Can anyone tell me why is it, that most places I look, (US stores) that it seems you don't get any discount on a kilo price vs a ten oz bar price...(when broken down to per oz price) Is that a demand and popularity thing?
Capital appreciation (to say in nominal fiat terms) is not my principal motive for investing in PMs. Rather, I see PMs as an effective way to store wealth/purchasing power in a form that cannot be so easily diluted (like fiat currencies can thanks to money printing, fractional reserve banking etc). I also see it as providing me an embedded option which I can exercise in the event that there is a collapse in faith in fiat currencies, which become worthless, where the masses scramble to get in to hard assets in an effort to protect what remaining wealth they have (while my relative purchasing power remains intact or increases). Of course if I could realise a decent inflation-adjusted capital appreciation I wouldn't be disappointed (and I would not rule this possibility out). If you were asking about relative capital appreciation between silver and gold, based on the current GSR, silver looks pretty compelling. Although, I'd personally still want to include gold as well. In terms of how high the price can potentially go...I'll admit I have no idea. I think focusing too much on price and predicting where it will go is futile (and probably a stressful endeavour at that). Again, as I explain above, the (fiat) price I sell out/down at is slightly a misplaced concern. If I see significant gains in relative purchasing power from investing in PMs in the long term which I can deploy into other assets down the track (e.g. income generating real estate) and can cover me as a form of accepted payment should some SHTF scenario occur then I'll be a happy chappy. If you're looking for income, I'd look elsewhere. Best of luck Cheers, ML
Free Silver off course, would you want it any other way? Let's take the humble computer keyboard for example, basically a junk item readily available for free on a junk pile near you. Grab your trusty little cordless screwdriver.. Pull out the two Mylars.. Throw out the rest in the recycling bin, abs plastic is worth recycling, you do your bit for the environment and that white looking thing is like latex, very soft and sensual, has multiple nipples, you can have fun with that.. The patterns you see are pure silver.. Some much more intense then others.. Send them to me and I'll give you $5 kg. or send them to a refiner that uses the most effective method of extraction which is kept secret for now but that may change shortly. using no toxic chemicals, the process is more time consuming for the refiner but yields are proven to be far greater then what has been done up until recently. 100 kg's of Mylars will net you 80 - 120 oz of 999 Ag, yes I know what your thinking, but it's fact and that's that. so put your credit cards away, stop asking mummy to buy you a coin, jump on yer bikes and go hunt keyboards.
Thanks Mr leprechaun, being new to the PM world I like to hear others point of view. I guess I am looking for income but also want to diversify as I currently have all my eggs in one basket, ie house.
No worries serge That's one of the beauties of being on this forum. I'm interested to hear and learn from others too. Have a good one.
I can't say I've read everything above sorry, just a speed read like I do with almost everything unfortunately (ADD kid). But I always like the chance to appreciate how a collection of smart people (us for investing in metals) can be so, so different. I like it because it shows me many ideas work to get the same good result. I make the mistake of thinking there is only 1 proper way to do things sometimes. If anyone else has covered my spiel here I apologise. I only bought in a relatively short while ago and my thinking on it was this a the first instance: 1. I'm not rich; 2. I don't like fiat or shares I think they're a scam just personally; 3. Put down initial $5k to play and see what happens over 3 year first review period, accept I might end up down, maybe very down; 4. Diversify but with purpose, strategy, intent. Everyone needs their own idea how to proceed based on what they want at the end, if there is an end; 5. I personally try to keep my holdings at twice as much $value in silver as in gold at any given time, not weight, fiat value, I hate to say it; 6. Generally I buy gold to keep indefinitely except in special circumstances, very special. I only buy gold in 1oz coins from Perth. Perth's reputation, the fun the collector people have with coins over bullion and the fact that 1oz bullion bars are unimpressive in the hand gives the Perth 1oz coins greater value for no real reason; 7. Buy by silver in 3 'denominations': 1oz perth silver coins, 10oz bullion bars and 100oz Perth bullion bars. I look at those 3 mediums of silver as like $5.00, $20.00 and $50.00 notes. I use combinations of my silver to trade the silver up to gold at hopefully good strategic times. Silver is cheap and like gambling. Its volatile, you win you loose but if youre smart hopefully never too much. But then on those days you wait for, double up buy selling it up, then wait a couple weeks or months and buy in again cheap and in the meantime use what you made to buy and sit on more gold; 8. I try to have my holdings with these splits and weights for obvious fact that in my involvement in investing and for how long that lasts, I want to make the most profit while conducting the least amount of trades possible, no matter who they are with. More trades, more fees, simple. if I have good splits and good holdings I never need to, for example, take a 100oz silver bullion bar and sell it to a broker at spot on any given day because I actually need 'change' to complete a transaction with another party for 60oz of silver even if its at slightly above spot. Brokers fee just killed my deal. I just killed my deal because I didn't have 6, 10oz bars when I needed them. 100oz silver bar I should only ever use to buy 1 oz of gold and some smaller silver perhaps for my future trades coming up; 9. Simply, gold is the goal, the target, the good asset. Silver is the trading 'currency' I use in the 3 sizes and values I've said, to strategically obtain more gold. So I need both equally all the time, but cash flow is always more important in business than hard assets which don't move. Because with no flow, nothing goes. Oh, and I collect 1937 Australian Crowns when I come across one or some in decent condition but cheap. I just like them. I don't really plan to sell them I just want to see how many I can get without trying at it. So if anyone has some they don't need for any reason, I love to listen as much as talk. (haha) This is all just my personal view and assessments. That's all.
What little we are paying now for silver is insignificant to what I WILL sell my silver for. My main focus is to offset any irs reporting and also to have small enough amounts to use in a barter situation. No more no less. I don't see me "slicing" kilo bars into pieces now or into the future. Even the single ounce of gold I own is breakable to 1/10 ounce portions.
Thanks serge83. I'm much of a nobody but that's the beauty, you don't have to be. After I decided I liked metals and was going to throw down the $5k, I took a moment to think "how will I approach this" and the rest is just logic I think, like 123. Essentially investing is turning over fiat, and turning over fiat is generating business and businesses at the core, the dollars, are quite simple. Have enough cash flow always, know your product, know where youre buying and where your selling, make your assets work for you as best you can, limit your overhead and running costs. be nice to your customers
