New to the Forum, Few Questions

Discussion in 'Silver' started by colu41, Dec 29, 2013.

  1. colu41

    colu41 New Member

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    Hello fellow precious metal lovers! Lol

    Anyways. I've been stacking since early 2012. Ended up selling off my stack late 2012 & started up again in July of this year. This time I will keep on it as I love stacking and collecting. Anyways. Income wise I'm not rich, more on the line between middle and lower class in my region.

    Since July I've manage to stack about 65 oz. And I was just wondering, I don't need to know everyone's income, I'm just curious as to about what percentage OF your income do you invest in PMs? I don't have a set number. I just put any spare cash I have into silver. In 2014 i want to get the most out of it as i can. Plan to save more cash, to buy more metals. Im giving myself big goals.

    Any tips or suggestions on how to make it a better year for investing would be great.
    Thanks for your time.
     
  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    About 125%.

    I think it's worth borrowing with silver at these low prices. However, you can't maintain debt and a wife at the same time, so be careful.

    Welcome.
     
  3. Phiber

    Phiber Well-Known Member Silver Stacker

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    Do not borrow to get into metals, a non yielding asset!
    Very dangerous advise I reckon, based on pure speculation of future prices.
    Only spend what you can afford to save and actually a better approach would be to spend only part of what you can save on PMs, and the rest into another asset class. Unless you are super bullish on PMs, but even then, borrowing for this would be very risky.
     
  4. the optimist

    the optimist New Member

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    Do not borrow to get into metals, a non yielding asset!

    Very dangerous advise I reckon, based on pure speculation of future prices.

    borrowing for this would be very risky.

    That's very very good advise ! I'm currently about -26,000 on a silver spread bet i placed from after the first bottom on a Credit Card, I need silver back at $21.80 just to break even, but anything above I'm up roughly 100 a point
     
  5. whinfell

    whinfell Well-Known Member Silver Stacker

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    You're spread betting on silver using a credit card??? Seriously? :eek: :rolleyes:
     
  6. bull_bear

    bull_bear New Member Silver Stacker

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    Hi Colu41,
    I wouldn't be trying to think about purchasing in terms of your weekly or fortnightly income. Rather save for a few months, then spend some of your excess savings. This way you can save on premiums by buying bigger bars/ or bulk coins, potentially save on postage, and if your lucky you can buy on spot dips.
    Dont go into debt for silver, diversify, and keep enough $$ for an emergency-if you have to liquidate your stack quickly you will lose your premiums over spot.
     
  7. ego2spare

    ego2spare Well-Known Member

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    80%+ of my income. no foolies
     
  8. the optimist

    the optimist New Member

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    Tell me about it, it seemed like a good idea at the time, looked like it had bottomed out and I thought I'd make a quick few quid on the way back up.

    How wrong was I ! It's costing me about 13 per day in interest to hold the position open.

    I can tell you It won't be a mistake I make twice
     
  9. colu41

    colu41 New Member

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    Good advice guys. I definitely will not be borrowing for PMs but at these prices I will for sure be buying as much as I can afford. Going for more 10 oz bars this year as opposed to coins. But I'm a collector at heart so. Ill continue to buy both.
    Thanks again. Look forward to learning more from Silver Stacker.
     
  10. House

    House Well-Known Member Silver Stacker

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    Instead of spending a % of your wage on PM's, look at cutting out some unnecessary expenditures and use that cash instead. Plenty of ways to save, here is a thread that may help.
     
  11. Golden ChipMunk

    Golden ChipMunk Well-Known Member

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    Hi colu41

    I see how many people got it all wrong.
    Precious metal is not a quick way to get rich scheme.
    It more like to protect yours wealth or assets.

    Everyone doing it differently.
    Best is to do with yours spares $$$ that you are comfortable.

    People buys gold, silver, platinum & etc.
    Further reading and research will help too.
    Sorry cannot advice further, ask yours financial advisors.

    Why PM?? is because everyone have lost confident in their government $$$
    it is believe one of these days it will implode. Just like wild fire.
    Every country have problems these days with their debts.
    Soon $$$ will be worthless. There where PM comes in.
    Economics down fall and world wars will happens soon too.
    Matter of time.
    How many nations have gone default?
    They think their debts have been settle :rolleyes: like US
    Since GFC 2007 till now, the worst are yet to be seen.
     
  12. Load of Bullion

    Load of Bullion Well-Known Member

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    My advice: Go large when silver is sub $20 USD spot an ounce (but only spend your earned savings). This way you decrease your exposure to another another bubble scenario and lines outside bullion stores. Buying at sub $20 was my rule years ago before the bubble to $48 in 2011. I would be better off today If I had not purchased during the sizeable last bubble. As time rolls on and inflation increases.I will raise the $20 bar.

