arggh.. Silver is expensive, not sure I should buy... convince me

[heavenlyboy34]

Correction: Cash is cheap.

There is no reason to hold your savings in USD, or any other currency for that matter.

If you don't want metals, buy stocks. Buy real estate. Don't hold paper.

Yep. Also consider investing in things that you know are valuable. Antiques, art, etc.

 

[down_south]

arggh.. Silver is expensive, not sure I should buy... convince me

I said the same thing when it was $15/ounce. Good thing I did buy

 

[ronnilingus]

Hey we are a brand new website selling Beautiful Gold & Silver Bullion Rounds & Bars. Free Shipping and We take Paypal !!! Come check us out at [URL Deleted]
Thanks !!!

who wants to buy silver or gold clad? your site is quite irrelevant to this thread.

 

[xFiFtyOnE]

I buy an ounce a week, sometimes more if I can. Look at junk or industrial silver to save you some cash.

 

[Steven Douglas]

I have been watching silver closely for forty years, and for me, any silver under $75-$100 an ounce right now is cheap, cheap, cheaper-than-cheap.

The historic value/price ratio of silver to gold is roughly 16:1, which is roughly the ratio that both metals are found in the Earth when they are mined. Right now that ratio is roughly 51:1 on the market. I don't care how much of that might be attributed to a gold bubble. That is a very, very unnatural, artificial ratio - I think too much even to count for gold speculation, especially when other factors are considered.

Gold has been so prized, so expensive throughout history, that most of it is recycled - rarely is it consumed, and only in minute amounts when that happens. In other words, most of the gold that has been mined on Earth is still in existence. Silver, on the other hand, has not fared so well. Silver is consumed in many one-way processes in MASSIVE quantities every day. Add to that the fact that the price of silver was artificially suppressed, and kept artificially low for so, SO many years, even against the ever free-falling dollar, that its consumption was never held in check, making it even more scarce as a result than it otherwise would have been. Add to even that the number of new "consumption-based" uses for silver that are just being realized, and we have what appears to me a New Gold on the horizon.

I could be wrong, of course, but I am one who strongly believes that most of the silver represented in the world is little more than paper derivatives that will ultimately be worthless, and that real physical silver is far, far more scarce than even the big-name alarmists realize. It may even turn out that the available silver is more rare than gold. Even if that is not the case, I tell everyone I know and love not to even consider buying paper silver in any form. That, to me, would be like making a gold coin deposit sometime prior to the bank runs that prompted Roosevelt to declare a bank holiday, with the rest of that story well known in all its infamy. Someday, possibly sooner than anyone realizes, most of the silver paper derivatives may be "not worth a Continental".

Most of what I have (all decent quality, non-numismatic value "junk" coins) was bought at much lower prices than today, but the fact that it has gone up in price hasn't discouraged or slowed me down at all. While many silver investors have been wringing their hands for years at all the price manipulations that have been going on, which made it impossible for them to take profits on their "investment", I have looked at it as nothing but time; time for me to gather even more, because I'm looking for a reliable store of wealth - not a way to make a profit.

So my opinion: Buy, Buy, Buy. If you're thinking short term, go ahead and sweat all the ups and downs. If you're thinking long term, don't sweat a thing, your money is safe -- as long as you have physical possession, and not a promise to deliver later.

 

[pmbug]

I like the cut of your jib Mr. Douglas.

 

[Seraphim]

this

I have been watching silver closely for forty years, and for me, any silver under $75-$100 an ounce right now is cheap, cheap, cheaper-than-cheap.

The historic value/price ratio of silver to gold is roughly 16:1, which is roughly the ratio that both metals are found in the Earth when they are mined. Right now that ratio is roughly 51:1 on the market. I don't care how much of that might be attributed to a gold bubble. That is a very, very unnatural, artificial ratio - I think too much even to count for gold speculation, especially when other factors are considered.

Gold has been so prized, so expensive throughout history, that most of it is recycled - rarely is it consumed, and only in minute amounts when that happens. In other words, most of the gold that has been mined on Earth is still in existence. Silver, on the other hand, has not fared so well. Silver is consumed in many one-way processes in MASSIVE quantities every day. Add to that the fact that the price of silver was artificially suppressed, and kept artificially low for so, SO many years, even against the ever free-falling dollar, that its consumption was never held in check, making it even more scarce as a result than it otherwise would have been. Add to even that the number of new "consumption-based" uses for silver that are just being realized, and we have what appears to me a New Gold on the horizon.

