Why do you invest in silver?

My name is Laimbeer4452 and I am a silver addict, albeit a new one. Admittedly, I am a newbie to the world of PM investing and my purchases are 95% silver (ASE's, bars, generic rounds, Maples, etc) with a touch of gold...the remaining 5%. I began investing about 6 months ago and have accumulated roughly 500oz total so far. I am looking very long term with the goal of investing 750oz per year for 17 years, the day my son will turn 18. At that point I can turn it over to him to sell, buy a house, pay for college, etc. This is my primary objective of this particular investment outside of equities and other financial vehicles. Don't get me wrong I enjoy it immensely and if silver spikes within the next few years I would not hesitate to sell a percentage of it to realize the gain. However, being new to this I am curious about your strategy in buying silver; long term vs. short term, what you hoard and why, and some some general thoughts you may have about my short life story and strategy about investing in silver. Your thoughts, criticism, and candor is much appreciated. Happy investing!!

Laimbeer4452

 

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I, too, am a relatively new silver investor and I ask myself the same question, "Why am I investing in silver?"

To me, it's just another place to harbor a portion of my "wealth," in addition to certain collectibles, antique guns, stocks, bonds, mutual funds, and cash. I see no particular advantage of investing in silver but I like to look at it and fondle it. Like stocks and bonds, I have no idea of it's future value, but have no doubt it's value will never drop to zero (like some stocks). I feel relatively safe in silver but other investments may be safer (e.g. antique guns).

 

I hope you still feel that way when your son is eighteen. Sometimes the teenaged years can be hard on the relationship between parents and children. The child wants to be independant, the parent wants what is best for the child, sometimes those aims take different courses.

 

Collectability and as a hedge. I like Eagles and Maples but 90% junk is my favorite. Everytime I look at a circulated silver coin it makes me think of simpler times.

 

Though silver is a decent investment, I believe gold is much better!!

 

Personally, I'm afraid of gold at current prices (and to a lesser extent, silver too). Gold buyers are not willing to take on the risk of a sudden price plunge and investors won't realize the full benefits of current prices -- buy high, sell lower. Longer term, gold investors have an even chance of not losing money, but it's just a crap shoot. Take your money to Vegas and get the same odds.

 

What's your basis for that belief?

 

Very good point, Chip. I guess I am just hoping for the best in that regard. If the time comes and there is not interest in my stash, well, I guess the wife and I will buy a kick ass condo in Fort Lauderdale! On the good side...it will pay for Harvard...at least I am hopeful of that!

Thanks for the replies, folks. Much appreciated.

Laimbeer4452

 

if you're buying silver to wait out the base metal price appreciation, you're better off buying SLV on the open market than storing 750oz of hard silver year year.

 

good point, oodinero, but damn I really like looking at it, holding it, and ultimately the collecting aspect is just plain fun.

 

Physical possession is safer than paper for a good number of reason even thought paper may be considerably more liquid when you need to sell it however, just how much can you physically hold (in your hands and arms) and just how much do you need to physically hold (fondle, caress, kiss, stack up, play with) to satisfy your tactile desires apart from meeting your physical reserve investment goals? Maybe you are really after a sort of pleasure derived from quantities and not tactile pleasure. :eat:

 

Not much unlike my usual practice of rolling around in bed on stacks of $100 bills, I do derive pleasure from being able to handle an investment. And you are right, Krispy, I guess I do have the desire to accumulate quantities more than my ability to feel and touch it, a rare thing for an investment these days. Out of all the stocks that I have bought and sold over the past 15 years, I have yet to actually see a physical stock certificate...so I guess there is an infatuation of sorts with being able to caress my investment (exaggerating, of course). Be well and have a great weekend!
Laimbeer4452

 

silver should be better than gold. when all precious metal move up.

 

Elaine, do you still have 2009 PM performance percentage increase from 1/2/09 - 12/31/09... and what are they like now for year to date, 5/1/09 - 5/3/10?

 

all based on london gold and silver:.

gold - dec 31,2008 - dec. 31,2009. open $869.75, close $1,087.50. up 25.0%
silver - dec 31,2008 - dec. 31, 2009. open $10.79, close $16.99. up 57.5%

gold - apr 30, 2009 - apr 30, 2010, open $883.25, close $1,179.25. up 33.5%
silver - apr 30, 2009 - apr 30. 2010 open $12.63, close $18.62. up 47.4%

 

Thank you! Those are the numbers I was looking for. I'd seen you post similar for all PMs in the past and knew you'd have that data.

Also mpcusa should take a look and reconsider his earlier comment.

 

krispy. i have edited the date from and to. please review it again.

 

I invest in silver for many of the same reasons that the author of this thread outlined, minus the kid factor.

I have become frustrated and too weary of tradtional investment options, hence the main reason why I have crossed the line from casual coin collector to bullion hoarder.

Welcome to CT Laimbeer4452 (just incase I missed you with a formal welcome in the past).

 

I wanted to buy my son a few thousand shares of GM back when they were selling for pennies, I asked the broker for certificates, he told me that there was a premium of over 100 dollars for an actual printed stock certificate, no wonder abn went under...

 

Another good reason for holding physical is in the event there's an EMP blast and all banks lose your account info!!!