To keep AUD or to buy Silver?

G

gelxi

New Member
Gday everyone, a bloke living in Australia here.

I'm fairly new to silver, and I've been observing the Silver trends for a few months and I was wondering would it be wiser to hold on to AUD than to buy Silver?

It makes sense to buy Silver if one is based in the USA and buying it with USD.

But to buy silver with AUD when Australia is a major exporter of metals makes less sense I reckon, since the strength of the AUD heavily relies on how the metal industry performs perform anyway, wouldn't it be better for Aussies like me to hold on to our AUD?

Would appreciate any comments/thoughts on this matter. Cheers.
 
Just going to sit on the fence for this one,
I wouldn't blame anyone for doing either.
Depends on your situation. If you don't currently own much/any silver maybe an ok time to get involved, but if you don't have much currency saved and are uncertain about your job in the future maybe just keep the AUD.
Sorry if this doesnt help you!!!!
 
I have some silver because:
* I have heard so many financial-types talk about getting out of dollars and into real assets.
* I have zero faith in governments around the world to solve any problems (& the problems are huge)
* I have zero faith in bank activities and wish not to share my power with them
* I like having complete control of where my money goes and what it's used for.
* I think I am immune to the volatility in silver prices by now (been about 1 year since I started)
* I'm in it for the longer-term because I see the longer-term as bearing fruit.
* I have no immediate need or use for the portion of money I put into silver.

If some of those reasons sound like you, I think it would be a good idea to put some money into silver, though of course the usual disclaimers apply...
 
i will jump in on this one.

if you still have some tax-return money its ok to trade that for metals. :)
 
Thanks for your feedback guys, much appreciate that. I have already started buying some silver, but just that I had some thoughts regarding this issue lately.

Because price of silver is always tied to the USD. If our AUD continues to grow stronger against the USD (which definitely will be weakening since their Quantitative Easing/money-printing!)... then the growth of our investment in silver would be seriously diluted.

UNLESS we see AUD also weakening in the future against silver. Are there any reasons for AUD to weaken against silver?
 
I'm buying right now but I understand why people would hesitate. Way I see it low 30s is a good time to buy, but i'm not looking to sell for 2-3 years yet so a huge dip wouldn't bother me.
 
My opining would be to buy ag/au rather then hold AUD.

There are so many variables involved in currencies and precious metals, trying to time any major moves is hard (Especially when there are some high rollers in charge of ag/au prices) I feel better at night knowing i have a big stash of ag - when the aud drops i get happy because the silver price goes up, but i get annoyed when the paper sorts drop the price to below what i paid for. In reality, silver is the best investment this decade, cash wont be. If your in it for a few years then buy buy buy and forget about there silly variable movements.

My 2cent worth

Bellinvest
 
Or...buy gold. Silver has volatility, gold has more stability but has had some reasonable growth. Just look at the price of goods and services priced in pms over the last year, for example. Your fiat is being diluted by the hidden inflationary tax, to begin with, but most of the above answers also apply. Of course, I don't know your expenses or income so don't know how much fiat to hold for emergencies. As a good rule for myself, I like to hold between 5 and 15k in cash for emergencies preventing me from exposure in having to sell pms if I'm low on cash.

I won't ramble, but there is an avalanche of information ready to fall on you if you just search in the forums about this issue.

You just have to determine a reasonable ratio of exposure to volatility and stability.
 
I am buying silver now whilst it's in a bit of a dip.
When the GSR gets better, I'll transfer a chunk of that silver into gold.
 
gelxi said:
UNLESS we see AUD also weakening in the future against silver. Are there any reasons for AUD to weaken against silver?
Click to expand...

It already has been weakening against silver for years. If money is created by credit, and the private debt in Australia rivals that of any country, why should our money be regarded as all that sound? If the Europeans inflate their money to solve their problems, and USA does the same, and China keeps its Renminbi low and so on, why won't Australia continue to debase the AUD? Are we going to let our mining and farm products and exported services become ruinously expensive to foreign buyers? And won't our central bank fight asset deflation like the others? What's the diff here, except lower government debt and higher interest rates for the time being?

Maybe put a good chunk of your cash into the form of gold and silver money and hold the rest in fiat - that's what I'm doing anyway

Here's a decade of silver prices in AUD: http://www.indexmundi.com/commodities/?commodity=silver&months=120&currency=aud
(Allow time for chart to load)

In September 2001 it cost you A$8.68 for an oz of silver, and even after this deep correction it still costs you A$31 for an oz today. Plus the premium for the real physical metal at both times, which will become a critical matter in the future possibly.
 
Wait for the next big dip and load up then. We will see one more large dip in price before we see a nice and generally continued rise in the price of silver.
 
RetardedMonkey said:
I am buying silver now whilst it's in a bit of a dip.
When the GSR gets better, I'll transfer a chunk of that silver into gold.
Click to expand...
I know a few ppl who swapped out of Ag for au... Crystal ball stuff. Remember a gsr of 85? Never know wats around the corner!
 
Check out the longer term trend in fiat currencies around the world. Try http://www.dollardaze.org/

The bottom line is that, today you need the fiat currency but don't need the gold AND silver, however that might not be the case in the future if the global and historical trends hold.
 
gelxi said:
Are there any reasons for AUD to weaken against silver?
Click to expand...

Welcome Gelxi! (Great questions!!) It all comes down to your one question above.

Yes, they *are* related - and last year gold (in particular) and the AUD tracked very closely together for a long time, but in the long run ALL currencies are weakening aganst silver, and will continue to do so until they collapse.

Silver is not a "commodity", it is a monetary metal, like gold. Take a look at the ten year chart in silver and your question will be answered!
 
Ilikemetals said:
Wait for the next big dip and load up then. We will see one more large dip in price before we see a nice and generally continued rise in the price of silver.
Click to expand...
Caveat- in your opinion. None of us know. It's a gamble...... Enjoy but keep a spare pair of underpants at the ready if what you expected doesn't happen. Yay. Thanks jp Morgan!
 
Silver might test recent lows but it shouldn't go lower, bounced right off $26 if memory serves me well.
 
Now I know where the silver pros are :) I posted a similar question in kitco forum and got 0 response there compared to so many here!

Great all-round feedback guys, thanks again. As I am only at the initial stage of accumulation, I thought to pause for a while to consider the fundamentals of holding silver more thoroughly before continuing.

Definitely would be in this for the long run, I'm a father of two babies in a young family, if silver does strengthen in value for the next 5-10 years, will want to buy a nice home for the family :)

Finicky and a few of you raised good fundamental points from the macro-economics perspective, thanks for that.. exactly what I was looking for. I needed to understand that silver's rise against AUD for the past decade is not just due to market exuberance, but due to which kind of fundamental reasons as well. Looks like AUD will not be immune. Really looking forward to seeing how it affects silver vs AUD as soon as RBA trims cash rate to support the economy (which i reckon is imminent)
 
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