Who should I sell to?

What is the difference between $50K in gold and $50K in silver? Wealth is wealth. Either one is much better than $50K in US dollar over a 10 year time due to inflation. I dont see getting rich off of either, however it seems that both are a good hedge against inflation. I am no expert by any standard, but it seems reasonable that silver demand will increase through time due industrial needs. Gold may be for the rich, but it doesnt have any use other than being a "standard" of money value. I am very new at this, so I may be wrong, but based on projected future demand it seems that silver isnt a waste of money. unless of course the 50K of silver drops to $20K and the industries decide its electrical properties are unnecessary. Please let me know if I am thinking wrong. I am very teachable.

 

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They are just very different markets sir. Silver is industrial demand and coin collectors, while gold is jewelry, some coins, and bank reserves. THe gold/silver ratio is distorted because the large new consumers on the scene basically only value gold. South and Far East demand values gold historically, so that is why gold has had excessive demand over silver in the last decade.

No right answer, no wrong answer as to which is "better". Simply educate yourself and decide for yourself. Being very open and teachable is a great attribute in investing. I applaud you for it. I just wish I knew which to teach you was a better investment. I can't since I do not know myself. I have always loved silver as a kid, but am running out of room in the sdb so have been buying some gold instead.

 

Storage fees.

I though it just did exactly that. If you were a newbie who bought 1000 ounces at the peak of the hype ($50/oz.) and decided to sit on your "wealth", wouldn't you have only $20 000.00 worth of silver right now? That's in only 3 years. How much would you have today, if 3 years ago you kept your 50K in a bank account with no interest? I'm guessing around 50K.



Remember, people like you, with nicknames like SilverSurfer101, only come out of the woodwork when there is Precious Metal Hype. You don't see any interest when the metal is low and dormant for decades.

 

Lame. I'd guess that very few bought at the $49.xx peak. In fact, I'd venture that many more bought in the mid 30's where it fell to after the peak to "get in", and they all had a chance to get out with their skin.

Let's turn your scenario around a little. What if you put that into PMs in 06, how would that work out in your scenarios. Picking dates to make your argument is pretty weak, right?

 

I think what would be more meaningful, is to choose 100+ sets of two dates at random, at least 2 years apart, no more than 70 years apart, and then calculate the average gain or loss after taking inflation into account.

To be wholly accurate, one should probably also factor in a little buyers premium up front, and perhaps a discount on the sale.

Or, figure in multiple buy dates at random and one sale date.

Or, figure in systematic buy dates (once a month or once a year), and one sale date.

I suspect for many of the points in the data sets, the imaginary buyer would either break even, or come out slightly behind. There would only be a small percentage who actually came out ahead.

 

Or, maybe stop criticizing others decisions and trying to prove how much more intelligent you are than they. People live with their decisions and they know full and well when they are wrong or mistimed. Even a moron has perfect hindsight, want to impress me, give me future dates of highs and lows, and the spread for the highs and lows in something, then I'll bow to your greatness.

 

I thought the hype was already promising us $150 - $200 per oz. If gullible enough, why would you stop buying and miss out on 200% to 300% profit?

Whenever precious metal hype hits, it's not really a measure of intelligence that drives people to buy or sell. It's fear, propaganda, emotion, etc. All you need is common sense and just remember to sell/swap, when others are buying.

If industry and rarity were factors, don't you think governments would curb their record sales of precious metals. I'd bet on it. Instead, they continue to sell as much physical gold and silver, as the hoarders wants. The sales figures alone, from the recent hype years, tell us that there are a lot of people sitting on $40 - $50/oz. silver (buyer premiums included).

I was only smart enough to have stopped buying silver bullion in 2010 at $26/oz., shipping and mark-up included. I've unloaded a lot of it in swaps, during the hype. The opportunity to buy and sell with a profit, before or during one of these hype hiccups, is tiny. Warren Buffet couldn't even make it happen at the right time and tied up some of his capital in silver for many dull and boring years.

