Look at the spot price for the last 2 years, and you will see many buyers entered at much higher prices than today.
JulieW said:
Hey Jamie Dimon, you listening???
But seriously folks, JulieW makes a highly pertinent point here.
Rather than fret over the ups and downs, take the long term view. Understand yourself, your strategy and why you are in this form of investing.
People who bought at $40 may feel apprehensive, but I take my hat off to you for actually getting off the couch and taking action to INVEST. This beats the majority of people who stand on the sidelines and passively accept that that their wealth is being eroded but will not do anything about it.
Before getting into gold and silver, I thought that economics was something dry and boring. But now that I am gaining an understanding of how geopolitics, global resource (oil) distribution, human greed (!) all contribute to where we are at the moment. Fascinating!!!
It makes any story or plot that Hollywood can dream up trite in comparison.
morning all,
a stacker ---------------------------- what is a stacker?
to me a stacker is one who 'stacks' away a store of value for the future. The reasons might be fear of global collapse, they might be that one feels that stacking pm's (in this case) might be the best or one of the best ways to store value with as little loss over a long period.
Either way - a stacker is NOT a trader, nor is a stacker an investor who expects his stack value to grow - although it well might - the whole point is for the stack to 'maintain' purchase power.
So, are you a stacker or not? - The answer may well lie in your heart rather than your head.
So why question it?
Because unless you know why you are actually participating in an activity - often there is little point --- and great risk.
If one has a clear reason for something - then things that come along can confuse you - it is as simple as that.
So if one asks the question and the answer is that one isn't a true blue stacker - that's fine - and important. It may well turn out that you think you are a trader - and that's fine also ------ but, you would run as a trader completely differently to how you would run as a stacker.
Eg. if one presently trades pm's - but then 'stacks' a small portion of that away for insurance/store of value - whatever the reason for 'stacking' then the thinking about the two portions of the trading become very clear and very different.
The bulk of the purchases and sales are trading ----------- hence, it doesn't matter about price movements ----------- in fact you need these movements to trade - without them, you are dead.
If, occasionally you get stuck with red ink on a trade --------- that, is the price of business ---------------- if you 'consistently' get stuck with bad trades ---------------- then you need to look at what you are doing wrong and learn how to trade and minimise your losses. And that, almost as sure as god made little apples will come down to psychology - and worse still, yours.
for the stacking piece of your profits from trading -------------------- they go into a different part of your safe or wherever you store your metals ---------------- AND THEY GO INTO A DIFFERENT PART OF YOUR THINKING.
You need to have them out of sight and out of mind. They are there for a purpose ------------ and that purpose DOES NOT CHANGE -------------- that purpose is NOT effected by the day to day, week to week, month to month or year to year price of silver or gold ----------------------- they are just a stack of gold or silver hidden somewhere for a future purpose.
If the pog or pos is high - it should not be considered that the stacks have made money. Nor if the prices are down should it be considered that the stacks have lost money ----------------- that thinking defeats all purpose of true stacking.
If one continues to be a stacker to any degree - then there will come a time (assuming one is young enough) that it will be wise to diversify away from pm's - having thousands of kilo's of pm's for purely stacking purposes and nothing else is really quite high risk at that level.
A philosophically driven decision should be made to store value in something other than pm's - and imo the only thing that comes close is again metal ---------- this time, industrial metal.
compared to storing pm's (especially gold) - stacking ind. metals is very very bulky -------------- but, on the positive side - it is moreso a guarantee of a solid store of value than even pm's.
You have all heard that an oz of gold can almost always be relied on to buy you a suit etc. You may have also heard that 1 Sov. will allow 1 family to eat for about a week ------- these numbers have worked for a long time now ------------- however, except for the odd blip in history - did you know that one pound of copper has almost always been worth enough to buy one loaf of bread?
Also, no matter what mankind does -- he will always use industrial metals ----------------- if he ain't constructing things - then he is destroying and plundering -------------------- all of this needs metal.
All worth a think.
have a great sunday
gazza
a stacker ---------------------------- what is a stacker?
to me a stacker is one who 'stacks' away a store of value for the future. The reasons might be fear of global collapse, they might be that one feels that stacking pm's (in this case) might be the best or one of the best ways to store value with as little loss over a long period.
Either way - a stacker is NOT a trader, nor is a stacker an investor who expects his stack value to grow - although it well might - the whole point is for the stack to 'maintain' purchase power.
So, are you a stacker or not? - The answer may well lie in your heart rather than your head.
So why question it?
Because unless you know why you are actually participating in an activity - often there is little point --- and great risk.
If one has a clear reason for something - then things that come along can confuse you - it is as simple as that.
