I came into silver stacking and have made a lot of serious shifts in my finiancial life, after watching Mike Maloney's Debt Collapse, it made sense, I also saw claims of silver going "through the roof" by numerous commentators, Robert Kioaski, brotherjohn, Gerald Celente, Peter Schiff etc. Then last night I watched silver debunked on youtube, the stats given make me question what I am doing, ie 53% industry, 13% photo, 24% jewellery, 7% coin and a whopping 3% investment! If the debt collapse is going to occur, how is 3% of the market going to send the price of silver "through the roof"? Are we all on the wrong train? And one more thing that puzzles me brotherjohn makes great analyses of graphs of silver trading, but if the markets are manipulated, what's the point as the data is corrupted? :/
If it wasnt investment demand, then what tripled silvers price since 2008? Now a Silver Debunker Silence Moment?
I believe we are on the right train still but hey its normal to question your investment, after all, we are only human. To answer your question, think of it this way. With only 3 % investment, look at how much silver has risen! Once the economy gets worse, yes Silver may drop for a while like 2008/9, but it should recover really quickly. In the very low chance that the Fed stops printing money and acts responsible I'm not sure what that'll mean for Silver. But they seem to be print happy and I very much doubt they are going to stop anytime soon. The economy is getting worse and worse slowly but surely and silver investment is rising slowly but surely. Once peoples fear sets in and the price starts rising, more people are exposed to Silver and will jump on board. I believe $50 silver will look really cheap in a few years. Gold is double its 1980 bubble high while silver is still 35%-40% lower than its 1980 high! Silver has a lot of catching up to do. The trick is to be patient, have a long-term view, buy when your shit scared to buy and market excitement is at low (like middle of 2012 when silver was at $26.50) and stop buying/temporarily sell when you are feeling greedy and see the charts go up too fast. However that's easier said than done The trend is your friend. .....and YES most of us are nuts. :lol:
I'm all in silver because I wanted to stop watching powerless how the legal thieves further water my former bank savings account. My silver coins are my new bank savings account. I control my worth now myself. I'll do my best. Having paid too much is an error (that may include me). Selling for too less is an error The worst thing you can do is stacking errors instead of silver. First pay too much. Then sell for too less. I do my best to take care when buying, and selling, ohwell, it will go like my bank account, a chunk now, a chunk then, according to needs. If I over a decade have done better than a bank account, I consider it success. If worser, in meantime I'll have stacked more silver at a lower price.
I agree. If I don't make a profit but I do not go negative, I will consider it a success. One thing that does cross my mind though, is if the metals have been in a bull run since 2000. What is going to happen to spot prices when the run ends? I have faith and confidence in silver (as we all do, hence why we are here), but this is something that will always be in the back of my head as I steadily decrease my savings/trading accounts to obtain physical silver. Anyones thoughts on this?
Silver has risen at the average rate of 29% per year since 2000. How long will this continue....? I started buying/stacking recently and I sometimes feel that I may be a little late on the train.... or early. I guess only time will reveal the answers to my concerns.
Around 2000, basically an era ended, the era of the discovery of Americas silver deposits and the subsequent last stock sales of the government side. Exchange Traded Funds brought the big % increases of recent years. Silver is a relatively smaller $$$ market, and thus has alot growing potential. But it lacks people that have an idea about which price is supported by who/what. Abit improvement there, and I see some continuation. In the end, a market is what people make of it. Misleading them to pay higher prices, tell them bogus stories, well, it surely won't make the market attractive to potential newcomers. I know that in terms of houses, my former bank account lost half its purchasing power in abit over a decade, alike I worked a further decade for nothing. Silver is my attempt to avoid a repeat, and if the avoidance only starts over 10 years, so be it. I rather prefer a loss based on my own error, than having it forced upon me by the govts/banksters/their interest groups.
One saves in fiat currency as a vote of confidence in the economic management of the powers that be. One saves in precious metal precisely because of no confidence in the economic management of the powers that be. People vary on this confidence scale based on their ignorance or knowledge of the economy and their experience. It has absolutely nothing to do with being nuts. That kind of talk is just self-doubt based on a lack of experience of being responsible for one's self. If confused, read what Howard Buffett wrote in 1948 about the relationship of gold to a free people.
