Precious metals have been a horrible investment for more than two years. Check out the clear downtrend in price of SLV or GLD.
http://finance.yahoo.com/echarts?s=SLV+I...
Will prices continue to slide to the downside? Nobody knows, so you use position size to manage risk. All in, you have huge risk. But with only 10% of your portfolio invested, you only have 10% of that risk.
Numismatic coins get their value from perfect quality, and you have to store them properly and not drop them or scratch them for them to retain their premium. Bullion bars and rounds are better for most beginners and will always retain their meltdown value. Ebay and Amazon are the worst places to buy metals.
http://www.apmex.com/category/1184/silve...
http://www.kitco.com/
http://www.tulving.com/goldbull.html#sil...
If you look at the chart of SLV or GLD, you almost have to become a little bullish.
http://finance.yahoo.com/echarts?s=GLD+I...
GLD has made a Double Bottom in price around 115 and had a substantial rally. It has now retraced 50% of that previous rally almost exactly -- an excellent entry point for a technician or chartist. This says nothing about the long-term movement of price, but suggests a rally north of 140.
SLV has made 3 higher lows since it's bottom, the very definition of a change in trend, and may be even more bullish than GLD.
If you're going to buy gold or silver anyway, now may be a perfect time to do so, at least for the short-term.
Gold and silver are poor investments. $1000 is not
going to get you much anyway. If you must have some
physical gold and silve, buy some coins.
Hi i have a little extra income burning a hole in my pocket and i am not interested in stocks/bonds/mutual funds a the moment and would like to own some physical precious metals and can't determine which will do better in the short term (1-5 years) before i just buy now id like to have a little extra input. this is a small $1000 purchase so its not mch but its reassuring to have some physical
