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

[getiton]

so where are we now? dip or not? buy or not?

 

[BlackSheep]

so where are we now? dip or not? buy or not?

I think nobody (or maybe very few, know the answer to that question) I certainly don't!

I hedged my bets at the end of August and jumped in with 50% of my cash into both G&S and bought during the smaller ongoing dips, my reasoning being that I can leave that money in metals for as long as it takes it to be worthwhile cashing it out (even if it's my kids that end up doing it). I do hope however that at some stage in the next 5 to 10 years I have realised sufficient leverage to use some/all of those funds tied up in PM's to get some income producing assets such as real estate.

The rest is sitting there waiting to see if it takes off or has a big dip before it does - if it has a major dip again before taking off I will be trying to buy like mad if i can get it, if it takes off at least I'm in allready and I can always use my remaining cash to buy other hard assets that my family will find usefull, or maybe bite the bullet and buy some more PM's at the higher prices.

I'd obviously much prefer to bring my cost average down than bring it up - accounting for postage and premiums my DCA's are $43 and $1829, obviously not ideal compared to many here, although it's a risk I can afford to take - can you?

Frankly I wish I'd come across some more reasonable posts like Romans encouraging a more rational approach than the majority which imply to a newby to "get in at any price" attitude - as the old saying goes "you make your money when you buy"

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

 

[Yippe-Ki-Ya]

So how certain are you that a dip is coming? 100%

if not - that silly advice

I was certain in May because I'm not blind.

hindsight is always useful

 

[Yippe-Ki-Ya]

So how certain are you that a dip is coming? 100%

if not - that silly advice

I was certain in May because I'm not blind.

ummm ... seems pretty logical to me :lol:



newsflash - 99.999% of the population ISN'T buying silver... it really doesn't get any more contrarian than that!

1.Each to their own but I buy on dips, not when Silver is rising. If you think it is logical to buy on the up, well, good for you.

2.I'm not talking about everyone, I'm talking about those who invest in silver so again your argument fails to make sense. If you're going to quote me at least make sure you understand where i'm coming from.

Both are right - yes buy when no-one else is buying, but doesn't mean you should buy high. there are mini booms and busts among the bigger picture booms and busts - why pay more? Roman is pointing out that yes it's good you are actually smart enough to be in PM's, but you should be even smarter than that.

There are 2 types of investors here, the smart type who know PM's are on the up and up, get in on dips, have dry powder and see it purely as an investment. Then there are who know PM's are on the up and up but don't know how to buy in the dips, have no dry powder and buy on emotion. Yes, I'm looking at the "I keep everything in PM's save for a few bucks so I can buy food" type here. No cash means if your car breaks down and you need $5000 tomorrow, you could be selling in a trough and when there is a giant dip, you have no cash to buy more. Hardly a good strategy.

I'm proud to be one of those types...

seeing as how this is a bull run, i'm quite happy to take my chances at selling silver as and when i need to - so far i've always been able to sell for more than i bought for ...

The troughs are there, but they're few and far between.

 

[Yippe-Ki-Ya]

so where are we now? dip or not? buy or not?

I think nobody (or maybe very few, know the answer to that question) I certainly don't!

I hedged my bets at the end of August and jumped in with 50% of my cash into both G&S and bought during the smaller ongoing dips, my reasoning being that I can leave that money in metals for as long as it takes it to be worthwhile cashing it out (even if it's my kids that end up doing it). I do hope however that at some stage in the next 5 to 10 years I have realised sufficient leverage to use some/all of those funds tied up in PM's to get some income producing assets such as real estate.

The rest is sitting there waiting to see if it takes off or has a big dip before it does - if it has a major dip again before taking off I will be trying to buy like mad if i can get it, if it takes off at least I'm in allready and I can always use my remaining cash to buy other hard assets that my family will find usefull, or maybe bite the bullet and buy some more PM's at the higher prices.

I'd obviously much prefer to bring my cost average down than bring it up - accounting for postage and premiums my DCA's are $43 and $1829, obviously not ideal compared to many here, although it's a risk I can afford to take - can you?

Frankly I wish I'd come across some more reasonable posts like Romans encouraging a more rational approach than the majority which imply to a newby to "get in at any price" attitude - as the old saying goes "you make your money when you buy"

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

i bought "all in" a couple of years ago when many were saying the very same thing you and Roman are saying now!
i'm real happy i did then ... just like a year or two from now, anybody buying all in now will be just as happy.

savvvie??

 

[Nukz]

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

I agree with this statement, I think diversification is important right now. I got some silver/gold bullion, I have quite a few shares of what i call defensive stocks (Newcrest, Telstra, Wesfarmers). I also have some more speculative stocks(recently put quite a fair amount into Bluescope when it sunk to 70c, also got abit of Cochlear stocks after there recent collapse) i see these stocks as having quite good potential to swing back. I also have some small cap mining stocks that are abit of fun to hold.

I also like to hold cash in the bank because 6.5% is not all that bad. I said this is previous posts as well i like to over time put aside small amounts of cash than i can store.

