+1 No insurance company would offer you return of premiums (or better) no matter if the insured event happens or not. OC
The fact is out there, that if your basic investment strategy would really be used by most cyclic players, that the silver price would end up where it came from, since the money is re-'invested' (ehm ) in the silver market, it actually never leaves it, so the price would just go back to a mean one between high and low. As the 2 years price downtrend shows: this isn't the case. They dump their silver high, not for more silver low, but for other things.
That 'investment' actually isn't 'investment' at all. For a simple reason: it doesn't cause anything 'extra' on the marketwide scale. All it is, is an ownership shift, from losers, to winners. A profit, based on a loss. A zero sum story. Those that consider silver as an 'investment', are just doing the same as governments and its parasiting clubs do: getting peoples something for their nothing. I stack silver for investment nor insurance. I stack it to control my property myself and most of all, to be independent from the thieves' system.
Sigh... We stack for different reasons. Some call it investment, I call it insurance, you call it assurance. I will say it again. This forum is not about making others wrong with you being proved right. You seriously need help.
MAN!! I'm in this for me. My measly stack, and what I choose to do with it, will have No impact on a "marketwide scale". I buy low and I sell higher, as my cost average goes down, I end up with more silver for the same $$$. Think playing the stock market. Once again, pretty simple stuff. For some people I think it's a case of ".....Forest for the trees" syndrome. Each to their own.
You seriously need help yourself. Dictionary help. Investment is putting money into something that increases production/produced value. Insurance is a risk transfer to others, and has a cost attached, that of course should not exceed the transferred risk, otherwise it would be useless. Assurance is certainty about something. As I already said, frontrunning others in buying/selling, isn't investment, it's just theft, ie attempting to grab others properties for nothing. Using firsthand information and speed. As I say now, buying silver isn't a risk transfer to others, nothing is insured, all you have is a pile metal, with a price that depends on others buying and selling, and as the huge price fluctuations prove, you can lose half your purchasing power by paying a price that doubled then again halved back to the original. That's like an insurance that costs the same as what is insured so no insurance at all. So stacking silver is an assurance, a certainty about something. About what? About the amount of an asset, here silver. Not about its value, just about the amount ounces. Aside of this value element, there is the element of independency, being that you have the pile metal, in a degree depending on where you store it, under more direct control. Fewer thirdparties and thus fewer dependencies involved. This forum is about making statements and giving the arguments to them. That's what I do. This isn't a court with legal wrongs and rights. This is a forum with statements, arguments and discussion.
I have never 'invested' for the marketplace, to have some gain. Call me selfish or a parasite if you will, The market wide scale can diminish by ten fold, but if I come out ahead I have been successful. I have invested for my personal finances. If I transfer my fiat into some product, and later transfer it to another product, or back to fiat, with a net gain, my investment has been successful. You confuse global goals with personal goals. All investments are gambles, and are meant to increase personal wealth.
Invested in the 'marketplace'? Do you know what a market is? It's a situation where people exchange their products and services. Investments are a part of what happens in this situation. You confuse a situation with the elements it contains. Only the central planning thieves and their parasites talk about global goals. In a free market, the global is just the decentralized-determined result of the X personal actions. Your 'fiat', is a medium of exchange, a storage of value and a unit of account. Money. Money in its storage of value role is an intermediary step to what people really wanted, it bridges time, and that's all. Money is a method of trading, not trading itself. A trade is only finalized when both parties have the products/services they really wanted. Money fills the time inbetween. Finance is the management of money, thus already implying that it's about allocating over time. 'Investment in finance' is thus another such non-sense, the word 'investment' is doing nothing there, since (and again) it's only a shift from one to another. A gain implying an equal loss elsewhere. Investments and speculation aren't gambles. With a gamble, the risk only comes into existence the moment that the act of gambling takes place. Much like a slot machine whose lever is pushed. The risk to gain or lose only starts there. It doesn't exist before. Investment / speculation starts from an existing risk. For ex, the risk of an earthquake on a certain location can cause someone to invest in developing construction methods that can sustain them better. The risk of thievery can cause someone to invest in door locks. The thing is, there are some money for nothing clubbers out there, and they rather prefer the words investment. My silver isn't my investment. It's my attempt to escape theft. Success is achieved by being able to buy the same value back that I produced. Gain nor loss. No rabbits harmed, only thieves fended off. And actually, you say it yourself, your usages of the word 'transfer' are exactly that. Unlike an investment, there is no 'more'. There is just a move of existing. That's the same 'success' as thieves. Something, for nothing in return.
Stacking PM's can serve multiple purposes and all of them well, I'm totally confident in this direction: *insurance against financial/currency crisis *investment - for speculative reasons, for earning with price jumps, bubbles *emergency reserve: say you need emergency money for "God knows what" (and hope you never need to use it), anything else than financial/currency crisis *freeze your wealth as hard assets - you hold it, you own it! *your stack can be a personal hard asset-based pension fund: stack, stack and by the time you get old, you'll be glad you have it! ^Keep calm and keep stacking
