Is silver a foolish buy right now?

Dang we are in the Silver Slide as it continues, HEADING back to the levels of pre-pandemic 15.00 SILVER. Then Silver stayed in the mid-teens for years, didn't think I would see it again. hedge against inflation is what I had read and was thinking..... wrong, wrong and wrong again... GOLD isn't doing any better. Do the premiums got to come down with spot diving??

 

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After the 2020 K-shaped recession and Gold/Silver drops, I now firmly believe that these two commodities (at least) have been unmoored from 'tradition' and are simply a game where investors/AIs simply play the psychology of the Investing Market as another sector to simply get short term gains and create acceptable 'drops'.

This has occurred because the masses in the Market have all separately, but collectively (through a 'wink and a nod') decided that this is really is just a human made fiction and we can make it do whatever we want, whenever we want.

I think we're at Peak Capitalism and all 'margins' have been squeezed out of every existing segment/sector of the global capitalist economy.

 

I'm a little surprised silver went under $18 for a minute but I'm thinking there's still more downside coming to both gold and silver! When the Fed speaks, caca happens!

https://www.kitco.com/news/2022-08-...ter-Powell-is-1-600-a-risk-for-next-week.html

 

And the gold/silver ratio is still climbing back toward 100. I'll bet old whats-his-name is absolutely fuming about not being able to come back to his thread here and gloat.

 

you know he is fuming..

 

Bond up, PM dowwwnnnn.

 

If what "doesn't kill you makes you stronger," we should all be Kwai Chang Caines by now.

 

2.2 lb (Kilo) of silver 669.00 or a gold coin for 1200.00 which one would you do? Premium above spot for this is much less than gold. More upside potential as well. IDK...

 

As primarily a coin collector, I'd go for the gold coin first.

As a pragmatist, I'd also go for the gold coin as the holding 'cost' is much lower, there's better recognizability and the liquidity is much better, in my opinion.

 

I always pay less attention to premium than to spread. If I have to pay 50% over spot for an item, but I'm confident I can sell it at 50% over spot, I'm happy enough. Conversely, if I can get it at spot, but can only sell it at 20% or 30% behind spot (i.e. 40% halves or low-fineness world silver), I'm not interested.

 

Good point, yet how can you be confident of a future premium upon selling? Last few months I have been on Reddit, (I know), and answered some questions. However, those newbies think its engraved in gold or carried down the mountain by Moses that ASEs are worth $10 over, and they can sell FOREVER for $5 over. I am told basically I am a grandpa and "it has been this way since clear back in 2020", (seriously, a direct quote). Premiums change all of the time, spreads change all of the time. Yes, we should always remember some things will always sell under spot, and some things SHOULD bring premiums upon sale, and their is a great game of buying items you believe will have higher premiums in the future, but its still an unknown.

I simply use my own taste to decide. I try to keep premiums low, but buy stuff I find more interesting than generic. Maybe this will be the right thing, maybe I am full of bull, but it suits me and I am not too hurt if premiums weaken since I paid near spot anyway.

 

I can be confident of future premiums on some things, but never certain of them.

I mean, I've never paid more than a dollar or two over spot for an ASE -- but I've also probably managed to buy less than a full tube of them total in my entire life, so the stakes are low. It's kind of nice to think that I might still break even on one that I bought when silver was close to $30 an ounce. Still might be a while for the one or two I got when it was over $40, though.

 

Lol we all have. Seems more quantity available when pm is higher... Oh well, it's mainly a hobby. I mean, the coins are a hobby, the pm is me messing around with 5% or less of the play money portfolio for fun and to Scrooge McDuck in metals if I desire. Just glad equities don't have such disastrous buy/sell spreads.

 

I am confident and certain if you purchased an ASE for around 30.00. You can sell it for 35.00 to 40.00 confidently in today's environment. I did overpay on some, like the alligator eye Morgan. MS 64. 160.00 las week. top 100

 

Found a local shop that had common US commemorative silver dollars for $19 each.

I was only able to buy one today but hope to go back and get more in a week provided the supply and price stay the same.

 

Seems like a killer deal !

 

Several people I know scoff at "commemoratives" but the ones I purchase are all 1oz silver and I purchase everyone I can find at or below $20. Most of mine comes from collections I purchase from others, I figure up what they have show them according to Greysheet and (I do NOT purchase them unless they are in the original mint packaging) I make them an offer, most accept. I have only had one lady decline my offer because a friend of hers told her her coins were worth at least double what I was asking. (I told her that she should immediately sell everything to her friend)
Semper Fi
Phil
Hope each of you have a great thanksgiving.

 

I must be misunderstanding. Common commemorative US silver dollars (pre-2019) are 26.73g of 90% silver, making .7734 ozt actual silver weight, right?

 

That is correct. If an ounce of silver can be had for $20 I want in.

 

Yep. Spot for these is about $16 each so $19 each is pretty good low premium especially when common AU Peace dollars are often over $30 each.