Asked myself - Why do I buy Silver?

I like the shiny metal. I sold most of the 'bullion' off at $35. The collectible 'shinnies' are still in my collection. They look too pretty to sell. The amassing of bullion (modest amassment) initiated because I like shinny coins. It occurred shortly after I returned to collecting in the early part of the 2000 decade. I never intended to 'invest'.......I just like shinny coins (and lots of them). One day I discovered that I had more shinnies than I really needed and not enough 'collectibles' in a certain area of numismatics, so I sold some of the shinnies to 'fund' the collectibles. No amount of planning ever replaces dumb luck.......sold for a modest profit. Still, I think the 'master' in the Parable of the Talents (Mathew 25: 14-30) would have cast me out. In my defense I would have stated that I do own stocks and some real estate.........

 

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its all investment for me designs dont matter just weight

 

I am not that upset and would like to see it drop more....then again, that means I would buy more...geez

 

I don't see it like that. Precious metals preserve wealth. I think of it more so as exchanging paper for real wealth not so much as an investment.

 

I sure wish I hadn't exchanged quite so much "paper" for "real wealth" back in 2011. The "paper" I kept has done a lot better than the "real wealth" for which I exchanged it.

In the long run, I have no doubt that gold will be back up to $1800+, and silver back up to $40+ -- in the long run, $1800 and $40 won't be worth much.

But in the long run, I hope that most of my wealth will have been working for me over that long run, generating actual returns, so that it increases in real value -- not just "preserving its value".

 

A couple years ago the bullion hypesters were claiming silver would top $50, $80 and $100 an ounce.

That turned out to be all wrong, so now they're bragging about how an ounce of silver buys as much as it did a few decades ago.

 

I started buying when silver was around $4, and rode it up until it hit over $20, quit buying until it had gone over the $48 mountain. Now I am not so sure, but it looks like it may be a good time to buy again, or it could tank down to $10. I suspect that silver won't go that low, because look at the crashing economies like Japan and us eventually. People will want it as a hedge against the crash, and I can't see physical silver going down too much lower.

 

You sound a lot like me sir. Right now I consider silver below its long term value trend. To Americans, silver seems cheap because the dollar is up and oil is down. I also do not think that will last forever.

 

who is to say it wont top 100 or higher i for one think it will just dont ask me when 1 year or 20 years who knows

 

Of COURSE it will sir. I will absolutely guarantee everyone here silver will be over $100 someday. However, that does not mean anything. If a gallon of gas costs $100 what benefit to you was there now that an ounce of silver is finally $100 an ounce? So, its relative performance that will matter. Of course if it skyrockets to $100 while gas is still $3, you are a huge winner. But, bottom line, silver will be $100 an ounce given the inherent inflation built into modern economies.

 

I see silver as a hedge. If the price goes up to $100 and stays there I would say that everything else we buy will have gone up fivefold as well. In other words, you might be able to sell your silver for more, but the cost of everything you have to buy will be up, so it still won't be too great.

 

I just don't see any benefit to buying silver for other than aesthetics. It'll go up with inflation. For serious investing tho you really need a mix of stock and bonds (or bond funds in short and intermediate term). The bond portion is the hedge against market corrections. The only scenario I see silver having a potential role is a doomsday type thing, but even then I think PM will be very limited in their value, better to own guns, ammo, liquor, food and medications.

 

Not necessarily, its not ours anyway........if you did it for investment then maybe but I too like shiny things, I could buy Eagles but I have a few and you know what, they look the same. However, you get the 'odd' stuff and you can look and learn......+1 to your statement sir.

 

Well not exactly - of real concern that is the whole point.....paper grows till is doesn't. I can eat, I can buy what I could buy decades ago.....a wash. However, in the paper world I can hope to go 2X or 3X...but the next time you wipe...look down and realize it is paper and no different other than the promises on that paper...

It is not about profit, at least not for me. It is about protection against the hoards.....that is the key.

 

Well I was going to say something till I read that. You get it sir!

 

I think it's a hedge. You can sell silver or trade it. Remember that it has no counterparty risk, so if the money goes bad you can get what you need with it. I have lived in countries where the money is devalued by half practically overnight. That could actually happen here some time. It has happened to practically every fiat currency throughout history. I agree with diversifying. I just don't have much faith that things are going to hold up very well with the fact that we owe over 16 trillion dollars.

 

I don't think the national debt is as big of an issue as everyone thinks it is.
http://www.forbes.com/sites/timwors...nt-is-absolutely-not-16-trillion-in-the-hole/
The United States Government has over $200,000,000,000,000 in assets.

 

I heard someone say the other day that even if the U.S. has an unbelievable amount of debt, who could ever make them pay it? Good point I'd say.

 

We owe most of it at least 2/3 to ourselves. Still you and I would go to jail if we pulled what they do.

 

That's an odd question. If people (or organizations or countries) started thinking that the U.S. were inclined not to pay its debts, who would buy those instruments?

"Full Faith and Credit" means something.