Hate to sound like a doomer, gloomer but as I watch the silver price start to plummet yet again today I must admit I am seriously wondering what I was thinking when investing in PM's. The only profitable silver I have invested in is the few ounces contained in the solar panels on my roof and even then, when it comes to the metal in these panels, the aluminum frames are nearly as profitable as the silver content. 100 percent return in just under four years and an ongoing ROI of about 35 % PA. It's getting very difficult to keep the faith with this seemingly endless "correction."
Every time I see Petey's pic I think the same... Depends what you think will happen and when. If you see the dollar collapsing, more pure theftbail-ins, hyperinflation etc within a year then obviously keep stacking but if you think they can keep the system propped up for a few more years and expect silver to continue sideways, then you'd obviously be better off looking for a better investment elsewhere. Even a term deposit might give you a better ROI.
This may be what you want to invest in instead it has more security features, no more moldy green color, brighter and shinier Source:businessweek
"Have courage my friend...these communists are all cowards" [youtube]http://www.youtube.com/watch?v=OpZ8EkK3eWY[/youtube]
Ongoing 35% ROI is a great performance for Solar Panels. If you had of bought Silver 4 years ago, you would still have roughly a 60% ROI on today's pathetic prices. That's the point. If you are going to compare Apples with Oranges, at least measure them on an even footing. They both perform different investment functions. Solar Panels have a shelf life where at some point it will have diminishing returns as they deteriorate over time and will need to be replaced. Not so with Gold or Silver. There is a liquid market at any time. From my perspective, they are both great investments. Maybe with the funds you are saving from Solar, have you thought about increasing the amount of panels.
I know how you feel silverbullitt, but if I can put some shine on things, lets not forget that solar (like housing) is significantly subsidised by the Govt., so it's not really a level playing field. The renewable energy market is skewed towards solar, just try making a ROI with wind or geothermal. The only reason solar pays off is because some bureaucrat has decided to funnel govt. incentives towards just one technology. Is solar the most efficient? who knows, the Govt has wrecked the market by interfering. Having said that all that really matters is money in the bank so in nominal terms you're correct. Well done on the Solar investment. Stand-by for silver/gold's ROI.
Thanks Clawhammer, actually thanks to all, some very good replies which are very helpful and very much appreciated. Very true that solar is not a level playing field, very manipulated like silver and all other worthwhile things big brother just can not keep their paws off. I like to think I am a true believer in all that I do and initially invested in solar some 20 years ago when it was a very expensive hippy type of thing that made no sense ecologically or economically to most. Silver, yeah, I had a similar feeling about this and it's what keeps the dream alive when it's depressingly depressed like this. I have an insatiable passion for fighting the system and opting out of the Fiat monetary system is as important as opting out of the power grid. Even when this was not financially viable it was still worth the satisfaction of growing my own power. Certainly I took advantage of the Govt subsidized solar scheme to expand my independence as I don't at all mind taking charity from those I despise. Not meaning taxpayers who ultimately foot the bill. My justification being that at least I would put this Govt funded solar to good use and deprive big brother of a few dollars to squander on something wasteful and perhaps even destructive. It's not just about making a profit, although a profit would be most welcome. To me it's a revolutionary act. I need to stay focused on my original motives although in times such as these when things are getting harder by the day it is very hard to keep the faith. I know I am somewhat a radical but do others stack for similar reasons to mine?
Good point, perhaps it would be better to say one should keep faith in himself and his decisions, such as his investment decisions. I have invested myself in several different types of faith but I eventually learned the only thing you can ultimately trust is yourself. To sacrifice belief in yourself, to elevate something to a higher status than your belief in your own self and your own decisions is disastrous.
IMHO, to compare a single isolated "investment decision" to that of "belief in your own self" is even more disastrous. It fails to differentiate you and decision. It defines you as the "decision". This makes it impossible to correct or change the decision once new information becomes available. And it is for this very reason that most investment losses or bankruptcies are suffered. In the investment world, it is termed stubborn arrogance, and you will find endless examples of it in all investment vehicles - especially stacking.
I was only trying to say I reckon it will go up. Suppose I should have just said that. I wont be putting it down in my quality post count which is still at zero
have a faith diversify ... silver, semi-numis, numis... but it would be smart to keep core in PM, just in case
To the OP so why did you get into Silver in the first place ? - What research did you do, or it just seamed like a good thing to do - What is your buy/sell strategy - Was it spare money or money needed that you used in the first place - What is your long term strategy - What other investment were you deciding between, Silver and ? how is ? going... and so on In short I don't know how long you have been investing in Silver, but you registered here a few months ago. I can assure you there are people here who have made a lot of money by being smart and selling and buying where the opportunities are. Have you sold anything to buy something or trade perhaps etc... A failure to plan, is a plan to failure.
