on. The best one could hope for is a double from current levels. The stock market gives you that every eight years. Silver is a better bet. Once it's used it's gone. Some amount of recycling done, but the shortfall between supply and demand is there every year. I do believe a spike to $20 to $25 is possible. You can accumulate silver coin on E-bay at melt, even after shipping costs if you are patient. Must know silver content of your coins.

-- posted by Whirlwind

Top 68. Jul 13, 2000 10:06 AM

» Kirk - FCS

FCS

Could Mr Buffett join the ranks of the Hunts? The problem with value, is often others don't see how "smart" you are.

Alan. I used to save silver coins when I worked in 1974 and 1975 to earn money for college. what is the silver content of a Quarter or Dime worth these days? I still have them somewhere.... My Dad and his aunt (a hair dresser in SF until she retired in the late 1960's) used to save these too.

I bet I wasted my time and would have done better to buy a share of GE stock! 8)

-- posted by Kirk

Top 69. Jul 13, 2000 10:15 AM

» FCSTECKIII - Kirk

Your silver coins (aside from numismatic value)
are worth less today than they were in 1974 ...

The 'trick' was to unload them in 1979-1980 when
everyone thought that inflation would go to 20%.

No doubt, PM's have been lousy investments over
the last 18-years. I only hope that my kids can
say "Hey, I remember when my dad paid only $500
for this Englehard Bar in 1999... Now its worth
$501 (LOL)

I can honestly say that if Coin Collecting gets
hot again, some of the more Common Silver pieces
may be worth a premium since many of these ended
up in the smelters when silver peaked in 1980...

-Thanks

-- posted by FCSTECKIII

http://www.ctol.net/~billw/silver.html

Top 70. Jul 13, 2000 10:23 AM

» Whirlwind - Kirk

I agree, GE rules.

Here is a great chart for figuring out the silver content of your US coins. It also has Canadian coins listed too which makes it extra handy.

According to the chart, one US dime pre-1965 is worth 36 cents. One quarter = 90 cents. This is assuming $5 silver.

-- posted by Whirlwind