Silver Bullion vs Gold Bullion as an investment

Discussion in 'Bullion Investing' started by masterswimmer, Mar 8, 2019.

  1. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    I guess if you have a large pocket book...LOL
     
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  3. Tokens

    Tokens Member

    Fascinating thesis.
    So, in recent history (say, the last 40 years), silver has made a few 10X rips across 10 year timelines. Your theory is that the best move is gold.

    Why?

    (Hint: If you're going to ramble something about "history", please be specific)

    Any kind of external citation to back this highly specific statement up?
    Here's a 10 year industrial consumption chart of just the United States alone.

    [​IMG]

    Virtually none of this is recycled, so all gone forever.
     
  4. myownprivy

    myownprivy Well-Known Member

    As much as I love seeing anyone attack a simpleton troll like goldcollector, I can't help but call the kettle black with your below statement.

    So I will reply with: DO YOU HAVE
     
  5. Tokens

    Tokens Member

    I was using inaccurate/unclear hyperbole in saying 'virtually none'.

    I should've said "The amount that ends up in landfills is enormous and the amount that's recycled doesn't match". One part of the problem is that people are largely going by an almost 20 year old USGS study that showed a recycling efficiency in the 9X%, when the consumption patterns have seriously changed since that time, with tech/hardware being what it is now.
     
  6. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    I think everyone is trying to simplify the quantity of both gold and silver in the earth, there is way more than anyone could ever imagine by newer studies. Please read the last portion first,
    -------------------------------------------------------------------------------------------------------
    https://www.zmescience.com/science/how-gold-is-made-science-064654/


    In the beginning, following the Big Bang, only two elements were formed: hydrogen and helium. A few hundred million years after the Big Bang, the first stars were blazing away with their nuclear fires. These nuclear fires forced lighter elements together to make slightly heavier elements, and these nuclear reactions released a huge amount of energy.
    Gradually, these early stars began making elements such as carbon, nitrogen, oxygen — working their way up through the periodic table towards iron. But there was still no gold in the Universe. Once these earlier stars ran out of light elements to burn, they kicked in on the heavier ones.

    Finally, as they burnt silicon to make iron, they exploded as a supernova, and for a few short moments, each star would release as much energy as all the regular stars in that galaxy put together.In that cataclysmic explosion, for the first time, atoms of gold were manufactured — and then hurled out into the Universe, along with the other debris from that explosion.

    On Earth, gold finally reached us some 200 million years after the formation of the planet when meteorites packed with gold and other metals bombarded its surface. During the formation of Earth, molten iron sank to its centre to make the core. This took with it the vast majority of the planet’s precious metals — such as gold and platinum. In fact, there are enough precious metals in the core to cover the entire surface of Earth with a four-metre thick layer.
    ------------------------------------------------------------------------------------------------------------

    4 meters is slightly over 13 feet for English measurements .

    It's not readily available , but it is there. Other planets and asteroids have similar histories. Also a relatively recent discovery indicates Neutron stars interacting with each other can also trigger similar reaction, but by the time it hits the earth, all humans will certainly be extinct at our current progress. IMO. Jim
     
  7. myownprivy

    myownprivy Well-Known Member

    What's your source?

     
  8. Tokens

    Tokens Member

    The 'scarcity' narrative on metals has always been a complete load.
    The only play there is the amount that's needed by industry relative to the amount of physical/deliverable at Comex relative to the amount of shorts on contracts and if they start getting squeezed.
     
  9. Tokens

    Tokens Member

    It's inferred from the global scrap supply taking a nosedive right around the time smartphones started seeing ubiquitous adoption and other hardware peripherals started replacing other, old-line silver consuming technologies.

    [​IMG]

    Obviously, there are other factors there, too. The Chinese do weird stuff in these markets.
     
  10. Silver Eagle

    Silver Eagle Likes The Feel of Money

    (sorry if I'm not contiguous)
    Getting back to the original title; "Silver Bullion vs Gold Bullion as an investment".

    I chose Silver as my investment simply for the reason (right or wrong) that Silver is easier to exchange than Gold.

    Yes it all depends on the buyer (or "IF" there is a buyer) to complete a transaction BUT are there any here who are "primarily" physical Gold investors ?

    Do you find it difficult to find a buyer of Gold when you "want" to sell your Gold ?

    Do you find there is a percentage difference in markup between Silver vs Gold ?

    These are questions that come to mind as a new Silver investor.
     
