Well here goes nothing.....

I wouldn't be AS adament about it, and I will tell you why. Any particular asset individually has risk. Own only Enron, see what happens. People SAY PM cannot go to zero, but it EFFECTIVELY can. Silver dropping down to $4 in the early 90's effectively was zero since inflation kept going up and silver was "dead money". It might as well become effectively valueless if you had to sell then. So, owning only silver itself IS risky.

So, I would argue quite strongly against anyone investing all of their money in any one asset, meaning a single stock, one particular PM, only IA farmland, etc. Single asset investing is a lot like taking all of your money to Vegas and placing it all on 23 Red, (my favorite roulette number btw). Yes, it can win big for you if you hit, but does anyone think this is prudent? I am sure some gamblers do, and that is why most die broke.

Anyway, "stocks" are not universally one asset. Maybe that is our disagreement sir. I own mining stocks, and I own Las Vegas Sands. Do you really think these are effectively the same assets? "Stocks" is effectively all of the industries around the world, making everything in the world. You lump them all together? I view different industries of stocks as different assets, so I would not be upset if someone said they were selling all of their silver to buy a well balanced, diversified portfolio of stocks. I still think they should have other assets also, but I wouldn't think its nearly as risky as the other way around.

I would, however, VEHEMENTLY argue against someone selling everything they own to buy only ONE stock, whatever it may be. Heck, I would argue strongly against anyone selling their silver to buy only one stock, as I believe that would be a terrible move.

See the difference? I just do not view the entire stock market as one asset. Its was more complicated than that.

I agree with you holding PM is less risky than a financial asset in some ways.

 

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This is hypothetical. I don't think that it is probable.

 

Agreed, slim possibility within today's dynamics. It's just the only answer I could think of to the question.

 

CLASSIC POST!

 

CLASSIC POST!

 

CLASSIC POST! This poster said he had a 2-yr time frame ending November 2014.
And YES, if he tried to sell bullion back to the dealer today he'd get a -50% haircut from initial "investment."

 

Heck, these posters were downright common around here a couple of use years ago. The sad thing is today, when they should be buying, I am betting they are ignoring the market.

 

Agreed. BUY on serious retracements: under $17. is worth a 3-5% reallocation of one's "life savings" IF a) you're a new believer in PM w/o a stash and b) your total target allocation is ~15% of your funds.

But look at the OP's mistake by the numbers. Assume he bought $1,000 Face Value 90/10 in US Silver Coins on 11/18/12 (date of his declaration) The wholesale price quoted in the WSJ was $24,231. ; most likely, he paid a PREMIUM with free delivery. The 12/23/14 premium (average Ask for APMEX, Provident, etc.) was 5.63% - let's take that, and say he probably paid $25,594.

https://www.quandl.com/WSJ/AG_CNF-Silver-Coins-wholesale

Yesterday's wholesale Ask (again, WSJ) was just $12,342. But the APMEX Bid was just $11,247 and the losing seller would pay additional shipping & insurance (~$35?) to net $11,212.

In fact, we can put a number on it: the guy convinced he'd "make money" flipping silver junk in the stated 2-year time frame just LOST over -56% of his "life savings."

Let's hope against hope he realized he was WRONG (bad trade timing, doomer illogic, emotional nonsense, etc.) and bailed with losses, or figured out a way to hedge that stash and otherwise minimize max pain. I doubt it though - he disappeared 12/30/12, a silverfish troll?

The OP also bailed on stocks at the wrong time: a broad US stock mkt index like VFINX was up +32% in 2013 and up again +14% in 2014. So he's what's known as a 'Wrong Way Charley.'