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

 

[940palmtx]

You know a bank paying interest? LOL

 

[BlackSheep]

i bought "all in" a couple of years ago when many were saying the very same thing you and Roman are saying now!
i'm real happy i did then ... just like a year or two from now, anybody buying all in now will be just as happy.

savvvie??

And good on you, I wish I had the foresight to get in a lot earlier, although I'm certainly glad my first lot of panic purchases (made before i had conducted anywhere near enough research) were not made around the end of April But then again I do have a proven track record of being a lucky bassard - I guess time will tell how well my luck holds with my late'ish entry into this market.

I imagine the possibility exists that anyone buying all in now might get to experience the same feeling of elation and smugness that you are now able to, although if you haven't noticed the market has changed quite a lot from when you went all in, IMHO the risks for violent swings either way are far greater now.

I think I can confidently say that buying at todays prices you can almost guarantee that yes they will see the value of their holding increase very signifigantly in the fututre - to assume it will definately happen within a finite period of time though is pretty dumb if you ask me, although we all obviously hope that will be the case it is in no way guaranteed, any market has a way of dealing with those who like to deal in absolutes

I understand that I am a newby at metals and certainly don't claim to know what the best thing to do is. I am sharing my personal thoughts as a newbie to this game, although I do have several decades of experience with investing in other asset classes (with reasonable success) and many of the same principles work across any form of investment type.

Because it worked for you in the past gives absolutely no guarantee that it will work in the future. Please let's not confuse investment with speculation.

 

[alor]

holding silver bar on your hand, nobody dare to come near you, if the guy is big in size, you can let go your silver bar on his feet.
try holding a bank book , you can get rob. and no way to fight back.

 

[Yippe-Ki-Ya]

i bought "all in" a couple of years ago when many were saying the very same thing you and Roman are saying now!
i'm real happy i did then ... just like a year or two from now, anybody buying all in now will be just as happy.

savvvie??

And good on you, I wish I had the foresight to get in a lot earlier, although I'm certainly glad my first lot of panic purchases (made before i had conducted anywhere near enough research) were not made around the end of April But then again I do have a proven track record of being a lucky bassard - I guess time will tell how well my luck holds with my late'ish entry into this market.

I imagine the possibility exists that anyone buying all in now might get to experience the same feeling of elation and smugness that you are now able to, although if you haven't noticed the market has changed quite a lot from when you went all in, IMHO the risks for violent swings either way are far greater now.

I think I can confidently say that buying at todays prices you can almost guarantee that yes they will see the value of their holding increase very signifigantly in the fututre - to assume it will definately happen within a finite period of time though is pretty dumb if you ask me, although we all obviously hope that will be the case it is in no way guaranteed, any market has a way of dealing with those who like to deal in absolutes

I understand that I am a newby at metals and certainly don't claim to know what the best thing to do is. I am sharing my personal thoughts as a newbie to this game, although I do have several decades of experience with investing in other asset classes (with reasonable success) and many of the same principles work across any form of investment type.

Because it worked for you in the past gives absolutely no guarantee that it will work in the future. Please let's not confuse investment with speculation.

Investing in gold/silver now is not at all speculation - at worst it can be called a "calculated risk", at best a "sure thing".
Keep educating yourself and you will understand what i mean by this.

Have a listen to what people like Peter Schiff have to say and you'll be off to a great start.
Mike Maloney also has a knack for explaining things in an easy to understand manner. and yes - he DOES know what he's talking about!

 

[ReturnToZero]

You know a bank paying interest? LOL

Um, all of them?

The point is YKY, maximizing your returns.

If you needed that 5k for bail money today but the price was down 10%, you just locked in 10% less profit. If you had that in cash instead, you wouldn't have to lock it in. You can just pay bail with cash.

On the flip side, if silver just crashed 20% and you have $2 in the bank, well, you're not buying any are you.

Any who, everyone's strategies are different, so if it works for you then all the more power.

 

[gbickle]

Ag is actually pretty good in aud at the moment.... but there is a strong support line at $1.02 us/aud .... I don't think it will lower but if it does could be interesting

 

[BlackSheep]

Investing in gold/silver now is not at all speculation - at worst it can be called a "calculated risk", at best a "sure thing".
Keep educating yourself and you will understand what i mean by this.

Have a listen to what people like Peter Schiff have to say and you'll be off to a great start.
Mike Maloney also has a knack for explaining things in an easy to understand manner. and yes - he DOES know what he's talking about!

As far as research goes that's a good start, although I'd hardly call acting on the basis of just those two sources taking a calculated risk

I have read and listened to each of the above authors and material from many other sources and will continue to do so. I still feel I know enough to just begin to scratch the surface of understanding PM investment. Yes these guys have a lot to say that is worth listening to, although if that's as far as your research goes you have only just begun.... I would certainly say that to jump all in in one hit based purely on that small amount of research is stupid with a capital S.

