Silver is not tied to gold.... They are separate markets....Yes, they do have some commonality (jewelry for example)...but silver also has many commercial applications, while gold is more of an economic tool...Cheers, RickO
I was buying silver mid aughts at $8-$12 all the way up to $14.00 then I cooled off, thinking it was getting too high. Felt like an idiot for not selling at about $20 after it tanked down to about $11.00...then it started to rise, then rocket. Sold most of my silver in the high teens low twenties thinking I was a genius back in 2009-2010.
I had my house paid off and considered pulling out 100-150K on a home equity line to buy silver at $40 an ounce. It was basically going up in price every day. How could I lose? (where is that shame Icon). I didn't do it. I was close. I was hooked and part of that greed mania of a bubble.
Be careful, when silver takes off, it is so easy to get caught up in it. But before you buy go look at a historical silver chart. The price has been trending down and looks a lot different than the chart looked when silver was poised to rise.
I buy some silver just because I love it, but it is the kind of money I would spend if I played golf...entertainment money.
I'm pretty happy with this micro spike which sparked buyers interest on silver. Got rid of one third I what I have left on the initial part of this spike, and now as spot gets very close to my original asking price, I'm hoping it gets noticed to get rid of more. Not so much stuck on spot because later when it goes back down, I'll wish I could have sold it for what I'm asking now which is less that $1 over. Last thing I want to be stuck with is bulk dead-metal (Warren Buffet) back in the $14's again. I'll always be a collector but on a smaller scale for enjoyment only.
I've been through a spike in silver (and a subsequent crash) as an investor/speculator two times - in 1977-1980 and in 2008-2011. What ARCO says is true - when it's on the rise and you have a decent amount, you do feel like a genius. It's definitely a longterm proposition, and if you plan to come out ahead, you simply do have to know when to sell, at least to some degree.
In 1977-1980, I ended up buying a couple bags of silver dollars. Then, I eventually got a phone call from a precious metals dealer in Fort Lauderdale and went in for several mini-contracts - on margin - of both silver and gold. This was before the days of personal computers and spreadsheets, so every night I calculated each of my holdings on a ledger page. One particular day while the metals were rising, I made more than my annual salary. I rode the wave until my broker advised me to sell when gold was around $600 or $650, so I sold my contracts and took delivery of some real gold (sovereigns) to hold onto and I kept the silver dollars for a long time after that as well. With most of the proceeds we bought a place in a lake resort outside of St. Louis and financed my wife's law school.
After the Hunts were taken to task by the crooked regulators and Paul Voelker's interest rate hikes, and when silver was stumbling around $35, my broker had started his own firm and he talked me into getting back in. I bought a silver contract and lost $1,000 almost overnight. That's when I got mostly out of precious metals for the next 15 years. I only dabbled in metals a little until 1996, which is when I started slowly building a permanent longterm position in the 3 metals. It's been a good ride ever since, and it's because I never deviated much from the longterm perspective.
In 2007, I exited all of our retirement and stock holdings and bought more metals because I didn't like what I was seeing in both the stock market and real estate market. The rise into 2011 again made me feel like a genius, and the crash in 2011 simply put things back into perspective, but the lower prices have also allowed for more accumulation. I've continued building the position ever since, at fairly decent prices. I did sell some 90% at $35 in 2011 before the crash, but I've bought even more since then.
Now, it looks like the beginnings of the third time around, for me. Current pricing still looks reasonable to me and gov.com finance still looks pretty horrible overall. cohodk can say whatever he wants about the virtues of "professional financial guidance" and stock market investing, but I have no debt and everything is paid off. I don't believe I'll have many financial worries from here on, and it's because I made a decision long ago to continually build a position in precious metals over time, dollar cost averaging along the way. I'm sure that I'll be able to tap into the stash on an "as needed" basis for the duration. The nominal value may fluctuate wildly or not - who knows, but hey - that's life.
Q: Are You Printing Money? Bernanke: Not Literally
Great summary jmsk52 & your reasons for investing in silver is sound. I just feel sorry for those misguided folks, who've been accumulating silver for a SHTF scenario since 2008. They are still deep in "shift."
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
@ricko said:
Silver is not tied to gold.... They are separate markets....Yes, they do have some commonality (jewelry for example)...but silver also has many commercial applications, while gold is more of an economic tool...Cheers, RickO
With all due respect, silver tends to follow gold's price movement. Normally when demand for one increases, demand for the other increases. Silver will follow gold up and because the GSR is so heavily favoring gold, silver will see a greater percentage of price increase. Anyone wanting to profit on near term PM price increases would do best with silver. The only real difference in price mechanism is that silver is more volatile.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Never base any investment on a perceived correlation, lest you become derryb, lol, correlations especially ones espoused above are nonsense and will leave you holding a big bag of crap, might as well burn your money on lighting up a good cigar instead...
