Silver as an investment

Discussion in 'Bullion Investing' started by myownprivy, Mar 29, 2019.

  1. myownprivy

    myownprivy Well-Known Member

    https://www.thestreet.com/markets/commodities/investing-in-silver-14767113

    Investors who believe in the "real money" theory of silver should try paying their bills in specie and see exactly how far that will get them.


    Fiat currency has structural value because of its ties to a national economy and its role in tax collection. Silver does not. Its value is driven almost entirely by supply and demand with some influence from industrial applications. That does not make it a poor choice of investment, but it does mean that its value depends entirely on what someone else is willing to give you for it, Just like currencies, stocks and pretty much every other form of investment on the market.

    It is no less real than any of those, but no more so either. The fact that you can hold it in your hand doesn't change that.
     
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  3. CoinBlazer

    CoinBlazer Professional Teenager

    I heard of the idea of putting 100% of your fiat currency into PMs, and then selling the silver as you need it. Pretty radical IMO
     
  4. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    There is the conundrum ! Many say that when they buy, but they keep waiting , waiting, and then when it is reverse, they say...wait until next time, I will for sure. I doubt more than 5% use this procedure due to margins on both ends and one just can't go by the prices, there are many factors involved in the dynamics of commodity investing. IMO. Jim
     
  5. rte

    rte Well-Known Member

    Silver more of a pleasant distraction.
     
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  6. medoraman

    medoraman Supporter! Supporter

    Wow, that would be a terrific way to enrich you PM dealer of you were looking to be generous like that.

    PM should be a long term, physical play IMHO due to buy sell spreads and to avoid high carrying costs. I have mainly moved away from silver simply because it's too bulky to get much value in it conveniently.
     
  7. longnine009

    longnine009 Most Exalted Excellency

    Well said Privy. As usual you nailed it. In fact your post has inspired me to dump silver and buy Amazon. Thank you so much for your Guru-ness.
     
    Last edited: Apr 1, 2019
  8. Seattlite86

    Seattlite86 Outspoken Member

    PMs are just another way for me to hold and store wealth. Stocks are just as reliant on supply and demand and don’t hold any real value either. I don’t advocate for or against either way, just pointing out that all have risks and in the end require someone else to accept that form of wealth (same goes for fiat currency).
     
  9. -jeffB

    -jeffB Greshams LEO Supporter

    And some believe another metal is a better investment.

     
  10. longnine009

    longnine009 Most Exalted Excellency

  11. -jeffB

    -jeffB Greshams LEO Supporter

    I like the new direction this thread is taking.
     
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  12. Don P

    Don P Active Member

    To me, silver a hedge in my portfolio and that's all. Once I make a profit, it's sold.

    The bad thing is, you don't earn anything holding over a very long period in time. No dividends, capital gains...
     
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  13. -jeffB

    -jeffB Greshams LEO Supporter

    The dividend is paid in glitter. Unfortunately, while you can enjoy glitter, you can't reinvest it.
     
  14. Clawcoins

    Clawcoins Well-Known Member

  15. medoraman

    medoraman Supporter! Supporter

    It actually has a negative return, since either you need to pay for storage, buy insurance, or absorb the risk yourself.

    However, I think your view is a very good one. Contra asset to be held along with traditional investments. If someone likes shiny things, (like me), there is some non-monetary returns in Scrooge McDucking a big pile of PM. I am not being flippant. If holding PM either gives you pleasure or eases your mind regarding economic security, that is a valid "return". Similar but different than the pleasure coin collectors obtain.

    Economists want to reduce everything to numbers. Some things, like coin collecting pleasure or peace of mind by owning PM are not as quantifiable, but real. I acknowledge that. Therefore I never throw stones on whatever level of PM makes someone comfortable. I only question the rational at times, since no ones ounces "needed" are the same.
     
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  16. longnine009

    longnine009 Most Exalted Excellency

    Now Don don't confuse glitter with stardust. Stardust is the last mutual fund manager who managed to match the dow and make them think they're investment geniuses.
     
    Last edited: Apr 3, 2019
  17. -jeffB

    -jeffB Greshams LEO Supporter

    Yup, those self-styled investment geniuses, ain't they silly? Just look at gold and silver vs. the Dow and S&P.

    pm-vs-stock.png

    Gold is gold, silver is silver, Dow is blue, S&P is red.

    Oh, wait -- that's comparing to stocks ignoring any returns like dividends. Let's see what the charts look like once you re-invest dividends. Here, black is Wilshire Large-Cap, a total-return index. (All data from here.)

    pm-vs-stock-w-returns.png

    Huh. Sure wish I was a genius. But about the best I can do is hitch onto that there total-return gravy train, and leave the drivin' to the folks with the good records...
     
    Stevearino likes this.
  18. longnine009

    longnine009 Most Exalted Excellency

    What no internet philosophy and a winky- wink?

    You people remind me of the spray man in production painting. 90% of the work is prep that others do so "Francois" can float around for 10 minutes and act like a genius.
     
    Last edited: Apr 3, 2019
  19. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

  20. goldcollector

    goldcollector Member

    Some people always believe that and they are 99% of the time wrong. 7 years ago The GSR was around 30 now its almost 90. They were pumping silver back then too. WRONG WRONG WRONG WRONG did I mention how wrong they were. There will always be loads of silver pumpers because there's a gazillion ounces of silver they need to pawn off on the unsuspecting.

    They have been pumping silver since before a lot of us were born and they have always been wrong.
     
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