Why do you invest in silver?

I invest in silver for two primary reasons.

1. Silver is one of the few things that can be purchased for less than it cost 30 years ago. Many people don't like silver because it has failed to increase in price. I see it the opposite way. Silver has a high probability of being tremendously undervalued.

2. Compared to other asset classes, silver has a better risk reward ratio in the present economic climate. Investments move in long cycles, and we are in the middle of a period when physical assets are outperforming paper.

 

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Aside from doomsday, which is a very good reason to hold physical bullion, I am buying silver mainly because I can't afford gold. As a working man supporting a family my silver buying is mostly limited to collecting my spare change and buying a bar or two when I have the cash; which is another reason why I like bullion over paper. If the banks continue to tank as they have been recently I'm not likely to lose my a@@ because I only bought a promise of silver.

 

I buy silver (and gold to a lesser extent) to hedge against inflation. 750 oz a year for 17 years is a lot of silver. I personally would not use this as my only avenue for savings for college, housing, etc. I also would limit my holdings to less than 15% of my total net worth, but then again, I'm almost always bullish on equities (so I'm going to think they are a better way to build wealth).

All that aside. I would love to see a picture of your 12,750 oz of silver in 17 years. It would be an impressive sight.

 

750 oz for 18 years is 844 pounds. Nearly half a ton. Lotta silver...

I plan to invest in silver as a hedge against inflation. I have a decent amount of stock for my age that needs to be hedged by something. By the end of this year, I want physical silver to make up about 20% of my portfolio, which would be about $10,000 in silver by todays price.

 

WoW! 20% is conceptually as heavy as near half a ton is physically! :bigeyes:

 

I'm not entirely sure what my rule is for silver and gold holdings. 10%, 20%, 50%? I just don't know...

If the logic is that USD's will continue to devalue over time, then logically, you'd want just enough for daily expense and the rest in something that will protect your wealth...

But psychologically, it's difficult to see your wealth in other assets and not have much cash.....it just makes me feel a little uneasy....


When I log into my bank account, I like to see large numbers (trust me, they aren't large...), my bank wants me to have money with them so they can use it as they please and in return provide me with 0.00005% interest rate, yet charge me $1 million dollars if I bounce a check....

 

Depends on what your goals are, There are many factors to consider
And every body has there own comfort levels in the way of investing!

 

I first acquired silver to protect my self from inflation.

 

13,500 ounces can cause quite a storage/security issue.

Personally, I stopped at 5,000 ounces of physical silver and now buy gold exclusively. 1 roll of AGEagles is easy to store but currently worth $25,000.

You can put $300,000 (12 rolls of 1oz eagles) in a tool box and store it in your garage.

Where do you keep 13,500 ounces of silver?

 

Probably in your walls anchoring your house! LOL!!!

 

I think you're ridiculous to invest 750 oz a year on silver. Are you really ready for a disapointment? Here we go, with that much silver at these prices, you are bound to take a hit, and with that 750 oz figure, quite a big one.

I'd be very careful of that game plan, heck, I'd even discouarge it.

-Chucky

 

Without knowing someone's financial situation and objectives, you can't determine whether a particular asset allocation is "ridiculous" or not. Nobody is "bound to take a hit" with silver below $20. All we know for certain is that the downside is less than $20 per ounce and the upside might be multiples of that amount.

Many of us are fairly comfortable with the analysis that there probably isn't much more than a few dollars of downside risk compared to perhaps $20+ potential upside. The risk/reward ratio favors silver.

Welcome to CoinTalk!

 

Anybody who can drop $15k on silver per year comfortably probably isn't worried about it taking TOO much of a hit... even then, it's bound to rise in due time.

Worst case scenario, I think he breaks even.

 

His basis is one more post towards his hyperinflated post count.

 

@fools gold

ROTFLMAO!

That much silver in one spot would cause a lot of structural stress and old floors to sag over time I'd think...

 

yeah, he doesn't poke his head in here too much and it's comments like that that he never follows up on when asked... what else could they be about, post count. ah well.

 

If I had to drop $15K a year on something, I'd rather invest it into PM's whether silver or gold....

That's like buying a new honda civic every year....I'll take my chances with PM's...

At least you know you won't lose 20% off its value as soon as you purchase it....

 

And you can stop your investment if you need to in an emergency. :whistle:



...okay, Honda/Toyota... it's a stretch...

 

ha! Never heard of any recalls for PM's...well, unless you buy the 400oz tungsten kind....

 

Thanks but I think that's too much for someone to invest in per year unless they are a millionaire.