Normally, favoring, will, gsr, wanting and would, are all destroyers of capital...
Wish it would just pop already, I've got a storage problem and in my world it can't happen soon enough. I swear when I dump it all for gold this time round I'll never go back.
I've found that they are sufficiently divergent to provide some buffering in volatility. They don't always move together, nor do they always diverge. That works for me.
I do note that platinum and silver seem to be more highly correlated, which kinda helps with the silver bulk storage problem if you can tolerate the buy-sell spread of platinum due to it's lower liquidity.
Q: Are You Printing Money? Bernanke: Not Literally
Sold my entire 90% holdings at just over $41/oz the last time it ran wild. Smartest move I’ve made in a long time. I’ve been accumulating more over the last 2-3 years. Something magical about bags of U.S. 90%....I just can’t stay away.
Dave
Always looking for original, better date VF20-VF35 Barber quarters and halves, and a quality beer.
@Dave99B said:
Sold my entire 90% holdings at just over $41/oz the last time it ran wild. Smartest move I’ve made in a long time. I’ve been accumulating more over the last 2-3 years. Something magical about bags of U.S. 90%....I just can’t stay away.
Dave
You and me both.
Everybody was talking about $50 an ounce. I got out and paid my house off.
Best thing I ever did.
1970s
Posts: 3,093 ✭✭✭✭✭
Comments
A little catch-up probably with gold.
The GSR has a long way to go for silver outperforming gold.
I still think 16 USD or in my case $22 Canadian, is still a no brainer to sock away a lot of the shiney stuff!
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
Based mainly on the GSR, nearly everyone's been saying that silver is undervalued relative to gold. We shall see.
I knew it would happen.
50:1 is the ratio correct? Anyone want to trade 50 oz. of silver for an oz. of gold
Silver is not tied to gold.... They are separate markets....Yes, they do have some commonality (jewelry for example)...but silver also has many commercial applications, while gold is more of an economic tool...Cheers, RickO
I will
It's all about what the people want...
I will too!
Hint: your ratio is wrong.
CN eBay
All of my collection is in a safe deposit box!
me too!
Count me in.
I'd have to ask What side of the trade would you be on?
Just a joke, my 50oz. of silver for your 1 oz. of the yellow metal.
I was buying silver mid aughts at $8-$12 all the way up to $14.00 then I cooled off, thinking it was getting too high. Felt like an idiot for not selling at about $20 after it tanked down to about $11.00...then it started to rise, then rocket. Sold most of my silver in the high teens low twenties thinking I was a genius back in 2009-2010.
I had my house paid off and considered pulling out 100-150K on a home equity line to buy silver at $40 an ounce. It was basically going up in price every day. How could I lose? (where is that shame Icon). I didn't do it. I was close. I was hooked and part of that greed mania of a bubble.
Be careful, when silver takes off, it is so easy to get caught up in it. But before you buy go look at a historical silver chart. The price has been trending down and looks a lot different than the chart looked when silver was poised to rise.
I buy some silver just because I love it, but it is the kind of money I would spend if I played golf...entertainment money.
"I had my house paid off and considered pulling out 100-150K on a home equity line to buy silver at $40 an ounce".
Thank goodness you didn't pull the trigger, think about the hole you would be in now if you had.
I'm pretty happy with this micro spike which sparked buyers interest on silver. Got rid of one third I what I have left on the initial part of this spike, and now as spot gets very close to my original asking price, I'm hoping it gets noticed to get rid of more. Not so much stuck on spot because later when it goes back down, I'll wish I could have sold it for what I'm asking now which is less that $1 over. Last thing I want to be stuck with is bulk dead-metal (Warren Buffet) back in the $14's again. I'll always be a collector but on a smaller scale for enjoyment only.
I've been through a spike in silver (and a subsequent crash) as an investor/speculator two times - in 1977-1980 and in 2008-2011. What ARCO says is true - when it's on the rise and you have a decent amount, you do feel like a genius. It's definitely a longterm proposition, and if you plan to come out ahead, you simply do have to know when to sell, at least to some degree.
