Near All Time High...bad time to buy?

[lextex]

Hi, noob here. As an alternative to my savings account, I'm thinking of buying and stacking some 2.5 grams of PAMP gold from jmbullion, but I noticed the price of gold per ounce is near 1900. I assume you don't buy on a bull run, but considering inflation is around the corner in America, would now be the time to buy?

[TommyTwoShots]

Dollar cost average, buy a little every month. I only allocated 15-20% of my portfolio to PMs. No point buying silver, premiums are silly and the ‘silver squeeze’ is total bollocks. Try a sov a month or something along those lines.

[Zhorro]

2 hours ago, lextex said:

Hi, noob here. As an alternative to my savings account, I'm thinking of buying and stacking some 2.5 grams of PAMP gold from jmbullion, but I noticed the price of gold per ounce is near 1900. I assume you don't buy on a bull run, but considering inflation is around the corner in America, would now be the time to buy?

No one really knows what is going to happen to the price of gold (despite all the videos on YouTube). If we are in a bull run, is it the start of it or the end of it?  I would suggest this would make a big difference to your decision.  If you are buying 2.5 grams of gold ($180-$190?) you are not going to lose much even if gold goes down 10% in the short run.

You also need to consider where to safely store any gold you buy.

[lextex]

Tommy, thank you, are sovs better than american eagles? I'm putting down $200-250 at most a month.

 

Zhorro, I see. What resources are out there to do my own research to indicate the start/end of a run? Also, what variables, besides inflation, affect the price of gold?   

[Pete]

If you buy now gold will fall but if you don't buy now gold will rise !!
This is generally the experience we all share.
Good luck deciding !!

[Arganto]

It's a personal choice based on what you've decided to pursue after absorbing as much information on the subject as you feel is satisfactory. That said, I would personally say that if you are using it as a hedge then buy whenever you can at a rate that is appropriate to your means. If it's a case of best value bullion as opposed to collectibles then buy according to your domestic market. It sounds like you're from the land of the free (bald eagle kudos) so Eagles or similar will likely be your best route, but then it will depend on what your chosen coin shop/online dealer can secure.

You should educate yourself as best you can, but from my point of view metals will mean more than paper fiat in the coming months and years.

Enjoy the shiny goodness.

 

[pricha]

Everything is at an all time high 😆 . My personal view is gold is cheap compared to other assets . But what do i know ?  

[Chorlton]

The honest answer is no one knows but the best advice is to seek out the best deals and buying smaller amounts generally means buying at a higher premium.

[Tortoise]

Hi,

It is not possible to tell whether we are at the start or end of a bull run in gold, or any other type of asset.  The possibility of inflation is well known and the efficient market hypothesis ( https://en.wikipedia.org/wiki/Efficient-market_hypothesis ) says this will already be reflected in the price.  (i.e lots have people have already bought gold in anticipation, driving the price up, to relect the fears about inflation.)

Sorry if this doesn't help much, but my startegy is to not worry to much about the current price, but just make slow and steady investments over a long period of time so prices average out.  If I don't have enough to invest in what I want in any given month, I just save until I do.

Chards is a British site, but has a lot of information that I found really useful about buying gold at low premiums. 

Buying 2.5 gram bars will have a larger premium than say a 1 troy once bar. 

Since you are in New York, perhaps buying American gold Eagles would be better for you?  Check the premium you would pay on them vs. 2.5 g PAMPs.

Good luck in purchases.

 

[GenX]

5 hours ago, lextex said:

Hi, noob here. As an alternative to my savings account, I'm thinking of buying and stacking some 2.5 grams of PAMP gold from jmbullion, but I noticed the price of gold per ounce is near 1900. I assume you don't buy on a bull run, but considering inflation is around the corner in America, would now be the time to buy?

@lextex In general, gold will do well when inflation hits. However, it won't do so well if the interest rates go up.  We can speculate, that both are a real possibility in not so distant future. But of course, none of us knows for sure what will happen on the right side of the graph.  

[lextex]

4 hours ago, TommyTwoShots said:

Dollar cost average, buy a little every month. I only allocated 15-20% of my portfolio to PMs. No point buying silver, premiums are silly and the ‘silver squeeze’ is total bollocks. Try a sov a month or something along those lines.

I'm not too informed to state whether silver is pointless or not, but does it not have more practical use in industrials than gold? 

21 minutes ago, GenX said:

@lextex In general, gold will do well when inflation hits. However, it won't do so well if the interest rates go up.  We can speculate, that both are a real possibility in not so distant future. But of course, none of us knows for sure what will happen on the right side of the graph.  

The world of interest rates is something foreign to me. What do you mean by that? A macro/micro increase, and what factors raises it?

