Gold price

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Craziness.

Anyone picked up some bullion at Costco?

 

[TeslaCoil]

I prefer Gold 2.0 (Bitcoin).

 

[anonperson]

Craziness.

Anyone picked up some bullion at Costco?

I have in the past year. Best prices with the executive membership and a cash back credit card. If you have BofA unlimited cash back then you can get 4.625% total.

Buy and hold

 

[deleted1130227]

I have in the past year. Best prices with the executive membership and a cash back credit card. If you have BofA unlimited cash back then you can get 4.625% total.

Buy and hold

Not sure, but I suspect that when you buy bullion @ Costco you pay state sales tax. Might be better to order from a Precious metal dealer out of state and have it shipped to you which might avoid state income axes.

 

[anonperson]

Not sure, but I suspect that when you buy bullion @ Costco you pay state sales tax. Might be better to order from a Precious metal dealer out of state and have it shipped to you which might avoid state income axes.

No tax was charged.

State dependent.

In California if you buy over $2000 of precious metal, no sales taxes.

 

[Ashers]

Craziness.

Anyone picked up some bullion at Costco?

2 oz last year when it was $2000.

 

[txhorn]

I have in the past year. Best prices with the executive membership and a cash back credit card. If you have BofA unlimited cash back then you can get 4.625% total.

Buy and hold

It was great combining the 2% cashback for exec membership and 2% cashback for costco card. Made it cheaper than spot prices sometimes and definitely the cheapest way to buy physical gold.

 

[calvnandhobbs68]

Get Outlook for iOS

Thanks Microsoft Copilot lol

 

[gasdoc77]

My case for why silver is undervalued compared to gold involves considering a few key factors: the relative abundance of silver and gold, silver’s industrial applications, its historical uses, and current market dynamics. Here's an argument based on the available data:

1. Greater Availability of Silver Reserves

While silver reserves in the earth are roughly 2.5 to 3 times greater than gold reserves, the amount of silver held in reserves (in the form of wealth or store of value) is far less than gold. Gold is primarily stored as a reserve asset by governments, central banks, and investors, while silver has not been widely accumulated as a store of wealth. The fact that there is much more silver in the earth’s crust than gold, yet silver isn’t accumulated at the same scale, could suggest that silver is undervalued relative to gold.

2. Industrial Demand and Scarcity

Silver is highly consumed in industrial applications, with significant demand coming from electronics, solar panels, medical uses, and batteries. About 10,000 to 12,000 tons of silver are consumed annually, which is a large portion of the annual mining output. On the other hand, gold's industrial usage is much lower, with about 500 to 600 tons being consumed annually. This disparity in industrial consumption adds a level of scarcity to silver that gold does not face in the same way, as much of the gold remains in circulation or stored in reserves.

The high consumption of silvermeans that a substantial portion of silver is not available for investment or reserve purposes, unlike gold, which tends to be hoarded or stored for long periods. The ongoing depletion of silver in industrial applications combined with the fact that a significant amount of mined silver is used up or dispersed means that the supply of available silver for investors is more limitedthan the apparent total reserves suggest.

3. Silver’s Role as a Store of Value

Historically, silver has also been used as a form of currency and store of value, but it has been overshadowed by gold. Gold has long been seen as the ultimate store of wealth due to its rarity and high value, while silver is more often seen as an industrial metal. However, this perception may be mispricing silver's true valuewhen considering its underlying utility and historical precedent.

Given that silver is used in many modern technologies (such as solar energy, which is expected to see exponential growth), its potential value in the coming years could be far greater than current market prices reflect. If silver were to be more widely recognized as a store of value, particularly due to its industrial importance in the green energy revolution (solar panels, electric vehicles, etc.), its price could appreciate significantly.

4. Silver's Price Relative to Gold

One of the strongest arguments for silver being undervalued is the historical and current gold-to-silver ratio. Historically, this ratio has fluctuated between 10:1 to 20:1 (meaning 10 to 20 ounces of silver would equal 1 ounce of gold). Currently, the ratio stands at about 70:1 to 80:1, indicating that silver is priced significantly lower than it historically has been compared to gold.

This high ratio suggests that silver may be undervalued relative to gold. The silver market has not seen the same level of price appreciation as gold despite the factors mentioned above, and this could present a significant opportunity for those who believe silver's industrial demand, its relative abundance, and its potential role as a store of value are not yet properly reflected in its price.

5. Silver's Potential for Growth in Green Technologies

Silver is a critical component in the green energy sector, particularly in solar panels, where it is used in photovoltaic cells. As the world shifts toward renewable energy, silver's role in this transition could significantly increase its demand. Solar energy is expected to be a major part of the global energy infrastructure moving forward, and silver's use in solar panels will likely continue to grow.

While gold does have some industrial applications (e.g., in electronics and high-tech manufacturing), its role in the green energy transition is far less pronounced than silver’s. This means that silver could see much greater future demand in sectors like solar, electric vehicles, and other green technologies, pushing its value higher as industrial and investment demand converge.

6. Silver's Historic Role and Market Potential

Silver has been used as currency and a store of value for thousands of years, much like gold. However, the shift to paper currencies and the dominance of gold in reserve markets has overshadowed silver's potential. If silver were to see a resurgence in demand as a monetary metal, particularly if it were to gain traction in investment markets (such as through silver-backed ETFs or greater recognition as a safe haven asset), it could potentially outperform gold in terms of value growth.

While gold remains the dominant store of value and has historically been seen as the preferred hedge against inflation and economic instability, silver's industrial demand, its relative scarcity in usable form, and the historically high gold-to-silver ratio point to the potential that silver may be severely undervalued compared to gold. As silver continues to be consumed by industries, its long-term potential for growth—particularly in emerging technologies like solar energy—makes it a strong candidate for future price appreciation. I propose that silver could, over time, have more value than its current market price reflects, especially if industrial demand continues to rise and investor interest in silver increases.



Get Outlook for iOS

Thanks Microsoft Copilot lol

Best of luck

 

[GravelRider]

All precious metal has potential industrial applications. Gold, silver, platinum, and copper are all efficient conductors. Silver does have the best conductivity, which is why demand for silver may increase as the tech industry appetite for things like chips and data centers increase.

People who have significant investment into physical precious metals, where are you storing it? Safety deposit box? Safe cemented into house foundation? Shoebox buried under a tree?

 

[Ashers]

I have a rollover 401K that I put into silver (stored in Dallas). I've been happy with it. It's doing much better than my 401k in the stock market! I also have one account in gold stocks through Fidelity. That's doing well right now. For a few years, it was painful to look at that one.

 

[anonperson]

All precious metal has potential industrial applications. Gold, silver, platinum, and copper are all efficient conductors. Silver does have the best conductivity, which is why demand for silver may increase as the tech industry appetite for things like chips and data centers increase.

People who have significant investment into physical precious metals, where are you storing it? Safety deposit box? Safe cemented into house foundation? Shoebox buried under a tree?

Some around the house. Some in safe deposit box.
Gold is pretty portable since it's so high value.

I don't bother with physical silver since it's a pain to store a large quantity.