Silver - a store of value? Really?

[mmissinglink]

Owning physical generic silver bullion (blobs) requires costs of storage and/or security measures/equipment to protect this commodity. These costs can quickly add up over several years depending on your specific situation. Also, there may be significant transportation costs associated with owning physical silver....depending on the situation of course. Some people insure their silver which is an additional cost.

When determining the value of physical silver, you need to include any and all offsetting costs including any of those already noted above.


As we've clearly seen over the last several years, silver has fallen in value greatly (due to the spot price ) and at best it's value has been going more or less sideways since its plunge.

There's also no guarantee whatsoever that the spot price of silver won't plunge significantly lower and lose even more value. Even if the spot price goes sideways...most physical silver owners are very likely losing value due to associated costs as noted above.


If silver doesn't maintain its value.... in what universe can silver be a store of value??




.

 

[Jim4silver]

Owning physical generic silver bullion (blobs) requires costs of storage and/or security measures/equipment to protect this commodity. These costs can quickly add up over several years depending on your specific situation. Also, there may be significant transportation costs associated with owning physical silver....depending on the situation of course. Some people insure their silver which is an additional cost.

When determining the value of physical silver, you need to include any and all offsetting costs including any of those already noted above.


As we've clearly seen over the last several years, silver has fallen in value greatly (due to the spot price ) and at best it's value has been going more or less sideways since its plunge.

There's also no guarantee whatsoever that the spot price of silver won't plunge significantly lower and lose even more value. Even if the spot price goes sideways...most physical silver owners are very likely losing value due to associated costs as noted above.


If silver doesn't maintain its value.... in what universe can silver be a store of value??




.

Is there any thing that acts as a store of value that is guaranteed to never lose its value? Real estate, stocks, bonds, paintings, jewelry, etc, all have values that can fluctuate over time, just like silver.

PS By value I mean actual buying power not nominal digits. For example, I am preempting a reply that says "my 100K in the bank will never be worth less than 100K (assuming no negative interest rates implemented)", when in reality that 100K may buy you more or less five years from now than it does today (dynamic value).

Jim

 

[spannermonkey]

Gold as a store of value
Silver is for speculators
Diamonds also as a store of value if your in that league

 

[Aureus]

It can be a store of value because it isn't a perishable commodity, but like all investments you're not guaranteed anything.

unless you're a Jew in the diamond game that is

 

[Phil_Stacker]

I agree with both sides. Again,even the dealers say you should balance your wealth. I have several hundred k in shares that lost 20% last year and earlier this year. It has recovered but not fully and not on real terms (net present value).

I have a property that dropped 100k before I bought it (from the last sale price) and has now gone up to a valuation 200 k above my purchase price. But I think it will crash below my purchase price soon.

I have cash at "high interest" getting about 1% over inflation. That is not a good investment.


The silver and gold is purely a liquid hedge. I'm not after big returns and I think long term net present value will remain constant.

I have a job that has increased income 200% in a few years.

So my best income is ME! Education and experience.

As for the surplus over living expenses I'm diversifying into precious metals but only a % and not expecting big returns or losses. In fact, I'm just having a lot of fun!

Edit - fixed some typos (fat finger - little phone).

 

[SilverDJ]

So my best income is ME! Education and experience.

This!

 

[mmissinglink]

It can be a store of value because it isn't a perishable commodity, but like all investments you're not guaranteed anything.

unless you're a Jew in the diamond game that is

I want to be re-incarnated as such....I'm just not sure what prayer will work to ensure that!

Is there any thing that acts as a store of value that is guaranteed to never lose its value?

That's the point....nothing is a store of value, not silver, not gold, not platinum, not real estate, not stocks, not fiat money.....nothing.....everything is temporary and susceptible to devaluation. The difference is no one that I've ever come across except a number of precious metals stackers goes around asserting that the asset or commodity they have invested money in is a store of value. Why do silver or gold bugs alone do that?? :/




Phil Stacker....well put!