I could be wrong, of course, but I am one who strongly believes that most of the silver represented in the world is little more than paper derivatives that will ultimately be worthless, and that real physical silver is far, far more scarce than even the big-name alarmists realize. It may even turn out that the available silver is more rare than gold. Even if that is not the case, I tell everyone I know and love not to even consider buying paper silver in any form. That, to me, would be like making a gold coin deposit sometime prior to the bank runs that prompted Roosevelt to declare a bank holiday, with the rest of that story well known in all its infamy. Someday, possibly sooner than anyone realizes, most of the silver paper derivatives may be "not worth a Continental".

Most of what I have (all decent quality, non-numismatic value "junk" coins) was bought at much lower prices than today, but the fact that it has gone up in price hasn't discouraged or slowed me down at all. While many silver investors have been wringing their hands for years at all the price manipulations that have been going on, which made it impossible for them to take profits on their "investment", I have looked at it as nothing but time; time for me to gather even more, because I'm looking for a reliable store of wealth - not a way to make a profit.

So my opinion: Buy, Buy, Buy. If you're thinking short term, go ahead and sweat all the ups and downs. If you're thinking long term, don't sweat a thing, your money is safe -- as long as you have physical possession, and not a promise to deliver later.

 

[Zippyjuan]

Question should not be what it costs today but do you think it will go higher in the future. If you do consider it to be "expensive" and don't expect it to go much higher, then you won't want to buy. If you think it will go higher (enough to cover costs of buying and selling plus taxes on the gains) then do buy. Expensive today may turn out to be cheap tomorrow- or it may indeed turn out to be expensive.

 

[Bossobass]

Since the 70s, I've had the same problem with these discussions in that it always centers on the value of silver in USD.

I was told years ago by a very insider banker: "Keep an eye on the dollar index. If it ever falls below 70, it will not recover". At the time, the dollar index was 150, so I saw it as a far-off, mostly irrelevant statement. Not so much lately.

It doesn't boil down to whether or not you think silver will go up. Silver (aside from whatever manipulation can be applied externally, doesn't change. The dollar index does, and is what causes silver to be worth more or less USD. So, if your aim is to increase your hoard of USD by buying silver, then selling the silver, it boils down to whether or not you believe the USD will go up, or down.

The dollar index can be manipulated within a window. Witness the drop in silver value vs USD when Japan recently devalued the Yen against the index. The dollar can be strengthened by sound policies and it can be weakened by insane policies. Which do you think will happen in the near future?

Bosso

 

[Lovecraftian4Paul]

I think the dollar is on a steady downward trajectory. This is going to make plenty of items needed in daily life pop up. At this point, I buy precious metals for fun and long term wealth preservation. I have no intention of ever selling, unless things get truly dire and the money is absolutely needed just to survive.

 

[Seraphim]

I agree with this statement.

On the flip side - I would consider using your PM savings as a REAL ESTATE play. Soon (under 5 years) your PM's will buy you A LOTof real estate, compared to now.

I think the dollar is on a steady downward trajectory. This is going to make plenty of items needed in daily life pop up. At this point, I buy precious metals for fun and long term wealth preservation. I have no intention of ever selling, unless things get truly dire and the money is absolutely needed just to survive.

 

[xFiFtyOnE]

I have been watching silver closely for forty years, and for me, any silver under $75-$100 an ounce right now is cheap, cheap, cheaper-than-cheap.

The historic value/price ratio of silver to gold is roughly 16:1, which is roughly the ratio that both metals are found in the Earth when they are mined. Right now that ratio is roughly 51:1 on the market. I don't care how much of that might be attributed to a gold bubble. That is a very, very unnatural, artificial ratio - I think too much even to count for gold speculation, especially when other factors are considered.

Gold has been so prized, so expensive throughout history, that most of it is recycled - rarely is it consumed, and only in minute amounts when that happens. In other words, most of the gold that has been mined on Earth is still in existence. Silver, on the other hand, has not fared so well. Silver is consumed in many one-way processes in MASSIVE quantities every day. Add to that the fact that the price of silver was artificially suppressed, and kept artificially low for so, SO many years, even against the ever free-falling dollar, that its consumption was never held in check, making it even more scarce as a result than it otherwise would have been. Add to even that the number of new "consumption-based" uses for silver that are just being realized, and we have what appears to me a New Gold on the horizon.

