/biz/ - Business & Finance

>>49817472
My stance: gold and silver (G&S) should be purchased for three reasons:
- simply holding and admiring the stuff,
- as a way to transfer wealth.
- as a hedge against rampant inflation.
>The *prices* of metals will increase, but their trade value will remain stable.
Generic G&S values change slowly, though silver's wider industrial application contributes to its larger price fluctuations. Generally, if an ozt of Ag buys five loaves of bread now, it should still buy you five loaves many years from now. Rampant ("hyper") inflation is possible depending on your country's economy, but the chances are small in most western countries. The inflation we now see is mostly caused by high fuel and shipping costs, and Covid stimulus coming to bite us. This is different from an economy and currency going bust.
>Protip: keep your purchase receipts so you can deduct the purchase price from what would otherwise look like pure profit.
When you're cash fat and older, you might want G&S to transfer wealth to your heirs. No-one would be the wiser. When bequeathing, states may look at financial records as far back as 5 years: make sure you've built up a stack over time to enable obscuring the bulk of your wealth.
>Investment strategies create wealth. PMs store wealth.
In ordinary times, you will not get rich trading PMs. You get rich, then typically buy PMs from retailers. To make a profit they charge above spot - a "premium". Numismatic value aside, they will buy from you below spot (rarely at or above), but in any case below their premiums: they are businesses. So you need time for the prices of metals rise to where you would break even.