I'm looking to put some money into material gold/silver, but I am not sure what is the best way to go about having a safe investment/currency in case the world explodes. After reading up on it I think buying a bag of junk silver might be the best way due to its low markup and ease of use?

thanks!

Buying physical silver/gold is just stupid. If you want gold/silver exposure buy an ETF; way lower transaction costs and safer storage/insurance etc

Gold is currently viewed as being in a bubble. Its been on a steady rise for a long time. I personally wouldnt hold gold right now unless you plan to sell it in months.

If the European debt crisis occurs in full swing this summer, the USD stands to gain from that. Meaning that gold will lose value as they are relatively negatively correlated. If the Euro debt crisis is avoided, gold will probably lose anyways, because money will look to flow into more risk oriented assets like equities (stocks) and etc.

If u want a safe play... Id say... get preferred stock in a dividend paying company or look towards getting some covertible bonds in US companies that are performing well this year. Avoid sectors like tech, finance, and industrials.

You also might want to consider trading some US treasuries. Personally I think the Euro Debt Crisis will come into fruition this 2nd/3rd quarter of 2012... so if U believe that also... definitely buy some US treasuries.

In this, dont buy gold. Its over priced. It has huge potential downside risk while the potential for gains is limited considering its price as of today.

Silver, I dont follow the silver market.

Good luck.

This would be the best way to do it. Or you could just buy some bullion and put it in a safety deposit box etc.

If you buy bullion just make sure the mark up isn't to high.

Please please please dont follow this advice. If you dont hold it, you dont own it when it comes to pms.

American eagles and canadian maple leafs are safe plays. For gold kruggerrands work well also.

+1

Most types of certificates don't have 100% cover, they could hold as low as 20% of what they actually sell.
This is especially true for silver certificates issued by JP Morgan.

Own your physical gold or silver and store it somewhere safe yourself.

The products buccobaseball recommended are solid choices. Dont go for less known brands.

Well you forgot that the Chinese are buying every time the gold market dips, providing effectively a price floor. They still have very little for their foreign reserves in gold and are trying to diversify out of dollar assets as quickly as possible without also wrecking global confidence in the dollar because they have too much at stake. I'd say there's very little downside risk in gold right now. The main downside risk in nominal terms is probably from people having to cover long gold positions in the event of a stock/bond market crash. If that happens the fed will inflate and gold will soar. If the fed sits on its hands gold will fall in value but probably much less so that most other asset classes because central banks will continue if not increase their gold purchases. Besides that, everyone should own at least a few % of their wealth in metals as a inflation/hyperinflation put.

To op- definitely do not buy paper gold/silver, and I'd recommend not storing it in a safety deposit box. Part of the reason to own gold/silver is a put against governments and central banks. When the **** hits the fan governments will confiscate gold/silver. FDR did it in 1933 when we were still on a form of the gold standard. Although we have a pure fiat system now, I believe it's still a possibility, even if its small.


I actually believe right now is a very solid time to buy gold. It's not as undervalued as it was in 2000, but the fundamentals for why gold should out perform most other broad asset classes are more relevant now than ever. Euro crisis, us debt crisis, the 80 trillion social security/Medicare/social welfare hole, rehypothecation of collateral by banks, dollars slow decline as global reserve currency and slow ending of the petro dollar system, and of course the general inadequacy of politicians to be able to come up with any long term solution to any of this. With gold having declined 20% off its highs and moving sideways for quite a while, it seems to have been an excellent buying opportunity until the next big macro event, perhaps when the us debt ceiling debacle comes up again in early 2013

Lol dude...Most metal investors invest in silver/gold because they know the fiat money is a scam. They don't want "exposure" just to make more in worthless fiat money. They are investing in gold/silver because they mostly want to store their wealth in REAL money and not have it eaten away by inflation in a digital bank account or dry powder.

are mentally unstable.

I love how the gold bugs think that, contrary not only to all the evidence, but actual PAST HISTORY, that the US/Canada/other sovereigns won't simply seize their PM coins and bullion if they so desire. LOLOL.

I think they actually pray for such a scenario. They will be able to tell all the sheeple "I told you so! They want to enslave us with fiat money, see?!" And they will also finally have an excuse to discharge their weapons hoard at Federal agents. The psychic catharsis of these things are more important to them than their lives.

Junk silver imo. The coin shops will tell you it sucks but thats just because their markup is less. Most shops I have been to will say they buy back both eagles and junk coins for the same spot price but obv you pay more for eagles.

My expectation is they will seize 401(k) plans if they begin such confiscatory policies.

Touche.

No, they'll just tax them again. It's inevitable. At least if you haz a mirrion etc.