[GenX]

3 minutes ago, lextex said:

I'm not too informed to state whether silver is pointless or not, but does it not have more practical use in industrials than gold? 

The world of interest rates is something foreign to me. What do you mean by that? A macro/micro increase, and what factors raises it?

@lextex Yes, you're correct, silver does have a greater industrial use compared to gold. However, at least in the UK, silver has unreasonable premiums and VAT over spot price, i.e. market price, which makes it expensive to buy compared to gold spot price.  https://www.gold.co.uk/silver-price/10year/ounces/USD/

Re interest rates, I guess it's treasury bill rates in the US. This may answer the question. https://www.thebalance.com/current-federal-reserve-interest-rates-4770718 

[HawkHybrid]

1 minute ago, lextex said:

I'm not too informed to state whether silver is pointless or not, but does it not have more practical use in industrials than gold?

gold has the most uses of any metal known to man. however it's scarcity means that it is rationed

and used sparingly.
 

5 hours ago, lextex said:

As an alternative to my savings account, I'm thinking of buying and stacking some 2.5 grams of PAMP gold from jmbullion,

'buy up to as much gold as your understanding of gold allows you to' belangp youtube.

holding gold has a purpose. find your interpretation of that purpose and then work out how much

gold you need to hold to accomplish that purpose. if it came down to it, it's probably better to

overpay for something that you find useful than to underpay for something that is useless to you.

if you focus too much on the price you might be slower to see the bigger picture.

 

HH

[SilverJacks]

Smaller gold items like 2.5g Pamp ingots may have a higher premium when buying, but can also carry that premium when selling too, if you sell privately. I also think it's quite sensible to stick to what you can afford to buy and keep as savings, rather than push the boat out on larger, better value per gram items that are not so affordable.

It is also important to make sure you're not overpaying. Shop around for the best prices. In the long run, spot price will go up and down. Just focus on paying the lowest you can find at the time, within trusted sellers.

The Pamp ingots are quite desirable and have an added bonus of veriscan security feature if you buy them in their assay card. Personally, I like the veriscan feature for peace of mind when it comes to selling them, as opposed to confirming their authenticity for myself, which I'm already aware of.

 

[stefffana]

Hi, @lextex, it is great for you this first step. Doesn't really matter the current price, because for sure, in time, (talking here about years or decades, not about month), will be higher. What it is very important for you is this: every month your amount of precious metals will be higher. On long term run it will make a difference.

Be consistent, buy something every month, but don't lose your temper (over excited) and buy more than you can afford. If you can buy a small gold bar or a quarter of ounce of gold, do it. If one month you have not enough money, buy few silver rounds instead, the ugliest and cheapest you can find in a coin shop. Your stack will grow. 

If someone will tell you for sure where the price of gold or silver will be over five or ten years probably is a wizard (dreamer) or a scammer. Nobody knows this, but the historical charts are showing that precious metals are keeping well the value over inflation.

Don't be panicked when you will see periods when the price is going down, these are normal fluctuations and corrections. Be happy of this and buy more. In time you will learn how to deal in your advantage with these fluctuations. It is a long term process. 

Happy stacking!🤗

Stefan.

[SilverStorm]

@lextex, since you are located in the USA, your choice of gold should be either American Eagles or American Buffalos.  The reason is because a stacker should hold the bullion of his or her country for ease of liquidity.  Yes you can hold British Sovereigns or gold from other countries, but you may not get what you want when it's time to sell.  It is easier to sell and get top dollar from 10 American Eagle gold coins than 10 different gold products from all over the place.  As @TommyTwoShots said, dollar cost averaging is the best way to buy. 

 

[lextex]

10 hours ago, pricha said:

Everything is at an all time high 😆 . My personal view is gold is cheap compared to other assets . But what do i know ?  

Though, it has a high entry cost, which is very concerning. 

 

9 hours ago, Tortoise said:

If I don't have enough to invest in what I want in any given month, I just save until I do.

I like that. Once my crypto is doing really good, I'll consider buying an ounce of gold. 

3 hours ago, stefffana said:

Hi, @lextex, it is great for you this first step. Doesn't really matter the current price, because for sure, in time, (talking here about years or decades, not about month), will be higher. What it is very important for you is this: every month your amount of precious metals will be higher. On long term run it will make a difference.

Be consistent, buy something every month, but don't lose your temper (over excited) and buy more than you can afford. If you can buy a small gold bar or a quarter of ounce of gold, do it. If one month you have not enough money, buy few silver rounds instead, the ugliest and cheapest you can find in a coin shop. Your stack will grow.

What are your thoughts on platinum? It has more density and industrial use. Though, I don't know if industrial use is a good indicator of faster percentage increases, considering that gold has less use than silver, plat, and palladium, but seems to be the top metal to own.