Your advice might be fine for a young single person on a high income that doesn't mind rolling the dice as an investment strategy, heck I've done that more than a few times on the way to making (and losing) several fortunes - when you've lost $10 Mill overnight in one hit you can learn some valuable lessons if you don't end up topping yourself.

Your comments throughout this forum are alarmingly similar to comment I read on stock forums and property forums from people that believe that particular asset class is the "only way to go" and everyone who disagress with them is either a "troll" or an "idiot". It smacks of being a zealot and to me seems not a great deal of personal thought and reason has gone into either their position, or the potential effect of repeatedly shoving their opinion down the throats of others as being the only choice. :/

Stop to consider that your situation (whatever that is) is likely very different from others. It disturbs me deeply that a young family might take your advice as gospel and not understand that there are indeed risks. I can assure you the only two things that are a "sure thing" is Death and Taxes.

This sheep knows a cowboy when he see's one and I think anyone reading this post and given it some calm rational thought should be able to spot one too. :|

p.s. Whilst it might be fine to take the Red Pill instead of the Blue pill I strongly recommend you don't take them both at once or your "ride off into the sunset" at the end of the movie might involve a tarring and feathering first :lol:

 

[grinners]

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

At worst, we have to wait a decade or two and all the accessible silver is gone from the ground.

I don't think you can lose on this one if time is on your hand.

 

[ReturnToZero]

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

At worst, we have to wait a decade or two and all the accessible silver is gone from the ground.

I don't think you can lose on this one if time is on your hand.

Huge Huge Huge call mate, decade or two? References please.

 

[grinners]

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

At worst, we have to wait a decade or two and all the accessible silver is gone from the ground.

I don't think you can lose on this one if time is on your hand.

Huge Huge Huge call mate, decade or two? References please.

http://www.safehaven.com/article/13451/silver-long-term

http://maxkeiser.com/2011/04/08/sil...come-extinct-shooting-price-per-oz-past-gold/

This is the study:

http://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2010-silve.pdf

Suggesting that at the current rate of mining economically accessable silver will be gone in 20 years.

But the 2010 year updated the reserves to 510,000 tonnes. I'd suggest both mining of silver and the accessable reserves will likely increase in tandom.

Either way, it is going to get rarer, and more expensive, to mine silver.

 

[ReturnToZero]

At worst, we have to wait a decade or two and all the accessible silver is gone from the ground.

I don't think you can lose on this one if time is on your hand.

Huge Huge Huge call mate, decade or two? References please.

http://www.safehaven.com/article/13451/silver-long-term

http://maxkeiser.com/2011/04/08/sil...come-extinct-shooting-price-per-oz-past-gold/

This is the study:

http://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2010-silve.pdf

Suggesting that at the current rate of mining economically accessable silver will be gone in 20 years.

But the 2010 year updated the reserves to 510,000 tonnes. I'd suggest both mining of silver and the accessable reserves will likely increase in tandom.

Either way, it is going to get rarer, and more expensive, to mine silver.

Very good sir, you have earned my respect - good articles.

 

[Photonaware]

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

I agree with this statement, I think diversification is important right now. I got some silver/gold bullion, I have quite a few shares of what i call defensive stocks (Newcrest, Telstra, Wesfarmers). I also have some more speculative stocks(recently put quite a fair amount into Bluescope when it sunk to 70c, also got abit of Cochlear stocks after there recent collapse) i see these stocks as having quite good potential to swing back. I also have some small cap mining stocks that are abit of fun to hold.

I also like to hold cash in the bank because 6.5% is not all that bad. I said this is previous posts as well i like to over time put aside small amounts of cash than i can store.

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

Wow 6.5% from a bank ??
Did you check this rate recently or 5 years ago ?
Which bank is offering such a rate - National Bank of Greece ?
Is there a guarantee against default by this bank ?

If you can share this information I will cash in my stocks and shares and consider moving into cash as it is a better return than the stock market on average.l

 

[fishball]

We get 6.51% in Australia...

 

[renovator]

Having said all of that my opinion is that it's still worth making a partial investment now if you're not allready in, although I do question the "all in" approach as being highly risky.

I agree with this statement, I think diversification is important right now. I got some silver/gold bullion, I have quite a few shares of what i call defensive stocks (Newcrest, Telstra, Wesfarmers). I also have some more speculative stocks(recently put quite a fair amount into Bluescope when it sunk to 70c, also got abit of Cochlear stocks after there recent collapse) i see these stocks as having quite good potential to swing back. I also have some small cap mining stocks that are abit of fun to hold.

I also like to hold cash in the bank because 6.5% is not all that bad. I said this is previous posts as well i like to over time put aside small amounts of cash than i can store.

I believe if you go all in silver then you are either going to get lucky and make it big or your going to get hit.

Wow 6.5% from a bank ??
Did you check this rate recently or 5 years ago ?
Which bank is offering such a rate - National Bank of Greece ?
Is there a guarantee against default by this bank ?

If you can share this information I will cash in my stocks and shares and consider moving into cash as it is a better return than the stock market on average.l

A few banks in australia give over 6%