What’s the best way to invest in metals against inflation and dollar devaluation? Silver or Gold, bullion coin?

Abracadabra asked:

Where’s a good place to buy that’s safe. I was looking at Monex, but I have no idea about this.

{ 3 comments }

elemfin: Gold coins are good but I like the stock market. Check out the gold etf. (Symbol, GLD) This, in mine and others’ opinion, is the best way to play the metals.
Jeeper: I wouldn’t buy any of it right now. If you’ve noticed, there are commercials all over TV right now saying, “Buy our gold!” and “Buy our silver!” Doesn’t that seem a bit suspicious? If companies like Monex know that the price of gold and silver will continue rising (like they claim it will), why would they try to sell it? The truth is, precious metals inflate and deflate like anything else on the commodities market. Because metals often do well during recessions, gold and silver are at record highs right now, BUT the economy is showing signs of improving, which will very likely lead to a drop in the price. All companies like Monex are doing is practicing the age old idea of buy low and sell high.
puedodharma: silver bullion is a better bet for a greater percentage gain if you look at the movement of the metals. it’s really beat up right now.

just buy a 100 oz bar of silver, maybe more.
and hold it.

buy it wherever you want, but be a stickler for price by dividing the amount you’re buying by the number of ounces and then multiplying that by the spot price per ounce of the metal. Don’t buy anything with too high of a premium over spot, and don’t bother with mint marked or collectibles – you’re looking for scrap.

cheers. you’re smarter than most americans.