Should We Ask ourself Better Questions?

Cinvalo

Cinvalo

Member
While we are all silver stackers in here and we all see the potential of silver in the long term already, we stack silver as an investment to increase our wealth. After reading many articles on personal development and investing, i begin to understand the idea that true wealth is created by servicing more people using our skills and knowledge. Service to many leads to greatness.

Instead of asking about the short term price fluctuation of silver which is only important to traders, may our time be utilized to create a business out of silver investing to service others. ;)
[Note: No offense here]

Here is what i think.
http://www.corruptionofrealmoney.com/displayfullarticles.php?id=20#.UeECW6wrqSo
 
I stack silver to preserve not to increase my wealth.
At current situation, my attempt gave away 30% of it, excluding the tax I paid on the silver purchase.
But yes, 'true' wealth is generated by servicing other people using our skills and knowledge. Because then they do the same for us. With some exceptions though, the money for nothing clubbers around, including government, that even put this theft in a legal framework, as to being able to go beyond misleading: force.
 
Some of us stack gold and silver in order to "preserve" our purchasing power, but some of us stack silver to "increase" our wealth. But it really need to depends what is our reference point of our current wealth is. For example, if Tom and Mary are both buying a house worth $500,000 by Dec 2015. Tom is saving in currency $100,000AUD for down payment and Mary needs to save up 4554oz of Silver (@$21.96 AUD/oz)for her downpayment. (Yes , Lady Stackers ;) ).

So the down payment house price for Tom is $100,000AUD

And the down payment house price for Mary is 4554oz of silver (@$21.96 AUD/oz)

Assume they already save up that amount by Jan 2015

Throughout the year house price climbs to $600,000, silver spikes up to $100/oz because of a sudden unprecedented short squeeze in demand of PM.
Now
Tim will be further away from his goal as he needs $120,000 AUD for down payment instead of $100,000 AUD
Mary will be closer to her goal as she only need to pay down 1200 ounce of silver as down payment. She can use the remaining 3354 ounce of silver to pursue other interests or maybe increase her downpayment such that she carry a lower mortgage.

Do you see this case as an increase in wealth?
 
Cinvalo said:
Some of us stack gold and silver in order to "preserve" our purchasing power, but some of us stack silver to "increase" our wealth. But it really need to depends what is our reference point of our current wealth is. For example, if Tom and Mary are both buying a house worth $500,000 by Dec 2015. Tom is saving in currency $100,000AUD for down payment and Mary needs to save up 4554oz of Silver (@$21.96 AUD/oz)for her downpayment. (Yes , Lady Stackers ;) ).

So the down payment house price for Tom is $100,000AUD

And the down payment house price for Mary is 4554oz of silver (@$21.96 AUD/oz)

Assume they already save up that amount by Jan 2015

Throughout the year house price climbs to $600,000, silver spikes up to $100/oz because of a sudden unprecedented short squeeze in demand of PM.
Now
Tim will be further away from his goal as he needs $120,000 AUD for down payment instead of $100,000 AUD
Mary will be closer to her goal as she only need to pay down 1200 ounce of silver as down payment. She can use the remaining 3354 ounce of silver to pursue other interests or maybe increase her downpayment such that she carry a lower mortgage.

Do you see this case as an increase in wealth?
Click to expand...


How about recalculating your example based on real numbers and turning the clock back two years.
Mary purchases silver in 2011/12 at $40 an ounce then sells in 2013 at $20 an ounce.
This is how things stand today.
 
Cinvalo said:
Some of us stack gold and silver in order to "preserve" our purchasing power, but some of us stack silver to "increase" our wealth. But it really need to depends what is our reference point of our current wealth is. For example, if Tom and Mary are both buying a house worth $500,000 by Dec 2015. Tom is saving in currency $100,000AUD for down payment and Mary needs to save up 4554oz of Silver (@$21.96 AUD/oz)for her downpayment. (Yes , Lady Stackers ;) ).

So the down payment house price for Tom is $100,000AUD

And the down payment house price for Mary is 4554oz of silver (@$21.96 AUD/oz)

Assume they already save up that amount by Jan 2015

Throughout the year house price climbs to $600,000, silver spikes up to $100/oz because of a sudden unprecedented short squeeze in demand of PM.
Now
Tim will be further away from his goal as he needs $120,000 AUD for down payment instead of $100,000 AUD
Mary will be closer to her goal as she only need to pay down 1200 ounce of silver as down payment. She can use the remaining 3354 ounce of silver to pursue other interests or maybe increase her downpayment such that she carry a lower mortgage.

Do you see this case as an increase in wealth?
Click to expand...
I didn't say that stacking couldn't increase (or decrease) wealth, but that is not necessarily the motivation for stacking. You could buy 20kg of rice when it's on special as a hedge against inflation or the possibility of the special not being available in the future or you could buy it as a hedge against the rice not being available in 6 months for example. You could also buy it because you wanted to make a rice sculpture and place it on the mantelpiece.
 
Yes Photonaware and bordsilver, you are right. I incline to agree with you guys. :) Whether Silver increase or decrease ones' purchasing power depends on when he/she sells her investment. If house price in AUD falls by Dec 2015 then Tom will increase his purchasing power through cash. Same as the case for Mary, if the silver price of house increase by Dec 2015 and she is forced to sell, then Mary have reduced her purchasing power. We are all on the same page ;)
 
bordsilver said:
You could buy 20kg of rice when it's on special as a hedge against inflation or the possibility of the special not being available in the future or you could buy it as a hedge against the rice not being available in 6 months for example. You could also buy it because you wanted to make a rice sculpture and place it on the mantelpiece.
Click to expand...
I like the sound of this. I'll give you spot+20% for all your rice.
 