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[spannermonkey]

It can be a store of value because it isn't a perishable commodity, but like all investments you're not guaranteed anything.

unless you're a Jew in the diamond game that is

I want to be re-incarnated as such....I'm just not sure what prayer will work to ensure that!

.

Really ?
So you'd be up for 12 years of brainwashing at school ?
And to live the "religious lifestyle " for all the $ you could swindle

 

[mmissinglink]

It can be a store of value because it isn't a perishable commodity, but like all investments you're not guaranteed anything.

unless you're a Jew in the diamond game that is

I want to be re-incarnated as such....I'm just not sure what prayer will work to ensure that!

.

Really ?
So you'd be up for 12 years of brainwashing at school ?
And to live the "religious lifestyle " for all the $ you could swindle

"Brain washing" is relative.


And besides, lots of money sure can buy a lot of comfort and convenience!




.

 

[spannermonkey]

I want to be re-incarnated as such....I'm just not sure what prayer will work to ensure that!

.

Really ?
So you'd be up for 12 years of brainwashing at school ?
And to live the "religious lifestyle " for all the $ you could swindle

"Brain washing" is relative.


And besides, lots of money sure can buy a lot of comfort and convenience!




.

You have no idea about the lifestyle you would have to lead
And the $ isn't spent on "comfort & convenience " it's hoarded

 

[mmissinglink]

Really ?
So you'd be up for 12 years of brainwashing at school ?
And to live the "religious lifestyle " for all the $ you could swindle

"Brain washing" is relative.

And besides, lots of money sure can buy a lot of comfort and convenience!

.

You have no idea about the lifestyle you would have to lead
And the $ isn't spent on "comfort & convenience " it's hoarded

It would be a complete change of pace for me....I'm game for new adventures!

(and don't take me seriously on wanting to be a hasidic diamond seller....I've been poking fun of Aureus' comment)




.

 

[Phil_Stacker]

We are all brainwashed in that we have a set of core beliefs that we will never change no matter what evidence is put before us.

Some people have core belief that X, Y or Z WILL happen, whether that is a religious event, economic event, climate event, and so on. Nothing will sway them (especially not facts). Even a broken clock is the most accurate timepiece on earth twice a day, and these people will see this as proof-positive they were right all along.

Medium term I think metals will remain roughly steady, with production roughly steady, and usage roughly steady (supply and demand).

Short term I think metals will go up and down, predicting how far down to wait to buy and how far up to sell is where the money is "made", and either way you will be kicking yourself because it is almost impossible to sell and buy at the perfect time. But then that's no different to any other market. Property has overheads (rates, stamp duties, real estate fees, maintenance), income from shares/deposits are taxed (income and capital gains), so what investment is good?

I'm considering setting up a company called "For Charity" then getting teams of people to collect money "For Charity". As a safety measure I'm changing my name to "The Obviously Innocent Man" so that if I ever get taken to court the Judge will have to ask the Jury "How do you find The Obviously Innocent Man?"

 

[finicky]

@mmissinglink

Fervently agree. Bitter experience for me to sell Lge consignment of silver under much pressure. Held much of this silver for a decade or more. Earliest bars bought with much excitement 2002 - 2003, lol. Only a small proportion bought during the heady $40+ aud days. Held personally, so no storage or insurance in the cost base. Some of it was vintage bars. Some was convenient 1kg and 10 oz bars, monster box of unblemished Maples. Delivery to dealer from whom I had bought a lot of it, $440; everything got payment at spot, except Maples a buck/oz extra. Did the capital gains tax return, close to zilch capital gains.

Very poor and inconvenient investment.

 

[mmissinglink]

We are all brainwashed in that we have a set of core beliefs that we will never change no matter what evidence is put before us.

Some people have core belief that X, Y or Z WILL happen, whether that is a religious event, economic event, climate event, and so on. Nothing will sway them (especially not facts). Even a broken clock is the most accurate timepiece on earth twice a day, and these people will see this as proof-positive they were right all along.

