Precious metals.

Flyinthrew said:
If you want to diversify while not wearing a hat made of gold foil, then why not a precious metal mutual fund? It's more of a mining sector fund, but the real strength of the individual stocks in the funds are usually how much proven reserves each one is sitting on. Many also have precious metals in their portfolio. I get that you don't actually own the commodity, but it's more of a play on the fear play that everyone's talking about. It's good because you get to capitalize on the irrational fear of the collapse of civilization without actually having to either store the stuff or get caught up in some scam that was actually targeting the elderly and flat-earthers.
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Because you'll only make money on gold if everything else goes to nothing and if that happens the company securing the mutual fund will be gone and how will you collect your money? Pretty much the dooms dayers only make sense if they hold the physical commodity.
 
mikecweb said:
Because you'll only make money on gold if everything else goes to nothing and if that happens the company securing the mutual fund will be gone and how will you collect your money? Pretty much the dooms dayers only make sense if they hold the physical commodity.
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You're absolutely right, but you're not buying the fund because you think the dollar is actually going to go to nothing. The US government would actually need to literally collapse, and the Constitution would have to no longer be in effect. It would be an apocalyptic scenario. Hell, I can come up with apocalyptic scenarios where the government stayed intact and the dollar with it. It would have to be real bad. BAD.

With that said, the very best Dow to gold ratios occurred in '32,'33,'74,'80, and 2011 which should resonate as REALLY bad years for stocks. If you're in a fund that's in precious metals you're not anywhere near those lows. At the same time, when business is good and stocks are cooking, you are still getting upside because you're not only in precious metals. You're in mining companies, too.

So what I'm saying is, you get the REALISTIC benefits of owning precious metals in a downturn, along with some of the benefits of owning stock in an upturn. If you really think that the economy will get so ridiculous that gold will be the currency of the world, then I can't help you.
 
Flyinthrew said:
If you want to diversify while not wearing a hat made of gold foil, then why not a precious metal mutual fund? It's more of a mining sector fund, but the real strength of the individual stocks in the funds are usually how much proven reserves each one is sitting on. Many also have precious metals in their portfolio. I get that you don't actually own the commodity, but it's more of a play on the fear play that everyone's talking about. It's good because you get to capitalize on the irrational fear of
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This sounds like a good idea. I’ll research this. Thanks.
 
Flyinthrew said:
You're absolutely right, but you're not buying the fund because you think the dollar is actually going to go to nothing. The US government would actually need to literally collapse, and the Constitution would have to no longer be in effect. It would be an apocalyptic scenario. Hell, I can come up with apocalyptic scenarios where the government stayed intact and the dollar with it. It would have to be real bad. BAD.

With that said, the very best Dow to gold ratios occurred in '32,'33,'74,'80, and 2011 which should resonate as REALLY bad years for stocks. If you're in a fund that's in precious metals you're not anywhere near those lows. At the same time, when business is good and stocks are cooking, you are still getting upside because you're not only in precious metals. You're in mining companies, too.

So what I'm saying is, you get the REALISTIC benefits of owning precious metals in a downturn, along with some of the benefits of owning stock in an upturn. If you really think that the economy will get so ridiculous that gold will be the currency of the world, then I can't help you.
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I’ll buy what you’re saying. I guess it’s a fairly limited upside compared to some other areas IMHO
 
Hawks said:
I purchased some silver from JM Bullion at spot. They have a PM “starter pack”of 10 oz of .999 silver. My portfolio is small, but I read it is not a bad idea to keep 5 to 10% of your holdings in precious metals. I am inclined to agree with that thought.
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As an investment, metals aren't that great. They are essentially a bad inflation hedge, and in the case of at least gold have unfavorable tax treatment. Better than using a credit card to buy Bitcoin, but that's about it. For metals at least, unlike a stock, it won't go to zero. But neither will a lot of other things that have more upside.
 
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