Silver

[Texan2]

Does anyone watch or invest in the silver market? The price has been steadily climbing...its affordable and seems to be a good hedge against a falling dollar. I'm no expert, but dabble with it. Just curious if anyone else does the same and what their experiences have been.

 

[robin303]

Back in the 80's one oz was around $6.50. I bought a lot of the Silver Eagles. When the silver market went up a couple yrs ago it was way over $14.00 and thats when I cashed in. I don't bother with it no more.

 

[proforguns]

Check out the survivor podcast Jack Spirko tells people to buy silver and store food we store food but have not started to buy silver

 

[Texan2]

Check out the survivor podcast Jack Spirko tells people to buy silver and store food we store food but have not started to buy silver

I think preparation should be balanced for hard times...and should include, food storage, water storage or a way to obtain water, an adequate supply of weapons/ammo and medical supplies...as well as some type of "hard" currency (i.e. silver). if you think any of these arent important just ask those who were in New Orleans in the days after Katrina.
Spot prices on Silver are almost $20 ounce now, but it is still expected to keep climbing. Even at $20 its still affordable and easily able to sell if need be.

I was just wondering if anyone knew a good silver dealer in San Antonio

 

[TexMex247]

The gap in proportional value between silver and gold has never been higher. It true that silver WAS dirt cheap back in the eighties but mints will tell you that over 80% of the worlds supply of silver(including un-tapped assets) has been consumed by industry(Chemicals and Tech use). Only recently have they learned in the medical field that silver is naturally antimicrobial and reduces the potential spread of disease. It sad knowing that before 1965 almost all US coinage was 90% pure silver now it is made of useless or poisonous metals. To acquire silver at or below $20 an ounce is an excellent investment. I recommend junk silver(old US coins) and rounds or bars.

 

[Texan2]

The gap in proportional value between silver and gold has never been higher. It true that silver WAS dirt cheap back in the eighties but mints will tell you that over 80% of the worlds supply of silver(including un-tapped assets) has been consumed by industry(Chemicals and Tech use). Only recently have they learned in the medical field that silver is naturally antimicrobial and reduces the potential spread of disease. It sad knowing that before 1965 almost all US coinage was 90% pure silver now it is made of useless or poisonous metals. To acquire silver at or below $20 an ounce is an excellent investment. I recommend junk silver(old US coins) and rounds or bars.

I too like the bars and rounds...I prefer the 1 oz bars, but also have some 1 gram pieces. I would love to obtain some junk silver but only see it for sale in large quanities. If anyone is near me and has any they want to sell, message me.
I heard something about gold recently that intrigued me and it could apply to silver as well.
If you had a $20 gold coin and a $20 bill in 1910 they were worth the same, both would buy you a suit. but now that $20 bill may not even buy you a tie, but the $20 gold coin would buy you several suits. lesson...precious metals go up in vlue, paper money goes down.

 

[Texasjack]

Bad, bad, bad advice.

Silver is a commodity. When prices get high enough, more gets taken out of the ground. It's a dangerous roller-coaster. If you buy low, you might make a profit. Otherwise, you can really lose a lot. Look up historical prices and you'll see what I mean.

With ANY investment, "Buy low, sell high".

Too many people see the price of gold or silver at a peak and rush to buy it. That's the wrong time. In the '80's, gold went up to $900/oz. By the 90's, it was around $400.

If you go to sell gold, you have to have the assay on it. The only way to avoid that is to use coins - pref. USA coins.

As for "..precious metals go up in value, paper money goes down..", that's not entirely true. Paper money is NOT an investment. When the government prints it by the ton, each bill becomes less valuable. Precious metals do not always go up in value, but they are a tangible asset.

 

[TexMex247]

I think silver will trade at over $20/oz by 2011. In your posession will always be worth more than a "stock market" price. Only time will tell how good or bad an investment it may be.

 

[Texan2]

Bad, bad, bad advice.

Silver is a commodity. When prices get high enough, more gets taken out of the ground. It's a dangerous roller-coaster. If you buy low, you might make a profit. Otherwise, you can really lose a lot. Look up historical prices and you'll see what I mean.

With ANY investment, "Buy low, sell high".

Too many people see the price of gold or silver at a peak and rush to buy it. That's the wrong time. In the '80's, gold went up to $900/oz. By the 90's, it was around $400.

If you go to sell gold, you have to have the assay on it. The only way to avoid that is to use coins - pref. USA coins.

As for "..precious metals go up in value, paper money goes down..", that's not entirely true. Paper money is NOT an investment. When the government prints it by the ton, each bill becomes less valuable. Precious metals do not always go up in value, but they are a tangible asset.