Medium term I think metals will remain roughly steady, with production roughly steady, and usage roughly steady (supply and demand).

Short term I think metals will go up and down, predicting how far down to wait to buy and how far up to sell is where the money is "made", and either way you will be kicking yourself because it is almost impossible to sell and buy at the perfect time. But then that's no different to any other market. Property has overheads (rates, stamp duties, real estate fees, maintenance), income from shares/deposits are taxed (income and capital gains), so what investment is good?

I'm considering setting up a company called "For Charity" then getting teams of people to collect money "For Charity". As a safety measure I'm changing my name to "The Obviously Innocent Man" so that if I ever get taken to court the Judge will have to ask the Jury "How do you find The Obviously Innocent Man?"

Clever and funny.....I totally appreciate your perspective.

@mmissinglink

Fervently agree. Bitter experience for me to sell Lge consignment of silver under much pressure. Held much of this silver for a decade or more. Earliest bars bought with much excitement 2002 - 2003, lol. Only a small proportion bought during the heady $40+ aud days. Held personally, so no storage or insurance in the cost base. Some of it was vintage bars. Some was convenient 1kg and 10 oz bars, monster box of unblemished Maples. Delivery to dealer from whom I had bought a lot of it, $440; everything got payment at spot, except Maples a buck/oz extra. Did the capital gains tax return, close to zilch capital gains.

Very poor and inconvenient investment.

I'm really sorry to hear this and by no stretch of the imagination are you alone. I have read others' testimony and personally know at least 1 person who purchased pm bullion believing the permabullcrap claims that pm's are a store of value and then these people needed to sell at some point in the last couple of years and lost value.

Of course pm's are not necessarily any more a store of value than are stocks, real estate, or fiat money....each type of "savings" with their own risks.

Gold and silver Permabulls lob onto me their hate when I point out truths like these because it's a very, very inconvenient truth for them.




.

 

[Bigfella]

Diamonds

I would say are more manipulated than Silver and Gold put together.

Stockpiled stones released in a dribble to keep the price up.

Gold as a store of value
Silver is for speculators
Diamonds also as a store of value if your in that league

 

[r1lee]

Diamonds are no longer a store of value, IMO. Totally manipulated and can now be man made.

 

[Skyrocket]

It's wise/good to have a portion of ones wealth in physical precious metals especially in these gloomy times with all these inflated bubbles everywhere. I'll keep stacking thanks.

 

[mmissinglink]

Skyrocket,

I'm not suggesting that stacking is a bad idea altogether - just that physical pm's aren't a guaranteed store of wealth any more than any other commodity, asset, or thing that someone can invest their money into.

If I thought that pm's were always a bad way to invest one's money and could never in a million years act as a store of wealth at the right time, then I myself would no longer be buying pm's....but I still do.

In other words, it's never all-or-nothing, black-or-white, throw-the-baby-out-with-the-bath-water as far too many pm stackers unfortunately see it. These stackers (usually the end-of-times/SHTF global-currency-collapse-tomorrow types foolishly see pm's as a magical panacea now and always. Level headed people see physical pm's as simply one possible avenue in which to invest some of one's money into. I'm not saying that a global currency collapse can never happen, just that it's very unlikely to happen in the foreseeable future. And even though this is what I believe, I think that it's also very reasonable to hold the view that one could be buying certain assets like pm's in hoping for the best while planning for the worst....just so long as one doesn't delude them self into believing things out of hysteria, unreasonable fear, or ridiculous conspiracy theories.





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[Court Jester]

t best it's value has been going more or less sideways since its plunge.

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<--------------------------SIDEWAYS--------------------->

Welcome to 3 years ago since Ive been saying this

 

[James]

I don't detect a true market price for gold/silver coming out of London/NY etc. It's a sham market in paper options.