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<p>[QUOTE="Fallguy, post: 3329214, member: 84739"]Let's do the math and then you an decide. Let's say you have $1,600 to invest and Silver is trading at $16/oz. So if you buy at that price point you'll get 100oz. But you think that price is a little high, so you wait . . . and the price drops to $15/oz. You say, "That's more like it!" so you invest your $1,600 at that price, so you end up with 106.7ozs (rounded). Later, the price goes back up to $16/oz and you decide to sell, so you end up getting $1,706.67 (again rounded). Now let's see how you did: you started with $1,600 and now have $1,706.67, or a $106.67 gain. In terms of a percentage gain, you're up 6.67% (excluding transaction & tax costs, if any). Not Bad! . . . Maybe . . . If your turnaround time was a month, then you'd have an annualized yield of 80%; really good! But if the time was 5 years, your annualized return would only be 1.33% a truly different outcome (as a note, I used a simple arithmetic return and no adjustment for potential gain on reinvestment of principal and initial return . . . nor an inflation offset. Using more refined approaches would give slightly different results. So since you would appear to be buying bullion instead of silver coins (where you could possibly also get a "collectible" premium), the answer to your question comes down to: How volatile will the price of silver be AND over what time period do you believe these price changes will occur.</p><p><br /></p><p>Semper Fidelis[/QUOTE]</p><p><br /></p>
[QUOTE="Fallguy, post: 3329214, member: 84739"]Let's do the math and then you an decide. Let's say you have $1,600 to invest and Silver is trading at $16/oz. So if you buy at that price point you'll get 100oz. But you think that price is a little high, so you wait . . . and the price drops to $15/oz. You say, "That's more like it!" so you invest your $1,600 at that price, so you end up with 106.7ozs (rounded). Later, the price goes back up to $16/oz and you decide to sell, so you end up getting $1,706.67 (again rounded). Now let's see how you did: you started with $1,600 and now have $1,706.67, or a $106.67 gain. In terms of a percentage gain, you're up 6.67% (excluding transaction & tax costs, if any). Not Bad! . . . Maybe . . . If your turnaround time was a month, then you'd have an annualized yield of 80%; really good! But if the time was 5 years, your annualized return would only be 1.33% a truly different outcome (as a note, I used a simple arithmetic return and no adjustment for potential gain on reinvestment of principal and initial return . . . nor an inflation offset. Using more refined approaches would give slightly different results. So since you would appear to be buying bullion instead of silver coins (where you could possibly also get a "collectible" premium), the answer to your question comes down to: How volatile will the price of silver be AND over what time period do you believe these price changes will occur. Semper Fidelis[/QUOTE]
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