What if silver plummeted down to $15oz, would you be ready?

Some people actually bought gold bullion in the late 90's and early 2000's. Large amounts of gold bullion can be easily stored in a safety deposit box.

Buying an equivalent amount of silver bullion would be too cumbersome. The silver ETFs (exchange traded funds traded on the stock exchange) didn't gain popularity till after 2006.

Gold is a better hedge on inflation and is less likely to be manipulated by large investors to the detriment of the small (usually novice) investor.

Do you really think that gold could drop from $1500 to $1100 (less than the relative drop in silver) in a couple weeks? I don't know anyone who thinks gold will plummet, but several savvy investors had bet that silver would collapse.


g.

 

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good points bart ...

however didnt gold suffer a precipitous fall in late 2009? (i think about 30% in a pretty short span?)

i mean it did recover ... but the steep drop hurt some people i bet

yes, seems like silver has been subject to big moves of late ... but silver has been sort of the forgotten metal for a long time (about 30 years)

 

I am 27 years old and am just starting to see the perks in investing in PM. My mother in law told me just last week that she scored 5 grand with her silver bars. But it really all started with my coin collecting on ebay. I saw gold coins going for prices well above my budget and did more research. After seeing that it was the metal giving it high value, I decided to pursue the investment little by little. HA! I don't even have an ounce of silver yet-just grams. There's a local coin shop I plan on purchasing from in the future if silver ever hits the 20's. We'll see.

 

Congrats on your good start! I always like to hear when younger people (20's and down) become interested in coins and PMs. It's certainly a fun and interesting hobby. I've been collecting off and on since 1968.

 

Wow, I don't remember that 30% fall in 2009, but you might be correct for another year:

http://www.the-privateer.com/chart/gold-pf.html

That said, separate numismatics from investing. Silver investing (through an ETF) is not for the faint hearted or the novice. Silver bullion investing is hard to do unless you are a major carrier.

Gold (both bullion and ETFs), on the other hand, should be part of everyone's portfolio.


g

 

I am 27, so I didn't have the ability to buy silver in the 80s!
I did buy a couple of ounces of gold when I graduated high school, but it was a few years later before I saw silver as much of an investment.
We all learn as we grow older, I can only hope that what I am learning now will reward me in the future

 

You're right ... I was off by a year ... it was 2008, not 2009.

Gold reached a peak of a $1020 in March 2008
then got close to $1000 again in July 2008
then dropped to $720 by November 2008

That's a $300 drop from $1020 ... or a 30% drop ... in 8 months.


I know it doesnt look like much of a blip on the chart -- but at the time it was a big deal. I remember all the Gold bears on CNBC saying how gold was crashing and a terrible investment.

That was just a bit over 2 years ago. Since then gold has more than doubled from $720 to nearly $1500.

Just for comparison sake, silver just had a 30% correction from it's high of $50 ... in 4 DAYS!

 

rls, i am impressed you bought gold just out of high school!!!

 

I figure I'll dabble in silver on a monthly basis and gold on an annual (since that's way more expensive). The local coin dealer sells bags of dirt with gold for 30 bucks. You just have to pan it yourself-that'll be my Christmas gift to myself. I buy cheap ancient coins every now and then to add to my collection. It keeps me busy. We're a military family so our budget isn't all that spectacular. I don't work so this is my way of contributing.

 

panning for gold actually sounds kind of fun ! post some of your ancient coins sometime (guess this is the wrong thread/section for that ... i think there is an ANCIENTS section), the only ancient I know about is the athena owl -- which i think looks cool.

 

It looks like a lot of work when you actually go outdoors to do it! But yes I've uploaded my ancient roman on my avatar. And in the ancient coins section, I've uploaded two sides of that coin. I still don't know what Emperor is on there! I pretty much go in Bullions Investing and Ancient Coins when I come here and I like it!

 

I bought my first gold coin in elementary school. By the time I had finished 5th grade, I had been the proud owner, at one time or another, of a Turkish 25 kurush, a Mexican 2 peso, Mexican Maximilian and Aztec tokens, a French 10 francs, and a British sovereign.

 

I'd love an Aztec coin! But you go on ebay and they're all Pirates of the Caribbean.

 

After googling "Aztec gold token", I see what you mean.

Here's a web site showing the type of "Aztec gold token" I was talking about.

http://www.calgoldcoin.com/mexico.htm

 

Wow talk about detail!

 

well since i only have commems and silver proof sets i bought form the mint directly and silver i find in change ihave no real say in this. yes i have a number of silver eagles and not once did i feel the urge to sell anything.
at this point however i wonder how many cats the dude on craigs list locally made off with by offering to buy silver coins for 4 times face. have no fear i posted myself with a link to www.coinflation.com

 

I am a buyer at sub $20 spot and sub $3 premium to spot.

 

Point well made.:thumb:

That said, the gold correction and later rise seems to be based on some economic principle.

The rapid silver moves seem to be based on hedge fund manipulation.


guy

 

LOL....I'd buy more!

 

Beautiful token! Do you know how much one of those would cost today? :thumb: