I don't think either metal is in a bubble - $200-$250 Ag is my current prediction to take a really hard look...@ $50 I'll start the reverse of dollar cost average - i.e sell slowly as needed...if it 'pops' I've got some profit off the table...if it soars,I've got plenty more to keep dribbling out... When the bubble pop's (as we all want) I hope to be out 90% but then I'll be the guy running around taking the worthless metal off your hands for cent per dollar - hold a few more years when it's so rare,Apple are knocking on my door wanting some for the next iPhone...you can't loose even if you miss the top...
Some wise words there hawkeye. At $50 I'll be selling enough 100oz bars to cover my initial investment. From then on I'm gauranteed to profit from silver no matter what happens and will be happy to take a punt trying to pick the top. There will be plenty of people who will wake up one day and find that Silver isn't worth as much as gold, that a couple of hundred oz of Silver won't buy a house and all the spruikers they've looked up to have gone. I've never been left holding the can with either shares or property and I'm not about to start with Silver. C
If both metals somehow plunge in price in percantage terms like they did in the GFC ( excluding Rh but including Pd & Pt ) Than we are still under the same type of Gov- Bank relationship.
I just have to laugh at those still thinking they'll make a profit by selling silver to go back to fiat. The eternal question is what will you buy instead? Lol.
If I was going to stay in fiat then I'd agree but that's not what I'll do. I'll buy whatever is good value at the time. I'd say that will definitely be property and probably shares. Do you think that prior to the 1980 silver price crash that people couldn't have found somewhere better to put their money? Are you suggesting that silver will never get to the point where it is overvalued? C
Overvalued, undervalued - silver and a few other things can withstand the test of time and never be undervalued against itself. 1kg of silver will be 1 kg of silver in 50 yrs time. $100 kinda wont be $100 in 50 yrs time
Are you suggesting that something else exists other than Silver.......I'm impressed! Now what are those few other things? C
Thats the investment idea. See I have an antipathy towards investment purely for the sake of staying afloat. Most people today invest only because they lose if they try to simply stay where they are. Inflation is like an ever present thief robbing you. The only reason people invest on such a wide scale is because of inflationary monetary policy. We've been forced to become investors and take risks with our money and capital. What's wrong with just having honest money that can be stored and not subject to devaluation by inflation? People just dont have that option nowadays. I think that the current blowup of the financial system will set up a system where monetary metals will once again become the standard. That this is not just a commodity boom/bull cycle; but a paradigm shift (lol... You must think..... Thats a sign of phase 3... I'm right, I'm right ). Once that monetisation happens, and I am of those who believe it will, then selling your silver will be moot. You'll have in your stash a vast store of wealth that won't need to be flogged off just to put into other "investments". That's my thinking.
If I'd bought silver in the late 70's for 50, or even say 40, or 35 dollars, I'd have been waiting 30 years just to get back to where I was. Or would have had to sell for a big loss. Buy and hold long-term has never been a good strategy with the PM's and now people are learning that it's actually true of other investments. You have to pick what's right for the period you are living in.
I see us as material beings. We like, enjoy, and understand material things. Even though money could be a mere "blip" in a computerised system; the impoverishment about to strike the entire world as fiat currencies are altogether wiped out in the coming crash will bring back what humans have always come back to. Gold and silver. They are like the silent judges who sit in wait and take account when the time comes. The past 40 years is the aberration in human history, not the norm. It will be a powerful lesson to people when the monetary metals once again reassert the reality that awaits. If my assumptions are wrong, what have I got to lose by having my metals? One of the only things on earth with enduring value and allodial title (allodium: an estate held in absolute ownership without acknowledgement to a superior).
