How is holding silver better than holding cash in the bank?

[BootyBandit]

People on this forum are saying i hope silver falls back to $20/oz or i hope it falls back into the 30s, so if you bought at $44/oz and it falls to $20, how is it better to have silver than to have cash in the bank earning intrest? Im just saying this because i bought a large amount for $46/oz and I have a feeling im never going to see my money again (just a gut feeling)

 

[Diablo21]

They want it to fall back so they can buy more, in their opinions silver will rise to a lot higher dollar figure in the long run. That's why they want to buy more when it goes down.

 

[fishball]

Are you stacking PMs because you don't want to wake up one day and suddenly find that all your 'money' is worthless?

It's like insurance, the monthly payments being "forgone interest rate".

Silver is "real money" or at least a "real asset".

Anyway I bought some at $50/oz during April/May hype... you live and learn don't feel too bad.

The lesson is: Buy a bit here and there, not all at once at one point in time.

Be grateful you didn't have to watch $49 drop all the way to $31 haha.

 

[Angavar]

If you are a buyer of something, you should cheer lower prices.

I have decades before I retire, so I will be a net buyer of investments for many years yet. Hence, I should want prices to drop on investments I am interested in - regardless of whether this is PMs, stocks, property etc.

You only want prices to be high once you become a net seller.

 

[hiho]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

 

[Trichter]

bankrun

 

[lamp]

Maybe I'm wrong or still too new into silver stacking, recently I see liquidation issue when holding silver, just in the case when I desperately need cash, I would get into trouble if holding silver instead of gold. I know where to walk in and just have my gold sold rather than sale via the internet, but not sure about silver. - Again, my limited knowledge and I'm still learning.

 

[systematic]

i think the only liquidation issue when selling gold or silver is the asking price over spot

 

[dccpa]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

I consider myself a relatively conservative investor and that is why I am almost totally in pms.

 

[Yippe-Ki-Ya]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate

 

[Lovey80]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate

I completely disagree there YKY. If they have presence of mind to have 20% in PM like myself, I think they are very smart. If 20% is their insurance and at least exposed they are aware of the risks out there and will be the ones looking for that point when they go "all in". They are aware of how our corrupt money system works and are hopefully using it to their advantage until the day comes to "pull the trigger".

In saying that hopefully that 20% is just a percentage figure and not a set ounce or $ value in PM's. As they use the system to gain more wealth they will be adding ounces to the stack to keep them at the 20% etc.

In saying that I am a firm believer in having your money working for you, having 1000 ounces in a safe is great but those 1000 ounces don't sit in there and breed more ounces. I like the 20% figure because you can have the other 80% doing the breeding for you.

Take these two examples:

Punter A has 100k to invest, he buys 80% worth of his portfolio in silver @ $40 and ounce and sits on his 2000 ounces. Uses the last 20k to invest and manages a modest 10% return. Assuming during this cycle silver stays constant he adds 50 ounces a year to his stack. All the while he is completely exposed to very volatile silver prices that are manipulated with 100's of times worth of multiples in paper trading

Punter B is in the same situation and puts 20% into silver and sits on his 500 ounces and invests his 80k and manages a modest 10% return. He adds 8k = 200 ounces per year to his stack. He is 4 times less exposed to the JP Morgans of this world and closely monitors when the game is up to add his final 60% into his stack.

If I am right and it will take another crisis to light the after burners on this bull there is going to be a very good buying op that precedes it. assuming he makes his 8k annual profit before the market goes south, he has 68k of powder ready to pull the trigger on that buying op that should be significantly lower than the original $40oz buyin that both of them started with.

That's the way Im approaching this anyway. If someone has the presence of mind to be at least 20% exposed to physical right now before SHTF you can be sure they are aware of the risks ahead.

 

[Yippe-Ki-Ya]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate

I completely disagree there YKY. If they have presence of mind to have 20% in PM like myself, I think they are very smart. If 20% is their insurance and at least exposed they are aware of the risks out there and will be the ones looking for that point when they go "all in". They are aware of how our corrupt money system works and are hopefully using it to their advantage until the day comes to "pull the trigger".

In saying that hopefully that 20% is just a percentage figure and not a set ounce or $ value in PM's. As they use the system to gain more wealth they will be adding ounces to the stack to keep them at the 20% etc.

