Gold, Silver & Investments

One of my friends, here asked for some information I thought I would share with everyone. Hope it helps!

Thanks for the opportunity to help.

I like gold coins! I have owned gold coins since $326 an ounce and it is one of only 3 current investments we (myself and my clients) hold. The other two are the ETF (exchange-traded fund) SDS, which double shorts the S&P 500 index, and silver coins and bars.

Gold will soon become the international currency-equivalent to preserve wealth. I don't trust the ETF, GLD, or others, because they may face defaults if there are runs for the exits. As tough as economic times could get, this summer, the price of gold may go down and people may rush to sell it. Don't do it! Buy it on dips. Coins are getting harder to find and may not lose their value even as paper gold plummets in price.

The same dynamic has happened to silver. As currencies get more unstable, due to over-issuance to keep economies viable, the central banks that issue them are trying to manipulate the prices of these substitute currencies lower. They are sometimes helped by the collapsing situation for workers and consumers. We may experience that again, as prices drop this summer.

Silver may be even better situated than gold. It could easily become a barter currency, if shortages develop into a black market economy. Gold may be too expensive to serve as a day-to-day currency. Silver might RULE! Again, avoid the ETFs and buy the coins. Silver may become our interim currency, if we see accelerating inflation down the road, say within 2-3 years. Gold may still serve as a large-scale store of wealth for portability and international appeal. However, the more the need for people more closely approaches survival, the more important silver will become. Buy dimes, quarters, halves, dollars, and ounces. Right now, I have most in safe deposit boxes, but keep some handy. Banks may be forced to close, depriving you of access. Of course, we will try to head that off, by notifying you.