    [​IMG]

    Compare the charts above. Notice the Look mum, "no crash". That chart is an indication of the silver bull mentality. I remember hoping silver would hold above $30!!.
    Notice how prices fell back down to Earth on the Kitco graph despite the delusion of silver bulls. Sureprices may fall further yet. The same with gold.

    [​IMG]

    Now is a great time to buy silver, IMHO. More silver for your Fed fiat notes and less risk to substantial drops against fiat.
     
  13. colu41

    colu41 New Member

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    Well put L.O.B. That's exactly how I see it right now. With my income I will buy as much as I can at these prices. But once it hits $30 plus again I will start a slight slow down in hope of another fall before I start at it hard again. But who knows what will happen.
     
  14. Pirocco

    Pirocco Well-Known Member

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    The silver price spread (sell versus buy back from customers) at dealers, sometimes tax also adding, is so high that you need; to just break even; two times the price movement they hedge against. That's why most try to find a non dealer sucker on auction sites, that is willing to pay more either out of stupidity either because it's abit less than at dealers.
    A past silver purchasing generation sold to alot of us including me, and a next is supposed to overtake these losses, again, just to break even. It just shows how big the error degree is, and why both paying the higher and selling the lower should be avoided. Those that paid $30+, and don't have the money to average down, now need another 'mania', to shift the losses to those in that 'mania', to just break even. And the same story will restart there, for others.
    It's not much different on other markets, in the end, speculation on things that are dead and don't add value, or alive but lose value because of don't care or stupidity or legal force, is a zero sum game, a winner requires a loser. Take for ex. current stock markets. One may wonder where all the money there origins from, and whose accounts it goes to. If one looks at the EU:
    [​IMG]
    A part of it probably went back to the CB, to be destroyed, with as result that no new euro's were added, but replaced. They paid back the bailouts with their profit from various markets alike silvers. From many small fish stackers and ETF holders. In the end, a financial crisis is solved by eliminating a part of bank savings accounts, then they can rise intrest rates again, without having to give alot euro's as intrests to bank deposit holders, without risking inflation, since the speculators wasted half of their purchasing power, so that their new money can again be spent by their buddies without our competition.
    The US story is not much different, only that they didn't destroy the excess reserves yet, that's what the 'tapering' should do, so far nothing special (relative to recent years) to see. The US planners bailed alot out in the EU too, so it might be all linked to it, as one may expect from a world central planning.
     
  15. Pirocco

    Pirocco Well-Known Member

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    Usually people don't keep repeating errors forever, and considering the stockpile 'investment' silver around, and alot may be looking for a 'get out', I now rather doubt to see that $30 back soon. And IF it does, you'll need the courage to sell in the awareness that your bank deposits could be 'touched' by the central planning. So, it's easier said than done.
     
  16. Load of Bullion

    Load of Bullion Well-Known Member

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    I have a decent stack of silver, so I'm not planning on buying silver at over $25/oz for some years to come. $20 is my current limit. If I was hurriedly building a stack as a new stacker, $30 would be my absolute limit.

    In 2011 there was no significant (beyond the norm) underlying rampant inflationary process driving "silver to da moon", nor was there a significant amount of banks closing their doors to customers. There was surely, tons of speculation, making for a notable bubble formation on say a 50 year silver chart.
    If inflation really starts to noticeably affect peoples savings and purchasing power and/or numerous banks start to tumble.then all bets are off, IMHO.

    *Despite record sales of consumer grade silver coins and bars for 2013, let us never forget, that industry remains the main consumer of silver.
     
  17. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Well said, I have family in Cyprus who were given a haircut and I am currently waiting on the proceeds of a property sale. I feel the hot breath of the delinquent banks on my neck as we speak. I think if I were to cash in some silver if it were to go above $36, I would hold it in cash.
     
  18. TreasureHunter

    TreasureHunter Well-Known Member

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    If you're doing the borrowing trick NOW to buy PM's NOW, you're dancing at the edge of the cliff hoping to grow wings and fly away! :p

    [​IMG]
     
  19. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Got it in one.
     
  20. colu41

    colu41 New Member

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    Ill be honest and say that I don't know much at all about the deep industry of Precious Metals, but from what I'm gathering from the info here is that the prices will most likely drop before they rise again?
    Either way, before I even ever think about selling, I will make sure that I am at least hitting even. I have spreadsheets of everything I've purchased and the costs. Realistically I collect silver sort of as a savings account as honestly I'm not the greatest at saving cash. And silver is a way for me to enjoy something while putting some money away.
     

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