Hi' I have been buying silver coins & bars since 2011 as an long term investment with an out look of about 5 years. I'am not an expert in silver investing but base on the information given to me in 2011 was this a good thing or not?
Lengthen your outlook, and keep lengthening. That way it will always be a good thing. This is the way of the stacker.
Well to answer your question, no, no it wasn't. $49 to $18 in 3 years does not make for a good investment. If you're investing in something that continues to lose your money then it can not be a good thing.
Sorry to confirm what's said above, but you got on the roller coaster just before it went over the biggest hump in >30 years. Go to http://www.kitco.com/charts/historicalsilver.html , then go to the bottom of the page, select 1985-2014 and click on View Charts. Few will argue PM's as being a sound investment vehicle. PM's have no guarantee of return, principal or anything else but they do have a history of being fickle and unpredictable. If you're only in it for return on your investment, it'd probably be best to sell your stack and get out before you develop bleeding ulcers.
Who knows where it will be in another 2 yrs for you or for all us for that matter. Unfortunately, you bought when it was on the way up and not down. I would just keep on stacking now at these prices to bring your dca down. I was buying coins at $32 per oz but kept on buying at these current prices. Now im at $27 per oz. im hoping to buy at lower prices to hit $25 per oz when i reach my target stack. My long term plan is to sell in 10-15 yrs and im not planning to get rich on silver hoping to hit some ridiculous amount. Ill be very happy if it hits $250 per oz at my exit time.
I'm trying to keep mine at under $21, and I am just under that now (20.98). I will keep buying small amounts as I wait to see what the market is going to do. If it take a big dip into the 17s or low 18s I may grab a monster box. Don't really have the cash to spare, but it will be hard to pass up.
Sure dollar cost averaging is fine. Although if you have the funds and the price goes low.... buy more... if the price goes up buy less. I sold at higher prices and down here I'm buying because I believe the price is low. DCA is also about expectations. Later comes experience. I don't see silver breaking 18.21 USD sadly, I hope we do but it seems very unlikely. I've experienced waiting for lower prices only to see them move higher. So I take the approach what's a $1 or $2 when I expect to see silver break $50 .
Notice the "IF" in my sentence. Im only spending extra cash on silver and i wouldnt even cry if silver hits $10 per oz. im only allocating a certain amount on silver and gold. My income property is where my retirement money will be coming from. Silver is a way to preserve some wealth and IF it hits a certain amount , i will be selling half my stack. So once i sell half, the half that i have will be free silver.
How much do you believe that you may have saved by not having the funds to spend that we're locked into silver? How many meals out did you forego to by those extra ounces of silver? What other discretional spending went by the wayside? Add those to your calculations and then come back to us with your question.
A 1 liter bottle of water or a pack of cigarettes may be $275.00 in 15 years......who knows. Relative to the cost of other common items, the spot price of silver in 15 years could be a nightmare making silver nothing more than heavy metal that was way overpriced in 2014 at $19.50/oz. Just saying....it's possible. .
I so agree with this sentiment. I know I have some really pretty coins sitting in a drawer that I have barely paid current silver price for. I could sell them in relative short time and get some/most/all of my money back on. I'd bet for sure if it was in cash, I wouldn't have it at all. I'm not planning on selling anytime soon unless the price skyrockets, in which case I'll also sell perhaps half and the other half is free. I don't have the disposable income to buy enough to make anything out of smallish market fluctuations, but I can salt enough away to perhaps make going into retirement easier and if the SHTF pundits turn out to be correct, I might just be sitting on a gold/silver mine. I'm in it for the next 10/15/20/25 years - I'll sell when I have to and in the mean time know I have some pretty coins to look at.
I'm not sure that's a fair thing to take away from the current situation, that says more about the investor than it does the metal. You can't say the money spent on silver would have been wasted anyway, it could have equally been working for you in another investment
You would need to be more specific, which other investment? Everyone talks about the other, but I don't know many that actually did. And please don't talk hypotheticals, talk about a reality. What was your other investment?
Something other than metal, which has continued to lose value over the last 3 years, could be anything really - not much would be worse. The vast percentage of the population has no idea about silver but they still find ways to invest. In truth even nothing, that is holding cash, would have been better. On a personal level I'm all in cash at the moment, boring but safe. It can buy you things which is incredibly handy and it's value is depreciating at a much slower rate than silver.
I dont get how investing in silver is bad... say you bought silver at 18 dollars.. and you held it for a couple of years and it went up to 28 dollars.. you paid 10 dollars profit per ounce.. now say you had 1000 ounces.. well 10000 dollars in say 5 years.. Put that 1000 ounces worth of silver at 18 dollars per ounce into a term deposit at 5% interest and in 4 years you would of made 3600..
That would be very nice, but you are assuming a 55% return in a couple of years will come to fruition. Now let's look at what really happened. Say you bought silver at $49 in 2011.....
