After reading the book Aftershock in which the authors attempt to explain why the next bubble collapse will be our government and their wild spending, I must admit I have been reading further on investing in gold or silver. First of all I am not absolutely sure if things are as bad as the authors state. However, these same folks did predict the bubble popping in housing, banking, stock market and other financial institutions all at the same time. So putting what they have stated aside, I ventured out into the world of metals, gold and silver, to see what others are saying about investing in the stuff.
I have always believed that opinions are like assholes, everyone has one and I was not disappointed in my search for buying or not buying gold or silver. First there are two distinct camps of thinking, one supporting gold and the other silver. Depending on what you read both camps have an equally convincing appeal of why their precious metal is the one to buy. Naturally those that profess gold or silver in any form always make me suspect as to their real motives in pushing one over the other.
The gold folks use the historical aspect in that gold has always been the metal of choice when it comes to value. Gold goes all the way back to the Pharaohs [even back further is claimed by some] and has always been the metal of choice over anything else. They tell us this is why in the far east and in India gold is being scooped up by the tons. They go on to state that we in the west are idiots for placing our faith in paper money which has no value, except what the government wishes us to believe it is worth.
The silver folks state that there is more gold in the world than there is silver and that silver is artificially under valued. That the value of silver is far better than gold since silver has more industrial uses than gold has. The people who are controlling the price of silver [ I am not sure who these people are] are waiting for silver prices to explode before unloading their bullion and snapping up a quick profit. It also seems to make a tidy profit, one investment adviser states you need to start with at least 500 ounces of silver which currently would cost about $9k to get started being officially known as a hoarder. LOL
There are those who want to remind us of the year1933[?] and FDR and his confiscation of all gold and silver. I have read so many different interruptions of what happened I not sure who to believe. There was even a false rumor that safe deposit boxes were seized and searched by the IRS. But it does seem that gold possession was limited. Depending on who you wish to believe, silver was also confiscated. Interesting assumption since silver dollar production by the U.S. mint did stop producing the silver rounds in 1935. Though Eisenhower silver dollars were minted in 40% silver from 1971-1978.
It wasn’t until 1986 that the American Silver Eagles first appeared. These American Silver Eagles contain 1 oz. of 99.9% pure silver and come in one dollar denominations only. The mint has ‘temporarily’ stopped production of these coins since demand is outstripping supplies. So says the mint which is government controlled and I suspect there may be more to this than meets the eye.
So now that I have rambled on may question is this. Is investing in silver, in particular American Silver Eagles a wise investment? What about gold?
Share your thoughts.
Comments as always are welcome.