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<p>[QUOTE="masterswimmer, post: 3402865, member: 102022"]Greetings all. I'll say this is my hello to y'all since it is my inaugural thread.</p><p><br /></p><p>I've got a theory on which is the better bullion investment. Hear me out and comment, refute, or agree as you see fit. I'm very thick skinned, so any haters are welcome to go at it as well. I can take criticism, but like most I do like accolades too <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" /></p><p><br /></p><p>Gold bullion is attractive. It has an allure that no other PM has. It has stood the test of time. It is one of the easiest PM's to accumulate and store since it takes up CONSIDERABLY less space than silver. Gold has value not only as an investment, but also in manufacturing and electronics. Holding gold in ones hand feels substantial, even as little as 1/4 and 1/2 oz coins, ingots or bars feels hefty. Hell, gold bullion is sexy!</p><p><br /></p><p>Silver bullion also has an attractive side to it. Not like gold IMO, but 10 oz bars and kilo bars are something to behold. Silver is also used in manufacturing and has value industrially as well as an investment. Suffice it to say silver is much more of a space hog when accumulating sizable quantities. Not nearly as sexy as gold, but silver does have an appeal to thousands of collectors, therefore it also maintains a liquidity just like gold.</p><p><br /></p><p>At this point in the discussion it appears as if my investment of choice would be gold. I must offer an au contraire at this notion.</p><p><br /></p><p>As most if not all know on this forum, gold has peaked at an all time high of ~$1,900/troy oz. A nice price for those selling for sure.</p><p><br /></p><p>Silver on the other hand has peaked at only ~$50/troy oz. Nothing nearly close to the stratospheric price of the shiny yellow PM. So how can silver be even mentioned in the same breath as gold as an investment vehicle? Here's how....math, statistics, percentages.</p><p><br /></p><p>With gold at approx. $1,300/troy oz today, an investment in 1oz of gold would obviously cost ~$1,300. No rocket science there.</p><p>With silver at approx. $15/troy oz today, an investment in 1oz of silver would obviously cost ~$15. No rocket science there either.</p><p><br /></p><p>Here's the fun part. If gold were to rise to its all time high of $1,900/oz, and you sold your 1 oz stash, you'd profit $600 ($1,900 sale less $1,300 cost). This would amount to a profit of 46.2% ($600/$1,300).</p><p><br /></p><p>If silver were to rise to its all time high of $50/oz, and you sold your massive stash of 1 oz, you'd profit $35 ($50 sale less $15 cost). This would amount to a profit of 233% ($35/$15).</p><p><br /></p><p>In order for you to realize the same 233% profit in gold with a purchase price of $1,300, you'd need to see gold rise to $4,329/oz ($4,329 sale price - $1,300 purch price = $3,029 profit) ($3,029 profit / $1,300 purch price = 233% profit).</p><p><br /></p><p>Can gold reach $4,329/oz? Absolutely. Is it likely any time soon? I'll go out on a limb and say HIGHLY UNLIKELY.</p><p><br /></p><p>Can sliver reach $50/oz? Absolutely. Is it likely any time soon? Who knows, but it did reach $49.82/oz in 2011. It also reached $50/oz in 1980. I'd say it is MUCH MORE LIKELY to reach $50/oz than it is for gold to reach $4,329/oz. I'd say it's more likely to reach $50/oz before gold even reaches $2,500/oz.</p><p><br /></p><p>Keep in mind, in a true TEOTWAWKI scenario (The End Of The World As We Know It), PM's will have very little value. So my investment outline above is not for a <span style="color: #ff0000">EDITED: LANGUAGE ( ABBREV) </span>occurrence, it is as a hedge against inflation with hopeful investment gains attached.</p><p><br /></p><p>Discuss..........[/QUOTE]</p><p><br /></p>
[QUOTE="masterswimmer, post: 3402865, member: 102022"]Greetings all. I'll say this is my hello to y'all since it is my inaugural thread. I've got a theory on which is the better bullion investment. Hear me out and comment, refute, or agree as you see fit. I'm very thick skinned, so any haters are welcome to go at it as well. I can take criticism, but like most I do like accolades too :) Gold bullion is attractive. It has an allure that no other PM has. It has stood the test of time. It is one of the easiest PM's to accumulate and store since it takes up CONSIDERABLY less space than silver. Gold has value not only as an investment, but also in manufacturing and electronics. Holding gold in ones hand feels substantial, even as little as 1/4 and 1/2 oz coins, ingots or bars feels hefty. Hell, gold bullion is sexy! Silver bullion also has an attractive side to it. Not like gold IMO, but 10 oz bars and kilo bars are something to behold. Silver is also used in manufacturing and has value industrially as well as an investment. Suffice it to say silver is much more of a space hog when accumulating sizable quantities. Not nearly as sexy as gold, but silver does have an appeal to thousands of collectors, therefore it also maintains a liquidity just like gold. At this point in the discussion it appears as if my investment of choice would be gold. I must offer an au contraire at this notion. As most if not all know on this forum, gold has peaked at an all time high of ~$1,900/troy oz. A nice price for those selling for sure. Silver on the other hand has peaked at only ~$50/troy oz. Nothing nearly close to the stratospheric price of the shiny yellow PM. So how can silver be even mentioned in the same breath as gold as an investment vehicle? Here's how....math, statistics, percentages. With gold at approx. $1,300/troy oz today, an investment in 1oz of gold would obviously cost ~$1,300. No rocket science there. With silver at approx. $15/troy oz today, an investment in 1oz of silver would obviously cost ~$15. No rocket science there either. Here's the fun part. If gold were to rise to its all time high of $1,900/oz, and you sold your 1 oz stash, you'd profit $600 ($1,900 sale less $1,300 cost). This would amount to a profit of 46.2% ($600/$1,300). If silver were to rise to its all time high of $50/oz, and you sold your massive stash of 1 oz, you'd profit $35 ($50 sale less $15 cost). This would amount to a profit of 233% ($35/$15). In order for you to realize the same 233% profit in gold with a purchase price of $1,300, you'd need to see gold rise to $4,329/oz ($4,329 sale price - $1,300 purch price = $3,029 profit) ($3,029 profit / $1,300 purch price = 233% profit). Can gold reach $4,329/oz? Absolutely. Is it likely any time soon? I'll go out on a limb and say HIGHLY UNLIKELY. Can sliver reach $50/oz? Absolutely. Is it likely any time soon? Who knows, but it did reach $49.82/oz in 2011. It also reached $50/oz in 1980. I'd say it is MUCH MORE LIKELY to reach $50/oz than it is for gold to reach $4,329/oz. I'd say it's more likely to reach $50/oz before gold even reaches $2,500/oz. Keep in mind, in a true TEOTWAWKI scenario (The End Of The World As We Know It), PM's will have very little value. So my investment outline above is not for a [COLOR=#ff0000]EDITED: LANGUAGE ( ABBREV) [/COLOR]occurrence, it is as a hedge against inflation with hopeful investment gains attached. Discuss..........[/QUOTE]
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