Will the price of silver increase if there is a stock market crash?

G

Gigrantor

Member
As we all know the price of silver has been dropping but what is the long term investment potential if there is another financial crisis like the one back in 2008 or even worse, a collapse similar or worse than the great depression?

Wouldn't investing in silver have a much better return in SHTF scenarios than having money in the bank or in shares?

Sorry, if I'm treading ground that has been covered in the past but these are questions that are relevant to me at this moment in time.
 
Many opinions on the metal prices in the next stock market crash. I go with Peter Schiff that this time the metals will not follow the market down but reverse and head up.

The real answer is no one knows, but soon we all will.
 
Sorry to be simplistic, but why count on anything different happening next time up? In the GFC silver went down a bit more than half in USD - from about $20 to $10. Forgotten how that was reflected in AUD. Wasn't at all happy with an investment in silver at that time and would have been better in cash obviously. Maybe something different this time? Like a 'currency crisis' rather than a credit crisis. Want to punt on that? I'm baffled by the whole scene nowadays.

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finicky said:
Sorry to be simplistic, but why count on anything different happening next time up? In the GFC silver went down a bit more than half in USD - from about $20 to $10. Forgotten how that was reflected in AUD.
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You forgot ?

Gold and silver went UP in AUD in the GFC because the AUD got crucified along with everything else.
Silver is a commodity and Australia is a commodity producer and AUD is a commodity currency.

When the futures traders sitting in the US run for the hills, if they dump commodities they will dump AUD


Who knows what will happen next time though - your guess is as good as anyone else
 
trew said:
Gold and silver went UP in AUD in the GFC because the AUD got crucified along with everything else.
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Not what I remembered. I bought more Ag because it got 'cheap' in the GFC

From above A$20 to below $15 :P

1893_aud-silver-price-per-ounce-10-years-history.png
 
Gigrantor said:
As we all know the price of silver has been dropping but what is the long term investment potential if there is another financial crisis like the one back in 2008 or even worse, a collapse similar or worse than the great depression?

Wouldn't investing in silver have a much better return in SHTF scenarios than having money in the bank or in shares?

Sorry, if I'm treading ground that has been covered in the past but these are questions that are relevant to me at this moment in time.
Click to expand...
If silver drops and bananas drop equally, then I can buy the same amount bananas with the same amount silver.
Is that what you ment? :D
 
Is it perhaps more of a question as to what will happen to everything else.

You might lose half of your super in shares. You may lose your job. You may lose half your savings in a bank bail-in. You may lose your house. You may not have access to cash or food for a month.

But you will have all your silver, cash and food you have squirreled away.
 
Personally I believe this time will be different to 2008, this time people know the banks only survived due to the bail outs, who in their right mind would take their money out of the stock market and deposit it into the banks, the place to be will be gold, the problem with silver is when GDP reduces the demand for industrial silver will also reduce, that's not to say silver isn't a good place to be but gold is the sure thing.
 
Garthy said:
Personally I believe this time will be different to 2008, this time people know the banks only survived due to the bail outs, who in their right mind would take their money out of the stock market and deposit it into the banks, the place to be will be gold, the problem with silver is when GDP reduces the demand for industrial silver will also reduce, that's not to say silver isn't a good place to be but gold is the sure thing.
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You think all of those holding what I need and want to buy, and they are willing to sell, with accept gold as payment, but not silver?

Gold current industrial use is just about ZERO.
Silver will have to lose a bunch of industrial usages to get down to gold's level.
What kind of mirror do you think those fancy folks will want - gold, or silver?

"Sure thing"?????
Beans, that's a sure thing.
Rice, that's a sure thing.
Anything else is speculation.

We do agree that the next event will be much more memorable than 2008.
 
BeHereNow said:
Garthy said:
Personally I believe this time will be different to 2008, this time people know the banks only survived due to the bail outs, who in their right mind would take their money out of the stock market and deposit it into the banks, the place to be will be gold, the problem with silver is when GDP reduces the demand for industrial silver will also reduce, that's not to say silver isn't a good place to be but gold is the sure thing.
Click to expand...
You think all of those holding what I need and want to buy, and they are willing to sell, with accept gold as payment, but not silver?

Gold current industrial use is just about ZERO.
Silver will have to lose a bunch of industrial usages to get down to gold's level.
What kind of mirror do you think those fancy folks will want - gold, or silver?

"Sure thing"?????
Beans, that's a sure thing.
Rice, that's a sure thing.
Anything else is speculation.

We do agree that the next event will be much more memorable than 2008.
Click to expand...

When i say sure thing I mean where the majority of the money's going to go, your right gold has no industrial use and that's the point, a drop in GDP will hurt silver more than gold, you stick with silver I'm leaning towards gold, I don't believe either of us are wrong.
 
