When you've been buying silver for a while, and you truly understand why you are buying it then spot price really becomes irrelevant. It determines only how much or how little silver you'll get for a given amount of money. A decline of $3 like we've had will shake the confidence of weak hands. No one can forcibly impart the proper understanding to them. Silver was a bargain still at $31, and is even more so any lower it gets. More metal for the same money. Just remember that the spot price is the price for UNLIMITED PAPER SILVER. It is completely bogus. When you realise this you'll realise how massively YOU are benefitting from being able to buy PHYSICAL silver at paper silver prices! The powers that be are keeping the lid on precious metal pricesvbecause they are the sirens which alert and awake the sheep from the matrix. They'll scheme, plot, manipulate and do everything and anything to keep the prices low. They know that only 1% or less benefit from this. Ie you and I, the switched on stackers. That is a small price to pay to get their goal of suppressing prices. Silver and gold are still bargains. Keep buying at their expense. When the sheeple awake to metals the wealth transfer will be stupendously huge. The payoff is to come. All these ups and downs are just noise. Keep buying while there is still metal to buy.
We are buying physical silver for the price of paper silver... Hmmmm... When you put it that way, we are getting a bargain indeed. Well put.
of course it's absolutely correct but while fake paper silver competes with real physical silver for the market in 'silver' it's going to devalue (and thus make a very good bargain of) silver. recently after a long period of unemployment i managed to get 5 weeks of 530/wk pay at a job, and during that period stacked up, by my calculations 25% of my income. dunno where any money is gonna come from right now and i'm deciding to refuse any help from the government (as i don't want to fall back into apathy) so i have liquidated that. i'll be paid up on my bills for 3-4 weeks ahead now thanks to that silver, but of course i want to get into more. the thing that is going to happen though is, as demand for the real silver spikes, and nobody can get it, there surely must at some point come an effect on the silver price. i just hope that i can get back in on the market before that happens. knowing how reluctant people are in facing reality out there in the world by and large, i expect i'll get plenty of warning. my personal prediction is that silver is actually going to overtake gold, as both soar upwards, and silver will become the new gold, my rationale is that silver is actually more scarce and has a higher rate of industrial consumption (and thus is more likely to be scarce in the future) and really deserves to be the king of metals. also, that this is in some ways a portent of the change in the geography of humanity, in the saying i've seen bandied around saying gold is the money of kings and silver the money of gentlemen - at some point kings are gonna become obsolete, and therefore also, so will the ascendant position of their money. just my feeling of course, not to be misinterpreted as investment advice (etc etc etc)
True but if I want to buy anything from a house to a car to food or electricity - its all measured in fiat dollars. Simple fact is, all goods and services are measured in fiat currency terms so when it gets down to it, any investment is only worth its fiat value.
Thanks intelligencer, I'm a newbie and started stacking Silver since November. But , watching the spot price goes up and down make me feel like I've been overpaying for the Silver. But, the way you put it sounds like I'm getting ahead just being in Physical.
This is all true BUT the thing i think we can not forget is this. We stack silver for the reason that we know FIAT really has no value but right now it actually does, just like how people are thinking we are in inflation and predicting inflation when really we are in a slight deflationary phase right now. I think you need to be smart about it cause it all depends on the kind of investor you are. If your the guy that basically wants to protect his savings then i think you cant go past gold, its been and HAS been the final (after bonds are no longer considered a safe haven) safe store of value for 1000's of years and thats it gold gold gold. If you want a little more excitement to boot, have more limited funds to spend as well as a certain store of value (depending on whether silver is more monetary or industrial) then just look at silver silver silver. Also dam, it's up and down movements are pretty dam exciting to watch along with all the commentary that the silver bulls and silver bears have to say. Now even though we know that FIAT really has no value, it actually does have value right now, people are loosing confidence in it but havent yet (not fully) thats why you have bearish silver people who have sold their positions and are looking else where(you can call them sheeple or "not on the inside" or plain and simply wrong but you cant deny some of those bearish silver people may have a point and have good points) Now if silver goes to all time highs and stays there for a week, then you buy (saying any price is good), then it drops to say 25 and stays there for a while then you buy, sometimes i cant help but think, if i was to look around and invest in paper (stocks) or even in other metals that have good fundamentals (when silver was at an all time high) then i can use this money that i make (while silver is at an all time high) to buy more silver when it drops. I guess what im trying to say is, we can have our core position in silver BUT how we get the money to buy our core silver position shouldn't be effected by silver tunnel vision (if there are good stocks that you researched, buy them, let them rise, take profit then buy silver ). I had this chance to buy a particular stock when silver wasn't the *BEST BUY* but i didn't and im kinda kicking myself for that missed chance cause its rise was meteoric. Its hard sometimes, specially when your used to taking physical, touching it, kissing it and putting it in your safe BUT i know that i did screw up that particular time cause i could have really really REALLY up'ed my money that would have allowed me to get a much bigger position in silver in one big swoop.
