Why you should ignore talk of "bubbles" in silver and gold.

me too

 

Silver that is in antiques and or jewelry is actually "locked up" in that form because they are worth more as an antique or manufactured jewelry piece than as a silver source.

Therefore this silver doesnt find its way into the market readily.

Silver would have to go over $90 an ounce at least before most 925 silver jewelry 'breaks even'.

Even then, most people don't simply take all their loved and cherished pieces in for melting just because of price. So effectively jewelry silver is 'consumed'.

 

They will sell it if they are hungry.

..Ask yourself: What will happen to my future if my assumptions are wrong?........

 

BANG ON THE MONEY. No pun intended. Why can't I just have my undervalued stack pile up til it becomes my wealth store.. not 'investment'. I'm happy to have 'x' silver oz's buy a car today and the same 'x' silver oz's buy the same type of car 20 years from now. It removes inflation, banks, fiat manipulation..and the associated problems connected with money printing etc.

I jumped into silver and gold for one particularly big reason (and a few others). I don't trust banks. They steal and provide NO real service. They are just as likely to sell the house from under you if you miss a payment as smile at you as you walk through their glass doors. I didn't have the capacity to buy a house. I wanted my money liquid. I am not an expert on stocks. Silver and gold will never be worth nothing - Stocks can and do become nothing. I lost half of my super to the whims of the GFC and continually get whacked with so many fees and management charges you'd think I was paying for a high class hooker once a month.
I have single handedly made more money (well I didn't have to do much when my super DECLINED) in 12 months than my super has done for me in the last 10 years. My formal qualifications are in the medical and environmental sciences ... not financial planning.

So I pose this question, when we trust our money to a financial planner, are we just saying gamble our money as best you can. We say that historical events that have transpired does not allow us to predict the future? So lets just buy things that have VALUE. The only reason the sheeple don't have gold or silver, is because they have been brainwashed by these banks and the govt. Eventually people will wake up. All of them. It won't be about 'whats the price of silver/' - it wont have one. It will be 'How many oz's do you have?'

I don't trust someone 'managing' my money. They are just perpetuating the ponzi scheme of people paying for something that has little or no value until it just collapses... No one can ever tell me silver is worthless or near to it. We are net consumers of silver. Technology is booming.. populations are growing. China is growing. Japan is going nuts (FYI- did you know the biggest coal exporters of Aust export to Japan (NOT China). All these people want stuff that uses silver. That same stuff is going into landfill.. c'mon guys.. math please?? Supply and demand??

 

Nothing wrong with just buying PM's to hold long term. Just the same as there is nothing wrong with holding property or shares long term.

BUT, don't think that you're not going to see the same booms and busts along the way.

I keep rebalancing my "portfolio" to suit the prevailing market stages at the time. Now is the time for PMs but it wont always be.

Agree financial planners aren't worth feeding. They're just salesmen with vested interests. Exactly the same as most of the internet silver spruikers that many here hold in such high regard.

I'll say it again, dont have blind faith in ANYTHING.


C

 

... I guess it's easy to get caught up in it.. but I can't help but look at why gold and silver are a lifetime savings plan. I disagree about the long term shares in terms of how I look at silver and gold. I buy silver knowing it will always have intrinsic value. The price of silver won't ever be zero. The share price of companies readily become zero. example - Telstra - it was blue chip, yeh? If you weren't following Sol Trujillo and the actions of his merry men (amigoes).. you wouldn't have realised they were humping the shareholders for all they were worth.

C, I'd like to know what you think thew silver forecast will be for the next 5 years?

Appreciate the information.

ppss

 

I totally agree PrettyPrettyShinyShiny and my worry, like yours is wondering if the gold and silver charts will look the same as they did previously, where they accelerate to a top, then drop disastrously for many years. A major coinsideration when considering storing retirement savings in PMs.

I'm afraid we are in a world that has not been seen before (unless one counts Roman times) and so it is very hard to know what the Powers That Be will do with 'money' when the current ponzi collapses. Never before have we had the trillions and trillions of derivatives polluting the economies of the world and never before has the stock market run on such a large confidence trick.

I will be cashing in super in a few months and it goes straight into PMs and they then go into property when the time is right. One thing is sure, rent will always be paid in some form. I am one of the lucky ones. I discharged my debts, and now am able to hold a small nest egg carefully in my hands. I am not going to trust it to ponzi schemes and blind faith. Better a certain small income as I grow older than a potential no income from foolishly trusting what is proven fraud from Wall Street and its ilk.

 

"One thing is sure, rent will always be paid in some form."

Hi JulieW
I remember my aged father telling me that during the depresson,some people were paid to live in houses so as to stop the squatters wreaking them.
Nothings sure.

I'm looking to buy a house to do up..
But then I think that ,if the worst comes,another depression,better to have liquidity.
That if a housing crash occurs I'd lose 3/4 of my investment.
That some areas will be unlivable and it's better to be able to move.
Citys may not be very viable.

Its not like the old days where there was some social concern and mutual help.
Front doors were not locked and people stopped to help you by the side of the road.
Only -winners- now.

 

I guess demand doesn't come into the equation at all? ie. if Silver is more scarce than Gold right now, why isn't the silver price higher than the gold price? Answer, because Gold is in more demand and always will be.

As for industrial use, it's all about the FLOW, not the Stock. As long as the flow of silver continues from the mines there will be no great issues.

The current price rise is all about investment/monetary demand of silver. This is only a temporary situation, though a great one to take advantage of.

 

I don't think it's wise to invest in anything long term to the exclusion of everything else. Shares are a great investment, if you've got the control to get in and out at the right stage of the cycle. The sharemarket itself isn't the problem with superfunds, it's the lack of control to get out at the right time and into something else. Thank god for SMSF's.

As for the next 5 years I agree with Hobbo. His posts on how things might play out pretty much mirror my own thoughts. I think we're entering stage 3 and will see a fairly rapid blow off, possibly in the next couple of years. This bull has been going a lot longer than many of us new comers give it credit for.

I'd be very surprised if I own any silver in 5 years time.


C

 

why do you guys keep quoting and re-quoting largish
posts?
stop cluttering.

 

lol Peter!

Thanks a million for the good belly laugh - i really enjoyed that!!

 

Actually silver is real money - it has been for thousands of years. I'm assuming your think of that paper you carry around in your wallet as money?
You have much to learn I see.

 

If you really got it you'd realise that the fiat price in dollars will in no way be an indicator as to where gold or silver is in its value cycle ...

 

No, I think you'll find he's actually formed his own opinion rather than just keep regurgitating what he reads on the internet.


C

 

if i really get it ? hahahah come on buddy get a grip of yourself. what you dont seem to get is you still need cash to buy things atm & will for many years to come .Il always keep some silver but i will trade it for a lifestyle i enjoy when i deem fit for my circumstances not yours or anbody elses . mine !!you dont have to agree with my decisions but to spout rubbish u heard on youtube or the net somewhere & tell me its right for me seems a little foolish ..you follow your path il follow mine have a nice day .

 

I guess the simplest answer should be: GSR. It will tell you everything you want to know when to exit, or swap or do whatever else.

 

GSR was 80 : 1 last year.

GSR is now 40 :1

Enjoy the ride what ever metal you choose.

 

No worries renovator.
there are pearls of wisdom all over the internet (including youtube) and there's lots of rubbish as well. It is up to everyone to discover what they can and to differentiate between the two.
The asset cycle investing i was referring to - where fiat price plays no part - is actually explained very well in Mike Maloney's book which is advertised on this very site:

http://www.silverstackers.com/portal/index.php/bookshop

If you think you know all there is to know, you know you're in trouble!