Will you still stack when (if) silver cost $6/oz?

Discussion in 'Silver' started by Cheepo, Apr 10, 2014.

  1. Cheepo

    Cheepo New Member

    Joined:
    Feb 23, 2014
    Messages:
    444
    Likes Received:
    0
    Trophy Points:
    0
    If you want to have a decent (financially) amount of silver for your retirement or when the SHTF, you would need at least (say) $40,000 worth of silver. At $20/oz, you would need to stack 2,000 oz (62 kg of silver). Of course this wouldn't be sufficient for a nice retirement, but only as insurance. This is a large amount, but still conceivable.

    When (if) silver reaches $6/oz, $40,000 worth of silver will be 6,666 oz (207 kgs)!!! Would you still stack silver when it is so cheap, and accumulate 200 kgs of it? Or would you turn to gold? When silver goes to 6, gold will probably be at 600, which means that the same 40,000 of gold would be 67 oz.

    If you want 200 kgs of silver, where are you going to store them? It would be difficult to hide them properly at home. You would need to rent a vault, but of course such a large vault would be very expensive.

    What do you reckon you will do? I am just checking your thinking.
     
  2. House

    House Well-Known Member Silver Stacker

    Joined:
    May 1, 2012
    Messages:
    9,527
    Likes Received:
    287
    Trophy Points:
    83
    Location:
    Stack City
    Can't stack something you won't be able to buy :)

    Guardian Vaults have a bullion safe for max 700kg costing about $2,400 a year. Wouldn't classify that as 'very expensive' given the safety of your $40k (and life) compared to stashing in your home. Just need to became a Master of Tetris to stack it all neatly.
     
  3. DanielM

    DanielM Active Member Silver Stacker

    Joined:
    Oct 23, 2012
    Messages:
    2,889
    Likes Received:
    29
    Trophy Points:
    38
    Location:
    Melbourne
    Shit yeah I'd build a brick BBQ
     
  4. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,433
    Likes Received:
    40
    Trophy Points:
    48
    Before too long people will be predicting silver to drop to 10c an ounce and you'll need two kilos for a loaf of bread.
     
  5. DanielM

    DanielM Active Member Silver Stacker

    Joined:
    Oct 23, 2012
    Messages:
    2,889
    Likes Received:
    29
    Trophy Points:
    38
    Location:
    Melbourne
    Well I have a friend who wants to throw a gold brick against a wall just to hear the sound it makes, idiot tried it with a pamp certicard(his dad won a kit Kat competition for $10k in gold, so 6 certicards who gave it to him). But anyways at this rate he could do it with a nice 400ouncer
     
  6. heyimderrick

    heyimderrick Active Member

    Joined:
    Mar 2, 2011
    Messages:
    1,481
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    USA
    $6/oz... most mines would simply stop producing long before then. The expenses to operate are too high today for it to be economically feasible.
     
  7. mrearthman

    mrearthman New Member

    Joined:
    Feb 16, 2014
    Messages:
    41
    Likes Received:
    0
    Trophy Points:
    0
    The interesting thing is if silver went down to $6 sentiment would be so bad that most people would probably be too scared to by it thinking it's never ever going to go back up.
     
  8. heyimderrick

    heyimderrick Active Member

    Joined:
    Mar 2, 2011
    Messages:
    1,481
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    USA
    It hasn't been below $6 USD since 2005, didn't even go below ~$9 during the crash in 2008. No idea if, why or how it could go that low now.
     
  9. Cheepo

    Cheepo New Member

    Joined:
    Feb 23, 2014
    Messages:
    444
    Likes Received:
    0
    Trophy Points:
    0
    Yes, yes...

    But would you keep stacking?

    That is the question. What is the answer?
     
  10. heyimderrick

    heyimderrick Active Member

    Joined:
    Mar 2, 2011
    Messages:
    1,481
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    USA
    I guess my answer would be yes, because there will always be coins that I want to own and I firmly believe in keeping a certain percentage of my investment portfolio in metals and miners.
     
