Forgive my ignorance but I have a really basic question I'm trying to get my head around. FYI, I'm a newly minted stacker, just started my stack this month, my safe is getting delivered tomorrow. So here's my question, in the event that the price of silver does rise dramatically as many of you feel it eventually will, who exactly do you think will be looking to buy your stack? This question applies to the crazy projections of $500 silver as well as the more realistic ones of lets say $100 silver, i.e. who in their right mind is going to give me $100 (or $500) for 1 ASE? It would seem to me that it would not be any of us, i.e. we are happy to buy when the price is < $20 but would not even consider making a purchase at $100, so why would any of the dealers see things differently? It seems to me if silver hit $100 (or $500) *nobody* would be interested in purchasing any of it at that price. This paints a picture in my head of having a safe full of silver "worth" $100,000 with no way to sell it's contents. What am I missing?
Something just doesn't add up...
- Thread starter Niveka
- Start date
Golden ChipMunk
Well-Known Member
Niveka said:
Planning to have a Safe at home, Don't!!!!!
SilverKendo
New Member
$100 is realistic?!?
Golden ChipMunk
Well-Known Member
Niveka said:
Never get your safe deliver for a start. If you were to have one.
Do it yourself. Make sure it is buried deep where there is no access for anyone to break it.
With recent targeted burglary, you may as well not having one.
Never have any discussions about it. Loose Lip Sink the Ship!!!!
Best is to put them in SDB ( Safe Deposit Box, where you can get them insure for a few dollars a day )
wrcmad said:
Just seems to make sense to me. Need some place that can hold a decent size stack, is enclosed so i can keep the humidity down, virtually invisible if possible, difficult for someone to break into yet easy for me to access. The alternative would be 10oz bars and ASE's scattered all over the house with no climate control and no protection other than their hiding spot.
mmissinglink
Active Member
Hi Niveka,
Welcome to the forum and congrats on getting into stacking.
What wrcmad is right on and important to understand: "The market price is the price that buyers are bidding at.
Price doesn't get there if buyers aren't purchasing."
If the spot price (in the next few years or so) is in the $100+ range for more than a few hours and if it's obvious that at the time the price is expanding (rising), then more than likely (in my view): there is panic because maybe the dollar has weakened significantly or something else major (with wide-spread global impact) has happened.
That would be the permabulls' dream scenario come true (at least for some permabulls it seems).
In such a case, keeping in mind what wrcmad has written, it's likely that you could sell your silver blobs at the then ($100+) spot price. Buyers then will have a different framework of thoughts about the value of silver in mind and ergo, $17 silver will seem to them like $7 silver seems to us today.
All that said, there are some of us stackers who believe that $100+ silver is a long ways off. But since no one owns a functioning crystal ball, it's all a matter of making as educated guesses as you can and understanding there's risks and costs with investing your money in silver blobs just as there are risks in investing your money in virtually anything else.
One important cost to keep in mind that many people don't even think about is opportunity cost. Look that up if you don't know what it means. Not taking advantage of buying something today (let's say an asset like silver as just one example, which for argument's sake will hypothetically increase significantly in value) and instead keeping the money in the bank (where hypothetically interest rates will remain low) to using the money to buy something else that ends up losing significant value, might be considered an opportunity cost lost on silver.
Finally, pay some attention to the GSR (Gold to Silver Ratio). It will be interesting to see where this goes over the next few years (if it goes anywhere at all).
.
Welcome to the forum and congrats on getting into stacking.
What wrcmad is right on and important to understand: "The market price is the price that buyers are bidding at.
Price doesn't get there if buyers aren't purchasing."
If the spot price (in the next few years or so) is in the $100+ range for more than a few hours and if it's obvious that at the time the price is expanding (rising), then more than likely (in my view): there is panic because maybe the dollar has weakened significantly or something else major (with wide-spread global impact) has happened.
That would be the permabulls' dream scenario come true (at least for some permabulls it seems).
In such a case, keeping in mind what wrcmad has written, it's likely that you could sell your silver blobs at the then ($100+) spot price. Buyers then will have a different framework of thoughts about the value of silver in mind and ergo, $17 silver will seem to them like $7 silver seems to us today.
All that said, there are some of us stackers who believe that $100+ silver is a long ways off. But since no one owns a functioning crystal ball, it's all a matter of making as educated guesses as you can and understanding there's risks and costs with investing your money in silver blobs just as there are risks in investing your money in virtually anything else.
One important cost to keep in mind that many people don't even think about is opportunity cost. Look that up if you don't know what it means. Not taking advantage of buying something today (let's say an asset like silver as just one example, which for argument's sake will hypothetically increase significantly in value) and instead keeping the money in the bank (where hypothetically interest rates will remain low) to using the money to buy something else that ends up losing significant value, might be considered an opportunity cost lost on silver.
Finally, pay some attention to the GSR (Gold to Silver Ratio). It will be interesting to see where this goes over the next few years (if it goes anywhere at all).
.
Niveka said:
Say, you wouldn't happen to live in the Brisbane area do you? Perhaps I could sell you something?