Great thread subject...Absolutely you should .. You have to take EVERYTHING as fiction about silver until you do your own DD.

I refuse to believe anything from silver pimp sites such as silverdoctors,zero hedge etc until I see it on a neutral site also. Jason Hommel & their ilk are trying to sell you a load of dreams with every newsletter.

Not many here like it when I point out that silver spent most of our lives around $5
 
Careful when buying large quantities of rice, I heard just recently a Chinese restaurant got robbed by 6,000 ants disguised as white rice.
 
Silver isn't even a great investment. It produces no regular income. Is only a good investment if at some point you sell for a profit, and we may have to wait a long time to make significant gains. There are far more other items that you can buy and immediately sell for a greater profit. Although this can be done with silver items as well, if you know what your buying.
 
Cinvalo,

I like the way you think about these issues. Being of service to others is actually always at or near the very top on my list of daily priorities.

In the real world, for every stacker that I have ever run across and have come to know, "preserve" as opposed to "increase" wealth is a game of semantics that is played and really both are just the same side of a coin. I don't know any stacker who doesn't hope that the value of their pm investment doesn't increase relative to other assets and their currency. Hypothetically I suppose there may be a person out there somewhere who envisions and hopes that the value of their pm investment doesn't increase relative with all other assets and currency.

Silver is an asset that becomes an investment when you buy it in order to increase (or "preserve") your wealth. It, like any other investment, comes with risk. It is not very liquid in most places and in most cases unless you are pretty much giving it away compared to what it's normal valuation is. That would apply for fuel, or corm, or high quality diamonds or any asset that I can think of.


.
 
BamaGuy said:
Great thread subject...Absolutely you should .. You have to take EVERYTHING as fiction about silver until you do your own DD.

I refuse to believe anything from silver pimp sites such as silverdoctors,zero hedge etc until I see it on a neutral site also. Jason Hommel & their ilk are trying to sell you a load of dreams with every newsletter.

Not many here like it when I point out that silver spent most of our lives around $5
Click to expand...


http://smallbusiness.yahoo.com/advisor/worst-jobs-report-means-160740342.html

Neutral enough site? Take the time to consider the possibility that the U.S. is headed for more economic troubles.
 
BamaGuy said:
Great thread subject...Absolutely you should .. You have to take EVERYTHING as fiction about silver until you do your own DD.

I refuse to believe anything from silver pimp sites such as silverdoctors,zero hedge etc until I see it on a neutral site also. Jason Hommel & their ilk are trying to sell you a load of dreams with every newsletter.

Not many here like it when I point out that silver spent most of our lives around $5
Click to expand...

BamaGuy.. The point you make about silver being around the $5 mark is certainly true but today( I can only speak about silver in Australia)..The price here follows the price up and down just like in the US and also the value of both currencies plays a roll..

What is different at the moment here in Australia now that silver is at $22 AU, is that there are a lot more people buying..Where do I get this information from.. Answer my local coin dealer. I asked him recently what was it like when silver was last at $5oz.. I said it must have been great when you could buy a 10oz bar for $55.. I was surprised by his answer, "there were no buyers". Trade in silver bullion and silver coins was non-existent. No one was interested.

I am a keen stacker of $10 RMA state coins/birds...Currently buying them at $14 and the stop gap price at the bank is $10 fiat..If silver ever drops to $5 oz again, then I doubt if anyone will sell these coins for $3 (.6oz silver) when they can get $10 at the bank..That is what happened last time.

I live in a small city of 100,000 including surrounding towns/farms and the local coin shop owner says that he estimates that there are only 30 stackers.

I would love to hear from anyone from Greece or Cyprus on what happened to silver prices there when the banks stole their money.

Gold was king in Argentina when that country experienced hyper-inflation in recent years.

Back to the original topic, Should I stack to preserve wealth or to make $$$, Can I have 500ozs silver each way at $5oz. :)

Regards Errol 43
 
Banks didn't steal anyones money in Cyprus. people who lost money had more than the deposit insurance covered.

Just like your home.. If it's insured for $100,000 and it burned to the ground with $200,000 in assets ,the insurance only covers the $100,000

We have the same scheme here in the USA called Federal Deposit Insurance..
 
mmissinglink said:
In the real world, for every stacker that I have ever run across and have come to know, "preserve" as opposed to "increase" wealth is a game of semantics that is played and really both are just the same side of a coin. I don't know any stacker who doesn't hope that the value of their pm investment doesn't increase relative to other assets and their currency. Hypothetically I suppose there may be a person out there somewhere who envisions and hopes that the value of their pm investment doesn't increase relative with all other assets and currency.
Click to expand...
+1.
Strangely though, one has moralistic connotations, while the other has capitalist connotations.
Guess which side of the fence most stackers choose to sit? :lol:
 
BamaGuy said:
Banks didn't steal anyones money in Cyprus. people who lost money had more than the deposit insurance covered.

Just like your home.. If it's insured for $100,000 and it burned to the ground with $200,000 in assets ,the insurance only covers the $100,000

We have the same scheme here in the USA called Federal Deposit Insurance..
Click to expand...

I was led to believe that everyone that had an account up to 100,000 had to take a haircut of 6%, overseas investors lost the lot, and those with account of over 100,000 euros took a much larger haircut.

Also you were limited to withdrawals of less than 300 euros. Also you couldn't take money out of the country.

The new bank in schemes being implemented right through the G 20 countries will put a final stop on people getting their own savings back if the bank collapses because shareholders have to be paid first.

Do you really trust the banks mate?

Regards Errol 43
 
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