I just ran across your blog and appreciate your practical advice. I live a simple life. I have plenty of stored food, gravity spring water, wood heat and a practically unlimited supply of wood for cutting. I have no debt, a small comfortable home, a nice amount of land and a comfortable nest egg. I never invested in the stock market, but instead have my savings in treasury bonds and IRAs. While I didn’t lose any money in the stock market crash, my money is drawing very little interest right now and I don’t think it is even keeping up with inflation. I took out a few thousand dollars for emergencies and stashed it away when the economic crisis first started, but it is in cash and I would like to start buying gold or silver but I don’t really know how to go about it. I’m afraid I would get ripped off. Do you have any advice on how to get started with buying precious metals.
Hi Geri, sounds like you have things nicely sorted out.
Buying precious metals is no different from any of the other things you learned to do around your home.
You have to learn what to look for historic prices and current ones of precious metals and smartly purchase when you find good deals.
Right now gold is a bit expensive due to the crisis and likely to go down sometime, so I would definitely buy some but not a lot, and maybe look towards silver more.
Still, gold may go up and down in price, what it will never do is lose its weight… :-) As expensive at is may be, if things turn ugly its likely to go up much more AND you managed to protect some of your savings.
For protecting your savings stick to well recognized forms of gold and silver such as American Eagles, Krugerands and Canadian Maple leafs. Do your homework so as to know the gold contents and weights, and don’t be afraid to shop around locally in some cases looking for the best prices. Online, /www.apmex.com/ seems to be good and trustworthy but still count your coins and check them well.
I’ve recommended a small amount of junk precious metals so as to have as change or to use during the first stages of a crisis, before you end up breaking down your stash of coins or when buying locally for smaller amounts. For silver, in America you’re set with some pre 65 dimes. In the rest of the world and maybe one day in USA, junk gold is more readily acceptable so having a few simple rings and gold chains makes sense. Again, know you precious metals and the gold content in 14k and 18k. Some places will sell old wedding bands or broken chains for their gold content alone. Check ebay for these and stick to reputable dealers.
American 22K $5 Gold Eagle 14K Pendant (Random Year Coin will be shipped)
How much gold to buy? Its hard to set a percentage to recommend without knowing many other personal circumstances. Usually around 10% to 20% of your savings its advices but of course it depends.
Think of it this way: If the dollar keeps losing value, your gold will stay the same, probably go up some, if inflation keeps getting worse, your gold stash will again, retain value or increase in price as demand rises. If there’s a total economic collapse, the only savings you will have left will be your gold. Just think about it for a few minutes, how you’d get buy with that amount of money alone.