Stock Market Rose 18% last financial year what did your silver do

[Pirocco]

Everything that is bought whose price has a current risk, is speculation. Houses, shares, dollars, art, even tomatoes.
Dollars can become less worth. Houses can become less worth. Tulips can become less worth. What's the difference with silver? Few years ago silver was touted as 'best'. All indicators green and the rest lagging. Everybody advised to buy. Yet, it was the worst period to buy. Since, it has been worst. Invert the advice.

 

[Pirocco]

^^^What happens if I bought 10ozs of silver in 1994 for $50, sold 5 ozs for $50 when it rose to $10 oz.. I have paid zero $ for my 5 ozs. Can't get a better return than that.


So it all depends how smart you are..

If you pick the GSR WHEN IT DROPS TO 40.. I have already had one chance at this but waited too long and so now I may have a long wait ahead waiting to swap 40 ozs silver for 1 oz gold.

Regards Errol 43

Yep, the metal does nothing. It's ones decisions to buy / sell that do.

The best, and worst, decisions are made at end of trends. Waiting too long is a cause.

 

[DanielM]

Assuming you start with 50,000 in 1994 and put that money into a 1 year TD every year in June. Also assume a tax of 30% and that you can get a rate 2% above the RBA cash rate. Further that you reinvest the interest earned.

Starting in 1994 and taking the RBA rate in June of each year + 2% you would end up with 137,791. Assuming RBA Rate + 1.5% and the amount is 128,456

Perth mint website shows silver in AUD at 7.60 in June 1994 and 22.15 in June 2014. Assuming you bought 50,000 worth of silver and sold out in June 2014 you would end up with 131,165 after allowing for CGT (at 30% marginal rate).

Pretty much the same I would say. I don't really know if there's any point to make here but I suppose it is a mildly interesting comparison.

yes but cash in bank is about the lowest investment u can make and one of the safest

silver is not safe and should have out performed cash in the bank which is my whole point all along and it simply has not even over a long term period

With all the perma bulls here saying it is a long term investment, and to hold t, well it is a poor long term investment when you wouold have been in a similar position if you just put your cash in the bank.

Property and shares are proper investments, silver is for speculators

I don't treat silver as an investment, I treat it the same way as I treat gambling in a casino. It is something I enjoy, I wisely choose a small amount of money to commit, if I walk out with something I'm happy, if I walk out in front it's a bonus ( and I can buy myself something nice).

The only difference with gambling and silver is that in gambling I can lose everything and walk out empty handed. With silver, even if it goes to $0 I'll still have something to throw at the Mike Maloney types

 

[Pirocco]

I checked my silver today and every coin is still there. I thought I saw one sneaking away but it must have been a bird or so.
About gambling and silver, the difference is plain simple: with gambling your risk (win / lose) only comes into existence the moment you gamble. With silver, the risk already exists, regardless whether or not you 'play'. The practical difference then is that with silver one can manage risk (by making good decisions), while with gambling, well, you have a chance, and whether your a duck, a moron, a sheep or einstein, the outcome won't be different.

 

[Cheepo]

Actually during the last 12 months the stock market dropped by 0.43%, silver rose by 10.22% and gold by 10.99%

 

[Pirocco]

See Cheepo, that is a perfect example of how one can draw any conclusion by just selecting the time frame.
That is always the thing to watch out for, often advice for one timeframe gets placed into another, with as result that one buys based on some element that is already 'in the market' - thus already altered the price BEFORE you.