Silver getting crushed today

Discussion in 'Bullion Investing' started by Soiled, Apr 1, 2016.

  1. -jeffB

    -jeffB Greshams LEO Supporter

    This line of thought still puzzles me. I mean, I get it that you're not worried about maintaining a buy/sell spread on a day-to-day basis. But isn't it better to get more instead of less for your money?
     
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  3. Clawcoins

    Clawcoins Well-Known Member

    It's a simple concept.
    1 - he's buying as he's assuming over a long period of time Silver will increase in valuation. Since I started buying in 1997 or so I'd have to concur and can't argue against that concept.
    2 - he's also buying for future heirs. Which for the heirs they have $0 financial out of pocket for all of his silver, thus it's a gigantic windfall profit. Nothing wrong with that either as I also consider that when I buy coins. At some point I'll ask the kids if they are interested in anything and if not start whittling my collection down and increase my cash reserves instead.

    But I'll also add, I also like to buy on the lower spot price as I can, for example, get 6 instead of 5 ASEs for a minimum of $100. But I'm just cheap.
     
    Collecting Nut and Danjohnson like this.
  4. -jeffB

    -jeffB Greshams LEO Supporter

    Right there with you. I just have to remember that not everybody shares that compulsion. Heck, I still forget that driving an extra mile to save twenty cents on a gallon of milk is a dumb idea...
     
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  5. sakata

    sakata Devil's Advocate Supporter

    Not really. I have enough to live on without worrying about my PM holdings. Those are there just as a safety net in case the financial world collapses. If that happens I expect gold and silver will revert to the historic norm as specie. At that point who cares whether they have shot up by a factor or 10 or of 20? At those prices I will have way more than I need and a 5% difference in price now will make little difference to me when I will only need a small part of it to live off.

    People whose only care in the world is accumulating as much money as possible may not understand this line of thought. Money is not everything though and I only need enough out of life to pay all my bills and have a little left over for things I enjoy. Right now I need about $25,000 a year. Anything above that is a bonus. If a time ever comes when I need to sell any of my PMs then I will easily be able to sell them for that amount (adjusted for inflation) because they will have increased in value by a significant amount, and it doesn't matter if I paid a little more or a little less for them now.
     
  6. -jeffB

    -jeffB Greshams LEO Supporter

    Still not convinced about the bold part, but then I got back into the hobby around 2010, so I've spent more time watching silver plummet or languish than I've spent watching it rise.

    As for your last paragraph -- you're playing with spare money, and that means we're fundamentally in agreement on philosophy (buy what makes you happy). :)
     
  7. Clawcoins

    Clawcoins Well-Known Member

    you missed his statement ... "Those (PMs) are there just as a safety net in case the financial world collapses".

    So when the world financial world collapses .. therefore "PM prices will skyrocket" is the concept.
     
  8. -jeffB

    -jeffB Greshams LEO Supporter

    I figured I've already said my piece on that enough times. :rolleyes:

    It's fine to expect that collapse. I guess it's even fine to hope for it, although it seems like a pretty grim thing to hope for -- I prefer for "the real world" to muddle along in a mostly-stable pattern, even if it means I lose money on PMs.

    The problem comes when you're counting on that collapse, as in "I won't run out of money as long as my PMs will go up by a factor of 10" -- and if they instead drop by 50%, you're forced to liquidate at a loss, and still come up short.
     
  9. sakata

    sakata Devil's Advocate Supporter

    I don't want a collapse. I'm certainly not counting on it. I am not as certain about whether it will happen or not. The point is that if it doesn't happen then I don't have anything to worry about. Only if it does happen should there be any concern, and in that case I have PMs to fall back on. Perhaps you have not heard of the concept of insurance? You hope you don't need to use it, but if you do then you better make sure you have it.
     
  10. Fjpod

    Fjpod Active Member

    I don't subscribe to the concept that in a collapse PMs will automatically go up. People will be short on cash and trying to cover their positions, mortgages, rent, etc. They won't have spare funds to drive up the price. If Shop keepers start accepting PMs because nobody has cash (assuming that same has PMs) they will discount it heavily...because that's what people do in a crisis.
     
  11. sakata

    sakata Devil's Advocate Supporter

    I'm not talking about spending PMs, although I do have some junk silver in case that happens. I am talking about them preserving value until the crisis is over. No one should be buying PMs anyway if they are not in a position to see themselves through a crisis. Get out of debt, stock up on essentials, have enough to survive for a couple of years, and THEN buy PMs so that after the recovery you have something of value.
     
  12. Collecting Nut

    Collecting Nut Borderline Hoarder

    I have about the same. Want to go partners? 50/50 of course.
     
  13. Collecting Nut

    Collecting Nut Borderline Hoarder

    I've been thinking this way for decades.
     
  14. Clawcoins

    Clawcoins Well-Known Member

    I think we'd be a few dollars short of being able to corner the silver market.
    With my $32, and your $32 .... if my math is correct that adds up to $64 which is about 3.8 oz of silver which is a tad short of all the silver in storage right now. Never mind the price of buying the mines.
     
  15. -jeffB

    -jeffB Greshams LEO Supporter

    That's what leverage is for!
     
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  16. SLACKACTION

    SLACKACTION UNION REPRESENTATIVE

    When you talk about "collapse" Is that when the ZOMBIES COME..
     
  17. sakata

    sakata Devil's Advocate Supporter

    That's why you need to be prepared BEFORE you buy PMs
     
  18. abuckmaster147

    abuckmaster147 Well-Known Member

    I am prepared I have thousands of rounds of ammo, And have been practising head shots on zombie targets for years, Ha Ha.
     
  19. sakata

    sakata Devil's Advocate Supporter

    That alone is not enough. Now you need to get some firearms. Unless you have a very strong throwing arm. :D
     
  20. abuckmaster147

    abuckmaster147 Well-Known Member

    Got it covered! Got it covered.
     
  21. -jeffB

    -jeffB Greshams LEO Supporter

    You mean guns? But those things kill people!
     
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