So if one asks the question and the answer is that one isn't a true blue stacker - that's fine - and important. It may well turn out that you think you are a trader - and that's fine also ------ but, you would run as a trader completely differently to how you would run as a stacker.
Eg. if one presently trades pm's - but then 'stacks' a small portion of that away for insurance/store of value - whatever the reason for 'stacking' then the thinking about the two portions of the trading become very clear and very different.
The bulk of the purchases and sales are trading ----------- hence, it doesn't matter about price movements ----------- in fact you need these movements to trade - without them, you are dead.
If, occasionally you get stuck with red ink on a trade --------- that, is the price of business ---------------- if you 'consistently' get stuck with bad trades ---------------- then you need to look at what you are doing wrong and learn how to trade and minimise your losses. And that, almost as sure as god made little apples will come down to psychology - and worse still, yours.
for the stacking piece of your profits from trading -------------------- they go into a different part of your safe or wherever you store your metals ---------------- AND THEY GO INTO A DIFFERENT PART OF YOUR THINKING.
You need to have them out of sight and out of mind. They are there for a purpose ------------ and that purpose DOES NOT CHANGE -------------- that purpose is NOT effected by the day to day, week to week, month to month or year to year price of silver or gold ----------------------- they are just a stack of gold or silver hidden somewhere for a future purpose.
If the pog or pos is high - it should not be considered that the stacks have made money. Nor if the prices are down should it be considered that the stacks have lost money ----------------- that thinking defeats all purpose of true stacking.
If one continues to be a stacker to any degree - then there will come a time (assuming one is young enough) that it will be wise to diversify away from pm's - having thousands of kilo's of pm's for purely stacking purposes and nothing else is really quite high risk at that level.
A philosophically driven decision should be made to store value in something other than pm's - and imo the only thing that comes close is again metal ---------- this time, industrial metal.
compared to storing pm's (especially gold) - stacking ind. metals is very very bulky -------------- but, on the positive side - it is moreso a guarantee of a solid store of value than even pm's.
You have all heard that an oz of gold can almost always be relied on to buy you a suit etc. You may have also heard that 1 Sov. will allow 1 family to eat for about a week ------- these numbers have worked for a long time now ------------- however, except for the odd blip in history - did you know that one pound of copper has almost always been worth enough to buy one loaf of bread?
Also, no matter what mankind does -- he will always use industrial metals ----------------- if he ain't constructing things - then he is destroying and plundering -------------------- all of this needs metal.
All worth a think.
have a great sunday
gazza
goldpelican said:
Hi guys,
I am one of those buyers who bought a lot higher, i still hold
I jumped on here today as i just noticed i can buy 1kg of silver from my dealer for around $870
Im not worried as i still believe in 10 years time silver will be over $100 per oz
I am buying another few kilos Monday
Will it go down again Tues? Probably, but i buy when i have funds to!
Cheers
Peter said:
Peter, you make a great point.
Trouble with PMs is valuation to compare against market price - how do you know what a good price is?
95% of people will listen to the "experts" for that advice, trouble is they keep changing their minds.
Most just take it from the permabulls that you can't go wrong. Was only a month or two ago that "silver under $30 was a gift", and "silver would rocket by June '12". Now stackers are fretting at buying for $26.
You can compare current price to historical prices, but they are manipulated aren't they? so that would not be so smart...... "past performance is no guaruntee of future performance?"
It seems no body really knows where the "value" price point is, and you have to use "gut feel" - (crap, thats a dumb strategy for an investment decision, isn't it?).
So do stackers keep justifying their dumb investment decision with more permabull propaganda and cartel/Bernake blaming?
I don't know.
All I know is, given the current global economic conditions, I can't find a better place for my hard earned ATM than PMs.
Ghost Story
Active Member
sorry, AUD
afternoon,
"It seems no body really knows where the "value" price point is, and you have to use "gut feel"
perhaps.
I would have thought a true blue stacker was in pm stacking to preserve value/wealth - nothing more, nothing less.
So it doesn't really come down to if silver is worth $26 or $2.50 or $1000 per oz ----------- what it should come down to is what an oz of silver will buy you - ie. it's worth in goods.
Gold and copper seem to have a long term realistic valuation ---------- 1 oz of gold traditionally buys you a good suit and 1 lb of Cu will buy you a loaf of bread.
Of course this isn't 100% of the time - but is mostly true. This appears to have been true for hundreds of years if the stories are correct.
Doesn't that then mean that the true value of gold is -------------------- 1 suit for 1 oz and Cu -------- 1lb for 1 loaf of bread? Anything above that would be overvalue and anything below would be undervalue.
If that is the case then the 'cost' of that gold or Cu in dollars/pounds/peso's is irrelevant ------- it is the purchase power that is relevant.