I could be wrong, of course, but I am one who strongly believes that most of the silver represented in the world is little more than paper derivatives that will ultimately be worthless, and that real physical silver is far, far more scarce than even the big-name alarmists realize. It may even turn out that the available silver is more rare than gold. Even if that is not the case, I tell everyone I know and love not to even consider buying paper silver in any form. That, to me, would be like making a gold coin deposit sometime prior to the bank runs that prompted Roosevelt to declare a bank holiday, with the rest of that story well known in all its infamy. Someday, possibly sooner than anyone realizes, most of the silver paper derivatives may be "not worth a Continental".

Most of what I have (all decent quality, non-numismatic value "junk" coins) was bought at much lower prices than today, but the fact that it has gone up in price hasn't discouraged or slowed me down at all. While many silver investors have been wringing their hands for years at all the price manipulations that have been going on, which made it impossible for them to take profits on their "investment", I have looked at it as nothing but time; time for me to gather even more, because I'm looking for a reliable store of wealth - not a way to make a profit.

So my opinion: Buy, Buy, Buy. If you're thinking short term, go ahead and sweat all the ups and downs. If you're thinking long term, don't sweat a thing, your money is safe -- as long as you have physical possession, and not a promise to deliver later.

Based on what you said, gold maybe in a bubble and even it pops silver still should continue to rise. Would you recommend getting out of gold to buy silver? I've got a few ounces of gold, just from old jewelry, haven't been collecting it.

 

[Athan]

My strategy if I was in your (OP) position on silver is buy over time and if your hesitant to to this, at least go for developing a natural disaster plan. Build emergency plans with fellow Ron Paul supporters, buy a gun and bullets. Act like a natural disaster is likely possible in relation to prolonged rolling black outs in your area and 1970's inflation problems.

I however have been wise enough to buy silver and gold since 2007. I am not worried about keeping my on hand physical value. I'm worried about keeping value in investments. I am starting to move to save money to invest with Schiff's firm so I can have some sort of dividens come in. I've already bought an M4 (2010) and a Smith & Wessen Sigma .40 cal. If nothing else buy silver to keep real money in America, foriengers are buying these precious metals and so are banks. Regular Americans should not be left out of the loop.

 

[marhlfld]

I look around the world and see other countries goverments buying tonnes of gold and silver. China is even telling their people to buy gold and silver. I understand they have kioski's to buy from. Look at Zimbabwe... people are panning gold to just get enough to buy something to eat for that day. We have no idea truly what the PTB have in store for us concerning gold and silver. How they might try to tax us for what we hold in trade for the world currency. I'm betting the Americans holding physical right now, aren't gonna be trading it for world currency. There will be a black market competeing currency of silver and gold. So hold Fed Res currency to trade in for world currency, but have some silver and gold as well. All the worth while economists (Schiff, Paul, Rockwell etc...) tell us never to put all our eggs in one basket. Guns, gold and cash, not to mention food. Food is #1. You can't eat guns and gold and you don't want to have to stand in bread lines.

Cripes, listen to me... I can't believe this is happening... I can't believe I"m saying these things... All I ever wanted is to be left alone to live my life...and pursue my perception of happiness.... I will never see the retirement I thought I'd see, unless Ron Paul gets in the WH.

Get him in for 4 years, then slip in Rand for 8. Can we turn the tide in 12 years? I just want to be FREE!

Jesse Ventura recently said, "So the world hates us for our freedoms, eh? So if we get rid of our freedoms, then they'll never attack us again, right?" (Paraphrased)

 

[Steven Douglas]

Based on what you said, gold maybe in a bubble and even it pops silver still should continue to rise. Would you recommend getting out of gold to buy silver? I've got a few ounces of gold, just from old jewelry, haven't been collecting it.

I did, but that's just me. Gold is less than 20% of what I hold and that percentage is steadily dropping: not because I am selling gold and converting to silver, but because I am not buying new gold, given what I think about silver - and how far out of market equilibrium it is with gold. I am more than fine with that. But for the record, I do NOT think that gold is in any kind of speculation bubble. However, I absolutely know that dollars and other fiat currencies are - and in a very bad, very deadly way.

