SilverYoo said:
Use all means necessary to obtain Silver?
loans, part of each paycheck etc?
Whats the likelihood of it going back to
1dollar/oz or just losing alot of its value.
SY, yes go hard as fast as you can. BUT you never know when an unexpected bill will pop up and you need cash, so set aside a bit of fiat money (US dollars) to pay for those. For me, it is tempting to convert my crappy, trashy plastic Aussie dollars into silver, but I know silver price is a giant roller coaster and I'm not keen on losing my value, so I set aside some monies to pay bills.
VERY slim chance silver will go to $1, if that ever happens, I am robbing a bank, taking out loans blah blah blah and buying as much as humanly possible (of course I am NOT a thief and would not STEAL to BUY silver.. you may as well just steal silver, in which case $ per oz is irrelevant..lol).
A few quick facts about silver and gold (but you can find all over the net from many sources):
-Silver and gold have intrinsic value - never worth nothing like stocks or paper money for example)
-Silver is used industrially with over 2000 patents for its uses - in medical industry, photographic (but that is declining), jewellery industry and electronic industry to name a few
-Silver JORC reserves are sitting at around the 14 year mark at current extraction rates (the economically feasible reserves)Australia has the single largest silver ore reserve at at 20%.
-Gold historically retains value as it is used as a wealth store. Silver, being used as money at one stage has a combined wealth store BUT also being used industrially fluctuates at the whims of the world economy.
-The good thing about silver is that it is running out and there is a demand for it. Even if we have another GFC, that plummets prices..what we know long term is that eventually economies get rolling again and people want to buy more electronics etc and the silver will continue to be used again.
-From my knowledge, most of the gold ever mined still exists in vaults around the world etc;
-Silver is being used up fast and is becoming rarer than gold.
-IF you are worried about the collapse of a silver price, here is my advice--
Buy silver in the first half of this year, watch it climb and outperform gold. At the end of the year or at a reasonable peak - say high $40's or early $50's, swap some silver for a bit of gold. If you find silver drops again, swap the gold back to silver and capitalise on the altering GSR (gold to silver ratio) .. generally speaking, gold price is very stable and is a good way to jump in and out of the silver market while attempting to predict little peaks and troughs (if you like playing around with the market a bit).
By having some gold in your portfolio, it allows you to cash out at any point so you don't have to panic when silver is running up and down - your little gold supply's value will remain fairly constant the whole time while you are 'riding' the silver wave. By having 100% silver and little cash, if you need cash quickly and have to sell your silver, there is potential you will lose money if silver is in a trough.
I hope that made sense.
I try to practice what I preach, so I'll give you my personal strategy for this year and what I have done so far:
Focus on 100% silver for most of this year
Traded my gold for more silver to capitalise on increases in silver value
Sold my relatively new car to buy more silver
Spending 80% of upcoming tax refund on Silver
Hopefully will be getting a scholarship in the order of $5000 for this semester - guess where its going? Silver.
End of the year at around high $40's or $50's I'll be looking to swap SOME silver ounces back to some gold for the reasons I explained earlier.
I think having both metals is a great way to work the system while protecting yourself. Having some platinum is also good to own, but being more expensive than gold, not many people can afford much of it. It's industrially used as well in such things as catalytic converters of car exhausts as well as a wealth store. However, I am not as well informed about platinum as I am with the other two. Treat with caution.
ALL of this is just my opinion, but I hope you were able to take something from it.
All the very best.
Shiny Regards,
PPSS
