Who here thinks the price of silver will go back down?

Why is that? Wages aren't tied to the bullion market, unless you're a bullion dealer. I've seen the price of not only fuel, but bullion range from under a dollar for gas and %4 silver to where it is now and everywhere in between, yet my wages haven't been effected by their swings one bit.

I think silver and gold will see a saturation point, and I think we're almost there, at which point their values will deteriorate. People like to believe history doesn't repeat itself only when there is money on the line, but I assure you, this has all happened before, and will happen again.
Guy

 

Log in or Sign up to hide this ad.

You got that right Guy. Have you spoken with anyone who was deeply invested in PMs in 1980? The one bit of advice that sticks in my mind is that it's a lot easier to unload gold and silver before the peak, than when the free fall is in progress.

 

How old are you? When I was in elementary school, I think silver was $4.80 and ounce or something and Morgan dollars were $6 a piece. I bought all I could afford, then simply forgot about them. Today, some are nice, but most were low-grade and pretty much only worth silver content. I sold the culls for $32-35 a piece. So, over two and a half decades, I made 425-470% or so. Using the rule of 72 and the rule of 114 as approximation mechanisms, my rate of return was around 7.8% over that period. It's not as amazing as it people make it seem when you actually do the math... and I pretty much got in at the bottom right after the silver crash.

Now, for the actual silver that I bought for speculation, that's a different story. Got in at average $137.25 basis per share of SLV, sold at half at $36.35 and the rest at $44.73 per split share of SLV. I believe that was over the course of 60 months (give or take two weeks). Removing applicable taxes (yay for long-term cap gains on ETFs), I think I made around 32% annualized net.

So, given those scenarios, either you were a kid when I was a kid... or you're talking about six years ago. Come to think of it... if not for the housing crash, I would still be sitting on 200 shares of pre-split SLV and 17 rolls of Morgan dollars. Yay for ARMs!!!

 

I don't know what you just said, and I took macro economic in the day, but I like it!
I invested in used guns during the pre housing market crash. I made my money to buy them with house flipping no less...

 

I have been a small time investor for 12 years and cannot think of a worse investment than buying bullion silver at today's prices. Silver is a bad buy and why people are buying it then I can only guess that they have never lost a lot of money in silver.

 

Congratulations! You did your homework. I see so many these days talking about the silver that they have bought a long time ago (20 to 30 years) and they think that they have made this huge profit with the recent run up. They have paid very little attention to the price of inflation and the yield. Let alone the other investment opportunities they missed while holding the silver. Historically it has never really kept up with inflation. It has never really outperformed the stock market except the last 10, 11 years. Don't get me wrong in these times it is probably a 'safe haven'. Great to have some in your portfolio. It has always been that way for the wealthy. Ted Kennedy sold the $500,000.00 worth of silver that his grandfather purchased in the 20's for $5,000.000.00 in the 80's. If his grandfather had spent that same $500,000.00 on blue chips back then, he would have had $400,000,000.00. Now that's huge!

 

Sorry it was gold that Ted K sold. Still the analogy is the same. Neither gold or silver has kept up with inflation over the years and the yields are nothing to shout about.