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Thread: Opinions - Store or Hedge

  1. #1

    Default Opinions - Store or Hedge

    Do you think precious metals would be a store of wealth or a hedge against inflation? Or maybe some of each for that matter. Would one's mindset affect a person's investment strategy?

    A penny for your thoughts.

  2. #2

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    What do you think will happen with the Dollar and the American and world economy?
    Now there's no more oak oppression
    They passed a noble law
    Now the trees are all kept equal
    By hatchet, axe and saw.

    I will not comply.

    The Tea Party... quietly plotting to take over the world,
    and leave you the hell alone!

  3. #3

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    Quote Originally Posted by spaceman View Post
    Do you think precious metals would be a store of wealth or a hedge against inflation? Or maybe some of each for that matter. Would one's mindset affect a person's investment strategy?

    A penny for your thoughts.
    3000+ years history is a pretty good track record

    copper pennies are also good

  4. #4

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    I see them more as a long term store of wealth. However, for that to work, such savings must also stand strong vs inflation over the long term -- as they do.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  5. #5

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    Quote Originally Posted by spaceman View Post
    Do you think precious metals would be a store of wealth or a hedge against inflation? Or maybe some of each for that matter. Would one's mindset affect a person's investment strategy?

    A penny for your thoughts.
    That's the whole point of getting your wealth out of a system of fiat currency that has inflation. Or an object that maintains your wealth while inflation exists is the definition of what you need to use to store wealth. PM and other physical assets don't inflate, it is your fiat currency that losses value over time. It is if the measuring stick shrinks and therefore it appears everything being measured increases in length, but the truth is they haven't changed the useless measuring tool is defective. Ditto with fiat currency, it's defective. Plus even worse with fiat currency thieving governments then tax you on your "windfall profits" when you sell an asset. An asset that hasn't changed except it not costs more in worthless fiat currency.
    American Legion Preamble: https://www.legion.org/preamble

  6. #6

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    Quote Originally Posted by LongDonSilver View Post
    That's the whole point of getting your wealth out of a system of fiat currency that has inflation. Or an object that maintains your wealth while inflation exists is the definition of what you need to use to store wealth. PM and other physical assets don't inflate, it is your fiat currency that losses value over time. It is if the measuring stick shrinks and therefore it appears everything being measured increases in length, but the truth is they haven't changed the useless measuring tool is defective. Ditto with fiat currency, it's defective. Plus even worse with fiat currency thieving governments then tax you on your "windfall profits" when you sell an asset. An asset that hasn't changed except it not costs more in worthless fiat currency.
    Worse yet, they even tax your profits on gold when you sell on account of fiat falling while your gold asset went up. At least you get to pay the tax in fiat which eventually will be worth near zero. Presently US fiat is strong relative to other fiats and gold, so eventually is not happening today, but it will, eventually, probably well after I and my present family are history.

  7. #7

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    To me it is my emergency funds, a form of self insurance, diversification, and having liquid wealth outside of the system where it can't be locked away from me when I could need it the most.

    I prde myself in keeping my **** together so I haven't had to tap any sort of emergency funds or self insurance in pretty much ever (other than using my cash reserves). But unlike other forms of insurance that is paid and you never see that money again, I still have every bit of gold and silver I bought for that purpose.

  8. #8

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    I see silver as both a store & a hedge, although I see gold as being better in both those roles. I see silver as the better short term trading opportunity compared to gold, as it's volatility tends to be greater.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  9. #9

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    It can be different. Like India: We don't trust banks, we prefer bars, we like our chains/rings, etc. to be 22kt min. China: We generally save 30% of our income; They are the biggest buyers now. U.S.: We are cool with watered down 14kt gold chains, and prefer rounds over bars.

    Central banks excuse?, it's generally a hedge against inflation. Bad excuse, just IMO. I tend to see, 1. a tangible asset, 2. savings, 3. inflation hedge, 4. self insured investment, 5. a way to get rid of dollars.

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