I mentioned this before: there is a company selling silver without VAT. So, for those living in the UK, this can be a good solution: http://www.primevalues.org/investors-guide/lsg-002-08-11-013.htm
Many were badly shaken by the price drop. But if you look at the downfall potential of various fiat currencies and past history of PM prices, you'll know you have to at least consider silver and gold as hedges.
Silver and gold are a lot better than Bitcoin. I know many on this forum became very enthusiastic about cryptocurrencies and have criticized my views. How high did Bitcoin and Litecoin go and where are they now? Although silver and gold have dropped, the fall is really not that low. I prefer PM's with intrinsic value over crypto-fiat.
^^^ Crypto- and other currencies can become near zero balance overnight. Governments can order the confiscation of PMs All investments suffer from different versions of the same deficits, except perhaps property. Even then, compulsory acquisition can be a real deflator, and I imagine land values in downtown Beirut took a hammering ....
I think any product / market that is (partly) used for the monetary role storage of value suffers this: We have had a decade stockpiling. To expect, is a decade destockpiling. Time periods of course dependent on the rate at which it happens. But the product of price change and period will remain. What else? I won't throw my coins in the sea. Probably applies to all of us and whoever else sits now (indirectly) on silver. As said earlier, recovery won't happen by itself by watching passively with a stiff upper lip. It's a job, it takes work, persistency, data > good timing, more fiat, and a whole lotta Rosie until a next thunderstruck.
Those who are just gathering gold and silver are contributing and solidifying the deflationary environment for precious metals. Look at it this way: stackers just stack, stack, stack and they're not selling. If people do that with money, they hinder money from circulating. This creates deflation. Stackers "sit" on their stacks and the price go down. They're surprised and it keeps going down. I know, I know... it's ETF's and the big banks that make the big moves and shakes on the market.
It's abit useless to stick names / kinds as to "blame". Because in the END, regardless motivation and trading behaviour, everybody sells the inbetween steps to what he really wanted to buy. That's why I pasted aboves chart. It shows that, for an asset chosen in a monetary role, any relative change is bound to be undone. With those that bought and sold last, as the biggest losers. This topic has a 'we' and 'recovery'. But, we can all look in the mirror, and ask ourselves if we will be willing to pay $20 and $30 for an ounce silver again. If I do that, my answer is a no. People learn from mistakes, I do, and I don't expect others to not do. The same happened in the late seventies. I know, things and outlooks are not the same. But in terms of purchasing power, they are. Because purchasing power is relative to what it was at the start of our own story, not to what it was in the late seventies. Take into account that the $20 and $30 I talk about refers todays purchasing power rather than the numbers after the $ sign. In that same end, that is only what matters. Silvers price was driven up much faster than other prices. The chart makes clear what is next, "inflation adjusted". Because inventories are expressed in ounces metal, and thus really a measurement of effort / labor, just like the products we buy it as inbetween step to.
That's what international trade is, or should be. If every country had its own specialties, that for various reasons nobody can compete with, then the world would be flowers bees and sunshine. Then governments step in, to prevent this and create the misery that they use as excuse for their absence on the waffle and other stuff producing floors. I think I've recently read that Obama likes Belgian waffles. I considered that negative advertisement for the waffles. Just me.
I have a a genuine newbie question. Q. Is your market knowledge giving you the upper hand in personal investment wealth gains over those like me who know nothing about investments? Thanks
I got the Belgian waffles thing before you elaborated caput No fish, he's been catching the falling sword all the way down like everyone. Your in the best position right now, stack because you don't know any better, once you believe you understand this manipulated market, your done for. so just stack with spare money and enjoy life as it is, spend most your money on wine, women and song, end of the day, you'll have a head full of great memories, everything else, like investment knowledge will be useless to you, even money in the end, means nothing, but banging heaps of women will make you smile.
A. No, if it was I would keep for myself what I find out, and show you a selection to make you act in my benefit. No problem.