It seems to me that gold isn't far off the mark at the moment $1500 to $1600 - but Cu is about right also - about $3.30 something.
I am not sure about silver - I don't have a historical guide other than labour --- I think purchase power of a good is more accurate.
I reckon if you looked at the price of a staple like bread/flour/possibly rice/wheat then compared it to an oz of Ag, you would probably find a correlation.
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.
If that is true then Ag is more than likely seriously undervalued.
One thing that I suppose would have to be taken into account is the change in society to do with gold and soforth purchase power - a lot of things have got cheaper - suits for instance - cheap suits off the rack are probably not as good a guide as a tailored suit - bread maybe ok - flour should be cheaper because of broadacre farming - but a few other things might be more expensive - making it balance - either way they are a guideline imo.
have a great arvo
gazza
"It seems no body really knows where the "value" price point is, and you have to use "gut feel"
perhaps.
I would have thought a true blue stacker was in pm stacking to preserve value/wealth - nothing more, nothing less.
So it doesn't really come down to if silver is worth $26 or $2.50 or $1000 per oz ----------- what it should come down to is what an oz of silver will buy you - ie. it's worth in goods.
Gold and copper seem to have a long term realistic valuation ---------- 1 oz of gold traditionally buys you a good suit and 1 lb of Cu will buy you a loaf of bread.
Of course this isn't 100% of the time - but is mostly true. This appears to have been true for hundreds of years if the stories are correct.
Doesn't that then mean that the true value of gold is -------------------- 1 suit for 1 oz and Cu -------- 1lb for 1 loaf of bread? Anything above that would be overvalue and anything below would be undervalue.
If that is the case then the 'cost' of that gold or Cu in dollars/pounds/peso's is irrelevant ------- it is the purchase power that is relevant.
It seems to me that gold isn't far off the mark at the moment $1500 to $1600 - but Cu is about right also - about $3.30 something.
I am not sure about silver - I don't have a historical guide other than labour --- I think purchase power of a good is more accurate.
I reckon if you looked at the price of a staple like bread/flour/possibly rice/wheat then compared it to an oz of Ag, you would probably find a correlation.
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.
If that is true then Ag is more than likely seriously undervalued.
One thing that I suppose would have to be taken into account is the change in society to do with gold and soforth purchase power - a lot of things have got cheaper - suits for instance - cheap suits off the rack are probably not as good a guide as a tailored suit - bread maybe ok - flour should be cheaper because of broadacre farming - but a few other things might be more expensive - making it balance - either way they are a guideline imo.
have a great arvo
gazza
DoolBrevlis
Member
I bought in the twenties, thirties and forties.miniroo said:
I haven't sold a grain thus far.
I have a fair amount of .999 silver bullion tucked away somewhere in a very safe place.
I did not lose.
In fact, I am buying in the twenties again. I will buy in the thirties and forties again too.
For as much as I have the extra fiat in which to gain more silver, I will until I can't anymore.
gazzahere said:
Out of whack with what?
Pundits can't even agree what the GSR should be:
http://forums.silverstackers.com/topic-27680-precious-metals-are-on-sale-or-are-they.html
fishball said:
Me too - oh well
It's like looking into a mirror
OK, reality check for me here When you guys say SHTF, how bad are you talking? Because if the clerk at the store won't take my paper monopoly money for goods and services, what makes you think he'll take a shiny "unknown" coin for actual food? He won't.
Now, if you just mean that when the excrement strikes the impeller the economy will be horribly poor and PMs will have much more value, I agree, but the common person is still not going to care. It will be a time to invest for those who can afford to and wait for better times to sell.
But if, like I said, you really mean the breakdown of society where paper money is no longer valued by anyone, and we end up in a barter system, I think an investment in some German firearms would be a wiser decision...
When you guys say SHTF, how bad are you talking? Because if the clerk at the store won't take my paper monopoly money for goods and services, what makes you think he'll take a shiny "unknown" coin for actual food? He won't.Now, if you just mean that when the excrement strikes the impeller the economy will be horribly poor and PMs will have much more value, I agree, but the common person is still not going to care. It will be a time to invest for those who can afford to and wait for better times to sell.
But if, like I said, you really mean the breakdown of society where paper money is no longer valued by anyone, and we end up in a barter system, I think an investment in some German firearms would be a wiser decision...
Contrarian
New Member
Dont worry stackers who bought high??
Don't worry first home buyers who bought at the peak?
Don't worry investors who stayed in the sharemarket too long?
Everyone gets caught eventually, unless you're a trader.
C
Don't worry first home buyers who bought at the peak?
Don't worry investors who stayed in the sharemarket too long?
Everyone gets caught eventually, unless you're a trader.
C
psujeepguy
New Member
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.