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

fishball said:
Capital is made up of Debt + Equity YKY.

So he is probably advocating not to borrow (debt) to buy PMs which is sage advice :)
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I always thought capital was the same as assets ... or at least that portion of one's assets that you could liquidate quickly an use to buy other assets?

therefore, in my case,

capital = cash + PMs

however, taking your definition:

if capital = debt + equity

what's wrong with using equity to buy PMs?
 
Nothing. He was basically saying to use equity not debt to buy that's all. I was merely clarifying the difference between "Capital" and "Equity" (income saved).
 
jpanggy said:
Yippe-Ki-Ya said:
hiho said:
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
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these kind of "conservative investors" are gonna be in a world of hurt when their paper portfoilios disintegrate
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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.
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I bought a metal detector in 2005 for approx $3000. Were I to sell it today, I'd get about $3000 (despite the huge interest currently in detecting gold).

I bought 30 x 1oz krugerrands at about the same time (when AU was about $600 per oz). Sold them at profit a few years later when gold was at approx $1000/oz. Had I held on to them, each would be worth approx $1800 per oz.

Had I put $3000 in the bank in 2005, I'd have little more than that still sitting in the bank plus interest.

In the above example, the metal was definitely a better investment than either the metal detector or "king" cash.
 
Ozi wrote:
cash is king....gold is insurance....silver is speculation...(unless purchased at around $15)....

so Ozi, what is silver purchased at around $15 called?
 
Silverthorn said:
The 10% was relating to lovey80's "modest 10%". 10% would be huge at the moment. :)
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I've seen prices of stuff go up by 20 to 30% in one go this year!

true inflation is definately above 10% ...

so i still dont see fiat growing at 10% pa is a brainwave?
 
For a start cash is fiat ,which is pretend money and basically worthless unless of course people all say its worth something which is the case today.
If the banks shut and change the currency you lose all that cash,but not silver,it will be able to be exchanged as will gold.
Silver is real money.
 
We
lamp said:
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.
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We have had a few SS members here, who at one time or another, had to turn their silver into fiat when caught short of fiat due to some emergency. If you put it up for sale at around spot , you will have your fiat in a short period of time.

Regards Errol 43
 
It's easy to hang your hat on quotes and well published statements. But when stuff looks dodgy the smart money holds $USD and insures that with gold....silver could go either way....except the 1oz silver bullion dragons .....
 
Yippe-Ki-Ya said:
renovator said:
Yippe-Ki-Ya said:
bit of an over-simplification wouldn't you say?
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No !!! i agree Ozi
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lol - why waste "Kings cash" then on PMs? :lol:
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What if you already have your fill of pms ? & decided there was no where favourable to put that cash ? so you keep it sitting there until its needed & when its needed its king !!! This topic has been going aroung here like herpes & everyone has different strategies.So yippee didnt you just sell some silver i think i seen you flogging some pamps if im not mistaken .What did you exchange it for ? bottlecaps? .Oh i know .....CASH !!!!! :lol: Hahahaha yep cash is king dont deny it if you had the cash you wouldnt have had to sell your silver !!!!!
 
luckylukeonline said:
I bought a metal detector in 2005 for approx $3000. Were I to sell it today, I'd get about $3000 (despite the huge interest currently in detecting gold).

I bought 30 x 1oz krugerrands at about the same time (when AU was about $600 per oz). Sold them at profit a few years later when gold was at approx $1000/oz. Had I held on to them, each would be worth approx $1800 per oz.

Had I put $3000 in the bank in 2005, I'd have little more than that still sitting in the bank plus interest.

In the above example, the metal was definitely a better investment than either the metal detector or "king" cash.
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Well, If you'd bought the metal detector in 2000 for $3000 and sold it for $3000 in 2003

or

Bought your silver in 2000 for $5 oz and sold it in 2003 for $5 oz

or

Put your $3000 in the bank in 2000 @ 8% on a 3 year term deposit and pulled in out in 2003

You'd be better off in cash.

Moral of the story - if you have only been in PMs for the last 3-4 years and only seen it go up like it has in the last 3-4 years - that's all you ever think it will do.

malachii
 
I don't know how or why ,but I know it's better for me
Until I got into bullion just over 12 months ago ,I was always broke & living pay check to pay check
Now on my worst day I have $200 in my pocket ,on a good day like yesterday I had over $2k in my pocket
I don't care how it works ,but it works for me
I still don't have any $ in my bank account ,but I'm comfortable with my little stash

smiley-whacky111.gif
 
spannermonkey said:
I don't know how or why ,but I know it's better for me
Until I got into bullion just over 12 months ago ,I was always broke & living pay check to pay check
Now on my worst day I have $200 in my pocket ,on a good day like yesterday I had over $2k in my pocket
I don't care how it works ,but it works for me
I still don't have any $ in my bank account ,but I'm comfortable with my little stash

http://i28.photobucket.com/albums/c220/dannydodge/Doodles/smiley-whacky111.gif
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Ditto, but I've been into bullion since '06 and yeah, works for me. I too see gold as insurance and silver as speculative and yes we all need to swap our PM's when we need cash because that's what we're all using at the moment...good thing it's not tulips hey :)
 
pm's for me is the best savings account around....i dont hold any cash and when i do need cash i sell some metal. why keep "money" in the bank when you know it only goes onto to the balance sheet of the bank as an asset and then they can do their fractional reserve banking and give you little interest. i was buying silver at $12 an oz and gold at $700 and i still buy metal when i can...i dont really look at the price of the metal when i buy or sell....in for the long term and know that the more the banks keep printing promises metals will keep their up ward climb..economics 101: the more dollars out there chasing the metal will icnrease the price...if i bought a chunk load of silver at $46 i would keep myself happy by looking at the share market and its trend to the one of silver....keep at it and think that metal is the ultimate asset//
 
BootyBandit said:
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)
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I'm in around $40 too. If your not selling for a couple of years, no worries. You can't inflate the silver supply like you can the dollar supply. Interest will be eaten up by fiat inflation, you'll go though that interest money fast.
 
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