What's the future of silver look like to you?

Discussion in 'Silver' started by Coins A-Z, Nov 23, 2017.

  1. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Haven't really read in detail what the Hunt brothers did but I think you can't just "play" an essential industrial commodity used by millions of businesses. On the other hand, something like Bitcoin which is not used for anything can be played, and no one cares about it because even if bitcoin ceases to exist suddenly, it won't affect real businesses.

    The only way for silver to really appreciate is when it becomes so scarce, it will be uneconomical for industrial use.
     
  2. systematic

    systematic Well-Known Member

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  3. Ary

    Ary New Member

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    Then we can cash in! Mwahahaha
     
  4. systematic

    systematic Well-Known Member

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    It is nice to dream ...
     
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  5. Number 47

    Number 47 Well-Known Member

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    For the immediate future the price looks good for a buy.
    I'll be heading to town tomorrow for bar if the price holds.
     
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  6. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Went down to the 8th floor G/Stackers, today in that freezing windy city to buy Shiny white, Changed my mind and came home with shiny Yellow.

    On the way home got involved in a Police chase of a desperado. With him abandoning his vehicle containing stolen plates and running into the bush with 8-10 Police vehicles involved.

    He was doing 183 km. per hr on the Hume Highway -then the G/Valley Highway, his vehicle ended up with no tyres on it, when he did a runner.


    Spotted him & was able to help them catch him in the paddocks just on sundown.

    Congratulated by the BIG WIG & a great day was had by all. LOL.
     
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  7. Number 47

    Number 47 Well-Known Member

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    Well done ! What a day !!! That'll be one piece of shiny yellow with an amazing memory attached.
     
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  8. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    Let's talk about a 20 years dream.

    $750 placed in a bank term deposit for 20 years, vs 1 kg of silver buried under the house, which will be worth more in 2038? Assuming the bank doesn't go bust and the owner has not gone bankrupt during that time.

    If we assume 3% interest rate, then $750 compounding at 3% interest a year will end up as $1,350 after 20 years. Will the 1kg piece of silver be worth at least $1350 ($22/oz) in 2038?
     
  9. whay

    whay Well-Known Member

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  10. Ary

    Ary New Member

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    My thoughts yes for sure. More than $1350
     
  11. alor

    alor Well-Known Member Silver Stacker

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    can't back up the truck now
    bad driver got stuck
    down the road prices go
    its sure is a manipulated short sell
    never under cut a low hanging bridge when on the road to success


    [​IMG]
     
  12. JOHNLGALT

    JOHNLGALT Well-Known Member

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    A short Video on recycling silver. _JOHNLGALT.
     
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  13. SilAuOz

    SilAuOz Member

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    The unloved,red headed lovechild and i are nurturing quite the relationship as we journey :)
    I think the future long term from most angles for this metal is going to pleasantly surprise many of us.
    Gold also will not dissapoint either, hang on and DONT give up!!!
     
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  14. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Ag dipping under AUD20.00 oz and AUD nudging 0.73....time for a wee purchase in the dip I think.
     
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  15. alor

    alor Well-Known Member Silver Stacker

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    its is not worth the wait if I just want to buy a kilo, saving -40c x 32 = $12.85
    in a potential saving
    it cost $2.50 to select which bar preferred

    PM $677.68
    Pamp $679.30
    JBR $680.94

    I have 3 weeks to decide
     
  16. SlyGuy

    SlyGuy Active Member

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    "My thoughts"? Lol... would you guarantee that? Of course not.

    Gold and silver are monetary metals which function as stores of wealth. They rise up periodically to account for inflation of the currency they are measured against. They don't have a yield (nor are they supposed to, being money). Simply look at the graphs in the long term. Silver has a bit of potential for more (or less) demand based on its quasi-commodity value, but gold is pretty firmly entrenched as money value.

    In the example you gave, assuming general inflation was also average of 3% annually, then there is about a 50/50 chance that the silver will be worth more than $1350. It depends if it spiked recently. Either way, it should be pretty close. The only problem (or opportunity, depending who you ask) is that the gold or silver price doesn't match the paper currency consistently... it stays stagnant for years or decades and then jumps up (with slight temporary overshoot) to account for inflation of currency supply.

    Instead of dollars, maybe look at it in terms of buying power. If it takes 100 ounces of gold to buy an average house and 15 ounces to buy an average car right now... the same will basically be true in the future. Right now, an ounce of silver at spot price buys roughly 5 gallons of gasoline or 5 gallons of milk or 5 loaves of bread... and that will be the same historically and in the future also. You've all heard the old adage that an ounce of gold has historically bought one nice outfit with shoes (toga + belt + sandals in Rome, tunic + satchel + hat + boots in medieval, suit + shirt + belt + shoes today). Gold is a store of value, nothing more. Silver is the same way. The only exception would be if a significant new industrial application or some other large demand for either metal came to rise.

    You also need to consider the pro/con of the kilo of silver versus the bank account. That would be convenience, premium paid to buy, theft, finding a buyer, stability and security of overall economy and banking system, etc. It's a personal choice, but neither the kilo or the 3% bank account is a growth investment you should expect to achieve increased purchasing power from. They are both also pretty low risk, so you can't expect much, or any, significant growth return.
     
    Last edited: Nov 8, 2018
  17. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    In my opinion, a kg of silver will be worth more than $1350 by 2038 for the following reasons.

    1. By 2038, the economic powerhouse will be India because that where all the 20s-30s with purchasing power will be - https://www.quora.com/Do-Indians-buy-silver

    While Chinese people are crazy over properties, South Asians are crazy over gold and maybe silver. The investment world is going to look very different in 20 years.

    2. Generally speaking, good grade gold and silver ores are getting scarcer as decades pass by.

    3. All currencies, including the dollar devalue.

    On a 20 year timeframe, the bet is a no brainer. In the short term, prices can fall, maybe even to $13 as some of us have speculated.
     
  18. SlyGuy

    SlyGuy Active Member

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    I hope you are right. India is interesting because it is so populous... but it is also soooo incredibly poor on average.

    India's size and population is impressive, but their GDP per capita and life expectancy are lower than basically anywhere besides African nations and a few South American countries. Most of the talented people they do have in India will continue to leave to USA or other nations to seek education and prosperity. I am always optimistic, but it will take a whole lot of industrial and tech development to have India's economy become a major world player in production or consumption of anything. :(
     
  19. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    As an incredibly poor country, India is already the biggest silver importer this year. Imagine if India becomes "less poor".
     
  20. alor

    alor Well-Known Member Silver Stacker

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