A tonne of silver is roughly $1 million today, give or take. Would it be smarter to purchase a million dollar inner city Australian house and rent it out, or would you rather the tonne of silver? Why? I don't have the money for either, let alone an ounce of silver :lol: but would like to know people's opinions on the Australian real estate vs silver market.
I thought you were mach when reading the first few words My crystal ball says that this thread is going to turn into a flame war fast though.
first you can not have either of those. second it will be very difficult not to compared as to which will make one worst off ? if two days ago had this question been asked, then the answer is given. :lol:
Silver is portable and can be hidden. Real estate is not. Real estate can be rented or used in a business endeavor, and can produce income. Hard to with silver.
Hey, Personaly i am holding silver to hopefully ease the financial burden of owning a property. I believe it shouldn't be one or the other as they always say diversification, lets look at it in the terms of an everyday people like myself. my goal is to get core holding of silver of 1000oz and once you have that look at getting into the property game whilst the market is low, and be sure not to fully leverage urself for the property if you can afford $400 000 loan but you don't need all that maybe settle for a smaller loan for lets say $250 000 - $300 000(smaller property maybe a unit). As both the silver price moves up (we hope) also the property market will eventually recover (Keeping in mind that we have acquired a property in a low i.e next year or sooner) So ideally what you will be doing is once the silver has moved enough in price to sell you should be able to pay a large portion of your property with inflated money . secondly if this did take ten or so years you would have gained equity on your house and all you need is for silver to hit $100.00 - $250 to pay all or part the principal of the loan which seems like a realistic outcome and the equity that is made on the house should be greater than the interests paid on the loan. I would imagine that acquiring this silver would be hard if already have a house loan. that is why I am starting small with silver than moving on to a manageable house loan. so this is why i love Holding bullion Bars not so much Coins but everyone has there own reason for holding gold or silver and mine is to outright own property so i don't have to work till i am 50-60 trying to pay of a house or worse still renting. Best of luck!!
The general consensus on these forums is that silver is going to the moon, or at least triple figures in the next few years. But what of the property market?
Best advice is to have a a financial goal. what is the ultimate outcome for your financial security and long term wealth and how will you get there? Silver is a great vessel for wealth and security but i don't believe that is will be as simple as holding silver selling silver and making a massive gain. If silver does go to the moon what are you going to do with your holding are we to sell our silver and be left i with triple the amount of dirty Fiat Currency and no assets lets hope that the prices of living hasn't got out of hand. property generates income in the form of rent, i would much rather hold property, and silver is a great way to get an average joe in the property game. I see silver as a vessel for wealth not a form of income.
Given a choice of outright owning a piece of real estate or a bunch of silver of the same value I think that RE most certainly wins. The question is whether an apartment is really worthwhile real estate. A house on a piece of land certainly is.
Hmm I'm sure some would argue that the fundamentals are in place for the stack of silver to substantially outgrow the value of the land + accumulated rental income. If only we had a crystal ball or flux capacitor!
I can't work out a way where a bank will lend me money to buy silver, then have someone else pay it off for me and have the government give me substantial tax benefits, then have a bank allow me to redraw on any equity gained.... until I can find out a way.....It has to be property.
Silversun wrote: As both the silver price moves up (we hope) also the property market will eventually recover (Keeping in mind that we have acquired a property in a low i.e next year or sooner Sure but timing is everything in the real estate market and your investment strategy's success seems to be reliant on you picking the bottom, you have said "Keeping in mind that we have acquired a property in a low i.e next year or sooner" I have to disagree with you prognosis that the real estate market has bottomed out, think we still have a 30% price regression, especially New South Wales without the mental growth in commodities, the problem in forecasting is the government keeps inflating currency (and all asset classes) with giveaways and loose fiscal policy. Like the concept just think if your buying low youll be waiting til after the crash, not prior too. 1for1
Sure but this is core problem with the financial system, this secret you have revealed is the basic venture capitalist model, and when it is done by many on bigger scales it creates a system backed by nothing with everyone leveraged to the hilt, im happy for you to risk your money but when BIG limited liability companies hide behind BIG government. This is why Silver is HONEST MONEY, as opposed to fake multipled credit created as debt to you, this system may make those who exploit it but for society at large at has huge social costs. I am address fiat money and the way banks dont actually have what they lend you... under a silver system the money supply could not so easily be increased by all as that would surely be impossible and unsustainable. Big House Prices increasing in price = unsustainable Silver and a silver system = sustainable in all interpretations of the word.
The best use for silver is to hedge against what is going to happen to the AUD when the Euro tanks and the hedge funds dump our currency on the assumption that China will stall due to the loss of it's largest customer.
No way on the million dollar city house. Buy a decent chunk of land as far from the city as you can so you can still stack the change
