Gold or silver???

[daydreamer41]

Too bad you didn't buy gold right after Set 11, 2001. It was then about 250-275 per ounce. Never underestimate the power of gold in a bad economy or world troubles. It is the safest investment these days

Not if we are in a deflationary period. Gold declined from $800 in 1979 to $250-$275 as you say in 2001. From 1979 to 2001, we did have inflation.

Gold rose and then declined to around $300 in 2008 when we had the financial bailouts at the end of Bush's second term. It has risen ever since, but if we find ourselves in a deflationary period, Gold could sink again.

Fearing deflation, the world governments have been pumping paper money into the economies, and with the worry over the debt crisises in Europe and the US, people have been exchanging their paper currency for Gold and Silver.

So the statement, it is the safest investment can be misleading. If deflation wins, Gold will deflate as well. But if the worse case scenario happens, stagflation, Gold would be a wise investment indeed, because the paper money would end up to be worthless.

 

[SWV]

JMHO but....

Buy both, depending on how much money you have to invest.

Gold fractionals (1/2 or 1/4 oz) have a huge premium so unless you have enough to buy a full oz I would stick to silver to begin with. Go heavier silver if you are an aggressive investor and closer to half and half dollar wise if you want to be more conservative.

Maples are nice, bars have a smaller premium (5 or 10 oz silver bars are nice). Cash and carry is best from a local coin shop or bullion dealer. Shouldn't be any tax or records if you pay cash.

DYODD, silver is especially volatile and although you are late to the game there is still a large bull market ahead.

Unless you see financial responsibility in the US and Euro zone the PM's will go higher on currency devaluation. Just buy it with your extra cash, put it away and forget about it. Don't get caught up in the day to day price action.

Good luck and best wishes.