[TommyTwoShots]

27 minutes ago, lextex said:

Though, it has a high entry cost, which is very concerning. 

 

I like that. Once my crypto is doing really good, I'll consider buying an ounce of gold. 

What are your thoughts on platinum? It has more density and industrial use. Though, I don't know if industrial use is a good indicator of faster percentage increases, considering that gold has less use than silver, plat, and palladium, but seems to be the top metal to own.

Platinum is important and has considerable upside potential but I am wary of it so only own a bit.

[stefffana]

Yes, indeed, platinum can be a good one,too, because has potential. There are a lot of stackers who are buying. Personally, I don't have, because I like silver and gold. But it is only my subjective point of view and preference. 

[Oldun]

17 hours ago, lextex said:

Hi, noob here. As an alternative to my savings account, I'm thinking of buying and stacking some 2.5 grams of PAMP gold from jmbullion, but I noticed the price of gold per ounce is near 1900. I assume you don't buy on a bull run, but considering inflation is around the corner in America, would now be the time to buy?

If you are in The US and plan to stay there, but US coins as they are recognisable but only buy from a reputable dealer.

Minimum that should be put away for old age as a youngster in whatever form of investment or saving should be 15% of your salary.

[GoldDiggerDave]

I remember gold hitting 1k per oz and thinking that’s expensive. I think gold is currently under valued, but don’t have any wide eyed expectations that it will take off over night.  Who knows the value of gold is so low compared to currency creation (America’s 8000 tons is only worth around 300 billion) it could become obsolete, or not even considered to be a worthwhile store of wealth in a few generations if the currency creation continues and gold is not revalued. The revaluation of gold is an interesting topic where some are saying 50, 100, 250k per oz……..I doubt it but something will have to give. 

[pricha]

If you own an oz of gold then the next day you still have an oz of gold.  It hasn't risen or fallen . The value of the currency it's based against has fluctuated. So if you think fiat currencies are strong and stable then gold is probably not a great asset to hold . On the other hand .......

[Pete]

3 hours ago, lextex said:

What are your thoughts on platinum? It has more density and industrial use. Though, I don't know if industrial use is a good indicator of faster percentage increases, considering that gold has less use than silver, plat, and palladium, but seems to be the top metal to own.

Gold, silver, platinum, rhodium ... doesn't matter .. all are classed as "precious metals" and have various other uses rather than just investment assets.
These 4 metals are traditionally associated with jewellery and articles of opulence - cutlery, trophies, royal / high society dining etc.
Industrial uses are inevitably based on cost vs durability.

Gold and platinum are inert so the best for electrical and thermal conductivity so all electrical and electronic connectors should be made or plated with gold but where cost becomes a factor then silver is the next best and considerably cheaper. You cover your billion dollar satellites in gold foil and gold coated materials, not silver etc.
Platinum has a high affinity for capturing hydrogen and will be in demand for fuel cells but again the high cost is a factor.
Platinum used to be higher priced than gold and taking into account all the fundamentals should still be priced higher than gold suggesting gold is maybe manipulated in price.
Many of us believe the opposite with silver and it is undervalued by the big institutions forcing the price down until the bubble bursts ( if ever ).
The price of these precious materials is more likely to be governed by banks rather than industrial consumers and as they fall into the wealth / assets category their prices will be dictated to by demand from investors and the cost of getting the metals out of the ground rather than whether they are added to solar panels and catalytic convertors.

We don't class copper, tin, lead, aluminium as investment vehicles because they are cheap by comparison but in huge demand from industry.
Lithium would be an interesting metal because we could potentially run out of lithium as the demand for batteries grows exponentially AND very soon !
You would however need to keep your lithium in a jar of oil or it would self ignite.

Back to Platinum - if you can buy with a fair margin this would be a good metal to buy and hold for the long term - personal viewpoint according to my crystal ball.
Margins have been unrealistically high due to lack of inventory but slowly returning to single digit in some places but for us in the UK adding 20% VAT tax is a deterrent and favours gold.
I did take the hit and bought some platinum Queen's Beasts recently but only for set continuation.
 

[HawkHybrid]

1 hour ago, Pete said:

so all electrical and electronic connectors should be made or plated with gold but where cost becomes a factor then silver is the next best and considerably cheaper.

tin is more commonly used in plating electronic contacts when gold is not affordable.

 

1 hour ago, Pete said:

Platinum used to be higher priced than gold and taking into account all the fundamentals should still be priced higher than gold suggesting gold is maybe manipulated in price.

this is debatable.

 

HH

[SidS]

The tin price was higher than I thought. I figured on buying a fair bit, but tin can degrade with tin pest due to environmental issues. So I thought again.