After reading the posts here for several days now and eventually signing up, I`m starting to wonder if I`v made a big mistake in my recent purchases. I`m new to "stacking" and so couldn`t really call myself a stacker per se (at least not yet anyway). I own my own Business and have been self employed now for nearly a year as an electronics design engineer, after spending many years on the dole. Needless to say I`m slowly starting to get a little bit of fiat money in now and it`s hard to come by! I don`t want to give it all away to the tax man either (anything over 6000 p/a), so I was after a way to "Store" fiat securely and PM`s seemed like a good idea. so after a bit of a search around to find a reputable PM vendor, I finally bought 2x 1Kg poured bullion bars/ingots (Umicore). my cost averaging as I bought them 2 weeks apart comes to 1010.00 for the pair and thats with all the VAT and Premium and delivery included. I`v been reading around here that silver should be about $5 ish/Oz (as of the last 100 years), so did I buy too early? will I ever live long enough to see the price go back up to a point where I`ll get what I paid for it back again? (I`m nearly 50). when I bought, I must confess that I did only look at the 12 month chart and it seemed like a good idea at the time, esp as the first bar had arrived and I may have gotten a little PM fever, and when I saw the spot price even Lower, I just jumped in and bought the second bar. I`m Now considering buying Silver Britanias in a ten-pack, as those seem to be a reasonable denomination for trade and cost nowhere near the price of 1Kg bars, and make a nice incremental shift, I think 2Kg is enough for Bar "stacking" at the moment for me. should I hold off and wait before I buy anymore? Cheers
Honestly - anyone that tries to tell you with authority what the price of silver will be in a year's time is either a liar or deluded. No-one knows, all you can do is decide if silver is an investment you're comfortable holding (i.e. you've got the stomach for wild volatility and potential loss of capital). I like 1oz coins and kilo bars - about the only two sizes I stack in physical apart from some 10oz bars and other collectibles.
What should I then say, with my spot $30 based average? You made a much smaller mistake. And, mistakes are only judged the moment you sell for what you really wanted. My goal is to do better, therefore I learn, and make better decisions based on it. Example: since 2013's $20 I could have bought in the $20-24 range. I bought when spot was $19.5, and steadily lower due to dropping premiums (also something I try). In 2011 I could have bought in the $33-$50 range. I bought only at $32. So it's not like that I was careless buying at any price. Yet, you received 30% more silver than me. So lol, your outlook is far better than mine. Keep it that way.
hi hugh man if you've been reading my posts as im in the uk don't get disheartened I have bought just a couple of pieces which have slipped back but im more canney on the second purchase, go to bullion by post website and go to the gold and silver charts on the tab marked all time, theres also 5 yr 3 yr 1 yr tody and live if you take a gradual narural line from the 1970s on both charts (eliminating the 2008 banking crash) you will see that the price is generally too high of both gold and silver right now
In feb 2011, I arrived like you, and the forums were full of shiny happy people that became richer every day, no concerns, that jumped on trains rolling out the stations to the moon. The very opposite was true. So if you say now that the forums negativity makes you doubt your decision, maybe the opposite is, again, true. I also wait for my next purchase for lower, but I do that from a near total silver position, so if it doesnt happen, ohwell, its not like that I really need the silver inbetween step to spend my current chunk fiat. Cheers and thanks for the negativity!
Have faith brother, if your in it for the long term you'll win. So sit back and enjoy the ride it's gona be a bumpy road
You have lots of time to make mistakes, I can't see that you have made any so far. Expecting $5 silver would be a mistake - even if it occurs, expecting it would still be a mistake. Sometime we do all the right things (rationally speaking), and still get bad results. Cheers
Thanks each! I don`t mind the "bumpy ride" bit at all, I was planning on what I consider "the long term" too (about 10+ years) and so, for the most part I`ll be ignoring the spot price and forgetting that I even have this stuff. and of course, with 2 kids, having 2 bars was a logical choice as I wouldn`t like to see them arguing with a hacksaw trying the cut the thing in half at the Time (pre bar ownership) it was just a way to defer tax payment (GCT), and so could legally remain as company Metal Holdings, pretty much in the same way as I have Semiconductors in stock that I use when I make up boards etc... However, after it arrived, and I phoned up the vendor about taking it out the plastic packet, and was told it doesn`t affect the value, so I did, I think something happened to me!? there was a "WOW!" factor for sure. I come from a poor background and so I`d never seen anything like it before (outside of T.V programs) much less Touched one or Owned one! yet I`v had 1,000`s in fiat cash in my hand that was mine, and never had a flicker of that feeling I got from that silver. it was certainly a Unique experience to say the least. so I think for Now, based on the above comments, and my Pre Ownership plans (removing all emotion), I`ll "Stick" for now. build up more fiat, and see what`s happening at That time, maybe buy, maybe not...
Hugh, I think a lot of people here are wishing they had gotten in at today's prices. Could they go lower? Of course, but $5? Can't imagine it. I can imagine it going much higher, though. But what do I know? I'll keep stackin'.
I`m not quite sure what you mean there? in light of the fact that I`d previously said: "for the most part I`ll be ignoring the spot price and forgetting that I even have this stuff." so I`m going to assume here that you think I`m one that stacks for the Insurance aspect of it, and I guess in backhanded way it probably Does provide some sort of insurance, but my Main motivation was purely to defer Tax payments to such a time that it wont cripple my Start-up business and thusly kill the goose that lays the golden eggs. if there`s any Insurance benefit to be had from holdings, then that`s just gravy to me
He just received it, so probably stares at it every morning noon evening and maybe even some sneak peaks at night while a WTF text cloud is hovering the other side of the bed.
It is quite funny that your first purchase was 2x 1kg bars. That was exactly my first purchase! And I made a mistake, didn't know enough about silver, and ended up paying a large amount of VAT. Those bars cost be around 650 or something each with VAT, I think slightly higher, not sure. Now I only buy silver coins, as I believe they are a better investment, I buy coins mainly with semi numismatic value, i.e. limited mintages. Perth Mint lunar coins, kookaburras etc. And I buy from Estonia / Germany, either at 0% VAT or at very small marginal VAT on the dealers margin, not the whole amount. So if you know where to buy you can pick up silver in Europe without paying excessive VAT. I don't think you made a mistake buying, no one knows where the bottom will be. If you look at a chart silver looks ridiculously cheap in my opinion. It's on sale. If I buy and the price goes lower, I am just happier because then I can buy more at better prices If you buy a small amount regularly you will find that your average cost is evened out. I would recommend looking at some semi numismatic coins as you may find they hold their premiums much better even if spot price were to drop.
Been reading a bit but first post here folks so please be gentle, IMHO $5 is never going to happen again. For many producers it is well below production cost. Bold play for first purchase Hugh. Saying that my 1st purchase a couple of years back was multiple 10oz bars. They're still well in the red but my accumulation of bullion coins and pre-decimal currency is in a better place. As I assume we're all aware here, silver is very volatile. My process is buy small and buy often. Find yourself a good bullion dealer where you can walk in off the street and purchase. Cut out the shipping costs. Melbourne has a number of dealers and I'm sure google can help you find some in your city. I've been using eBay to purchase pre decimal currency, if you're patient you can pick stuff up for less than spot. I often offer spot plus 5% which is a lower premium than you'll get on any coin and have had some success. The bonus is when you pick up a coin that has numismatic value above the silver price. Plus those old coins have character.
