Gold Spike and Oil Spike

[John McKenna]

Oil spiking up as well

[Michael Larson]

A lot of unrest in the world and gold and oil reflect just that.

[Nick Gromicko]

I've been begging members of this message board to buy gold since it was at $800.

I'm into silver now.

[Russell J. Hensel]

Nick what is the best way to buy silver? Any recommendations?

[Nick Gromicko]

Silver is silver. The raw metal doesn't know what it has been minted into. But...I like coins, not bars... and I like U.S. or Canadian. My reasoning: If the SHTF, the general public understands that coins have value, but that isn't necessarily their perception of bars. Also, presumably you'll want to use them for trade in N. America where again, the general public prefers U.S. or Canadian. Always think exit strategy with every investment.

[Russell J. Hensel]

I was looking into this the other day. Better place to buy them? A website online? I am looking to invest a few bucks into this and since you are the master of precious metals...can you give me an insight where to buy them?

[Greg Bell]

Originally Posted by rhensel

I was looking into this the other day. Better place to buy them? A website online? I am looking to invest a few bucks into this and since you are the master of precious metals...can you give me an insight where to buy them?

Ebay

[Nick Gromicko]

A local coin shop generally has a couple advantages, one being lower premium (the price you pay for the coin above the melt price of the metal, which is about $39/ounce today). Also, there isn't the cost or risk of shipping. Also, there is no paper trail if you pay cash and carry.

Stick to bullion. Don't pay for numismatic value unless you really know what you are doing. You can tell the difference by the premium which should be about $1.50/ounce for bullion.

[Nick Gromicko]

Precious metals are a particularly good way for inspectors to store wealth because the ownership of the asset and appreciation of the asset is not documented.

[John E. Mullarkey]

I like the way you think Nick.

[Nick Gromicko]

I like the way you think Nick.

Well, I'm not saying my thinking is for everyone. For instance, I think diversification is the second stupidest concept ever invented. Dollar cost averaging is the all time stupidest concept.

I don't believe in diversification. I play the hot hand and I play it heavy until I find a hotter hand.

I don't believe in dollar cost averaging. I buy low and sell high.

[Nick Gromicko]

If you ever find yourself in a chair in one of these investment advice franchises that intentionally name their companies after plain-sounding male names (Smith Barney, Raymond James, Edward Jones, etc.) and the dimwit across the desk from you uses the phrase "dollar cost averaging"... just get up and leave, and take your money with you.

[Nick Gromicko]

Now, since I mentioned playing hot hands... I really like physical silver.

[Nick Gromicko]

Gold broke another all-time high again today. This is getting wild.

[Nick Gromicko]

Another reason I like precious metals: If your house catches on fire and your safe burns to ashes, your gold will melt into.... gold.