How much do you invest in silver? 10-20% of your net assets? More, less? I am investing heavily into silver at the moment as I believe the price is extremely low. But in the future I am intending to sell the majority of my stack, and then keep no more than 20% of my net worth in precious metals. But what is everyone else's plan? And do you stack silver as part of a diversified investment portfolio, or do you simply use silver as a form of long term savings with no other investments?
I like to add to my stack with small buys, about 700 ounces at a time. I like small fractional coins 1/20 to 1/14 and i insist on keeping them in Air-tights.. storage is getting to be a problem i might need get another wheat silo soon.. Wakes up.. It was just a dream.
For me its any term savings. I had once a bank savings account and at some point I decided to swap it for silver. Since then I continue swap new fiat to silver, while trying to target bottom price levels since the rather extreme presence popups of the money for nothing club on its market. I could have done better though. Much better. At the moment. It could have changed next month year or decade haha. I see it as that I reserved assets, independence of government/central planning and the lazy butt part of the population. I also bought/stockpiled some stuff, enough to continue a couple decades ahead without a need to buy them. And I bought various things to replace things that are considered normal to have now, that may cease to be available. So in the end, it's abit for the same reason as silver. I don't see it as an investment though. It doesn't create anything more economically-wise, while investing is doing exactly that. It's just dead metal sitting there waiting for times to swap it for stuff I really wanted. About selling, of course, abit like I would have 'sold' the euro's on my former bank savings account. Abit now and then, upon needs. Probably sometimes at a loss, but I'll do my best to try to pick out the better moments, in the degree I'm able to (it's sometimes not predictable if you need/want to buy something). Not being a system slave anymore, that's my drive.
I've spent most of my dollar savings on (silver) coins this year and some gold. Looking at the current prices, this (gold, and some coins) maybe wasn't the best idea. Before that only few % of my portfolio was silver. Gold was less than 10%. Gold is now almost 25% and silver is depends - spot price (few %), prices on feeBay (much more ). I've really fall in to silver buying spree in the last few months. Spent most of my money on it. I've decided to make only few more ("bigger") purchases this year and then start buying more (semi)bullion coins and bars. Would love to get more Norfed coins and some Scottsdale bars. The rest of money will spend on some stocks (no banks) and gold. Maybe some platinum. Should increase money reserves significantly so in times like these have more money to spend on coins. In 3 years I've sold only one coin and even that maybe too fast. I'm planning to keep most of my stock as long as possible. Will sell only bullion bars and coins. My plan is to be financially "free". Hopefully will save enough money to buy some land and maybe house. I think that the best investment so far was investing in Vanguard stock index. It reached increase of more than 10%. Dollar increased, but probably bought it too late. Gold and silver are falling down. Most of the stocks I've purchased only brought red numbers. We will see in long term. The best investment is good health and abilities/skills that can bring you money (not talking about stealing or something ) in times likes this.
I don't buy as a percentage of net assets. For me, I have lots of expenses (hefty mortgage as just the starting point, lots of dependents, as the next point, etc, etc, etc, etc, etc) and so I buy when it seems right in the amount that seems like it's not risky. I consider the spot price, the value of other markets....it's not as easy as sticking to a percentage all the time for me. Some stackers have claimed they don't care what the spot price is, they buy at regular intervals. That kind of investing is definitely not for me. I have to be more deliberate and less haphazard and arbitrary. I also look at future releases of semi-numi coins and what their cost will be to me if I want them. So, in one year the percentage of net asset could be triple or more of the year prior or after.
A bit contradictory, in my opinion. Silver IS an investment, a hedge against inflation maybe...a "preservation of wealth" against paper....but, it's definitely not just a "dead metal sitting there." the fact that you'll try to make money from it, and will when you get the chance, makes it, without a doubt, an investment. The degree of your success on your return doesn't negate that it's an investment.