There are alot of economists that will disagree on this point with you. Right now they are mining every ounce they can 24/7 and can't come close to keeping up with demand. I have looked at the charts since 1984...When silver was $5 an ounce in the 80's and went to $9 or $10 in the 90's people would call you a fool for not selling. Same when gold doubled....then doubled again. Yet you would have been smarter to hold it. Silver and gold are not commodities that have an endless supply. You can grow more food or grow more cattle or more pork bellies but you cant grow more gold or silver. There is a limited supply on the planet. In the case of silver most known sources have already been mined. I dont think metals are the answer to everything but "buy low sell high" only works when you know what high and low actually are.
Having a portfolio that included physical gold and silver in your possession is a wise play...IMO

 

[West Texas]

Gold has proven its value. It has maintained its purchasing power for five thousand years. And it’s outperformed cash and cash investments by light-years.

Consider the following …

$5,000 in cash squirreled away in 1913, when the Federal Reserve was created, is now worth only 4.5 cents. Or, put another way, it would take $110,582.14 of today’s money to buy what $5,000 would have bought in 1913.

On the other hand …

$5,000 invested in gold in 1913 would be worth $287,500 today!

So whereas cash lost almost 99% of its value since 1913 … gold gained 5,650%!

 

[TexasRedneck]

True...but what would that same $5k invested in the stock market be worth today?

 

[West Texas]

True...but what would that same $5k invested in the stock market be worth today?

Apples and Oranges. The figures I showed were VALUE of the dollar vs gold, not the ROI of a $5,000 investment made in 1913. However, if you took $5,000.00 in 1913 and stuck it in a savings account earning 4% compounded daily would have a dollar value today of $242,069.61 which when adjusted for inflation over the same period would be worth $1,210.35 in 1913 purchasing power. The 4% compounded daily didn't even keep up with the rate of inflation! Gold out paced inflation...

In other words, the ACTUAL value of $5,000.00 invested at 4% compounded daily in TODAYS dollars vs 1913 dollars is $1,210.35. Your investment LOST value (purchasing power) due to the rate of inflation. What would have COST you $5,000.00 in 1913 would now cost you $110,582.14.

But you asked about the Stock Market....So...

The compound annualized real rate of return for the Dow (price only) since 1913 (97 years from the average Dow price of 80 the to 337.56 in 2010) is only 1.49% per year, less than the 4% used as an example of savings ROI, so I don't think we all want to be depressed looking at THAT loss!

But, the REAL advantage of Gold and silver that you are holding in your hot little hands is that if we DO see a THSTF worst case siuation, you have something that WILL have value and can be bartered with. If you buy gold ans silver, be sure you buy coins and not just bars. You can get gold coins that are 1/23 once and 1/10 ounce, as well as 1 ounce, and since they are coins, minted buy a government, you don't have to have anything else to prove the value.

I LOVE ecomocs and applied finance

 

[kingofwylietx]

If you want to compare the value of gold vs the Dow, the winner apparently depends on which time period you choose. See link: Does Gold Beat the DJIA? It Depends -- Seeking Alpha

If you want to invest in something, do your research. If you want to invest in something & make money, employ an unbiased expert in the field.

Opinions certainly vary.....mine is that gold/silver/platinum is not something to expect to use in a 'Katrina' type situation. If you take a situation where people are starving, a live chicken is more valuable than a pound of precious metal. I don't recall hearing anything about people using precious metals during Katrina. In a SHTF situation, good food, water, weapons, ammo, and a clear logical brain will be needed.

 

[Texan2]

I think silver will trade at over $20/oz by 2011. In your posession will always be worth more than a "stock market" price. Only time will tell how good or bad an investment it may be.

Silver is only pennies from trading at $20 right now!

 

[Texan2]

If you want to compare the value of gold vs the Dow, the winner apparently depends on which time period you choose. See link: Does Gold Beat the DJIA? It Depends -- Seeking Alpha

If you want to invest in something, do your research. If you want to invest in something & make money, employ an unbiased expert in the field.

Opinions certainly vary.....mine is that gold/silver/platinum is not something to expect to use in a 'Katrina' type situation. If you take a situation where people are starving, a live chicken is more valuable than a pound of precious metal. I don't recall hearing anything about people using precious metals during Katrina. In a SHTF situation, good food, water, weapons, ammo, and a clear logical brain will be needed.

My reference to Katrina was about overall preparation, including food, water, defense...etc...
While I dont propose that anyone should put all their "eggs" in gold and silver, having a stash of both will, done correctly, yield a profit AND be able to be used in the event of a economic meltdown
Its one part of a plan for a specific set of circumstances. Like insurance, (or guns) its better to have it and not need it, than to need it and not have it.

