Good Reason Not To Buy "Paper Gold (or Silver)"

Discussion in 'Financial Cents' started by Pyrrhus, Dec 19, 2011.

  1. Pyrrhus

    Pyrrhus Monkey+++

    I've always felt that it would be pretty silly to buy precious metals and then have someone store it for you. If you are buying for some sort of emergency, and lack the ability (omniscience) to accurately predict exactly when an appropriate emergency would happen, you could well be up a creek.

    Then again, it doesn't even need to be something that drastic. It could just be a corrupt moron running a company.

    The Silver Rush at MF Global - Yahoo! Finance
  2. strunk

    strunk Monkey+

    Yeah I prefer to hold the bullion, myself. The whole point was to have something of inherent value when paper no longer does.
  3. dragonfly

    dragonfly Monkey+++

    "What's the old saying"?
    A bird in the hand is worth more than 2 in the bush?
  4. DKR

    DKR Raconteur of the first stripe

    How about "A fool and his money are soon parted."

    Then again, "Possession is 9 points of the law." Especially when it ain't you do'n the holding.

    I would laugh, but this has all the earmarks of the panic of 1893 - and we all know how well that turned out.

    (Hint, lead to the Panic o 1907 - which, among other gifts, gave us the The Federal Reserve System. Since then there has never been another Panic - only rescission, depressions and bubbles.

    History could teach us a great a lesson, if history was taught in school - or college even.
    gunbunny likes this.
  5. Alpha Dog

    Alpha Dog survival of the breed

    Any of you guys have gold that you need to have stored just to be part of the solution and not the problem. Plus the warm feeling of helping others (The First Bank and Trust Of Alpha Dog) is up and running.
    tulianr, bountyhunter and Gray Wolf like this.
  6. Gray Wolf

    Gray Wolf Monkey+++

    I'll keep you in mind in case I ever have too much gold and silver to store myself!
  7. larryinalabama

    larryinalabama Monkey++

    AD you can have all my gold LOL
  8. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Alpha, I sure hope you don't practice Fractional Reserve Lending cause, well they use to kill bankers that did that. Unfortunately, it came back.
  9. TheEconomist

    TheEconomist Creighton Bluejay

    In all seriousness though I think it is important to hold commodaties physically when practical. The reasons being those that are listed above.

    However, with rising food costs and population growth I am going to be investing LONG into Agriculture commodities. (IE: Corn, Soy, Rice, Wheat, and heres the big one....MEATS)
    learningsurvivor likes this.
  10. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    yep, having possession is way better with anything.
    A sovereign in your pocket is worth 2 in the bank, especially when the bank has let out your sovereigns like 14 times.
    A bird in the hand is worth 2 in the bush.
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