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Investing in Gold and Silver


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    I was watching TV the other day when I saw an ad talking about how gold and silver are about to skyrocket. The whole point of the ad was to get people to purchase this how-to booklet that came with a hundred different ways to invest in gold or silver that would guarantee a solid investment and future profit. The commercial itself wasn't exactly well produced and they most definitely didn't invest in the best actors, but they had somewhat of a point. It's usually a good idea to invest in this area.

    First of all, I've thought about it a bit and just don't think it's possible for there to be 100 ways to invest in gold and silver. So you know, got ya there. Second, both gold and silver have been on a pretty steady uptick for a very long time now. To say it's about to skyrocket seems quite dramatic to me. It's easy for them to say they will go up between now and whenever because that's what they've always done.

    Question is, can anyone give me a solid reason as to why gold and/or silver is about to skyrocket? Like I said, I've thought about it a bit and looked into here and there but I'm just not finding anything that would lead to a greater uptick than what they usually have.

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    TheBiggerBoat Wrote:

    Question is, can anyone give me a solid reason as to why gold and/or silver is about to skyrocket? Like I said, I've thought about it a bit and looked into here and there but I'm just not finding anything that would lead to a greater uptick than what they usually have.

    The argument (typically) always sound like this: fiat currency, ie the US dollar, isn't backed by anything, can be printed at will, and is subject to regular inflation, making it less and less valuable and more unstable over time.

    But hard commodities, like gold and to a lesser extent silver, have a finite supply, making them more scarce. So their value inherently and theoretically goes up over time, as the supply shrinks and at the very least the demand goes up or at least stays the same.

    With the world and US economy being hit hard lately, and the FED and the world bank playing around with low, no or even negative interest rates, you could make the argument the overall economy is on very shaky ground. And consumers will pour money into more physical and time tested stores of value, like gold and silver. As a way to not have their money tied up in a shaky currency.

    That's my understanding of the argument anyways. Oh and you're right, there are certainly not 100 ways to do it. There's probably not even 10 ways, practically speaking.

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    Good points. I'm actually thinking about investing a little in this, but investing in this particular avenue seems to be pretty difficult. It'd be nice if there was a more clear cut way to get started.
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    There's a run on silver right now; its the latest target of the r/WallStreetBets group on Reddit. Some are saying they want to pump it to a $1000, but unlike Gamestop it doesn't seem nearly as easy to do. They need to buy physical silver from what I understand, to successfully short paper silver. Either way, will be very interesting to see what happens to the price over the next several days and weeks to come.