Don't worry stackers who bought high

[Photonaware]

I think the key here is realizing any "smart" investor diversifies. For me, silver is just another way to diversify my investments. I have bought silver in the $20s, $30s, and $40s with no plans to sell any time soon. No one knows where the spot price will go. But IMO investing in a PM that has such a vast number of uses from electronics to antibiotics to jewelry is a great way to diversify.

Absolutely correct.
Diversification is the key and avoid having all your eggs in one basket.
Perhaps limit PMs to 15% of your asset base.
Just a suggestion - hold about half value in gold and the rest silver.

 

[Guest]

those words seem to be a constant in these bullion forums.
we have discussed SHTF at home and cannot see any logical eplanation of how S could HTF in such a way that we will be bartering with junk silver on the streets australia.

We have the impression those that are preparing for an extreme shtf situation are actually hoping for it, almost as if it was their only hope to achieve something great.

The worry one would have of buying high is obvious,
silver doesn't mow the lawn for you or scratch your back.
if you bought in the 40's and into the $50's then it's simple mathematics at this point..

You Lose

I will mow your lawn or scratch your back if you're paying me in silver.

I already have cleaned other people's silver.... for silver.

That said, what is coming will be ignored by many (and even a number of SS members too I'd wager) until it actually happens.

I think it's fair to say a global economic/political meltdown is on the cards. If you don't think so, you're not getting the right information. It's a mathematical certainty.

Preparing for this situation is the first priority for the prudent.

Else you may as well throw your metal in the streets and plug straight back into the matrix, assuming the government will take care of you and your family come what may.

Good luck with that btw.

 

[Guest]

I think the key here is realizing any "smart" investor diversifies. For me, silver is just another way to diversify my investments. I have bought silver in the $20s, $30s, and $40s with no plans to sell any time soon. No one knows where the spot price will go. But IMO investing in a PM that has such a vast number of uses from electronics to antibiotics to jewelry is a great way to diversify.

I AM diversified!

I have GOLD AND SILVER AND COPPER!

Got bullion bars, bullion coins, fractional coins and even jewlery.

How's THAT for diversification, eh?



But the best bit... 100% debt free. No bastard owns my little stack but ME! (best part IMHO!)

Okay, I jest... but I really don't trust the paper/electronic markets at all.

Stocks and shares I already know are majority manipulated and can vanish in an instant & I don't trust the banks in the slightest. A bank holiday and 'poof, it's gone' like that South Park skit.

I trust in what I can hold. Tangible assets with value.

I buy my metals and store it as money.

I buy tangible goods and items for our living inventory (food, household goods and water etc).

And above all... I stay the HELL out of debt!

Alpha Strategy & dollar cost average, long term physical is my motto and so far, it gives me a lot of comfort and allows me to sleep well at night.

http://zombieprepdotnet.files.wordpress.com/2012/01/book2-preface.pdf (it's FREE! READ IT!)

So the price point for buying metals isn't something I think about. My stack is measured in ounces, not worthless fiat.

When the time comes to cash in your chips, the fiat value of the metal ceases to be relevant anyway.

 

[gazzahere]

morning all ,

a couple of points on comments on one of my posts


"and pre-1900 the average was 16:1, but unfortunately, that ratio just isn't applicable in today's markets. Today, it's estimated that gold is 19 times more rare than silver, so we can be bullish and say the ideal ratio would be 19:1, but even that seems unattainable for now. If we take the average ratio going all the way back to 1687 to now, we would get 27:1. Sounds more reasonable to me, and still bullish, but the last 36 years are still against us."

I had commented that "Since the gs price ratio appears to be way out of wack at the moment - I wouldn't be surprised if Ag is also out of wack to it's historic purchasing power."

wrcmad wrote "Out of whack with what?" (morning wrcmad)

Well, in short ------------ history.

The article from the above also mentions that the gsr pre 1900 was 16-1 but has changed dramatically since about 1972. Fair call -- but is that long enough to say the long term game has changed?

The author of http://forums.silverstackers.com/topic- -they.html also says ". and still bullish, but the last 36 years are still against us."

--------- "but the last 36 years are still against us"

What does one take from that?

It would have to mean that one of two things have happened --------- either yes, silver has changed permanently in it's gsr due to some modern circumstance OR it is indeed in a long cycle and is high and due for a correction.

Now what would be useful is a graph going back several hundred years.

I guess it all comes down to personal opinion in the end ---------- but for my money ----------- I cannot see that silver would be relatively valued less now than in history ----------- why? - because we now use it massively for industry ------------ far far more than going back over 100 years ago ---------------------------- so, much greater demand - in total loss usage ---------- does that sound like it would be relatively worth less?
No.

So where is the difference?

How about this ------------------------- coinage.

The gsr has changed dramatically since we devalued our coinage by removing silver ---------- many countries did this and all around the same time.

So, if coinage is a thing of the past ------- then the ratio may have changed permanently. However, although the world would indeed like to go cashless and pure plastic ------------ this is proving rather bothersome at present and presents a rather large opportunity for a first mover nation to capitalise on backing their currency with either gold or silver or both.

Now if that happens ----------------------- what will that mean to the silver industry?

So imo ------------------ we are in a high part of the cycle of the gsr -- a big call without seeing a graph - but I suspect I am correct.

Now one other small point

re. 1 oz of gold buying a good suit traditionally --

Lunarowl wrote (morning Lunarowl) -

"I've read that line many times before..
My 'good' suits cost me 1/10oz - 1/4oz gold each..
Maybe they're not so 'good' after all?