In saying that I am a firm believer in having your money working for you, having 1000 ounces in a safe is great but those 1000 ounces don't sit in there and breed more ounces. I like the 20% figure because you can have the other 80% doing the breeding for you.

Take these two examples:

Punter A has 100k to invest, he buys 80% worth of his portfolio in silver @ $40 and ounce and sits on his 2000 ounces. Uses the last 20k to invest and manages a modest 10% return. Assuming during this cycle silver stays constant he adds 50 ounces a year to his stack. All the while he is completely exposed to very volatile silver prices that are manipulated with 100's of times worth of multiples in paper trading

Punter B is in the same situation and puts 20% into silver and sits on his 500 ounces and invests his 80k and manages a modest 10% return. He adds 8k = 200 ounces per year to his stack. He is 4 times less exposed to the JP Morgans of this world and closely monitors when the game is up to add his final 60% into his stack.

If I am right and it will take another crisis to light the after burners on this bull there is going to be a very good buying op that precedes it. assuming he makes his 8k annual profit before the market goes south, he has 68k of powder ready to pull the trigger on that buying op that should be significantly lower than the original $40oz buyin that both of them started with.

That's the way Im approaching this anyway. If someone has the presence of mind to be at least 20% exposed to physical right now before SHTF you can be sure they are aware of the risks ahead.

That is an extremely powerful and well thought out example. thanks for that.

the reason i'm "all in" is that i am too chicken-shit that i may miss the "buying opportunity" that you speak of...
i'm afraid that those running the circus may cause it to crash much quicker and more unexpectedly that most of us can understand right now.

to my mind - i am the "conservative investor" and somebody like yourself is taking more of a chance.
but i do appreciate where you're coming from and you could very well be right!

 

[jedichampion]

Are you stacking PMs because you don't want to wake up one day and suddenly find that all your 'money' is worthless?

It's like insurance, the monthly payments being "forgone interest rate".

Silver is "real money" or at least a "real asset".

Anyway I bought some at $50/oz during April/May hype... you live and learn don't feel too bad.

The lesson is: Buy a bit here and there, not all at once at one point in time.

Be grateful you didn't have to watch $49 drop all the way to $31 haha.

Words from the wise one

 

[Ozi]

cash is king....gold is insurance....silver is speculation...

 

[Yippe-Ki-Ya]

cash is king....gold is insurance....silver is speculation...

bit of an over-simplification wouldn't you say?

 

[jpanggy]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate

Is there no possibility that they have other hard assets? Like I don't know, maybe machinery to produce things, properties on which said machineries stand, vehicles, metals, and some other assets that guards even better against true shtf than silver and gold?

Financial shtf however, affects everyone and everything equally.

 

[Silverthorn]

PMs are something you should save out of income rather invest in with your capital. Having said that you have to be aware of your environment. If interest rates are zero percent it's harder to earn income on capital so investing a big chunk of your capital becomes something to consider.

If I could get 10% with little risk PMs would become much less of a consideration, depending on the inflation rate.

 

[Yippe-Ki-Ya]

you shouldnt be all in if thats the way you feel, not saying you are but 20% in PM's is considered quite high by conservative investors

these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate

Is there no possibility that they have other hard assets? Like I don't know, maybe machinery to produce things, properties on which said machineries stand, vehicles, metals, and some other assets that guards even better against true shtf than silver and gold?

Financial shtf however, affects everyone and everything equally.

most mean shares and property when they refer to other investments.

 

[Yippe-Ki-Ya]

PMs are something you should save out of income rather invest in with your capital.

Is this your own rule of thumb?

Surely one's capital is simply that which you have saved from your income?
so not sure why you make the distinction.

Having said that you have to be aware of your environment. If interest rates are zero percent it's harder to earn income on capital so investing a big chunk of your capital becomes something to consider.

If I could get 10% with little risk PMs would become much less of a consideration, depending on the inflation rate.

you're a very brave man ... and also very optimistic!
I certainly wouldn't waste money on an investment returning only 10% as the true rate of inflation is higher than this

 

[fishball]

Capital is made up of Debt + Equity YKY.

So he is probably advocating not to borrow (debt) to buy PMs which is sage advice