I personally think of gold as being in a "balanced bubble", with two opposing pressures (same as silver, only with a pressure differential on silver that may be many times larger). One pressure is speculation, wherein demand, or actual quantity of purchases vs. sales that exerts upward pressure on the price/value. Those that take delivery, as many are, are taking physical gold out of circulation, which places upward pressure on the value. Those who keep their gold in paper derivatives that exist in excess of all the gold in existence exert an artificial "inflationary" downward pressure on the value. I am confident that so long as there is no "run on the gold bank" the system will continue to slowly inflate as it always has, because people still believe (even in this thread) that their paper holdings are safe, so long as it is from a "trusted" entity. And as long as people continue to believe in paper, the more of it there will be for sale - in every creative way imaginable.

The real question remains as to which force is exerting the greatest pressure, and what would happen to the value of gold if all the inflationary paper derivatives were magically removed from the equation (i.e., a run on physical gold), and after equilibrium was finally achieved. My guess, and that's all it is, is that all the paper derivatives that have driven the value of gold artificially down must FAR outweigh the speculative activity and physical delivery taking that has driven the value upward - which, if true, means a net artificial downward pressure on the value of gold. (i.e., gold may be cheap as hell at two or three times the price)

I have no way of knowing or measuring the actual pressure differentials, of course, but it's inconceivable to me that gold is anywhere near overvalued due to over-speculation, but rather is still grossly undervalued due to all the paper derivatives.

 

[Shane Harris]

does anyone know of any reliable and good places to buy physical silver in small quantities. form the few places i've looked, they require a rather large minimum purchase.

 

[Maverick]

I almost bought gold several years ago when it was about $300/oz. But I didn't and I'm regretting that decision. So my advice would be to buy while you can. If you don't buy, and the dollar continues on this downward trajectory, in 5 years you'll be telling people about how you passed on $30/oz silver when it's $120/oz.

 

[Steven Douglas]

does anyone know of any reliable and good places to buy physical silver in small quantities. form the few places i've looked, they require a rather large minimum purchase.

ebay - it is a perfect place. There, you can buy circulated Mercury Dimes* at somewhere near spot value, and in whatever quantities you desire - individual coins, small batches, or entire rolls. Forget all the coins that are being sold for way over spot because of their "really good" condition, mint markings, etc., (if they aren't uncirculated and in near perfect condition, they have no numismatic value to most traders anyway). Stay out of the numismatic stuff unless you really know what you are doing - including knowing that thousands of others who know exactly what they are doing are bidding as well. Just buy the circulated so-called "junk" coins, and make sure they're in good condition.

Go here for a constantly updated reference to the face value of the coins in Fed dollars.

*My favorite way to buy. You can also buy Roosevelt dimes that are 90% silver, just like the Mercury dimes - the advantage to Mercury dimes is that you don't have to check the dates on them to know that they are all 90% silver. With circulated Roosevelt dimes, you can generally get them in better condition overall, but you also have to verify the date (1964 and back) for each and every dime, buying and selling - which can get very tedious. You run into the same problem with quarters as well.

 

[Shane Harris]

ebay - it is a perfect place. There, you can buy circulated Mercury Dimes* at somewhere near spot value, and in whatever quantities you desire - individual coins, small batches, or entire rolls. Forget all the coins that are being sold for way over spot because of their "really good" condition, mint markings, etc., (if they aren't uncirculated and in near perfect condition, they have no numismatic value to most traders anyway). Stay out of the numismatic stuff unless you really know what you are doing - including knowing that thousands of others who know exactly what they are doing are bidding as well. Just buy the circulated so-called "junk" coins, and make sure they're in good condition.

Go here for a constantly updated reference to the face value of the coins in Fed dollars.

*My favorite way to buy. You can also buy Roosevelt dimes that are 90% silver, just like the Mercury dimes - the advantage to Mercury dimes is that you don't have to check the dates on them to know that they are all 90% silver. With circulated Roosevelt dimes, you can generally get them in better condition overall, but you also have to verify the date (1964 and back) for each and every dime, buying and selling - which can get very tedious. You run into the same problem with quarters as well.

thanks so much! im only 21 and dirt poor but wanting to start hedging against inflation as early as i can.

and how can i tell if the condition is good?

 

[pmbug]

I would suggest a local coin shop. Condition doesn't mean much for 90% silver. Weight is more important. You are buying them for silver content, not numismatic/collectable appearance.