Is silver just a trap

[fishtaco]

Some stackers have fallen into by chance?

I have slowed down on purchases because I feel I have plenty of it already and have spread that across a few fun to acquire silver coin collections but there just seems no end to the amount of silver and types of silver for sale around the world and all at a higher price than its true value.


I started buying silver for my retirement perhaps a little bit of wealth that could quite easily fall under the radar of any future government money grabs if I in fact needed it under the radar.

I intend to continue buying silver but my focus is now on smaller amounts of Gold which may also be a trap but what I purchase I can afford to loose in both silver and gold because I have never invested large enough sums to effectively feel any a loss if loss occurs.

Are too many stackers expecting to da moon or SHTF or the collapse of money? because none of that is going to happen in the near future as I see it, much of the silver we buy is being sold to us by our governments anyway and the very same governments some are trying to hide or hedge against.

I am fortunate in that silver spot has never for me been over $23au an oz but there is nothing to say that silver wont be the same price in 20 -30 years as it is today?

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it? especially higher premium silver? people may be forced to sell the higher premium silver at spot making little to no profit before the fear of a big fall after the rise.

 

[Skyrocket]

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it?

The same people that were buying it all the way up to $49 in 2011.

 

[fishtaco]

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it?

The same people that were buying it all the way up to $49 in 2011.

Once bitten twice shy and they aint shy about letting others know about it!

 

[wrcmad]

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it?

The bidders who bid it up there.
Price doesn't get to any level without a willing buyer.

 

[fishtaco]

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it?

The bidders who bid it up there.
Price doesn't get to any level without a willing buyer.

Not done with physical by silver stackers so they have no say either way really! Just because the silver spot goes up doesn't mean stackers will pay the higher price and dealers will only want to pay stackers spot for top premium if it goes up a lot and quickly.

 

[ninteno]

the same people that did say S&P500 was expensive @650 points back in 2009 did buy today @2000 points and think its cheap. its all only sentiment thinking driven by financel analysts. once wall streets sentiment changes that paper investments are only a third party promise i am sure you will buy an ounce of silver @ $50 ++++
in financial world nothing is based on fundamentals its all about sentiment.
it will take a lot of time before a change in fundamentals will also change the sentiment
but time is running and the fundamentels have strongly changed back in the year 2007/2008 when the financel system was short before falling.

 

[fishtaco]

the same people that did say S&P500 was expensive @650 points back in 2009 did buy today @2000 points and think its cheap. its all only sentiment thinking driven by financel analysts. once wall streets sentiment changes that paper investments are only a third party promise i am sure you will buy an ounce of silver @ $50 ++++
in financial world nothing is based on fundamentals its all about sentiment.
it will take a lot of time before a change in fundamentals will also change the sentiment
but time is running and the fundamentels have strongly changed back in the year 2007/2008 when the financel system was short before falling.

Talking about "silver stackers" here who buy and stack physical silver not share market investors, everyone already knows paper silver ist worth the paper its written on and sentiment hasnt changed the price?

If silver was sitting around $50 for a long period then I would buy at $50+ but chances of silver going high and remaining high are just the same as it going low and staying low or moving up and down with constant highs/lows

 

[1for1]

Once silver starts rocketing up it will be "hot" when its sideways or down its not .. investment is always about what is hot... last year everyone "had" to be in Graphite.. this year it is lithium, silver is less fickle but once its up $1 a day and people start to notice it again you will be licking your lips and thinking about all the money you can make by buying it.. greed will see Silver once again give for a massive run quite simply

 

[Caput Lupinum]

I'm pretty sure I can liquidate my amplified paper silver/gold gains over the past two months (a lot more than the physical gains over the past two months) into fiat and covert it into more physical metals if I choose to despite the lack of collapse in the paper market tomorrow, but I'm more interested in return of investment which is of no interest to pure physical gold/silver bugs

 

[wrcmad]

I cant see myself ever buying silver if it reached over $28 au spot in a relatively short period and if it did skyrocket up who is going to buy it?

The bidders who bid it up there.
Price doesn't get to any level without a willing buyer.

Not done with physical by silver stackers so they have no say either way really! Just because the silver spot goes up doesn't mean stackers will pay the higher price and dealers will only want to pay stackers spot for top premium if it goes up a lot and quickly.

One word - arbitrage.
Arbitrage is the leveller. There is no disconnect.

 

[fishtaco]

The bidders who bid it up there.
Price doesn't get to any level without a willing buyer.

Not done with physical by silver stackers so they have no say either way really! Just because the silver spot goes up doesn't mean stackers will pay the higher price and dealers will only want to pay stackers spot for top premium if it goes up a lot and quickly.

One word - arbitrage.
Arbitrage is the leveller. There is no disconnect.

I beg to differ! I dont see stackers swapping to other than silver because that is the "now " place to be sinking your money for quick profits! so with silver and "stackers" there "is" defiantly a disconnect.

Define a Silver stacker? and it seems you will get a high % of failed stock market mum and dad investors trying to make a buck or two along with the wealth preservation silver stacker types!

