Why do people say gold and silver are great hedges again inflation?

[Delta]

If you want to protect your money from inflation, why not buy a 3 month Treasury bill? The interest rate for it is 4.3%. Inflation is about 1% a year, so you'd be fine.

Gold and silver prices fluctuate. Silver is quite volatile and has decreased significantly in the past.

What are your thoughts?

[apathy]

Lithium is probably a better investment as demand for it will always be high.

[shoopy]

They say that so they can sell gold and silver to you.

[Fake]

You actually believe that inflation is 1%!?

[kbm phantom.♡]

If inflation was 1% a year that would be nice.

[Voroff]

Originally posted by Delta:

What are your thoughts?

Valuable metal will be valuable, even in 3 generations. While currency and treasury bills can crash hard. Heard of Zimbabwe ? Heard of Brazil, when there was a time you brought a shoes carton filled with banknotes just to buy a cigarette pack ?

[DarkCrystalMethod]

There's nothing inherently wrong with having gold or silver, unless you try eating them.
There are entire industries that try to SELL you gold and silver. Some even let you have some representative chunks. But since those companies are out to make money you'll always be on the losing end somehow and not be able to figure out why.

If you actually want gold or silver go pan for it yourself(legally). That way its yours, its not income until you decide to cash it in and maybe you can make stuff with it as you watch the economy burn to the ground(America's favorite passtime second only to baseball)

[Original Cast Recording]

Metals are treated at different times as speculation and as safety hedges.

But you can just set up leapfrogging CDs if all you want to do is beat inflation.

[Delta]

Originally posted by Voroff:

Originally posted by Delta:

What are your thoughts?

Valuable metal will be valuable, even in 3 generations. While currency and treasury bills can crash hard. Heard of Zimbabwe ? Heard of Brazil, when there was a time you brought a shoes carton filled with banknotes just to buy a cigarette pack ?

This is an interesting point that you make.

What are your thoughts about stocks to hedge against inflation?

A good stock trend following system can product great returns. It's not uncommon to make 50% in specific stocks that are in an uptrend.

[Grendalcat]

I view gold as insurance, rather than an investment.
Only hold it in your possession, not on paper or in a bank deposit box.

[HypersleepyNaputunia]

They fake real inflation numbers by monkeyingnwith what prices are measured.

But gold should be going down soom with orange fixing economy

[xDDD]

They are hedges against inflation because they are actual tangible stores of value.
An ounce of gold will always be an ounce of gold.
An ounce of silver will always be an ounce of silver.
Both of these have had value and were seen as stores of wealth for nearly all of human history and will probably continue to have value and be stores of wealth for the remainder of human history.
Over the past century-or-so silver has gained a massive amount of practical/industrial use cases as well. It has become a bit more of an industrial resource, however it still has rich roots in currency.

[Würm]

They want to sell you gold and silver. The problem comes when you try to cash it back in at a later date. Anyone that is willing to buy will pay quite a bit less than market value (eg. pawn shop/coin dealers).

[Hammer Of Evil]

its natural for a price of a precious metal to decrease when a new method of refining or mining is discovered.

if a new method of recycling gold starts up, gold prices will tank. but that's just natural.

likewise if a new deposit of gold or silver is found.

Originally posted by Würm:

They want to sell you gold and silver. The problem comes when you try to cash it back in at a later date. Anyone that is willing to buy will pay quite a bit less than market value (see pawn shop/coin dealers).

you should never sell it to a pawn shop, they're only going to give you the market price that day. you go to the pawn shop because you're desperate or really want to get rid of something, not because you want to get a good return. that's the entire premise of their business.

specific collectable coins have different values depending on the mint and its collectability.

[Ice Robertson]

Why do people say gold and silver are great hedges again inflation?

Gold/Silver dealer

This will protect your investment.

Sucker

Why are you offering me 99% LESS than what i paid?

[Würm]

Originally posted by Hammer Of Evil:

its natural for a price of a precious metal to decrease when a new method of refining or mining is discovered.

if a new method of recycling gold starts up, gold prices will tank. but that's just natural.

likewise if a new deposit of gold or silver is found.

Originally posted by Würm:

They want to sell you gold and silver. The problem comes when you try to cash it back in at a later date. Anyone that is willing to buy will pay quite a bit less than market value (see pawn shop/coin dealers).

you should never sell it to a pawn shop, they're only going to give you the market price that day. you go to the pawn shop because you're desperate or really want to get rid of something, not because you want to get a good return. that's the entire premise of their business.

specific collectable coins have different values depending on the mint and its collectability.

Perhaps you misunderstood my post, I edited it to clarify. I wasn't recommending pawn shops/coin dealers. I would like to know how you plan to sell them though.