All in on previous metals

Great_northern_striker

Great_northern_striker

New Member
Gday ladies and gents... I’m new here and wanted to say hi! I’ve been convinced of precious metals and it’s value as a hedge against inflation for a long time now.

I’m going through the SMSF set up now and intend on using a significant proportion of my Super to invest in mostly Silver and some gold.

I’m only 33 and only half way through my working life (a big maybe right, who knows what the hell could happen in the next 30 years!) and have plenty of time to diversify my investments but right now I’m going all in on silver.

Fell free to tell me I’m an idiot.. I can handle it.
 
"Feel free to tell me I’m an idiot."

Welcome aboard The Silver Train @Gre , we had a great contributor in the comments section on Silver Doctors dot (you know the rest) called Ranger (R.I.P.) he went all-in on silver & in his final years after contracting cancer, he tended to get a bit bitter because the train didn't arrive at his station, however his daughter came onto the website to tell us he had passed away & let us know he had done the right thing by them. We revere him to this day.
Please ease into it slowly & be prepared for the ride of a once in 104 years event.
I did this as a tribute to him.
RANGER SILVER TRAIN.jpg
 
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Are you an all in gambler?

Everyone on SS have some affinity to precious metals, but going all in with precious metals is huge bet for a 30 year old.

Undoubtedly you will have the chance to double or quadruple your money (if you sell) near the top of next boom, but what makes you think PM will do that in the near term?

Read what many stackers have written about silver and gold, and the need to sell to take profit.
Many have watched PM double and triple up and watched it come back down.

Don’t be the 30 year old guy who bought an acre block in Badgerys Creek in 1960 thinking in the next few years with the new airport opening they would make a killing .... still waiting 2030 in the nursing home.

During that time a person who put the money in an average investment fund and paid the same amount as the monthly mortgage in to the managed fund would have retired ten years earlier and be sailing around the world.

I’m writing this as PM is a sure bet and you will have opportunity make it rich but because it could be in 60 years time.

If US debt is your worry, look at Japan debt they been fine for 40 years.
If the next recession is your worry, what did silver and gold do in the last recession.

Ps I am not saying don’t buy, I’m saying consider your options about going all in.
 
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G'day mate and welcome. I'm reasonably new here but have enjoyed the topics, discussions and advice from SS members re PM investment.

I started getting into PM's earlier this year to add some diversity to the portfolio, saw some FGN Govt's upper their gold holdings and thought "Hmmmmm that's interesting", to hedge against a SHTF moment one day (yes I'm in that camp) and the fact after listening to many voices, reading many reports re suppression of PM prices, then one day there has to be big kick in price.

I'm patient, still a ways from retirement (unless Ag rockets to 4 digits in the near future) so I'm in for the ride and maybe some giggles along the way.

Enjoy the forum.
 
“Are you an all in gambler?”
Yes I’ve been known to get out on the first hand in poker ‍♂️

“but going all in with precious metals is huge bet for a 30 year old”
Meh I’m still young

“what makes you think PM will do that in the near term?”
Reserve banks shoring themselves up so much lately with PM. However this is my super and is a long term investment. Plus I’m no big maths guy but I really only need silver to go to $60 an ounce by 2050 and that’s almost 7% returns a year (I think)... that’s a reasonable investment I would have thought? Inflation over the next 30 years will hurt surely silver will help to preserve the value of my investment?

“Nor be the 30 year old guy who bought an acre block in Badgers Creek in 1960 thinking in the next few years a new airport will open and they would make a killing .... waiting till 2020 in the nursing home.”

“During that time a person who put the money in an average investment fund and paid the same monthly mortgage in to the managed fund would have retired ten earlier and sailing around the world.”

So true.. however the last 60 years of massive economic boom and development ensured his investment even if it hasn’t paid out yet. Our current reality looks so so much more glum than the last 60 years?

I’m being an overconfident asshole I know I just can’t help but think “meh I’ve been working for 17 years, I’ll take this gamble now (invest the last 17 years of super) and continue busting my ass for 30 more years (creating a more balanced portfolio) and if it works great.... if it doesn’t well shit I’ll yave to rely on the the next 30 years of investing and I’ll yave a wicked pretty boat anchor to laugh about as I try to retire.

Thanks for your comment IPv6ready I actually appreciate your opinion
 
Ipv6Ready said:
Are you an all in gambler?

Everyone on SS have some affinity to precious metals, but going all in with precious metals is huge bet for a 30 year old.
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Have to agree with this given the prices today. But I wish I had went all in, when I was 30 years old many years ago. :D

Ipv6Ready said:
During that time a person who put the money in an average investment fund and paid the same monthly mortgage in to the managed fund would have retired ten earlier and sailing around the world.