Reduced demand for industry?
Well...maybe but if there's reduced demand, there's miners that may go out of business so there's a fine balancing act "maybe" :) Who controls the spot price? The "cartel" can do what ever they like to the price of silver but if spot drops significantly we will see miners out of business unless they have plenty of high grade ore tucked away for such an event. We have seen the gold miners tap into their higher grade ore when the gold price tumbled.

If there's a global stock-market crash, oil could become cheaper.

There's plenty of os investors looking to buy AUD and invest in Australian companies so maybe Australia will do ok. If you did have money in the stock-market (Australian Stocks) the Big Banks like CBA could do really well and of course if the AUD stays high consumers can buy goods produced overseas more cheaply. So...maybe buying Aussie stocks on any oversold positions could be a good move if you have a few bob to blow. My picks would be CBA, NAB, Woolies as defensive stocks. (I'm not buying these)

Having said that...no one knows what will happen, the AUD could crash and if you have physical metal in your possession "now" you have "hedged" but if silver drops and the AUD soars you could be in a good position to buy Ag for a long-term play.

imo, there's so much BS going on in the world that the markets are getting rattled and there's average folk and the wider investment community who are shite-scared of the future.

History shows us that when there's problems with fiat currencies and a threat of turmoil in the markets, it's probably a good idea to have physical metal and a few bob in a currency that is strong.

Becareful with any advice, blokes like Peter Schiff have fabulous ideals but they get the short term market wrong! Long term they will lead the way.

And remember this...folk who had their super looked after by the so called gurus lost about 30% of their capital in the last GFC; I'd rather have a lump of Ag tucked away in a vault than have it invested by fund managers.

Confused? :lol:

H
 
To answer your question "Will the price of silver increase if there is a stock market crash?" - yes, IMHO.

If the next GFC is another credit crisis, then most definitely yes - cash is king when liquidity stops, and metals are but a shimmering afterthought.

Guys like Peter Schitt constantly harp on about a coming currency crisis, in this case metals should go up in price, but it will be more to offset the falling currency value. :)
 
I think silver will fall, along with gold (wrt aud) initially
and then gold will go up considerably due to flight to safety.Silver will remain low or fall even more,
due to it's industrial factor.
 
IMO, It will crash as investors/traders sell it to cover losses, due to economic uncertainty or for the sake of moving into the 'safety' of the US dollar. Once the dust settles it should move back up as Central banks start to crank out all kinds of stimulus programs.
 
wrcmad said:
T
If the next GFC is another credit crisis, then most definitely yes - cash is king when liquidity stops, and metals are but a shimmering afterthought.
Click to expand...

...then you mean No?
Last time, GFC, we could buy 'cheap' silver and gold (not to mention platinum, paladium) if we had some cash in reserve.
 
finicky said:
wrcmad said:
T
If the next GFC is another credit crisis, then most definitely yes - cash is king when liquidity stops, and metals are but a shimmering afterthought.
Click to expand...

...then you mean No?
Last time, GFC, we could buy 'cheap' silver and gold (not to mention platinum, paladium) if we had some cash in reserve.
Click to expand...

Oops. You read my mind. My bad. I meant NO.
When cash is king, metals will suck eggs. :)
 
Cash is king at a bank and then the bank goes bankrupt and then the king is gone.
Outside the bank, there are some practical and usually lawbased limitations and the sure thing of owning paper.
Usually the cash is king fanbase hopes for others to hesitate to buy and sell low. In 2008 some people swapped their silver to King Cash $9 in the anticipation of $5.
 
Pirocco said:
Cash is king at a bank and then the bank goes bankrupt and then the king is gone.
Outside the bank, there are some practical and usually lawbased limitations and the sure thing of owning paper.
Usually the cash is king fanbase hopes for others to hesitate to buy and sell low. In 2008 some people swapped their silver to King Cash $9 in the anticipation of $5.
Click to expand...


A couple of US banks went broke a while ago.

Fanny and Freddie or something?

Did people continue to use cash?

When the never to occur SHTF scenario eventuates, will we then buy our groceries with silver?
 
swoydaz said:
Pirocco said:
Cash is king at a bank and then the bank goes bankrupt and then the king is gone.
Outside the bank, there are some practical and usually lawbased limitations and the sure thing of owning paper.
Usually the cash is king fanbase hopes for others to hesitate to buy and sell low. In 2008 some people swapped their silver to King Cash $9 in the anticipation of $5.
Click to expand...


A couple of US banks went broke a while ago.

Fanny and Freddie or something?

Did people continue to use cash?

When the never to occur SHTF scenario eventuates, will we then buy our groceries with silver?
Click to expand...
Will central planning keep on bailing out banks, as to keep bank deposits existing?
Some people do continue cash. Those of whose banks didn't go bankrupt.
In 2008, and still for the moment, the others too.
Do you know if your bank will be among them?
 
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