 

[fishtaco]

I'm pretty sure I can liquidate my amplified paper silver/gold gains over the past two months (a lot more than the physical gains over the past two months) into fiat and covert it into more physical metals if I choose to despite the lack of collapse in the paper market tomorrow, but I'm more interested in return of investment which is of no interest to pure physical gold/silver bugs

I believe you get my point.

But some seem to be falling into a physical silver purchase market and expecting almost instant gains! you read it here all the time, is this not just a silver trap for the stacker being thrown in amongst the profit making wolves professing to be fellow silver stackers?

 

[tiddleyetom]

I never thought id be paying over double as much for silver today as I did in 04'
I was also buying gold in 04' at around $US400 per oz
Check out the ratios, time to buy silver again me thinks

 

[fishtaco]

I never thought id be paying over double as much for silver today as I did in 04'
I was also buying gold in 04' at around $US400 per oz
Check out the ratios, time to buy silver again me thinks

Are ratios really relevant to the future just because they seem relevant to the past?

 

[wrcmad]

Not done with physical by silver stackers so they have no say either way really! Just because the silver spot goes up doesn't mean stackers will pay the higher price and dealers will only want to pay stackers spot for top premium if it goes up a lot and quickly.

One word - arbitrage.
Arbitrage is the leveller. There is no disconnect.

I beg to differ! I dont see stackers swapping to other than silver because that is the "now " place to be sinking your money for quick profits! so with silver and "stackers" there "is" defiantly a disconnect.

I've seen it. It was rife in the 2011/12 spike.
Stackers couldn't get their hands on enough phys at >$40 before it went to $100.
The "now" place to be sinking cash when things are running hot is a well observed behaviour of any market, and phys silver is no different.
This is not conjecture. There is already a precedent. Should silver ever reach the dizzying heights of a few years ago, people will scramble in again.
As well, there is no disconnect, and never has been. The disconnect theories go in swings-and-round-abouts depending on retail supplies, and is all Zerotruth or Seekingbrains propaganda.

As for arbitrage.... it is not the stacker using it to maintain pricing continuity, but it is there.

Define a Silver stacker? and it seems you will get a high % of failed stock market mum and dad investors trying to make a buck or two along with the wealth preservation silver stacker types!

100% agree.
Ultimately a high % of stackers are very unsophisticated investors. They know it, so defend their positions with a lot of dubious assumptions and theories, as without these, they have little else to turn to.
This characteristic goes hand in hand with the behaviour mentioned above - once their convictions look to be even a little bit confirmed, they tend barrel in like wild bulls without much consideration, and lick their wounds afterwards whilst still maintaining their position is correct.

 

[Holdfast]

But some forget that... some of the bullion coins have done really well.

One can't "generalize" the spot price and the price of modern coins, sure some haven't done so well but some have and as with any investment, if you look at the overall picture I'd say those who stack Perth Mint bullion coins are doing just dandy.

 

[Court Jester]

But some forget that... some of the bullion coins have done really well.

One can't "generalize" the spot price and the price of modern coins, sure some haven't done so well but some have and as with any investment, if you look at the overall picture I'd say those who stack Perth Mint bullion coins are doing just dandy.

or the early XAG rounds

 

[mmissinglink]

For people looking to invest their money into something like a commodity or asset and make a profit on selling that commodity or asset, it's not so important what the current price is, but rather what they anticipate the price will be tomorrow or at some future point.

For those looking merely to preserve the value of the money they've earned by exchanging it for pm's....the current price is also not so important. For these stackers, the viability (or lack thereof) of their current currency is far more important (but not the only thing they see as important).

Current price says something about the relative value of an asset/commodity but it doesn't tell the whole picture of the value of that asset/commodity.



.

 

[mmissinglink]

But some forget that... some of the bullion coins have done really well.

One can't "generalize" the spot price and the price of modern coins, sure some haven't done so well but some have and as with any investment, if you look at the overall picture I'd say those who stack Perth Mint bullion coins are doing just dandy.

or the early XAG rounds

Or perhaps soon to be the early 2 oz silver Ultra High Relief Elemetal Mint rounds.



.

 

[barsenault]

Good debate. I was one of those sucked into the hype when silver was at 40'ish. And all sorts of silver coins were getting 'consumed.' I think they'll always be the crowd that thinks silver and gold are going to da moon. If it went from 15 to 30, then surely it will go from 30 to 60...greed sets in, and people will buy at any cost. I'm glad that I have an account like ownx.com where I may store a huge chunk of ounces of silver, and I don't have to worry about selling 1 oz of silver at a time. That will take a long time. I have a hunk of 1 oz kooks, and lunars and pandas, and larger size lunars too (2, 10, kilo). The bigger hunks are a bit better for me to sell, because the premiums aren't as large, and I get a big hunk of money when sold. Ownx.com is a place where one can have 2000 or more physical ounces, and at the hit of the button can sell them all back to ownx.com for cash. No long wait. No shipping. No eBay fees. No PayPal fees. Just hit a button, and done. However, if I wanted to take delivery, I can do that too. Not a bad gig, as long as what they say is true is true. LOL.