Tennispoco, welcome! Check out the "Bullion Investing" forum: https://www.cointalk.com/forums/gold-silver-coins/ And for silver-only fans: https://www.reddit.com/r/Silverbugs/
maybe broke even or a loss. The buyer has to make profit on it and I understand that. I did not care I needed money and sold silver.
I put money away in a lot of different things. Silver, gold, stocks, coins, property, collectables and a large cash reserve. The cash is most important in my mind. If things turn bad, maybe something will be kind to me. I see coins as a fun but poor investment. I'm not going to make money on coins but I'm happy with the fun the hobby has gave me.
lol. Yeah, when you bet on that many things , something's gotta be right. Yes, fun first, wealth storage second. As I've joked before, I'm saving it to give my kids something to fight over when I'm gone.
A near-term phenomenon, but long-term, not so much. Many experts who have written on the subject agree that the liquidity infusions post financial crisis have contributed to some uncharacteristic correlations among asset classes. As the Fed continues its QT agenda, we should expect to see some decoupling of these correlations and a return to more typical norms. Historically, gold prices have risen in response to fear — fear of inflation, fear of recession, fear of geopolitical upheaval — all of which tend to have the opposite effect on equities.
Simple, simplistic, and mostly wrong. Yes, when the FEAR of what monetary policy makers might do to FIGHT a downturn catches hold, THEN metals go up. Not until then. By the time metals hit their high in 2011, there was ALREADY a nice rebound happening in equities. It has NEVER been as straightforward as "stocks down, metals up". Two things are the movers of metals prices: fundamental demand for them in a jewelry or industrial sense, and fear of inflation. Note: NOT inflation, just the fear of it.
You are very correct that I put it very simplistically. It would probably be more correct and better explained to say that when stocks crash , due to market forces or other reasons, fear of possible consequences sets in and people start investing their money in something much more tangible such as metals, which in turn makes the metals prices go up. It does not happen as quickly and directly as my very simplistic statement may have made it seem. I'm only human, sometimes it's faster, easier and more fun to use a "blurb" than it is to engage in a lengthy and more involved explanation. Thanks for correcting me and , intentionally or otherwise, encouraging me to be more thorough in my discussions.
I agree that when one looks at it in the rearview mirror, it looks like the simple answer. When you're in it while it's happening, it has a way different look. The problem for the "next crisis", whenever that is, is that the inevitability of inflation during quantitative easing has now been disproven. What happens the next time? Literally NEGATIVE interest rates? It could happen. Nothing is unthinkable anymore, and the interests (pun half intended) of savers have no sway in the Federal Reserve's deliberations whatsoever.
I would keep in mind that during the last real "crash" in 2008 gold and silver went Down. They are extremely liquid and can be converted to cash quickly. I believe they were sold at that time to cover margin calls on stocks and other capitol needs normally derived from stock sales. Silver went from 20 to 9 and gold 1000 to 700. If you like tinfoil hats, you may believe that metals were suppressed during the crash so that people were discouraged from seeing them as a safe haven.
I am sure metals were suppressed due to people needing cash not just for stocks of their own, but also because of the uncertainty of their jobs or pending debts for houses, schooling, etc, and a lot of individuals were let go by companies. People who played with metals with paper were more removed from the problem, as they could cash in within seconds. People with physical had to find a place to sell it, and prices were dropping so fast, that buy prices where listed on chalk boards and changed by dealers several times a day. But only those unaware of options and contracts were caught by the action of the population that used digital or phone transfers then and received current pricing. And I do assume that JPM, GS, and all the big brokers did very well with their house money in the dealings. Banks, Bullion dealers, Stackers, Jewelers, Mines, did much better than the average Joe who didn't know how to use options to 'protect ' his gold in hand, so that if physical dropped , his options could provide the opposite. Such options cost money and a true stacker would rather take a chance of loosing it all, then paying JPM money for a protective option. IMO Jim
I agree with the exception of Sure they Could cash in fast, but most retail traders didn't. These are leveraged trades and they had to be sold quickly because of margin requirements. (they raised the requirement right at the top too) That forced selling caused the price to drop, creating even more margin calls. These price changes at the physical level were based 100% on the contract price mentioned above. The cart leads the horse.
Silver bullion is a good investment, especially right now. It should be a small part of your portfolio. But stay away from buying silver rounds with different designs like Franklin or Disney or others. Their value is just the silver. I was at a coin auction and was blow away when these idiots were buying these one ounce silver rounds at $50+ each. My friend and I were shaking our heads.
Hello all (new here) I have noticed the silver rounds from the private mints really take off in price lately, many are nice pieces of art but at the prices they are fetching now I feel they will end up like sports cards from the 80's and 90's? and in the end one ounce of silver is just that and will only bring melt value in the future. Not knocking anyone who collects them, collect what you like and atleast they will always carry melt value so a lot better investment then most sports cards ended up, just not a good investment if you are just stacking (imo) unless some of the youtubers are right about their $100 an ounce silver predictions.
