Why bulky silver bullion?
Paradisefound
Posts: 8,621 ✭✭✭✭✭
You have to invest so much in bulk and taking physical possession for a promise of equal return if anything compares to the Dow Jones? Please entertain me with your take on this pictures 
I've seen them advertise quite aggressively to stock up as a market hedge but..........
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Bullion is really not a hedge to the market. You can make a fortune trading bullion, you almost always lose money if you hold it long enough because of opportunity costs. And bullion does not pay dividends or compound interest.
You can hedge the Dow with bonds which do pay interest & compound.
I'm not sure bullion even works as "Armageddon insurance". If Armageddon truly strikes, you want aluminum and lead [canned food and bullets].
But, of course, I'm about to get flamed by the gold and silver bugs.
But, before you flame me, at least look at these charts. With the exception of 1979-1981 period, it is pretty damning...
longtermtrends.net/stocks-vs-gold-comparison/
All comments reflect the opinion of the author, even when irrefutably accurate.
You are 100% right @jmlanzaf
Precious metal has been a hedge against economic crashes for a long time. Some people prefer stocks and bonds, real estate, fine art or collectibles. Each has it own risks / rewards attached.
Physical possession, for me, is much better that some nebulous business "holding" my portfolio of precious metal. If the s*#t hits the fan where would you rather have your bag of doubloons ? In hand, or easy local access, or some where across the nation under an unfamiliar business address?
The trick is knowing when to buy or sell for all of it. No money is lost or gained until you sell. I did OK selling above $40 silver but had to resist the bumpy road from $5.88 in 1980 on the way up.
This is my out look on Silver versus Gold. If I would buy 1oz of Gold today it will cost me lets just say $1200 and if it go's to a high of $2000 I make $800 not a true $800 but we will just say that. But if I buy $1200 in Silver that will be 77oz. and it go's to it all time high of $50.00 that will be profit of $2650. So you get more bang for the buck, But I do both just to cover my back end that is just me dumb Type2 thinking.
Hoard the keys.
Because both of my daughters love big shinning coins.
Most news reports about how great PM's are as investments are really advertisments. I look at PM's as insurance you buy hoping you will never have to use. In a non fiat economy gold stores value silver does the work. Good to have some of both. This probably belongs in the pm forum. Now may be a good time to get some bullion, but the Pan Pac gold you long for is a collector coin and does not necessarily follow bullion prices.
Those specialty coins are to satisfy my fancy .....
We'll get them. Gotta have a satisfied woman.
An industrial metal used in numismatics.
I prefer coins with some juicy meat on them, myself. You know ? Strike, Luster, Eye Appeal, beauty. Natural toning that enhances the coin. Not ugly tarnish or grime. Even though some of that can make a lot of coins look pretty good (it's that natural part of history , growing old)
....as to charts,... I'd say buy when the opportunity exists, and if you like it, keep it as long as you want.
If you feel like you're drowning, maybe you're swimming in the wrong end of the pool.
As to metal.... well , what goes up must come down.
As to holes; they always need fillin'
``https://ebay.us/m/KxolR5
No can time it.....dollar averaging baby
@Paradisefound, you may want to start dipping your toe in the water if you don’t mind the possibility of another down move in the price of gold and silver, especially if time is on your side. If gold slips then you can cost average. Keep in mind that metals can take many years to start a major up move.
Try not to pay a premium on what you buy especially with modern bullion. You don’t want to be the last person standing when a dealer tells you that it’s just bullion. Same thing goes with silver.
Why bulky tuna when it is easier to stack flat halibut?
Well, one of the issues is that everyone is on a different timeline with different goals, needs, expectations, and beliefs. What's "right" for me may not even be close for the other guy. Apart from this, there is a considerable amount of uncertainty in life. For me, the advise to hold 10% of my NW in metals and pray like crazy that they go down seemed pretty good. I've always believed in a huge amount of diversity, including a couple of non-traditional asset classes (collectibles, small business, crazy ideas). I'm not nearly so stupid to think that I can make money in numismatics, but the ability to get a good part of my investment back while having a ton of fun is really attractive. That's more than I can say for most of my other hobbies.
As far as silver vs. gold, it's not that bulky, especially not when compared to your average commodities.
Money is made DEALING in silver. Buy and sell and enjoy the idiotic spreads.
You'll find silver bids go way UP when silver is low and the bids drop big time when silver is high.
Quite natural as the demand is up when the price is down and when it's up, no one wants it except the refiners.
Gold has much narrower spreads and is far more liquid.
She is quite correct on "averaging."
Timing is for race horses.
Bulky silver can be fun!
My YouTube Channel
I totally agree with your thoughts here
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I meant bulky for physical need of storage oppose to stocks
....... As far as silver vs. gold, it's not that bulky, especially not when compared to your average commodities.
"dollar averaging" in term of infusing more into financial market
e is on your side. If gold slips then you can cost average. Keep in mind that metals can take many years to start a major up move.
How about the one firm on TV, "GET A FREE 1 GRAM SILVER BAR!"
Haha, that's what? About fifty cents worth of silver?
How about diversification?
I own my 4 bdrm pool home outright, have plenty in the market (though more heavy on cash (mmkt account paying ~2.1% now), corp bonds, preferred funds, and other heavy divi stocks now), have many nice collector coins, and like to stack 10oz bars and 90% with silver prices in the mid-teens.
Silver has been >$40/oz twice in my lifetime....who know, lightening could strike a third time!
For gold I have a couple small positions in market funds like GLD, and a few collector coins.
To 'hedge the market', I have some small short positions and volatility index funds.
For those of us who did major stacking in the days of six dollar silver and three hundred dollar gold, well, it still looks good....
Storage is not an issue, just plan for it. Cheers, RickO
Bulky silver is probably only a great idea if you are a survivalist who believes that the wheels are going to fall off the cart. Then, you should stock up on silver dimes and bullets.
What is now proved was once only imagined. - William Blake
Dehydrated silver bars are the way to go....much smaller but contain all the same silver. Just add deuterium.
And where do you store your stock certificates? If they aren't in your possession, do you really own them?
Looking at the charts of historic silver prices vs the stock market and comparing them - I only have one question:
Do you want to buy low and sell high, or do you want to buy high and sell low?
I knew it would happen.
Even having physical possession of a stock certificate does not assure ownership. That must be verified through records of the issuing company.
I never met anyone who had 100% of their assets tied up in precious metals and it's a rare (perhaps foolish) person who has even 50% there.
5% to 10% in PMs is more than enough for most.
PM's are good for maybe 5-10% of your assets. IMO they are neither a hedge nor an investment. Having watched and participated since 1978 (OK, I was just a kid in 78'), I have come to the conclusion that gold, silver especially are not good "investments" in any sense of the word. They may be a storehouse of wealth that fluctuates a lot and depending on where in the market cycle you bought and how much of your money is returned to you when selling.
In a SHTF scenario, silver won't do you a lick of good. If dollars aren't accepted but silver is, most of us will dead by starvation, or roving gangs. There is no scenario where society still functions and silver becomes the currency people use.
Physical gold makes the owner (and holder) a fully independent entity.
Even in a way their own country.
Cash, sure. But gold has outlasted all cash.