Originally Posted by Stake Monster
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?
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.