+1 The ill-informed and blissfully ignorant have no idea what's really happening to the monetary system and worringly this seems to be 99% of the population. I try to educate those who are unaware and alert them to the disgraceful practices of the naughty bankers, Wall Street scheisters etc but it usually falls on deaf ears with a hint of glaze to the eyes. A few will humour me. I know the stuff I'm talking about is almost unbelievable so not surprised they pass it off as 'crazy talk'
Mate I have been there so many times when I first started stacking. Only a select few with clear vision and clear thoughts will listen. The rest will shrug it off or pretend to listen and still continue on their current lifestyle. I gave up educating and keep my mouth shut now. I still believe the system can run for another 2-5 years, but won't last before the end of this decade. Originally back in 2010 when I first started stacking, I thought by 2012 we would see something substantial happen. Well the powers of the central banks have certainly been able to keep a lid on things. They will continue down this path until they can't. Having said all that, the sheep mentality won't change until something happens that they really feel the effects off and start asking questions or research into something that affects them. I believe this event will take some time to brew and may even be one of these below: - Hidden price inflation affects at the tune of at least 5-10% per year, wages are not able to keep up consistently over a long time - Derivatives pop around the world and security holders untangle the massive chain of counter-party involvement - MF global events on a larger scale, ones that affect retirement benefits (or lack of being able to pay those benefits) - A superpower announcing to back its currency trade-able in gold at some market defined value - COMEX default, or changes in rules allowing shorts to get out of jail free - Big bank going under or multiple banks going under raising questions on what currency is - Euro collapse after Greece, Italy, Spain, Portugal defaults - Rise in the new generation or next generation where they are much more intelligent and accepting than the current older generation (This is evident in Diablo3, kids understand value of items and that currency d3gold is just that. Its valueless but used as a means of trade for items, they know to hold items rather than currency) - Governments force society to become cashless and that everything had to be electronic (big brother?) Keep stacking guys, there is still some time and plenty of PMs about. Slam
Yes we are nuts, but consider this.... right now, somebody in China on an assembly line works much much harder than you do but only gets paid a fraction of what you get paid. One day that equation must change - it cannot go on forever. And there is only one way for it to go - your earnings must go down relatively. While this insane inequity exists, you have a chance to lock some of it away for future wealth, but only if you buy something of perpetual value, that can be traded, and costs exactly the same price everywhere in the world - rich country or poor... .... there are not too many things that meet that criteria.
I think that this article posted on Harvey Organ's blog should make it rather obvious why you should accumulate precious metals. China plans to double gold consumption in three years, how high will gold prices go now? By: Peter Cooper, Arabian Money -- Posted Thursday, 6 December 2012 | Share this article | Source: GoldSeek.com China's Ministry of Industry and Information Technology announced that it expected Gold consumption in the country would be running at more than double national gold production by the end of 2015, more than double Chinese gold consumption forecast for 2012. According to the MIIT statement, domestic demand is set to surpass 1000 tons by the end of 2015. It said this would 'widen the fundamental market shortage' and noted that the shortage of supply will persist in the coming few years as domestic gold supply 'might only reach 450 tons by that time.' Official gold policy The ministry promised: 'In order to strengthen the gold industry the government will increase gold mine investment, speed up industry consolidation and international cooperation. It also said it would 'develop gold trading platforms and investment variety (presumably meaning ETFs). 'With regard to acceleration of industry consolidation, the government aims to lower the number of gold producers in the country to 600 companies by the end of 2015 from the current 700. And, the top 10 gold producers could be responsible for 260 tons of total output, up from 100 tons, by the end of 2015.' ArabianMoney readers will not be too surprised to hear that China now has big plans for gold. Only recently we published the thoughts of 'Mr. Gold' Jim Sinclair who forecasts $3,500 an ounce gold and higher is coming on the back of Chinese demand (click here). China is looking to diversify its assets away from the US dollar and to protect its national savings against devaluation and inflation by investing in one currency that no central bank can print. Ironically the nation faces quite a challenge in achieving this because it cannot raise gold output anything like as fast as it would like. Huge buyers The impact of Chinese demand for an additional 500 tons of gold per annum on the gold market will be enormous. This is more than all the gold bought by the global central banks last year. Mr. Sinclair knows what he is talking about in predicting very much higher gold prices from the current stalemate in the gold market. This is about long-term global macro trends that have little to do with day-to-day market trading. The big picture is still hugely gold positive and now the Chinese are jumping on the bandwagon. Investors do you need more than that? -- end
Thanks to everybody for their input, you guys brought up some very interesting information, which, as I am selling my house after selling my only asset, an investment property, to walk this walk, rather than talk the talk, has been comforting to say the least, regardless of what my accountant says, I agree with your perceptions.
Great topic, I think on occasions we all have these sorts of questions popping up on our minds, and I love the info you guys are diggin
But don't forget we are actually all nuts and might be wrong. Going totally 'all in' (selling your house to buy PMs) is also pretty risky.
A cheap rental. Here in Australia we have a glut of rental homes owned by greedy dreamers who think they are going to make a fortune out of real estate.
Yeah i wouldn't be selling my house for PMs either. One will always need a place to live in. Selling in investment property for PMs, fair enough though. I guess it all comes down to risk profiles. I personally like some degree of diversification and having your own place to live in, has got to be one of the best diversification out there since regardless what happens with house values, one need a roof over his head. Anyway no matter how much we think about the future and our investments, the bottom line is that regardless what investment class we are in (PM, RE, stocks, etc) there is always risk and uncertainty about the future - no one knows what the future holds. This simply cannot be avoided. My personal opinion is that one has to invest in an asset class that one understands and believes in. For most of us here, that would be PMs.
where is this so called glut? not in Sydney. Just have a look at the weekends and you'll see ques outside rental properties 50m long 3 deep - glut? there ain't no glut. Unless you want to live out in Penrith I suppose.