In 1977-1980, I ended up buying a couple bags of silver dollars. Then, I eventually got a phone call from a precious metals dealer in Fort Lauderdale and went in for several mini-contracts - on margin - of both silver and gold. This was before the days of personal computers and spreadsheets, so every night I calculated each of my holdings on a ledger page. One particular day while the metals were rising, I made more than my annual salary. I rode the wave until my broker advised me to sell when gold was around $600 or $650, so I sold my contracts and took delivery of some real gold (sovereigns) to hold onto and I kept the silver dollars for a long time after that as well. With most of the proceeds we bought a place in a lake resort outside of St. Louis and financed my wife's law school.
After the Hunts were taken to task by the crooked regulators and Paul Voelker's interest rate hikes, and when silver was stumbling around $35, my broker had started his own firm and he talked me into getting back in. I bought a silver contract and lost $1,000 almost overnight. That's when I got mostly out of precious metals for the next 15 years. I only dabbled in metals a little until 1996, which is when I started slowly building a permanent longterm position in the 3 metals. It's been a good ride ever since, and it's because I never deviated much from the longterm perspective.
In 2007, I exited all of our retirement and stock holdings and bought more metals because I didn't like what I was seeing in both the stock market and real estate market. The rise into 2011 again made me feel like a genius, and the crash in 2011 simply put things back into perspective, but the lower prices have also allowed for more accumulation. I've continued building the position ever since, at fairly decent prices. I did sell some 90% at $35 in 2011 before the crash, but I've bought even more since then.
Now, it looks like the beginnings of the third time around, for me. Current pricing still looks reasonable to me and gov.com finance still looks pretty horrible overall. cohodk can say whatever he wants about the virtues of "professional financial guidance" and stock market investing, but I have no debt and everything is paid off. I don't believe I'll have many financial worries from here on, and it's because I made a decision long ago to continually build a position in precious metals over time, dollar cost averaging along the way. I'm sure that I'll be able to tap into the stash on an "as needed" basis for the duration. The nominal value may fluctuate wildly or not - who knows, but hey - that's life.
I knew it would happen.
Great summary jmsk52 & your reasons for investing in silver is sound. I just feel sorry for those misguided folks, who've been accumulating silver for a SHTF scenario since 2008. They are still deep in "shift."
@1970s ...There used to be some forum members with higher totals.... have not seen them in quite a while...Cheers, RickO
With all due respect, silver tends to follow gold's price movement. Normally when demand for one increases, demand for the other increases. Silver will follow gold up and because the GSR is so heavily favoring gold, silver will see a greater percentage of price increase. Anyone wanting to profit on near term PM price increases would do best with silver. The only real difference in price mechanism is that silver is more volatile.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Never base any investment on a perceived correlation, lest you become derryb, lol, correlations especially ones espoused above are nonsense and will leave you holding a big bag of crap, might as well burn your money on lighting up a good cigar instead...
Normally, favoring, will, gsr, wanting and would, are all destroyers of capital...
sorry to hear you didn't know when to sell your silver.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Wish it would just pop already, I've got a storage problem and in my world it can't happen soon enough. I swear when I dump it all for gold this time round I'll never go back.
The whole worlds off its rocker, buy Gold™.
Normally, favoring, will, gsr, wanting and would, are all destroyers of capital
Which are all dwarfed by hope.
Knowledge is the enemy of fear
Having too much silver is a problem I wish I had.
My YouTube Channel
I've found that they are sufficiently divergent to provide some buffering in volatility. They don't always move together, nor do they always diverge. That works for me.
I do note that platinum and silver seem to be more highly correlated, which kinda helps with the silver bulk storage problem if you can tolerate the buy-sell spread of platinum due to it's lower liquidity.
I knew it would happen.
Sold my entire 90% holdings at just over $41/oz the last time it ran wild. Smartest move I’ve made in a long time. I’ve been accumulating more over the last 2-3 years. Something magical about bags of U.S. 90%....I just can’t stay away.
Dave
Sold my entire 90% holdings at just over $41/oz the last time it ran wild.
Very astute move - hard to do with an entire stash. Congrats!
I knew it would happen.
You and me both.
Everybody was talking about $50 an ounce. I got out and paid my house off.
Best thing I ever did.
Another winner, that’s awesome, good for you...
Another winner, that’s awesome, good for you...
Exactly! To read some people's comments, you would think that buying silver is the biggest mistake anyone could ever make.
That's simply not the case. Take good care of your finances, and your finances will take care of you.
It's called "money management".
I knew it would happen.
Indeed. Reason again reigns victorious over emotion.
Knowledge is the enemy of fear
Why would it be hard to sell an entire stash? Is silver illiquid? Is there no guarantee of an orderly market?
These are things that one would want to know about in a prospectus.
Knowledge is the enemy of fear