Is investing in 1 oz Silver Coins a Good Idea

That may be on an inflation adjusted basis. I believe the charts are on a inflation adjusted logarithmic scale to begin with and you can add or remove those but it doesnt seem to change on the mobile site only on a desk top.

Silver was actually 0.84¢ an ounce in 1917

 

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Oh yeah I see that now, missed that. Wouldn't that still mean its seriously undervalued(today) though?

 

Anything to outfox JP Morgan sounds good to me. derp.

 

Its not to out fox them but to take advantage of the situation. Doh...

 

Why?

 

Well I'm not an expert on the supply side but I would say something does seem amiss in its current valuation. In 1917 most coins were silver and gold coins were also in circulation. Now those metals are so expensive we can't use them for coinage, yet the inflation adjusted price of the metals is the same???!!! Definitely seems like artificial depression of prices to me or maybe just that our "money" has lost so much value to inflation???

 

It's not because the metals are too expensive to use, you actually could use them if the metals were extremely expensive. It's the population and the amount of wealth. There simply isn't enough metal for the world to be using it anymore and even the Romans had base metal coins. In 1917 there were approximately 92 million dimes minted, in 2015 there were approximately 3 billion dimes minted for circulation. Same thing for quarters you go from a 30 something millionish mintage to a couple billion in 2015 and its been that way for a while.

 

Maybe we should do what the Greeks did, use tiny tiny denominations of silver, haha. Maybe that was for ease of transacting not lack of silver.

So is silver fairly valued?

 

it's worth what someone will pay for it. I guess that's "fair"

 

I don't really see the need for it. The government backing is what gives it it's spending power and in all honesty if the world's biggest nuclear super powers government completely dissolved we would have a lot bigger problems then whether or not our change had precious metals in it.

I would say so. There are some industrial uses but for the most part it is a luxury item for jewelry or a way for people to try and invest playing the spot movement and like any luxury item it is whatever the market will support. Personally I think the ETFs have prevented it from falling to where it would have once people realized the world wasn't ending after the run up a couple years ago which seems to have skewed a lot of peoples perception about where it's price should be. It spent most of the last century under 10 dollars.

Will it ever get back down under 10, maybe not with the stock investing now but at the same time I wouldn't call it undervalued.

 

I also am aware that $10 or so is a more historical average. But I am more focused on the gold:silver ratio than price itself, however at or below $10 and I will rethink my current purchase rate.

 

I don't put any weight into that ratio myself. I get that they're both precious metals that historically have been tied to many of the same thing (e.g. money, jewelry, investment ect) but I have never understood why two independent things are supposed to have a set ratio. It makes sense to me that the ratio is off in higher metal prices, silver has shown a ceiling of around 50 dollars a few times where as gold being more valuable can get into the 2k range. When they are both at their lows maybe the ratio is a little relevant, but as prices go up that ratio is always going to widen. Gold just simply has the ability to gain or lose quicker given the higher value.

It's a lot like stocks when you think about it. An 800 dollar stock movie 10-20 dollars in a day is nothing where as a 20 dollar one doing that is huge news.

 

Amazing fantasy ( IMO) in the article above. If your are JUST collecting it, then fine, its your money, But if you expect someday to develop a good ( not necessarily great) financial reward from it , you probably won't. BUT that is collecting for your survivors possibilities, but it is short sighted. IF you are INVESTING, (using your money to make money), it takes a lot of money , time and effort to watch and make the proper decisions, a full time job if you are deeply invested. How many mining evaluation books do you have and read? Not internet articles as they have things to gain, technical books so you can really understand what is occurring from the company reports themselves. Read the SEC or Canadian filings on the company, their resources, their technical data, etc. and resources.

Neither the companies, bullion pushing sites, wall street, world coming to an end sites, are really looking out for you, they are for themselves. Only trust your knowledge, not your gut or a popular belief on the internet. Not commenting directly in response to anyone, as I would not want responsibility for any action. Learn before Investing. If collecting, Buy the most satisfying conversation piece. I like the coins made from various elements myself. Jim

 

That and buy what you like.
That way while you wait for $50 an ounce silver to come back around you have some cool pieces to fondle.

 

The Hunt Bros.

 

At all in production costs around $15 an ounce for silver, mines will be shutting down in droves if the price goes below $13 an ounce.

 

What is an amazing fantasy? Silver price manipulation?

 

Silver is a by product of copper mining for the most part. So, no.

 

While gold and silver at copper mines is a positive by-product the reversal is also true which negates your comment. Swing and a miss....

 

no miss. Copper mining doesn't shut down.