Yeah, I hear what you're saying. I was speaking in more general terms though. Nothing so specific as a single investment decision but rather a generalization of the whole. Related to this, the new belief system that none need take personal responsibility. I constantly hear in the news how there has been a serious traffic incident (usually it's obvious that the cause was reckless behavior) and the conclusion is always, " there's something wrong with that road and we need to spend millions to fix the problem." Sure, we need to constantly re evaluate our decisions, acknowledge our mistakes and act accordingly to correct those mistakes. I am now in the process of evaluating my investment in silver and gold but the jury is still out on that one, at the moment. As much as it is becoming increasingly difficult to "keep the faith" in this investment strategy there are other considerations than purely financial that caused me to buy PM's. Not quite that simple unfortunately but then what is in life? Anyway, I have had my "faith" restored a little by some of the replies here. Onwards and sideways, I say.
As far as research, historical trends mainly, with the knowledge that PM's are notoriously volatile. With this volatility in mind I am certainly in this for a long term rather than a get rich quick approach. I usually invest in property so this has given me some control over my rampant impatience. How often I would beseach the Almighty "Lord, grant me patience, and Lord, please hurry." My buy strategy is still developing, I was mainly buying small lots of bullion where now I am buying more numismatics while the price is so low making the higher premium items much more attractive and they do seem less vulnerable to the fluctuations in the spot price. Sell strategy, Hmmm, That I have not given a great deal of thought to. Long term strategy is survival in what I see as an increasingly hostile world with a very uncertain future. My long term strategy is to cover as many eventualities as possible such as rampant inflation, war, societal collapse. All possible, in fact probable, IMHO. I should probably have a firm exit plan but I actually don't. The money invested was not a reckless gamble, no. This is money I was prepared to have tied up long term, it's just a little uncomfortable to see my investment constantly going south and I'm hoping for just a little sunshine soon. Still waiting for the Almighty to grant me patience. Nah, bugger that, I've returned to atheism and impatience is now a virtue again. So Cmon silva! Hi ho and away already! I have not traded any other investment decision in favor of PM's, rather I feel PM's, given the current state of affairs, are less risky than other investments. It's somewhat of a gamble but then I find any investment is a gamble. I lost the shirt off my back in "can't possibly lose" real estate back in the 1990's. Nothing is absolutely certain and I certainly know that. I don't play the pokies, or even drink for that matter, so I suppose I need some sort of vices. Why not stack silver?
I'll be nice and offer to take all your silver for spot price. You have to suppress your animal instincts to make a buck in the market. Investing with emotions is a bad way of doing business. Now that the doom and gloom is in for silver, don't you think it is a perfect time for someone to enter the market? Similarly, when Gold and Silver were getting mainstream news coverage when they were near their peaks in 2011, don't you think that was the best time to either get out of silver? I have $5,000 in paper silver that I bought @ $23, unleveraged. I fully expect losses in the short term, in the long term I suspect we will break through the $50 mark. Pile in while the price is low.
Gosh, would you? You really are so nice. The main effect of the "doom and gloom" is not a desire to sell but rather a reluctance to buy more. I have been buying up till recently enjoying the bargain prices and reducing my average buying price per oz but it's simply wearing a bit thin, that's all. I think in the not too distant future even the most stalwart of optimists among us will also be looking forward to some better news on PM prices. I am confident of a rise at some stage but this sideways crawl is not giving me any sort of good feeling even with the bargain prices. I've already exceeded my original investment quota because of the suppressed prices. Not a bad thing at all in the long term. I just feel I need a bit of good cheer. A rise to 50 bucks an oz would do wonders. I'm not leveraged in any investments BTW so not under pressure in that regard. After losing my shirt during Paul Cheatings "recession we had to have" I have a strong aversion to highly leveraged investment.
If you think that your investment will only grow up and you will seat back and enjoy it, then my friend, you are living in utopia. Things in life has circles of ups and downs. Imagine this: silver will be going up constantly. More and more people would see this. And buy it. Until there will be so many purchases, that bubble would explode (the only thing that is constantly growing on Earth is people stupidity). Then suddenly everyone would be on loss. Learn from the best. Learn from the only guy in known universe who had beaten Chuck Norris: be water my friend It's said that optimistic people prosper better in life.^^
