Why the focus on silver?

H

hem9

Active Member
Silver Stacker
I have been purchasing a good amount of gold recently and noticed that more silver seem to be sold on SS than gold. I am wondering to myself why is there such a focus on silver in which some SS members have only silver stacks. I understand it is cheaper and has a higher potential for capital growth (as it is below the all time high). But I would have taught that stackers would be more concerned with capital preservation and have more balanced stacks as the only way for silver to reach the highs we are all expecting is for the current system to implode (deflation) which would result in government money printing (high to hyper inflation). In that scenario silver like all other commodities and assets would fall like a rock. The only true protection would be cash or gold (as everyone would flock to gold as the ultimate hedge). Thus the GSR would widen like crazy then in my opinion would be the right time to switch to silver (near or at the bottom of the deflation cycle) in preparation for much higher inflation. Having all your stack in silver would expose you to possible painful deleveraging in a deflation scenario.
 
hem9 said:
I have been purchasing a good amount of gold recently and noticed that more silver seem to be sold on SS than gold. I am wondering to myself why is there such a focus on silver in which some SS members have only silver stacks. I understand it is cheaper and has a higher potential for capital growth (as it is below the all time high). But I would have taught that stackers would be more concerned with capital preservation and have more balanced stacks as the only way for silver to reach the highs we are all expecting is for the current system to implode (deflation) which would result in government money printing (high to hyper inflation). In that scenario silver like all other commodities and assets would fall like a rock. The only true protection would be cash or gold (as everyone would flock to gold as the ultimate hedge). Thus the GSR would widen like crazy then in my opinion would be the right time to switch to silver (near or at the bottom of the deflation cycle) in preparation for much higher inflation. Having all your stack in silver would expose you to possible painful leveraging in a deflation scenario.
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Different strokes for different folks I guess. I try and maintain a roughly equal value of each but do not trade in and out that frequently. Currently my stack has a GSR of 42. So at a GSR of 42 my stack of silver would be worth the same as my stack of gold. Currently my gold is worth more. How it plays out who knows, but I am not prepared to sell all my ag for au betting on the GSR. For those of us that do not actively trade the GSR, buying a bit of each makes some more sense.
 
Silver is more undervalued and has better fundamentals than gold. The amount of silver is getting lower and lower. Gold is hoarded but the amount of silver is getting lower because of industrial usage. Gold when used for industrial purposes is commonly extracted and recycled again but it is currently not feasible to do so with silver.

Also, silver is very cheap considering the GSR. It's no where near it's historical average.
 
Scope said:
Silver is more undervalued and has better fundamentals than gold. The amount of silver is getting lower and lower. Gold is hoarded but the amount of silver is getting lower because of industrial usage. Gold when used for industrial purposes is commonly extracted and recycled again but it is currently not feasible to do so with silver.

Also, silver is very cheap considering the GSR. It's no where near it's historical average.
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the only way for silver to reach the highs we are all expecting is for the current system to implode (deflation) which would result in government money printing (high to hyper inflation). In that scenario silver like all other commodities and assets would fall like a rock. The only true protection would be cash or gold (as everyone would flock to gold as the ultimate hedge). Thus the GSR would widen like crazy then in my opinion would be the right time to switch to silver (near or at the bottom of the deflation cycle)
 
"cuz Bob Chapman said so"


BC (he's old but not that old!) says 50/50 or even 60/40 as you don't know how things are going to play out.

Turk talked about 30% Silver in a recent interview.



Gerald Celente started buying silver recently when he thought gold confiscation may happen in the future.

The Chinese encourage their population to buy silver now.



Some mix of both seems a good idea. Even if the silver percentage is low.


One thing in gold's favour is that it is much lighter than silver, if you need to move around for some reason.
 
I've always been heavy in gold since day one. Silvers fun, and the markets interesting to play/watch, but for me - gold is king.

Reasons being: its more space efficient, easy to transport, less likely to incur duties when moving internationally, and is a better holder of value in my opinion, wheras silver can variate regularly.

Or maybe its just the pikey in me. :)
 
jpanggy said:
in deflation, all assets are hit, including gold.
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True but gold retains it's purchasing power as gold goes down less than everything else thus you can buy more assets w less gold.
 
Why the focus on silver?

1 There is currently less investment-grade silver available on Earth for investors to buy than there is gold.
2 Today, there is only enough investment-grade silver on Earth for every person to have 1/14th of an ounce.
3 Silver is a 'miracle metal'. It is second only to oil as the world's most useful commodity.
4 Aside from being money, silver has thousands of essential industrial uses. Silver is the most electrically conductive, thermally resistant, and reflective metal on the planet that has no known substitutes.
5 For the past 30 years the world has used up more silver than has been mined, and today silver inventories are near all time record low levels.

Hope it helps
:)
 
* Because this site is called Silver Stackers.
* Because I look at gold and can never understand how it could be that expensive (even though I think it will go higher due to the chaos around us).
* Because silver is used heaps in industry and gold is used far less (though most computers have some gold).
* Because I can buy more physical coins and bars
* Because I can see how silver could be worth the asking price (and more), unlike gold, and that makes me more comfortable.
 
Apart from gold being KING it takes up a whole lot less room in the pantrey!
 
in FIAT it means

silver is $50 note
gold is $1700 note, there is no $1000 note there :p

back in 80's silver was 50, gold was 850

now silver is still below 50, but gold is 1700

GSR is say 50, then for every $1 move gold should be moving around $50
so silver provide more movement and attractions to stackers mind :)
 
I'm more into buying gold now my gsr is over 1 - 130 so I'm investing my money about 70/30 gold heavy until I get into the 1 - 40/50 range. Gold is much more stable though silver has more potential for ridiculous gains.
Realistically I'll probably trade the majority of my stack on a nice little oceanview lot I have my eye on as soon as it drops in price a little more. I'm very interested in a second property that I can rent out as a vacation cottage to earn extra income if spot rises 20 percent and property drops 10 - 20 percent I should be able to have a 700 - 800 square foot cabin with ocean view lot free and clear in the next two years.
After that I want to buy a condo in a city that I can rent out. I have about 20 years to retirement at which point I just want to surf, fish, travel and collect rent cheques from multiple tenants. For me gold and silver are just a way to store savings and possibly make small gains until I can convert it into an asset that produces income. I can see SHTF but that's my backup reason for investing in pms as I feel that the likely hood of that happening is less than it not happening.
 
Except for keeping sets going, I am buying gold now. Started concentrating on gold this spring. Since I am already at 200% of my original silver goal and only 125% of my original gold goal it is easier for me to concentrate on gold.

One reason to prefer gold is the expected return to a gold standard. Under some of the gold standard scenarios, the increase in the fiat price of gold would be exempt from taxation. I haven't seen that argument made for silver. Also, if Europe screws up and falls apart, gold should fall far less than silver.
 
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