Yes aus, been thinking about the same thing while chasing a mop and chux all day. Buying precious metals is at worst a means by which you can secure your wealth in a physical form which is difficult to devalue. At best of course it is an investment that can return great profits, but that's not the main reason I purchase PMs. I'm not interested in great profits, just security. Trade your polymer for Ag and Au.
Great opening post intelligencer, it's inspired some thinking about what we're each doing. I'm still new to this, stumbled into it a coupla months ago. And am finding my ways and reasons. Whether we're sinking in deflation, or rising in inflation, fiat will still be the measure of everything, including silver (paper or physical). Even if we go extreme, and all fiat is based on PM again, it'll still be the measure. I'm starting to see my way, is to purchase physical now, as a boost to our financial future. This is an interesting time, with all the silver chatter going on, and I appear to have come into it at a relativaly early stage still. If u believe the schiffers and keisers out there, something is happening, but hasn't happened yet. So i'm in. I'm assuming in 2, 5, 10 or 15 years, this physical silver I have, will at some stage bubble when measured with fiat. It isn't producing me any income over these years, but when it bubbles, that's when i'll swap it for an income stream producing asset. It'll be, as the saying goes, "our chance to "get ahead"." Or at least let us retire with an income, as we have no super, no insurance, no nothing. Just our businesses. When everyone wants it, i'll have it. If i had the cashflow to buy gold, i'd be buying that instead. But, silver is great, $30/oz, and looks and feels as "good as gold" to me. And PM Stackers comments of using stocks to give u extra cash, for more stacking, is just what I was thinking too. Listen to hobo-jo, he has some good analysis.
You speak for yourself.. the last bloke that talked like this got shoved into an opened top car 5 months later and driven around the streets of Dallas till someone shot him :/ I know nothing....nothing! http:// eplaya. burningman.com
....and not one American president ever since has dared to reimplement executive order 11110 for fear of the wrath of the real owners of that country.
For all intents and purposes, the physical price means nothing either.... you just can't get the bloody stuff. What the hell is the Perth Mint doing, nothing's being sent out it's gates!?
I wouldnt say that it means nothing. Physical has already started to diverge from the SPOT price, one of the reasons for that is that the owners of physical silver are expecting large increases in the spot so they would not let go of it for close to spot price. ( whats in it for them ?! ) Also the long delivery times are adding to the price of physical silver. Also, there are not that many 'weak hands' with physical owners so they are not forced to sell their silver.
I looked up eBay and completed sales and look like very hard to find 1 or 2 oz kookaburra coins under $45/oz with postage.
Steve has 2008 and 2010 kooks for $42 at present singularly. http://www.auroraetluna.com/index.php?act=viewCat&catId=20 He also has 1oz bunnies at $39. http://www.auroraetluna.com/index.php?act=viewProd&productId=165 Cheers
When i started buying silver last year, from memory the Kooks always traded above SPOT ( around $28- $32 a pop whilst spot was $19 ), brittanias were even more expensive ( as they are now ), ASEs and philharmonikers were closest to spot. If divergence is to be seriously looked at than 10 oz bars would be a good start.