I’m writing this as PM is a sure bet you will have opportunity make it rich but you need luck, because it could be in 60 years time.
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Not so sure about this with AI and automation where most jobs will be made redundant in 20 years. But Australians will do better since a democracy can provide basic income. Forget about basic income in Asian countries, no job, you die on the streets or outside the hospital.

Another possibility to consider in the very long run is WWIII.
 
whay said:
Whatever your reasoning and investment strategy may be. Going all in only on one thing is just dumb.
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Yep, the only thing you should be all-in on is a solid financial education of what the different types of markets and asset classes are.

Investing is sorta like surfing, you have to ride the waves and enter markets when they are low and logically undervalued compared to other markets. You don't ever want to bet it all on one wave for obvious reasons. Even if silver was doubled or tripled by the end of the year, you need to know how to handle that.

Sell when they seem high. Sell real estate sector to buy metals, sell stocks to buy bonds, sell metals to buy stocks... those can all make good or bad sense depending on market fluctuations at any given time and the general economic sentiment. Preferably get your initial investment out and play with house money whenever possible... because we are all wrong and take losses from time to time.

...To find the positive, it is good you picked an investment that has very little chance of losing significant value. However, you need to be fully prepared for silver to go sideways for quite awhile. That is basically what it (and gold) do... until they occasionally spike to correct for inflation of currency. Barring very lucky market timing, if you buy $1000 in silver and it eventually spikes to $3000, then that $3000 will probably not buy too much more than $1000 would have back when you bought it. You have also missed many other good market opportunities since your money was tied up, and that's why you generally only want a smallish allocation of your overall financial pie chart in metals. They are basically an inflationary hedge, nothing more. That is better used as a part of a balanced overall portfolio than a single investment tool. GL, though... please read good financial investment advice books and educate yourself during the process instead of just checking the spot price of silver every day. :)
 
Above is good advice.

You're young and a bit of speculation is good at this stage, but you're not "investing" in PMs, you're gambling on their value increasing. Not a good strategy. As many have said, gold doesn't generate returns and you have to pay to store it. Being 'all in' is against all smart advice I've seen.

The smart advice is from people like "Barefoot Investor" and his ilk, or find out about the 25% strategy on cash, PMs, Real Estate, Stocks, providing separate income streams and safety nets. There's also good advice here in the archives of SS. Check out posts by nonrecourse for example on keeping up with the tax implications of all you do.

If you're doing an SMSF treat it like second job and put in the hours and it will work out. If you set and forget then any number of paths to ruin are available.

Having a vault of metals is an accumulation strategy, not an investment strategy.
 
Buy Gold.You can lose money with Silver.S ilver is gambling.
Lots of people have lost a lot on this forum with silver ,few have lost with Gold.Silvers for mugs.
 
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If you are going to diversify in the future maybe list the asset classes you would eventually want exposure to and give at least a couple a little $$ from the start. Then you can play with the ratios as you go.
 
most young people dont understand their biggest asset is their future earning potential. 30-40 could be half mil and 40-50 a mil if you are smart. invest in yourself and protect your greatest asset, diversify along the way and research risk management strategies. dont be another perma silver bull posting youtube links to when silver will moon please.
 
Peter said:
Buy Gold.You can lose money with Silver.S ilver is gambling.
Lots of people have lost a lot on this forum with silver ,few have lost with Gold.Silvers for mugs.
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Not sure about this at this price. I sleep better with my physical silver than any my blue chip ADR.

Gold is currently highly sought after, but is not cheap. I also own some gold to "hedge" against silver, but so far not working as both fell.
 
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Great_northern_striker said:
I’m going through the SMSF set up now and intend on using a significant proportion of my Super to invest in mostly Silver and some gold.
I’m only 33 and only half way through my working life (a big maybe right, who knows what the hell could happen in the next 30 years!) and have plenty of time to diversify my investments but right now I’m going all in on silver.
Fell free to tell me I’m an idiot.. I can handle it.
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Bad idea IMO.
Why? Because precious metal do not pay dividends, therefore there is no compounding with time, ZERO payout, ZERO return until you sell. This is a HUGE downside to metal.
Also, look at the last 40 years, silver has only peaked twice. Do you really want to bet that it'll happen again and that you can time it?
You are basically betting you can do that against a practically guaranteed compounded return by investing in an high yield index share fund or similar.
Given your age you should be taking advantage of compounding interest.



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JulieW said:
If you're doing an SMSF treat it like second job and put in the hours and it will work out. If you set and forget then any number of paths to ruin are available.
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You could also (not unlikely) suck at that job and do worse trying to manage it yourself then if you just invested index funds or similar.
You might be better off focusing that time on your own business and/or your own education that can bring in new income, instead of spending the time managing the money you already have.
 
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