Precious Metals

[warrenkm]

Does anyone have experience with precious metal dealers (Gold bar, coin, etc.) in middle TN? Good ones, bad ones?

[drboomboom]

I get mine from my cousin Louie. Tell me what you need and I'll meet you out in front of Rabbi's. Bring cash.

[warrenkm]

Ha, I was serious. My wife and I want to broaden our investments a little bit, and we've purchased a small amount from an on-line dealer but they charge quite a bit for shipping, handling, other surcharges, etc., and at the same time I don't know much about the business. It seems like an area we could get easily screwed (no offense to Louie).

[TheRabbi]

I have some experience in this.
First let me say that at this point especially I wouldn't be pouring money into precious metals. THey are at historically high prices and I tend to doubt it will last.
One sign of that is the very large number of ads for this stuff on radio (and probably TV). Reminds me of similar ads for real estate about 5 years ago and stocks before that.
But if someone really wanted to there are a couple of ways to play them. First is there are ETFs (exchange traded funds) that are pools of money investing in metals The ETF GLD is one of them.
Second way is to buy bullion coins like krugerrands off eBay. Stocks of miners is yet another way.

[warrenkm]

Investment is the wrong word. Insurance is a better one.

PM sent.

[drboomboom]

All kidding aside, I think Rabbi is right. Gold etc. might go a little higher, but when it's time to cash in, if you aren't ahead of the rush you'll take a bath. In a real SHTF "zombies are coming" situation, gold won't be worth as much as lead. And I say that both literally and figuratively.

[warrenkm]

Yeah, I factored in a potential loss of 100% as being entirely acceptable within the percentage of excess income I'm spending on it. Having a little bit on the side is entirely different than putting 100% of one's retirement fund into it. Either way, I'm comfortable with the risk and the calculation, just not so much with the location of purchase. I rarely, if ever, put money into off center purchases (or lend money) that I couldn't stand to lose at 100%.

There plenty of Pb in that safe too.

[jberry20]

Coin Purse on Hillsboro -
You pay sales tax on all purchases of meta;s/coin in TN, however...
Internet you pay shipping - pick yer poison