After Gold $5,000 and Silver $75 -- Where to Invest

[ppius13]

If and when global economic Armageddon unfolds, driving fiat currencies lower and precious metals to uncharted higher levels, governments will intervene to protect their currencies by making metal ownership burdensome, perhaps even criminal. At the very least, we can expect more vigilant tracking of purchases and sales, higher taxes and possibly confiscation.

There will, however, come a time to sell the shiny metal, when relative to other asset classes, it is overpriced. I believe that this decade we shall see a bubble in metals, with prices dwarfing today's "record" levels. What then?

While it may be difficult to recommend alternative investment classes prior to the assets being discounted, have any of you a defined plan for investing metal profits after selling at much higher levels? Thank you.

[RoyalBeluga]

If and when global economic Armageddon unfolds, driving fiat currencies lower and precious metals to uncharted higher levels, governments will intervene to protect their currencies by making metal ownership burdensome, perhaps even criminal. At the very least, we can expect more vigilant tracking of purchases and sales, higher taxes and possibly confiscation.

There will, however, come a time to sell the shiny metal, when relative to other asset classes, it is overpriced. I believe that this decade we shall see a bubble in metals, with prices dwarfing today's "record" levels. What then?

While it may be difficult to recommend alternative investment classes prior to the assets being discounted, have any of you a defined plan for investing metal profits after selling at much higher levels? Thank you.

Metal profits? You are assuming things will get better for fiat. Gold and Silver is the only true money in this world, the more you have the richer you are. Sell my metal for fiat? NEVER!

[ppius13]

"You are assuming things will get better for fiat."

I am assuming no such thing. In fact, my belief in higher metal prices is predicated on "fiat currencies lower".

I am seeking investment ideas in a post-precious metals bubble economic enviromnent, like income producing propertiy purchased for nickels on the dollar. Every investment -- metals or currencies -- is prudent to own at some time but not others. Stocks, bonds and real estate were incredible investments from roughly 1981- 2001; during this time gold and silver, relative to the aforementioned, were terrible investments. When capital (wealth) is created, at some point an investor needs to look at stream of income, particularly if the vehicle for that income stream is purchased for nickels on the dollar.

[phideaux]

If there ever was a "we'll cross that bridge when we get there", this is it. :biggrin:

Seriously, the economy in general will recover (eventually). There will be a time to reinvest some of the metals profits into real estate and stocks. It may be 15 years from now, but the time will come.

[SevenEyedJeff]

If things get to the point where you can buy a nice middle class home for 500 oz of silver that might be something to go for. Maybe a similar deal on some farmland if the opportunity arises. Only trade for real assets IMHO. Skip the middle man (fiat).

[RoyalBeluga]

"You are assuming things will get better for fiat."

I am assuming no such thing. In fact, my belief in higher metal prices is predicated on "fiat currencies lower".

I am seeking investment ideas in a post-precious metals bubble economic enviromnent, like income producing propertiy purchased for nickels on the dollar. Every investment -- metals or currencies -- is prudent to own at some time but not others. Stocks, bonds and real estate were incredible investments from roughly 1981- 2001; during this time gold and silver, relative to the aforementioned, were terrible investments. When capital (wealth) is created, at some point an investor needs to look at stream of income, particularly if the vehicle for that income stream is purchased for nickels on the dollar.

I understand where you're coming from now. To view Gold and Silver as an investment is a common mistake :biggrin:

[RoyalBeluga]

If things get to the point where you can buy a nice middle class home for 500 oz of silver that might be something to go for. Maybe a similar deal on some farmland if the opportunity arises. Only trade for real assets IMHO. Skip the middle man (fiat).

I get it, some just aren't able to. Nothing wrong with it, it's a shame but it's not wrong.

[Irons]

Hookers and blow.

[GodspeedMetals]

agreed SEJ

land with a water source... and if a nice home happens to sit on it... all the better.

The more I think about the government threatening to outlaw metals, the more I realize how foolhardy that attempt would be (I'm not underestimating those punks). I reckon if that time ever comes, we'll be ducking bullets from snipers while crossing the street (i.e., European warzones in World War II).

[Goldfinger]

If and when global economic Armageddon unfolds, driving fiat currencies lower and precious metals to uncharted higher levels, governments will intervene to protect their currencies by making metal ownership burdensome, perhaps even criminal. At the very least, we can expect more vigilant tracking of purchases and sales, higher taxes and possibly confiscation.

There will, however, come a time to sell the shiny metal, when relative to other asset classes, it is overpriced. I believe that this decade we shall see a bubble in metals, with prices dwarfing today's "record" levels. What then?

While it may be difficult to recommend alternative investment classes prior to the assets being discounted, have any of you a defined plan for investing metal profits after selling at much higher levels? Thank you.

Pssst...the Armageddon is already unfolding. There's nothing to wait for, you're living the slow moving train wreck right now!

To answer you're question however, there will a come a time when other assets are favorably priced to PMs. That time may even be now in some limited cases. Don't rule it out. I know the general consensus around here is that real estate has further to slide, and from a macro standpoint that certainly appears true, but RE is complicated and location specific. THere are some great deals to be had right now. If you're willing to do your homework. There's plenty of blood in the street. Maybe there will be more later, but trying to pick absolute tops and bottoms is fool's errand. Unfortunately there won't be any breaking news alerts telling you when to trade. You're just going to have to walk through life with your eyes open for the opportunities. Good luck to you!

[dmaddox]

agreed SEJ

land with a water source... and if a nice home happens to sit on it... all the better.

The more I think about the government threatening to outlaw metals, the more I realize how foolhardy that attempt would be (I'm not underestimating those punks). I reckon if that time ever comes, we'll be ducking bullets from snipers while crossing the street (i.e., European warzones in World War II).

I agree with this statement and this would be my plan. If economies are stable, and not a war zone, then I will be a land owner use the economic strategy of Fuedelism. Lord dmaddox if you please.