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<p>[QUOTE="Sean5150, post: 2288523, member: 75607"]I don't know if that's a slam dunk. You can short them, but to get any meaningful return they have to fall substantially. If you invest now, 2011 will repeat as you said. Let's say it takes 20 years to get there. Let's say it peaks at 60 dollars an ounce. That's a 7.5% rate of return for a low risk investment.</p><p>Let's say you only want to wait five years. Let's say silver makes it's way up to 20 dollars an ounce. That's also a 7.5% rate of return.</p><p><br /></p><p>Compared to equities, this is not a growth stock. But the risk is much lower. If you invested in Tesla at 29 dollars, you made a fortune. But in order to invest in Tesla at 29 dollars you would have to assume a lot of risk. It could have gone bankrupt the next year and you would incur a 100% loss. Silver will never go bankrupt. That's why bluechips yield much lower but people have value stocks in their portfolio because they are low risk. The chances of Coca cola going out of business are almost nonexistent. Is Coca cola a better investment? Maybe. Should you only have Coca cola in your portfolio? Probably not. Should you shun PMs based on your equivocation? I don't think so.</p><p><br /></p><p>Let's say it goes all the way down to 8 dollars an ounce near term. If you sold as soon as it went down you would lose a bunch of money. But if you held it and bought more you would average down your initial investment. You only lose money if you sell.</p><p><br /></p><p>It all comes down to timing though. Like you said, you made a bunch of money this way.[/QUOTE]</p><p><br /></p>
[QUOTE="Sean5150, post: 2288523, member: 75607"]I don't know if that's a slam dunk. You can short them, but to get any meaningful return they have to fall substantially. If you invest now, 2011 will repeat as you said. Let's say it takes 20 years to get there. Let's say it peaks at 60 dollars an ounce. That's a 7.5% rate of return for a low risk investment. Let's say you only want to wait five years. Let's say silver makes it's way up to 20 dollars an ounce. That's also a 7.5% rate of return. Compared to equities, this is not a growth stock. But the risk is much lower. If you invested in Tesla at 29 dollars, you made a fortune. But in order to invest in Tesla at 29 dollars you would have to assume a lot of risk. It could have gone bankrupt the next year and you would incur a 100% loss. Silver will never go bankrupt. That's why bluechips yield much lower but people have value stocks in their portfolio because they are low risk. The chances of Coca cola going out of business are almost nonexistent. Is Coca cola a better investment? Maybe. Should you only have Coca cola in your portfolio? Probably not. Should you shun PMs based on your equivocation? I don't think so. Let's say it goes all the way down to 8 dollars an ounce near term. If you sold as soon as it went down you would lose a bunch of money. But if you held it and bought more you would average down your initial investment. You only lose money if you sell. It all comes down to timing though. Like you said, you made a bunch of money this way.[/QUOTE]
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