 

HMM... I do not see anything like you are saying, this is a forum for discussion and all I see is someone making their, point with some statistics, facts, and graphs. What is wrong with that? For what it is worth, he is also correct about MOST (but not all) stacker types. The stacker interest in buying is much much higher when the price is up. This is evident in the fact the the most money ever spent on ASE's was in 2012 when the price was the highest it has every been. As the price decresed, so did the interest and buying. Just the opposite of what a good investor does. Just look at this board, the bulls outnumbered the bears 10:1 at the crest of the hype, but now that silver is priced 60% lower, not so much. As silver drifts into the $12.00 range the last of the stackers will be gone. At that point, the the traditional value type investors will slowly accumulate the cheap silver. That is just the way it works.

Also you are inaccurate about you statement that you will be impressed if someone could give you future dates of highs and lows. History has shown the exact opposite. There were several folks who gave you VERY accurate advice on the direction and timeframe for silver from the peak of the hype in 2012. There was never a thanks Jim, you were spot on with that Chris, or you nailed that one Mike. Nope, none of that, just insults, for what, I don't know, I guess just for being right. Go figure

 

As per usual, metals take a dip and MikeM is here to tell us all about it...bravo

 

Oh, you're from Utah. Did you have the pleasure yet, of paying the government for anything in precious metals? Somewhere along the way, I heard that was an option for you guys. Is it common practice to use your bullion in everyday transactions?

 

I have not, and it is not a common practice. If somebody actually holds PMs, do you honestly believe they'd choose the option to transact in PMs over currency?

 

To be honest, I wasn't even sure if you guys still had the option or wanted to continue using US currency. Pardon the questions, I don't live in the US and I don't follow daily Utah news or developments. I also don't usually understand what precious metals hoarders or holders are really thinking and therefore, can't tell you for certain what they might choose. I know that some substantial percentage of your leaders managed to create an environment where precious metal transactions are law. This leads me to believe that yes, some portion of the local population did "choose the option to transact in PMs over currency".

 

You know my position has been consistant since $48. It has never changed one iota. To even suggest Monday morning quarterbacking after the dip is totally ridiculous. You know Peace if it were you that were correct, I would have been first line to give you your kudos, but I guess that just isn't your way, so be it.

And another thing, the few remaining stackers here are like the last of the grayriders, the war is over, the stackers lost. It is time to lick your wounds, re-group, learn a few things, and move on. Anything else will be hazardess to you financial heath.

 

The mentality of a PM holder is it's a safer bet to hold than dollars. Giving them the option of paying in metal or dollars isn't really an option, as they'll use their dollars just about every time.

 

Really, they lost? Since when? If they've been stacking since the US went off the gold standard, did they really lose? How about if they held out until after the run up of 1980, then started buying, did they lose too?

If you're trying to win an internet argument, you should probably find a new hobby...

 

Does that mean, that many of them would leave Utah, if all of a sudden US currency was no longer an option in that state? Was or is there any danger of that actually happening?

 

Back to trolling I see...good luck

 

Sell it to me, sell it to him, sell it to her.

 

That would probably depend on whether they actually sold any for a profit. Even if you never sell, buying when the price skyrockets is not advisable. Somewhere down the line, someone will choose to sell that pile.

Still, the records are always set at the highs and those highs do look like hiccups that are almost impossible to really cash in on. Either way, kudos to all those that had the foresight. Given your definition of a holder/stacker/hoarder/PM bug, I'm not sure that many of them were able to cash in or part with their hoard.

 

That is the part you do not understand, people have been "INVESTING" in Gold and Silver for a long time. These more traditional value type investors held reasonable percentages of PM's in their portfolio and did somewhat well over certain periods with them.. Now by going by what people have told be on this very board, these are NOT "STACKERS". They were just traditional investors who saw the value of PM in small quanties in their portfolio. The STACKERS with their ALL-IN philosophy and the dollar is going to crash mumbo jumbo came in later AFTER the rise in PM's. This is evident by the anemic sales of retail silver when the prices were low. The sales of retail silver jumped AFTER the prices rose. This was the STACKERS buying retail. These folks are almost certain to be underwater on their investments at this time. So yes the STACKERS lost, the ALL-IN bet on an overpriced commodity was a failure.