It's the same coin I sell that I buy. I didn't attach diamonds nor I didn't use it in anyway to produce more value. I call that economically 'dead'. Neutral. Once it was in the ground in a low concentration, someone added value by digging it up and concentrating it to 999, after which I bought it. From then on, no value was added. Trying to make money from anything, doesn't mean it's an investment. A thief that buys and uses a hammer to break a door in order to steals some1 elses property, didn't 'invest' in the hammer. He didnt produce more value. And investments that fail to create more value, are simply failures, bad investments are economically the same as no investments. And by the way, I don't try to make money from it. At least not in terms of purchasing power. If all prices double tomorrow, thus including silvers, then my mathematical profit is 100% but my economical profit is zero. It's possible thought that I do gain or lose purchasing power, but that's beyond my power, strong price fluctuations make financial planning much harder (which is also one of the reasons why strong price inflation severely disrupts investing and destroys production / economy). So your opinion is based on a contradiction that isn't there.
Bollocks! Investments don't need to create more value at all in order to be successful. The only thing that is necessary for success is more demand than at the time you acquired a particular investment. An increase in demand does not need an increase in value added. For example - collectibles, numis, real estate, etc.
You sold me on the thief and the hammer. What I said, absolutely makes sense. I'm noticing a trend...this need to over-analyze every single sentence, and then "teach" by using such analogies as what is, and what is not, investing. "If all prices double tomorrow...my mathematical profit is 100% but my economical profit is zero" Thanks. No kidding. You ARE investing when you purchase a precious metal, even if it's for a preservation of wealth. Investment is putting money into an asset with the expectation of capital appreciation, usually over the long-term future Is Silver not an asset? Are you not under the premise that this asset purchase will at least keep with inflation? Are you purchasing blocks of silver because you're building a house, need it for electrical condictivity? No? Do you purchase only silverware, in mass quantities for huge gangsta-style pool parties with 100's of people? Do you just like the looks? You're hedging...trying to preserve wealth, in hopes that it will outpace inflation. Hedging is a good investment option. Seeking short term gains is speculation...gambling. Investing is inherently different. Tell me more about thieves, hammers and what's this about doubling everything?
Investment is an intent. The intent is to make an economically viable prediction. That's why we buy silver. We are predicting, falsely or not, that our purchase will provide a return...that return can outpace inflation, keep up with inflation, or provide a loss on our over all capital. But, the intent is to bring profit (I don't care how you view "profit"...some view "profit" as outpacing something else) A failure to invest isn't the same as a failed investment. Economically the same? No...a bad investment is worse than no investment...because your net worth is affected moreso by a bad investment. Not teaching, preaching, or pissing here...not being cheeky, nor rude. I'm just disagreeing with your philosophy a bit.
"Capital appreciation" in terms of purchasing power, not in mathematical terms. I said that in my previous post. You italiced it here yourself. Yet, you ignore it. And then you "move" on to debating what is asset and what isn't. Hey, why moving on if what you had is still wrong? Investing is putting money into people/material/machines/thinking/planning/etc in order to produce more without production cost following alike a shadow on the heels. Buying clumps / coins / whatever shape silver isn't investing. It's just storing economical value, not creating it. Of course silver is an asset. I also said that. I am not under any premise. I don't make assumptions. I try to avoid theft as much as I'm able too, without starting to do the same as the thieves. I buy silver because I hope its production cost will move up together with other prices, due to the extra fiatmoney that is created and spent, thus forcing others to work harder for the same purchasing power, and if fail, devaluing existing fiatmoney. Hey, you say 'outpace'. As I said and you quoted: I hope that if prices of the stuff I really wanted (which I use silver instead of euro as inbetween step to) double, that silvers price doubles too. Is that 'outpacing'? No Sir, it's keeping up. IF I would gain something, in terms of purchasing power (I shouldn't repeat this over and over again, but you seem to need it), OR lose something, it's beyond me, since it's hard to financially plan when prices fluctuate in ridiculous degrees due to a big number money (pssst purchasing power!) for nothing clubbers rushing in and out trying to inflict me higher prices when I want to buy, and lower prices when I want to sell, thus trying to frontrun me all the time. Inflicting me the trouble/timewaste to have to keep an eye on their position, in the degree that I'm able to. Buying/storing/selling silver like we do, has nothing to do with investing. Some try to stick that label on what they do, but actually all they do is trying to get someone elses property for nothing. That's not investing to create more value, that's just shifting existing value. Much like a thief does, hence my analogy to which you attached a rolleyes.