  11. Cheepo

    Cheepo New Member

    Joined:
    Feb 23, 2014
    Messages:
    444
    Likes Received:
    0
    Trophy Points:
    0
    At $6/oz, $2,400 a year means 400/oz a year. If it stays at $6/oz for 10 years, as it did until 2004 (only 10 years ago!), you spend almost double as much on the storage than on the silver!

    I am not saying it will happen. I am just trying to become popular ... :D
     
  12. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

    Joined:
    Oct 30, 2009
    Messages:
    6,278
    Likes Received:
    186
    Trophy Points:
    83
    Location:
    Sydney
    Yes.

    I've seen it hit ~$50 and if I'm buying at $6/oz I can wait twenty years for it to get back there.

    You can do the maths yourself to see what the equivalent annual return would be.
     
  13. heyimderrick

    heyimderrick Active Member

    Joined:
    Mar 2, 2011
    Messages:
    1,481
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    USA
    I just placed an order for a tube of the Great Whites, so silver should immediately begin to fall.
     
  14. Jislizard

    Jislizard Well-Known Member Silver Stacker

    Joined:
    Apr 7, 2011
    Messages:
    7,518
    Likes Received:
    639
    Trophy Points:
    113
    Location:
    Australia
    I would have run out of money by the time it got to $6. Probably would have blown the last of it at $10oz.

    In which case if it had dropped to $6oz I would have lost 40% of my final few dollars and I would not be happy.

    If silver started really tanking then I would probably stop buying it, I think I would take it as a hint that it really wasn't worth as much as I thought it was, lets face it, if 7000 people on this forum think it is a great bargain and 7 billion people on the rest of the planet disagree, then despite everything, I would tend to side with them.

    I would just sit on my stack, no point selling it at that price and no point adding any more, sure the dollar cost average would drop but instead of paying way to much for a small amount of silver I would have paid too much for a large amount of silver. I get more silver but I am nowhere near being rich. The point isn't to own silver, it is to own a valuable commodity which I can later use to retire on. Having a ton of silver which is worth nothing isn't going to help me retire, even if I got it cheap.
     
  15. DanielM

    DanielM Active Member Silver Stacker

    Joined:
    Oct 23, 2012
    Messages:
    2,889
    Likes Received:
    29
    Trophy Points:
    38
    Location:
    Melbourne
    I placed an order for a tube plus one a little while ago, so that should add to the affect, I seen on Perth mint site that they are limited to 300k mintage
     
  16. DanielM

    DanielM Active Member Silver Stacker

    Joined:
    Oct 23, 2012
    Messages:
    2,889
    Likes Received:
    29
    Trophy Points:
    38
    Location:
    Melbourne
    Great perspective jiz
     
  17. heyimderrick

    heyimderrick Active Member

    Joined:
    Mar 2, 2011
    Messages:
    1,481
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    USA
    That's why I decided to pull the trigger. First reports I read said mintage was going to be "limited" but no quantity stated. Many thought they would just mint as many as ordered. 300k is a fair number, and if this does become an annual series getting in from the start is best. Plus, I like sharks. And silver. And it was a pay day.
     
  18. DanielM

    DanielM Active Member Silver Stacker

    Joined:
    Oct 23, 2012
    Messages:
    2,889
    Likes Received:
    29
    Trophy Points:
    38
    Location:
    Melbourne
    Yeah I was going to let it ride out a little but then I seen the 300k mintage so I thought I better order now rather than later plus I had a couple ounces of unallocated in my account that I wrote off against it
     
  19. LTEK4NZ

    LTEK4NZ Member Silver Stacker

    Joined:
    Jul 14, 2011
    Messages:
    776
    Likes Received:
    1
    Trophy Points:
    18
    Location:
    Perth WA
    At $6 a Oz, I would buy 1000 Oz bars make 1/4 inch sheets and plate my walls. Best way to hide bulk silver
     
  20. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,433
    Likes Received:
    40
    Trophy Points:
    48
    What thickness of silver plate would be needed to stop a typical bullet? (Not sure what the most common bullet size is in Aus).
     

Share This Page