TONS of problems with them for sure. One example: They were made illegal to own back in 1931 and though I think the possibility of that happening again are very minimal, its a threat none the less. My use case is passing them along as part of my estate through trusts and never touching them.....insurance for me and then for my heirs. Not convenient, no cash flow, you pay a fee entering and exiting (currently anyway). Its so much less convenient than mouse clicks in a brokerage account BUT I am not a fan of everything I have in paper financial instruments and holding cash is a losing proposition. I just want it to be there in case of emergencies (and by emergency I mean dollars aren't accepted any longer....a stretch for sure but go back and look at what happened to EU families after WW1/2.....yes it can happen) and to gradually rise in pace with real inflation. Not for everyone. I see it as ACTUAL diversification. There is no perfectly secure financial plan that will guarantee your solvency. This is just one part I use to add to my solvency options. Not for everyone.
I agree with everything you say Mr. Grossman, with that said, I own PMs and will always have them for one simple reason, they are insurance, not an investment in my eyes. I hate that they are a pain to liquidate, you have to store them, AND no cash flow!! I feel the pain of no cashflow (CF is the gauge I care about these days) with my coming reliance on said cashflow (just retired). True, the scenarios that PMs as insurance are quite dire at minimum and I do not relish the idea of being right here but I definitely sleep better with them in my portfolio. I am also VERY concerned with the valuations of the equity markets. The CAPE ratio is the simplest measure to mention here. Plus the fact that the markets have had no respect for their own mean value for some time. The idea that the markets never return and go below the mean (and the mean comes up towards current valuations) is absolutely possible its just that the chances of that are very low. I have capped my equity exposure to 50% and have 30% in cash equivalents ready for the pullback that will someday come. The rest is in PMs although I haven't invested in them in a dozen years, they have tracked up holding their allocation percentage on their own without adding. This past year they blew that out. I don't expect many to agree with my setup and that is ok, Those that don't live in cities and have firearms/extensive set of tools that they know how to use will probably be more inclined to agree with my perspective. In the end, I really value your insights and use them to shape how I do things for sure. Thanks for taking the time to share.
I will both agree with the author of the article and Chris Roessler's analysis. I own gold and silver and would not be without it BUT why I bought it and why I now hold it have changed. I bought it when I was really without much background in investing convinced the world was falling apart and the dollar was DOOMED! Thank goodness I continued to study and learn. Gold is NOT an investment IMO. It is a straight up insurance policy to the failings of all fiat currencies. I hold a good amount portfolio-wise but haven't bought in maybe 10 years as I have decided its an asset to just be tucked away never to be used and to be passed to my heirs. Used only in case of emergency. Right now, I suspect that gold will pull back for a while if Trump's economic success is realized. I would prefer it that way. If gold takes off in price, its more of an indication of the failing value of the dollar than of its own value increasing. I call it the barometer to the value of the dollar. I will be very happy to see it slowly rise (in line with inflation, imagine that!) as it means the economy is ok and a high gold price will mean economic pain IMO. The only caveat to this is if gold somehow returns as a neutral reserve asset and the price must be revalued to be effective here. This is a long shot but Luke Groman makes an interesting argument for it on the May 8th edition of the Palisades Gold Radio podcast. Worth a listen to hear what some in the investment industry are thinking.
Point #1, interesting choosing 1987. Were the warnings you mention on market over-valuation before the crash of 1987 or after? I tend to agree with your statement but wonder if the warnings were before or after the crash....maybe both? I have seen this post 2008 and continue to hear it from people I truly respect as critical thinkers but I now start to roll my eyes listening to the market being 200% over-valued and we have yet to regress to the mean...yada yada yada. Now that I have posted this note, I have just confirmed that a market crash is now guaranteed to happen....I have that effect! :)
I have shifted to regional banks myself, I have found one that REALLY treats both me and my money well. Not publicly traded mind you. Research has also shown me that I have better protections through brokerage accounts (yes arguments against each of these positions, banks and brokerages, can be made, I choose to diversify through a number of banks as well as brokerage accounts). Circling back to using Veribanc, their report cards spell out the health and solvency of the banks. I was a life long USAA member, I was never in the belief I would leave but their report card shifted from green to yellow a while back and the service level was falling off noticeably. I am no longer a member. They may be just fine but when I can find banks without solvency concerns, why would I not choose that. I think you might be surprised what you'll learn researching the banks. I know I was.