 

[IXLR8]

Bunker Hunt tried unsuccessfully to corner the silver market in the 70's. The total amount of silver on earth is far too great. The total amount of gold on earth about the size of a cube 100 yards on a side. Own a piece of that, and you own a finite resource. Since they have all but stopped making photographic film, which used to be the largest consumer of silver, they have tried hard to find another way to consume it. Anti-microbial? Yes, it is. So what? There are many cheaper alternatives.

Your best bet is to spread your money into as many commodities as you can afford. Guess what? That is what the Chinese discovered.... They are now taking all of the money they used buy U.S. Bonds with and now buy 17 commodities with it.

You have to have something that is more convertible than the Chinese do. Buy silver if you want, but gold is a far better choice in my opinion. You don't have to buy ounces, the 1/10th ounces store just as well.

I bought a 100 TRILLION dollar bill at the last gun show. It is actual Zimbabwe currency. That is 100,000 BILLION DOLLAR bills. Why do I care? Because in 1980
1 Zimbabwe Dollar = 1 US Dollar

Don't think that can happen to your paper money? Only time will tell.

(Did I sound a little cranky? )

 

[zembonez]

If you can afford to buy some silver and put it back with extra funds, I still think it's a good thing to have. I'm not buying now at these prices, but I do have a small stockpile cleverly hidden away.

Since the beginning of time, there have been those who run around screaming "the end is near - the end is near" but it's best not to lose your frikkin head over it. Stocking up on some extra non perishable food, a decent source or reliable supply of water, a stock of ammo, and maybe a little precious metal just seems logical - as long as one doesn't go overboard.

 

[Texan2]

Bunker Hunt tried unsuccessfully to corner the silver market in the 70's. The total amount of silver on earth is far too great. The total amount of gold on earth about the size of a cube 100 yards on a side. Own a piece of that, and you own a finite resource. Since they have all but stopped making photographic film, which used to be the largest consumer of silver, they have tried hard to find another way to consume it. Anti-microbial? Yes, it is. So what? There are many cheaper alternatives.

Your best bet is to spread your money into as many commodities as you can afford. Guess what? That is what the Chinese discovered.... They are now taking all of the money they used buy U.S. Bonds with and now buy 17 commodities with it.

You have to have something that is more convertible than the Chinese do. Buy silver if you want, but gold is a far better choice in my opinion. You don't have to buy ounces, the 1/10th ounces store just as well.

I bought a 100 TRILLION dollar bill at the last gun show. It is actual Zimbabwe currency. That is 100,000 BILLION DOLLAR bills. Why do I care? Because in 1980
1 Zimbabwe Dollar = 1 US Dollar

Don't think that can happen to your paper money? Only time will tell.

(Did I sound a little cranky? )

I dont want to corner the market. Several sources state that while there is much more silver than gold, silver is currently in much higher demand, due to the many medical uses it has, than it ever has been in the past. Who knows who is right? I have heard that 80% of the known sorces of silver have already been mined....as you said. Time will tell....

 

[TexasRedneck]

20 years ago, silver was running about $7/ounce. Today, it's $20? Sorry, guys - that doesn't excite me. Land we bought 20 years ago for $250/acre sold for $2500/acre 3 years ago. Commodities make me nervous, primarily because they are driven by forces I have no control over. In times of economic collapse, as others have stated - food and other goods have trade value - precious metals don't. Look at Germany in WWII - they were collecting precious metals from all sources, yet they converted precious little of it into hard currency. While I have SOME precious metals, it's quite modest in terms of any other investment, including firearms. As an old saw goes - "In times of trouble, money can buy you love - but a gun will get you the money AND the love!"

 

[Texan2]

20 years ago, silver was running about $7/ounce. Today, it's $20? Sorry, guys - that doesn't excite me. Land we bought 20 years ago for $250/acre sold for $2500/acre 3 years ago. Commodities make me nervous, primarily because they are driven by forces I have no control over. In times of economic collapse, as others have stated - food and other goods have trade value - precious metals don't. Look at Germany in WWII - they were collecting precious metals from all sources, yet they converted precious little of it into hard currency. While I have SOME precious metals, it's quite modest in terms of any other investment, including firearms. As an old saw goes - "In times of trouble, money can buy you love - but a gun will get you the money AND the love!"

The U.S. also collected gold and silver coins to destroy...instead of currency backed by a commodity, it is back by the full faith and credit of the govt....yikes! I think the perspective of those that buy silver or gold for a SHTF scenario is that the cash in the bank or in your wallet is only valueable if the govt. has good credit...even in bad times there has to be some form of common currency. In Iraq and Afghanistan even after a town or village is blown to bits and there is no infrastructure a micro economy sprouts in 4-6 weeks in most cases. Gold and silver have value as an infant economy sprouts. people have more faith in gold and silver especially in bad econimic times. Yes food and goods have trade value. I believe that ammo has huge trade value, but I disagree with your assesment that gold and silver dont.
But hey...we all have our favorites.