Is silver a foolish buy right now?

Yeah, my experience. I have bought groups of foreign silver from dealers for around or below spot in the past. They just want it gone. Found some really cool pieces in there. Trick is, for me, to build relationships. You want to be known as the guy the dealer can count on to pay you cash money for such things. He can buy low and still sell to you fairly low and know he has no risk. Same for ancients. I am the guy to some dealers, and take whatever they have off their hands. I have gotten screaming deals that way. I am not the reason why that dealer paid low to that seller, that is between them, I am just the guy the dealer knows he can sell for cash quick.

 

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This is hobby money, I'm not talking about making an investment in silver, however I'm not trying to set myself up for stupid timing, hence the question. Even for fun/hobby I like to make informed decisions. On the other hand, isn't everything a balance of investment whether it be time or money.

Not quite sure what my age has to do with it, I can't recall if it's listed here or not but I'm 40. You ask what I would do if I bought low and the price went up, well if it went up enough I'd sell....same as any other item you buy low and sell high.

Also isn't that exactly what storing wealth means? To save your money/valuables. I'd be perfectly happy enjoying my collection and letting my kids inherit it some day. At the same time, diversification comes to mind, as does having something that has ACTUAL value, which currency does not. I'm not looking to buy silver this year and sell it in a month, or a year, hell maybe not a decade or more. Does that mean I should take any less care in my decisions and research? I don't think so.

 

If its hobby money, you do what you like sir. If someone wants to stack bullion as a hobby, fair enough. I am a hoarder myself so understand the urge, plus the urge just own silver.

Right now spot is not that high, but around long term average considering inflation. Its the premiums that are outrageous. I see what some are asking and its simply silly to me. This always happens in times of economic stress, more people than normal go into PM and premiums go up. Boring is the time when you want to be buying pm long term. I posted a few years ago here how it was a good time to buy bullion, as it was boring and spot was lower, but then again most people did not read it because they weren't interested in pm when everything is going better. I was buying double eagles for like $1200 and half eagles for around $300. Silver I think I was paying around $16-17 an ounce for US 90%.

However, that does not matter now. If hobby money buy what you want and can afford. I personally would wait to spend more than hobby money on pm until things settle back down. Sometimes it takes a few years. Spend that time to learn the market, what you like, etc. Knowledge will always be the most valuable commodity in any market, along with luck.

 

Side note - if I WAS looking to make money off PM's I'd be looking at EFT's not physical silver.

The basis for my question was that I've not paid any attention to PM's during any previous world event such as we're experiencing now. I have no idea if it's the type of thing where people freak out and artificially drive a market value in one direction or another only to have it bounce back in a few months. I don't want to make a silly mistake if for instance history shows that silver prices will crash back down as quick as they went up.

Just an example of my train of thought, not so much can I buy $100 worth of silver now and sell it for $120 next year. That's far from any consideration I have right now.

 

Excellent reply, that's the sorta of insight I was looking for. Based on this and previous replies I'm thinking I might pick up a few things now just because I like them and then hang tight for a while on any sort of major PM purchase.

I'm a numismatist first, and my interest in silver is nothing new, it's just that this was the first year I decided I wanted to regularly buy some silver, of course that was horrible timing. HAHA

 

At your age it makes it easier to buy, hold and price average if it drops. It’s more difficult at my age as I’m retired and older. It’s what long term planning is all about. Just be prepared for the drops. So many people panic when they buy and the price drops. They sell and lose money.

 

I recently sold a total of 32 1 oz rounds on ebay plus a few ASE's. They went for at least $5 over spot so yeah, good time to sell!

 

Today nickel was the metal to own...wowzers!

 

I market watch PM daily right now I'm holding... Be safe in your decision and good luck.

 

Local Craigslist had 2 1923 Peace dollars ( XF) for $50 each a few days then 1 was gone and then 2 more days and the second one disappeared . I have no real idea why. Just interesting.

Jim

 

The only thing I could offer you is to read these Posts about bullion and others these guys are the go-to guys on information markets, dips and things related Metal. They say buy the dips, buy around spot, cost averaging If you figure all that out you will be fine. I am still figuring and guess right every now and then..

 

Ya I've been hearing about Nickel going up, I wonder though if it's much like copper currency in the way that it takes ALOT of it to make anything and the market doesn't really call for it in that form. Copper pennies are in theory going up in value because copper prices have been on the rise for a while now but you can't legally refine them for pure copper so now sure how all that pans out. Interesting stuff for sure, I think have a bit of everything isn't a bad idea just in case there's ever a SHTF situation, but my crystal ball is broken so who knows.

 

Electric cars, and the whole transition towards electrified "clean" energy will demand more and more copper, nickel, etc...I have no working crystal ball either but it's interesting to think about.

 

Copper is a given, since its by far the best conductor besides silver. Nickel will be debatable. I believe some inexpensive battery technologies are now using iron to keep prices reasonable. I think this nickel spike will drive even more focus in this area. Quickest way to lower demand is high prices. Lots and lots of variables related to the metal markets.

 

https://www.bloomberg.com/opinion/a...-things-to-know-about-nickel-s-90-price-surge

Some interesting points in this article about different grades of nickel, and the shifts we can expect if prices remain this distorted for very long.

 

Yeah, I heard your stainless steel appliances have been made from pig nickel for quite some time now. It used to be made from higher grade nickel, but if there is no real performance needed, no need for higher grade ores. Like I said before, car batteries would be the main concern right now, since they very much need high quality ores.

 

When we stop using the useless penny in the US, pre 82 will get melted for piping ,castings, marine and industrial.
A bit closer to that than we think now

 

It all depends on how much you buy and what money means to you.

If I buy an ounce and it goes to zero tomorrow, who cares, if I buy a monster box and it goes to zero, I’m an idiot.

Right now if I was still stacking I wouldn’t put more than $10 a day into silver.

 

You may be right, and I wish they'd hurry up and drop the penny like a bad habit.

 

it does cost more to produce then what
it’s worth, so eliminate it already !