Scary Graph - Still Believe Silver is a Good Investment ?

P

Photonaware

Active Member
Fellow stackers - check this chart and ask yourself if silver is ( was ) a good investment ?

731_silver_price.jpg


A steady drop of over 33% ( i.e. one third ) in the past 12 months against similar gains ( 20% plus ) in the stock market over the same period doesn't bode well.
Hindsight is a wonderful thing but pin this chart to your whiteboard and weep.

Newbies rejoice as this might be a terrific time to jump in BUT can silver continue to fall - who has contact with time travellers ?

When you have to hide your virtual losses ( only becomes a loss when you sell ) from your partner then you know it's bad.

Come on silver, get back to where you belong, hopefully before I die of old age.
 
i dont know about you, silver has been fantastic for me and i have been in since $22
 
Whether or not silver is a good investment depends on specific investors and their needs.
In my case I'll make it short and simple and answer that for me yes silver has been a good investment (beaten the banks for me personally, gotta hold it to own it).

As for comparisons against the stock market, you should also note that how companies are selected for the ASX200 [as a quick example] is due to various requirements that companies don't always meet once they have achieved them (ignoring ones that go from such listings to bankruptcy, Ansett being my favorite example). Further; even were you to play the markets there is no guarantee that you will match the stockmarkets yearly performance because of those variables I mentioned (which is also why index investment funds don't always match such performance either) and/or because individual investors don't have enough capital to spread/diversify across the markets to match performance (ignoring leverage as we are talking physical silver vs the markets, though even then this remains true).

There are many more points yet to be covered on the wide variety of issues present with this thread (I know enough about the markets to know I'm better off putting my cupronickel and polymer into real money :) ), but ultimately to try and compare the last 12 months of silver prices vs the stockmarket in the same time frame is comparing apples to oranges, it over simplifies to the point of irrelevence.
 
With currency wars currently taking place, the chart should be in the local currency of the stacker, to fully appreciate what is actually happening.
 
Apparently you're not playing the game well enough.

Some people on the forum buy low, sell high = profit.

You gotta know when to sell I guess.
 
Longer term charts look even worse :/ At least the last few months have proven gold and silver prices can recover very fast..[/quote]
The two (2) year silver chart in A$ is terrible, but the > three (3) chart is much better.
 
Long term outlook is good IMO
(based on average annual price per Kitco.com)

81 years ago 100 USD purchased 400 ounces Ag
51 years ago 100 USD purchased _83 ounces Ag
31 years ago 100 USD purchased __9 ounces Ag
01 years ago 100 USD purchased __4 ounces Ag

If you stack for 2050 and not 2015 short term volatility is of little concern. It's just interesting :)
 
"if everyone is thinking the same, we aren't thinking very much ..."

well I think most stackers are thinking go long.
 
You must log in or register to reply here.
Back
Top