Bollocks! Investments do need to create more value in order to be successfukl. The only thing that is necessary for success is more production than at the time before the investment was made. We just store silver to sell it later. We do nothing with it. Remember? An increase in demand just for storage, implies an increase in supply later, which undoes the former to a net nothing. For the same reason, a speculator stabilizes a price. The squirrel that stockpiles fruits in autumn, when fruits in plenty supply (all trees deciding to drop haha) and low price (just pick them up from the ground haha), and thus prevents price to drop even lower. The squirrel that sells in winter, when fruits scarce (trees dropping nothing haha) and high price (hidden onder dirt snow most rotten), and thus prevents price to rise even higher. So buying silver isn't investing. That's just a 'nice-looking' label that some money for nothing clubbers stick on what they do. Look at the price movements. The typical fast price uptrends followed by typical faster price downtrends, see the finviz chart. That's not 'investing'. That's not speculating. That's just misleading and frontrunning. But since these words have a negative connotation, I can understand why they try to label it as investment. Can you?
http://wiki.mises.org/wiki/Investment Remember that finance is based on economy? Without goods/services, nothing to buy for money? Some pick 1 and try to walk around 2. 'Money for nothing club', I named them. Governments, (central) banks, subsidized, please fill in here... ( )
:lol: You are contradicting yourself. The squirrel sells in winter when demand has risen along with prices, and supply has shortened. The squirrel did not value add to the fruit. You can repeat yourself over and over and over for all I care. You can use as many different analogies as you like to try and convince me of the same falsehood. Fact is you do not have to create more value for an investment to be viable or profitable. You just need more demand after you have acquired it. I notice you chose to ignore my last line - For example - collectibles, numis, real estate, etc.
Jesus saves, Moses invests! [img=FluxBB bbcode test]https://i.chzbgr.com/maxW500/2676704256/hB677D3C8/[/img] This became another debate which will spin around few words for eternity. When each of the debaters think that it is 100% correct and will try to provide as many arguments as it can the debate will end when someone will "retreat". Einstein said that all things are relative. If I consider my education as (bad) investment and silver purchasing as investment (both hypothetically speaking) that is my opinion and right. Is the same as glass half full of water. For someone is half empty, for someone is half full. You must also note that is not necessary that everything written on Wiki is 100% correct. On our faculty and many others professors don't like quoting wiki. I consider investment simply as: I save money and "put it in" something or someone. If I more "happy" after than before that was good investment. Otherwise it was bad. Some investments can't be (easily) measured (with numbers). I think that diversification of assets it's better that spending everything on one thing (e.g. silver). If I want to sell few stocks I can do this basically every day with just few clicks and money will be transferred to my banking account. If I want to sell few silver coins I would have to drive to nearest "coin shop" and will be most probably paid only for material - not numismatic value. So to get the most of it would probably need to sell it on eBay. Which means several days before I get money. In movie Heat Robert de Niro said that you must be always prepared to go and leave everything behind in 5 minutes. How much coins and bars will you take with you?
You ignore key words like "hope." No need to repeat anything over and over...once you discussed a thief with a hammer, and then gave me a child-like lesson on "doubling" everything (therefore remaining the same)....you lost my interest. You continually contradict yourself, that's all. I pointed it out. We have some fundamental differences on such terms as "investment" and yet you keep repeating what purchasing power means. Yep...got it. Clearly, you're very selective in your readings and your responses. No big deal. This actually made me laugh a bit...which I appreciate.