    Randy Abercrombie likes this.
  11. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Looks like the supply
    I have both, and there are plenty of local places in my area that deal
    In both, so i guess it depends what area you live in but for me and
    My area where i live there equally liquid.

    besides this place is only 10 minutes away :)



    [​IMG]
     
    spirityoda likes this.
  12. Tokens

    Tokens Member

    Pawnbrokers are part of your liquidity strategy?
    That must be one helluva pawn shop, price wise, on bullion...
     
    -jeffB likes this.
  13. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    My coin shop ( owner large private bullion seller on coast ) has Maple leafs @ 2.00 over melt new out of the tube, or rebuys ( a little scuffed) @ 1.00 over melt. If they make volume, his supplier sells to him @ 2.00 under melt for commons ( ASE, ML, Phila, etc. ) , more for special popular issues. Wonder what his supplier buys it for? Like asking a CAR dealer what is their real price. He says he sells between 3,000 and his max about 8,000 ( December). We are the clams of the silver market :)
     
  14. Prez2

    Prez2 Well-Known Member

    Silver has to blow up sooner or later and it will. Junk silver being the most sound rather than bullion. Everybody knows what American silver coinage is and can be broker down easily. Not true with bullion and people would always question bars or whatever. Either way, don't trust the paper.
     
  15. Tokens

    Tokens Member

    You're saying there's a wholesaler selling large quantities of silver under spot?
     
  16. spirityoda

    spirityoda Coin Junky Supporter

    Funny new T-shirt I bought at Sportmans Warehouse...Invest in precious metals....

    sportsmans-warehouse-mens-invest-metals-short-sleeve-t-shirt-1498802-1.jpg
     
    JCKTJK and Randy Abercrombie like this.
  17. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    I don't think its just one. Same for all commodities. I buy gasoline at Costco, a tank for about $40. It is brought to them by a fleet tanker company ( they need a cut), who got it from a refinery wholesaler ( needs a cut) who get it from a refinery ( need to maintain their cost and profit). When you see the cost of gasoline on the pump or on financial page it is what the customer pays. I have a farmer friend ( known since high school) We were going to an electronic swap meet 140 miles away and I told him I needed to get gas ( had a high octane car then, and it was about $3.25 a gallon) and he said, pump it out of my 200 gallon tank, it only costs me $2.75 a gallon. I was shocked,. He said its quantity that's important. Same for aluminum tubing for projects, price of melons, wheat, even meat for the company barbecue. We are the end of the chain, so we pay more. Seems reasonable. Jim
     
  18. Tokens

    Tokens Member

    Does this wholesaler selling silver under spot happen to be a secret?
     
  19. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    Google gave me 57,000,000 hits :)
    No Secret, just too complicated for most people to worry about unless they are dead serious on making money actively in commodities.Maybe these will help. Some sections and wording is identical, but you can find a lot more

    https://www.jmbullion.com/investing-guide/pricing-payments/how-silver-spot-price-set/
    https://www.perthmint.com/education-spotprices.aspx
    https://www.sbcgold.com/investing-101/understanding-the-spot-price-of-gold/
    https://en.wikipedia.org/wiki/Silver_as_an_investment

    I have several books on mining calculations, etc and they are expensive. This book is worth reading if you can get one on interlibrary loan. And the reviews are fairly good.
    https://www.amazon.com/Positioning-...+mining&qid=1553315517&s=gateway&sr=8-1-spell


    That is why many use options and contracts as paper markets use a formula of their own as they are basing on delivery, and if you use paper you don't have to go to the expense of delivery, but it the spot price rise and you want to sell there is a fee there, and you can do all sorts of option protections so as to limit losses ( and of course gains) but not as bad as if you order 100-1000 oz of silver and have it drop severely before it arrives. If the price is good for a deal ~right now~ I use online broker, if I am in a coin environment and can get it without fees, I usually buy it in hand. A person can have investment activity or not if they wish to horde only. I have to say ~IMO~ as of course I do not want to indicate any dealing in options or physical is simple, profitable, and easy to understand. Read and decide for yourself. Good luck , Jim
     
  20. Tokens

    Tokens Member

    You claimed you had a silver wholesaler selling bullion under spot price. Googling "silver under spot price" is not a name of a wholesaler selling bullion under spot price... which is why I said "I guess it's a secret" because extraordinary claims like that are almost never substantiated with evidence.

    Just stories, then more stories, then anger when someone points out its stories.
     
  21. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    OK, its a secret if you think that !! :angelic:, but I didn't type all of that as a joke. After reading the 4 links I sent you , where/how /who do you think sets the spot price and how do they determine it? Good luck, Jim
     
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