......... off the shelf, fit perfectly, no adjustment needed.. maybe i'm too average "

I covered that in the last part of my post ----------- I think you would have to work on a good 'tailored' suit -------- not off the rack ----------- I would be interested to see your pricing in gold for that.

thanks all

have a great morning

gazza

 

[Guest]

Today, it's estimated that gold is 19 times more rare than silver, so we can be bullish and say the ideal ratio would be 19:1, but even that seems unattainable for now. If we take the average ratio going all the way back to 1687 to now, we would get 27:1. Sounds more reasonable to me, and still bullish, but the last 36 years are still against us."

Not to be rude, but I question the source for this information.

There is already more above ground gold to buy than silver. (ie the ratio for physical to buy is less than 1:1)

Perhaps the below ground silver found and mothballed would go closer to your estimates, but until it's dug up and realised it's largely a moot issue.


With the amount of silver destroyed daily on a global scale, I think the ratio would actually be a big eye opener for many.

In another 10 years, it will be very obvious I think.

There's over 2000 industrial patents for silver's use in industry, second only to oil on a global scale and in the last decade, we've destroyed over 90% of above ground stock.

Physical Silver is FAR more rare than what people are giving it credit for IMHO.

 

[gazzahere]

morning auspm,

I more than likely agree with you --------- I didn't write the article.

I also think we have had a huge hangover of silver supply from when we dumped silver coinage ---------- after all, where did all the silver go? There must still be hundreds of thousands of kilos in every city stored away in old tin boxes and bottles in cupboards.

Silver demand isn't going away -------- in fact it is increasing - or will increase. It seems the higher tech we go, the more silver we use - can't really see that changing for a while ---------- and unlike coins ---------- industrial use of silver results in massive loss - and once it's gone, it's gone.

Whichever way it goes - silver has a high demand future and since it is mainly a byproduct of other mining - it's ratio will always change as gold changes --------- gold goes down - mining slows - production slows -- silver demand still increases ------------- price must go up - relative to gold.

silver is a no brainer for a longer term hold, almost at any time in history.

I would say Cu next and then gold. --------- I prefer gold though - it's pretty (and very portable and hidable).

have a great day

gazza

 

[trew]

My 'good' suits cost me 1/10oz - 1/4oz gold each..

Only because of the recent aberration in the prices of just about everything caused by China.
Suits are cheaper now than they were 20 years ago - only the labour cost has gone down - not the materials.

A good tailor made suit, made with local labour at local labour costs, would probably cost about 1oz of gold.

 

[markcoinoz]

those words seem to be a constant in these bullion forums.
we have discussed SHTF at home and cannot see any logical eplanation of how S could HTF in such a way that we will be bartering with junk silver on the streets australia.

We have the impression those that are preparing for an extreme shtf situation are actually hoping for it, almost as if it was their only hope to achieve something great.

The worry one would have of buying high is obvious,
silver doesn't mow the lawn for you or scratch your back.
if you bought in the 40's and into the $50's then it's simple mathematics at this point..

You Lose

Not really.

You lose when you sell below your buying price.
If you can afford to hold on to your stash that should be your aim.
Not give it away for pittence.
Use fiat to pay for basic necessities and learn how to use a lawnmower.
A persons number one priority should be to obtain new skills.
Being a lawyer or an accountant may not be of much use.

Buying physical Silver or Gold is 100 times better than gambling on the ASX.
At least you have something tangible irrespective of good or bad times.
Unlike many of the charlaton directors in public companies.
If things should go from bad to worse wonder how many companies will be around.


Miniroo, I think you will find stackers are not hoping for a catastrophe.
However, at least they have the wisdom to prepare in case of such a scenario while
the gullible sheep continue on their merry way believing Governments will always come to the rescue.
Yes!! Trust and beleive our "Worlds Greatest Treasurer" has the finger on the pulse.:lol:

As far as I am concerned the EU is only a precursor to what lays ahead.
Even though I have been ridiculed for fairly extreme views at times coming from friends relatives who don't have the
inclination or don't care, will be to their peril.

At the end of the day they don't pay my bills.

I think Barefoot Investor sums it well.

Tread your own path.

Cheers markcoinoz

 

[Austacker]

I also think we have had a huge hangover of silver supply from when we dumped silver coinage ---------- after all, where did all the silver go? There must still be hundreds of thousands of kilos in every city stored away in old tin boxes and bottles in cupboards.

Hey Gazza

I can almost guarantee there is NO stockpile of the old coin supply, at least in Australia and NZ there is not, so I cannot see why the rest of the world isn't. Yes there will be some hoards we have seen them here, but in reality I think these numbers are quite small in comparisons.

Having an interest in Australian Numismatics I have read several books on old coinage and they ALL mention that Millions yes Millions of coins were sent to the US to pay War debt and these were melted down. I also know there was a huge racket in Hong Kong especially for Australian Crowns/Florins. This was shipped via the Merchant Seaman of the years who knew the value then. They would ship, 1000's across the seas.

I would imagine everyone else would be in the same boat, perhaps not the Swiss

 

[wrcmad]

Miniroo, I think you will find stackers are not hoping for a catastrophe.

I'm not so sure about this...

 

[thatguy]

Miniroo, I think you will find stackers are not hoping for a catastrophe.

I'm not so sure about this...

+1
Umm I don't think anyone is hoping for catastrophe, "hope for the best plan for the worst" is about as close as you'll get around here. Guess when you stick your head in the sand it does look a lot like that :|