I'm sure Russia and China are morons for buying 1000's of tons since the last near miss. ;)iWriteStuff wrote:Sorry, the defect of relying on memory is the imprecision. Also, the story was relayed to me by my father, who was not part of the "Cash in Grandma's retirement" party. That distinction goes to my uncles the preppers. (Anecdotally, they're not even members - they just really believe the end is nigh.) The main fact of the story remains: they lost a considerable amount of my grandmother's money because of fear. Though both of them have a net worth of over $1M each, the vast majority of their wealth comes from owning things people actually need - like rental homes and farms.Silver wrote:
IWS,
Even at the peak, gold was around $1900/oz. How did your uncles manage (LOL) to buy at $2400? MS69 or MS70 perhaps? If they got numismatics then the value might not have fallen as far as you think. On the other hand, if they bought from an outfit that advertises on TEEVEE (caveat emptor), then they truly were careless.
Once again I'll remind everybody that until the US defaulted on its debts to foreign countries in 1971, gold was under $40/oz. People like my dad who got a few ounces then and held on have obviously done very well. So never buy precious metals with your grocery money.
I have considered their case as instructive. So is 2 Nephi 9:51:
"Wherefore, do not spend money for that which is of no worth, nor your labor for that which cannot satisfy"
The worth of gold is speculative at best. Rather have something in hand I could eat instead.
The story with the EQP buying silver at $32/oz was a firsthand conversation with said EQP. He was selling his prized shotgun and looking for buyers, thinking me to be in the market. He did NOT purchase his silver with grocery money. He used his financial reserve. Then he needed his financial reserve (lost his job) and discovered the silver he'd purchased as an investment had lost more than half its value. Hence his desperation for cash.
I'm not trying to be antagonistic towards your preference for precious metal commodities, Silver. It's merely a coincidence that I've seen people burned trying to use it as an investment more times than not. If the sole purpose of it is for bartering in an economy where all confidence in the dollar has been destroyed, then I'm sure it'll be just fine. Till then, anyone hoping to make a lot of money exchanging dollars for silver and back again is going to be sadly disappointed by its volatility and speculative nature.
However, the destruction of ALL nations have been decreed (if we are to believe the scriptures D&C 87:6) and their currencies with them.