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

[Guest]

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//

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[plata]

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.

you can sell your silver here very easy, and since you are in Melb., face to face, same day won't be a problem either. I had been there!
Do not have to worry at all!

 

[Yippe-Ki-Ya]

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 .....

:lol:

that's really funny!

 

[Yippe-Ki-Ya]

No !!! i agree Ozi

lol - why waste "Kings cash" then on PMs? :lol:

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 !!!!!

mate - cash is like a white hot coal ... i dont hang on to it for longer than a nanosecond!


i exchanged some silver (real money) for other goods and services... i dont keep cash - ever! :lol:

 

[purplefunkything]

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//

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[renovator]

lol - why waste "Kings cash" then on PMs? :lol:

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 !!!!!

mate - cash is like a white hot coal ... i dont hang on to it for longer than a nanosecond!


i exchanged some silver (real money) for other goods and services... i dont keep cash - ever! :lol:

You dont keep cash ever ? Thats crazy talk i tells ya crazy!!!! :

 

[Lovey80]

The 10% was relating to lovey80's "modest 10%". 10% would be huge at the moment.

Cash would not leave my account unless I thought I could guarantee a minimum of 10% and am fairly confident of a 20+% annual gain.

I would have been into physical PMs around early 2008 but figured I could make much bigger gains 'punting' and using the gains to push into PMs at a later date.

About 6 months ago I had to make a decision, sell some assets to pay for an off shore fishing boat or get a loan and hopefully beat the interest rate from the bank with the same cash invested. I got the loan.

 

[boston]

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//

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[fishball]

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[Teh silvers]

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[RetardedMonkey]

Silver satisfies my hunger of buying something tangible, but is also a good wealth store and rarely depreciates.

 

[ReturnToZero]

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.

You are a god.

I don't praise much but this my friend - is gold (yes I notice the irony).

As I always say - keep 20% of your portfolio in cash - dry powder is what gets you the bargains.

 

[lucky luke]

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

Hope your not under the impression that I've only been in PMs for the last 3-4 years. If so, then your seriously mistaken. I've been trading for at least 12 years. Since 2001 (last 10 years), it's been predominantly gold. Had I listened to all the "its in a bubble talk" which has been also going on the last 10 years, I would never have invested and never been in a position to regularly capture profit.

 

[malachii]

Point was more to highlight that you can cherry pick anytime and make an investment look good. In this case you highlighted the last 4-5 years. I was just highlighting a previous period to make cash look better. You could probably highlight a different period to make the metal detector look good

malachii

 

[Ilikemetals]

To be honest i'm very disappointed in hearing this imminent news of the reduction in PM prices. It's nice to put a positive spin on it and yell out that it's just another buying opportunity, but i would have rather have bought ALL of my silver during this buying opportunity at this lower price, rather than having forked out so much previously for nothing.

I would really like to start seeing some profits by now... to have to wait longer and also see my stack depreciate in value is really annoying... Luckily the fundamentals point to long term growth so at the end i'll be up. Could have been earning good interest on fiat though to spend on MORE silver if i had of just waited longer.

 

[jpanggy]

To be honest i'm very disappointed in hearing this imminent news of the reduction in PM prices. It's nice to put a positive spin on it and yell out that it's just another buying opportunity, but i would have rather have bought ALL of my silver during this buying opportunity at this lower price, rather than having forked out so much previously for nothing.

I would really like to start seeing some profits by now... to have to wait longer and also see my stack depreciate in value is really annoying... Luckily the fundamentals point to long term growth so at the end i'll be up. Could have been earning good interest on fiat though to spend on MORE silver if i had of just waited longer.

That is why it is important to spread your purchase, especially when the prices are high.

 

[lucky luke]

Point was more to highlight that you can cherry pick anytime and make an investment look good. In this case you highlighted the last 4-5 years. I was just highlighting a previous period to make cash look better. You could probably highlight a different period to make the metal detector look good

malachii

Yeah but I wasn't cherry picking to make any investment look good. The FACTS are as they are. And I didnt' get the detector in a different period, and so it doesn't look good because the reality is I got it when I got it, and I still have it.

If you want to have a downer on your investments or investment period, then thats your choice. But you won't be pissing on my sunshine "sunshine".

 

[getiton]

i heard that you could make a tidy profit buying handbags such as the hermes birkin as well! and they don't depreciate much, some even go up due to rarity.

 

[Aureus]

It really depends on what your average cost is per oz I think. I would take 10k in the bank today over 10k in Silver, simply because I think something is going to happen soon.

My average is low enough that I can ride out any disasters, probably even a GFC, and while i'd go to square one again at $20/oz I would not have lost anything. I really beleive in Silver don't get me wrong but I wouldn't dare buy to raise my average price into the $40s, at least not with so much uncertainty flying around.

I realize my thoughts put me in the minority here but that's my take.

 

[getiton]

good for those who bought early like you. those who just joined have no choice.