Investment Strategies

Hello all! I recently started an investment in a gold money account on the information from Peter Schiff radio. I have been a recent listener of his radio show, and I regret not listening to it sooner. I make a modest hourly wage at a hospital and have a total of about 30k per year income, very much smaller than many people who use this service I'm sure.

I started investing part of my paycheck into gold as a backup savings account, as I don't have much faith in the American banking system. I want to knowledgeably allocate my earnings into an investment that will sustain itself, as gold will. My main question is, with my earnings, would it be wiser to keep savings in gold, or a more affordable metal such as silver? Any suggestions would be greatly appreciated.

Comments

  • GoldmattersGoldmatters Posts: 3,898 Admin
    Fantastic question\story.

    First, I wouldn't assume that the people on this community are high net worth individuals. This platform uses gold as savings and actually is most beneficial the lower your income is. The reason is that the less money you have, the more you need it to retain its value.

    Super wealthy people are impacted less as their purchasing power gets stolen than people like the users of this community.

    Second, I would like to personally congratulate you on your wise decision to find and sign up for Goldmoney! What a great choice! It speaks to your intellengence to find a way out of the spoiled finanical system we are forced to live in.

    Third, it might be helpful to start thinking of gold not as an investment, but savings, or money. This platform is not here to make you wealthy, its to keep you from going poor.

    Fourth, the beauty of Goldmoney is that you can buy gold in small increments, which has never been available before, so you dont have to choose between gold and silver, you can just buy small amounts of gold.

    I think thats a good place to start :)

    Welcome!!!!
  • AnacapAnacap Posts: 91 Copper ✭✭
    As long as you don't put all your eggs in one basket, it's good to go. You shouldn't consider this as a literal investment, savings are not investments until you put them at any use.
    You can even pick alternatives to bad currencies on top of metals like swiss franc or even stocks of primary resources like oil.
    Don't ever think gold is for the rich :neutral:

  • 79Au19779Au197 Posts: 4,047 Gold ✭✭✭✭✭
    @Xenomanster

    I have little to add to the comments above by @GoldMatters and @Anacap other than to reiterate that gold should not be considered an investment so much as it is savings in money that has intrinsic value.

    If you want to "invest" in gold, gold mining stocks would be an investment. [Not advice, just a statement] Another example of an investment would be to actually buy shares in Goldmoney Inc. which is technically FinTech. Below we see Goldmoney Inc. stock (XAUMF | US OTC) vs the Gold ETF GLD which tracks the price of gold. Goldmoney Inc. is to gold as a pipeline company is to oil. Both are based more on transaction volume than the price of the substance being transacted. The beauty of Goldmoney for savings is that it provides the most flexibility at the least cost (in and out) than any other way of owning gold.



    I will leave you with following

    Money Is gold, and nothing else - John Pierpont Morgan

    http://schiffgold.com/commentaries/money-gold-nothing-else/

    http://www.barrypopik.com/index.php/new_york_city/entry/gold_is_money_and_nothing_else_gold_and_silver_are_money_everything_else_is/
  • BadWolf757BadWolf757 Posts: 2 Tin ✭
    Zexomaster - You are not alone. Our family makes a modest salary and plan to start adding only about $20 a month to our goldmoney account.
  • GoldIsCurrencyGoldIsCurrency Posts: 1,779 Gold ✭✭✭✭✭
    @BadWolf757 Making regular monthly deposits to gold is the best way to save in gold. This is why I am a big fan of the Goldmoney recurring deposit function. In the long run it will add up nicely over time.
  • SpontaneousOrderSpontaneousOrder Posts: 288 Bronze ✭✭✭
    edited January 2017
    @Xenomanster, when people relied on coins in their pockets to carry money, silver was better because gold was too valuable, and silver was referred to as the "poor man's gold." I speak in the past tense because Goldmoney has turned that on it's head. Strangely enough, when it comes to saving and transacting gold is now cheaper than silver. That is because value-for-value gold is so much more compact and lighter in weight than silver, making it far less expensive to store.

    If you save in gold with a Goldmoney Personal account, storage & insurance costs are zero up to 1kg of gold. Once you go above 1Kg, with a Goldmoney Wealth account storage & insurance (in most vaults) is only 1 bp/month (1 basis point = 0.01%) Can't beat that anywhere! But if you put your savings into silver, although a Goldmoney Wealth account is still the least expensive way to go, storage & insurance will be over 4 bp / month (until you go over 50,000 oz., then it will be 3.25 bp / month).

    Transacting in gold can be free between Goldmoney Personal / Business accounts, and you buy and sell gold for only 0.5%. But the fee for buying silver in a wealth account will be 4% (for purchases under $10K. Fee goes down to 2.5% only for purchases over $100K).

    Bottom line: for saving, depositing gold into a Goldmoney Personal account (or a Wealth account if more than 1 Kg) is by far the least expensive way to go. Owning silver is not saving. It is speculating on the silver price.
  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    @SpontaneousOrder I think gold and silver are both money (e.g. Aureus & Denarius), so I disagree with your last two statements, but just about everything else seems pretty sound.

    In the long run, the physical metals are both stores of wealth. At times throughout history they have both been mediums of exchange and units of account.

    Technically, 'wealth' accounts add the spending utility/functionally to silver as well-ie you can sell some silver and load a debit card.

    Now futures contracts, etfs, and options on silver, that's speculation (or at times insurance on your real assets). But when you have silver bullion, at the end of the day you own a weight of silver money.

    So to my point, @Xenomanster I'd say 1)hold whichever (although gold has less fees as outlined above) and 2)know that silver is also an industrial metal, a smaller market cap, and likely more volatile.

    Gold in "Personal" is a great start; and if you'd like *some* diversity "wealth" offers exposure to other assets.
  • OhtoretireOhtoretire Posts: 10 Tin ✭
    If I could add.
    Gold is money, silver is money an example a pre 1968 .25 cent piece has a silver content of $2.50 (ruffly just to make my point, to the purists)
    So the feds have let savers down ... take todays quarter down to the corner store and see what you can purchase. Take $2.50 the same purchasing power that your original quarter has now you can actually make a purchase. The value of gold and silver never changes its the value of the dollar against g/s that changes.
    If I could also add ... in Ontario the probate and death tax on savers are exstream... imho gold is cash outside of the tax system .. please correct me if im wrong.
Sign In or Register to comment.