Comments
Precious Metal
Post: Gold Isn’t Special
Link to comment from January 11, 2026
TONS of problems with them for sure. One example: They were made illegal to own back in 1931 and though I think the possibility of that happening again are very minimal, its a threat none the less. My use case is passing them along as part of my estate through trusts and never touching them.....insurance for me and then for my heirs. Not convenient, no cash flow, you pay a fee entering and exiting (currently anyway). Its so much less convenient than mouse clicks in a brokerage account BUT I am not a fan of everything I have in paper financial instruments and holding cash is a losing proposition. I just want it to be there in case of emergencies (and by emergency I mean dollars aren't accepted any longer....a stretch for sure but go back and look at what happened to EU families after WW1/2.....yes it can happen) and to gradually rise in pace with real inflation. Not for everyone. I see it as ACTUAL diversification. There is no perfectly secure financial plan that will guarantee your solvency. This is just one part I use to add to my solvency options. Not for everyone.
Post: Gold Isn’t Special
Link to comment from January 10, 2026
I agree with everything you say Mr. Grossman, with that said, I own PMs and will always have them for one simple reason, they are insurance, not an investment in my eyes. I hate that they are a pain to liquidate, you have to store them, AND no cash flow!! I feel the pain of no cashflow (CF is the gauge I care about these days) with my coming reliance on said cashflow (just retired). True, the scenarios that PMs as insurance are quite dire at minimum and I do not relish the idea of being right here but I definitely sleep better with them in my portfolio. I am also VERY concerned with the valuations of the equity markets. The CAPE ratio is the simplest measure to mention here. Plus the fact that the markets have had no respect for their own mean value for some time. The idea that the markets never return and go below the mean (and the mean comes up towards current valuations) is absolutely possible its just that the chances of that are very low. I have capped my equity exposure to 50% and have 30% in cash equivalents ready for the pullback that will someday come. The rest is in PMs although I haven't invested in them in a dozen years, they have tracked up holding their allocation percentage on their own without adding. This past year they blew that out. I don't expect many to agree with my setup and that is ok, Those that don't live in cities and have firearms/extensive set of tools that they know how to use will probably be more inclined to agree with my perspective. In the end, I really value your insights and use them to shape how I do things for sure. Thanks for taking the time to share.
Post: Gold Isn’t Special
Link to comment from January 10, 2026
I will both agree with the author of the article and Chris Roessler's analysis. I own gold and silver and would not be without it BUT why I bought it and why I now hold it have changed. I bought it when I was really without much background in investing convinced the world was falling apart and the dollar was DOOMED! Thank goodness I continued to study and learn. Gold is NOT an investment IMO. It is a straight up insurance policy to the failings of all fiat currencies. I hold a good amount portfolio-wise but haven't bought in maybe 10 years as I have decided its an asset to just be tucked away never to be used and to be passed to my heirs. Used only in case of emergency. Right now, I suspect that gold will pull back for a while if Trump's economic success is realized. I would prefer it that way. If gold takes off in price, its more of an indication of the failing value of the dollar than of its own value increasing. I call it the barometer to the value of the dollar. I will be very happy to see it slowly rise (in line with inflation, imagine that!) as it means the economy is ok and a high gold price will mean economic pain IMO. The only caveat to this is if gold somehow returns as a neutral reserve asset and the price must be revalued to be effective here. This is a long shot but Luke Groman makes an interesting argument for it on the May 8th edition of the Palisades Gold Radio podcast. Worth a listen to hear what some in the investment industry are thinking.
Post: Go for the Gold?
Link to comment from May 19, 2025
Point #1, interesting choosing 1987. Were the warnings you mention on market over-valuation before the crash of 1987 or after? I tend to agree with your statement but wonder if the warnings were before or after the crash....maybe both? I have seen this post 2008 and continue to hear it from people I truly respect as critical thinkers but I now start to roll my eyes listening to the market being 200% over-valued and we have yet to regress to the mean...yada yada yada. Now that I have posted this note, I have just confirmed that a market crash is now guaranteed to happen....I have that effect! :)
Post: Sharing Lessons
Link to comment from December 23, 2024
I have shifted to regional banks myself, I have found one that REALLY treats both me and my money well. Not publicly traded mind you. Research has also shown me that I have better protections through brokerage accounts (yes arguments against each of these positions, banks and brokerages, can be made, I choose to diversify through a number of banks as well as brokerage accounts). Circling back to using Veribanc, their report cards spell out the health and solvency of the banks. I was a life long USAA member, I was never in the belief I would leave but their report card shifted from green to yellow a while back and the service level was falling off noticeably. I am no longer a member. They may be just fine but when I can find banks without solvency concerns, why would I not choose that. I think you might be surprised what you'll learn researching the banks. I know I was.
Post: Due Diligence on Banks
Link to comment from June 28, 2024