If the dollar crashes, gold and silver isn’t going to save you. I’m a coin collector. And I really like gold and silver coins, but they are a trash investment. A few times people have gotten lucky, but more often than not, people get wrecked in gold and silver. Glenn Beck makes a living off conning people into buying gold.
I didn’t see where the poster was describing a SHTF scenario, but a “buy some and forget about it” attitude toward gold and silver.
Additionally, there are many possible scenarios between now and SHTF. There’s a scenario where the US dollar, for a variety of reasons, loses 20% of it’s value. There’s a scenario where the US refuses to pay a foreign nation, like Mainland China, for US Treasury debt it wishes to redeem. There’s a scenario where interest rates dive suddenly and deeply in order to buttress a failing US economy and its stock market. In any of these cases, the US dollar-value of gold will likely move substantially higher.
Also, there may be many stops on the way from now to a SHTF situation. In other words, the period of the decline may be a very long one with occasions where silver dollars and/or small-denomination gold bullion could be very useful. One can buy 1/20 oz. Canadian Gold Maple Leafs, 1/25 oz. Austrian Gold Philharmonics, or 5 gram gold wafers. Would it be easier to make a trade or transaction with a 10 oz. gold bar or a 5 gram gold wafer?
Pure codswallop. At an initial cost of $4 each, 1 oz. silver bullion coins are up more 350% in the past 22 years. That’s 16% per year. Whether its bullion or mining shares, there has been plenty of opportunity since Alan Greenspan warned East Asian nations in 1996 to buy dollars instead of gold. Six years later, the price of gold was off to the races.
5000 is not quite enough to start day trading. I have some experience with that and it’s a great way to make money but you need a solid 10000 to get started IMO.
The reason for this is commissions. It costs about 9$ per trade, so 18 for the round trip of buying and selling. Do you have to make 18 to break even.
18 dollars on a 1,000 dollar investment requires a gain of 1.8 percent. That’s a huge intraday shift and that’s what you’d have to make just to break even.
Whereas with 10,000 it requires a gain of only 0.18 percent, far more likely.
With 5,000 you’d need a gain of 0.34% which is still pretty high for a breakeven point.
Now if you trade a lot and gain “preferred status” or whatever they call it your commissions can come down. I was trading at 5.95 per trade but I was swinging mad volume. Then I bought a house which soaked up all my capital and put me into debt, which stopped my day trading as I’m not willing to risk losing when investing in your own debt is the best possible investment. But I’ll be back.
The stock market moves in fairly predictable patterns but of course there are no guarantees.
Thanks for that. I am always interested in new ways to make passive income. That sounds pretty legit!
