silver
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BuffaloBoy
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Sure. It will increase again in years to come. It can't decrease to nothing, there will always be some demand. 
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It cant go up forever....Ebb and Flow...Im holding out long term anyway, so I would like to see it hit 15/oz again...thats what it was when I started buying and quit buying at 20/oz
dreamboxvip
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Of course it can't go up forever but it doesn't even hold steady at any price. It drops more.
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I pretty much think it peaked for at least this decade...I remember when it was in the 40/oz range...I was holding out and telling myself, "When it hits 50/oz..Im selling it ALL"...so i watched it hit 49 dollars..then it hit 49.75
Then within a week or 2, I watched it drop to 30...then 25...then 20. Of course I would have loved to cash in , but thats just how it works. Silver is always going to be needed and wanted. Just because its dropping now, doesnt mean anything to me. Just like stocks and Real Estate. It ALWAYS bounces back.
I would just take advantage of it being low to buy right now
Then within a week or 2, I watched it drop to 30...then 25...then 20. Of course I would have loved to cash in , but thats just how it works. Silver is always going to be needed and wanted. Just because its dropping now, doesnt mean anything to me. Just like stocks and Real Estate. It ALWAYS bounces back.
I would just take advantage of it being low to buy right now
SilverFace
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Lol. Thats what people will be saying about the USD in the near future. Silver prices are going to do much more than recover. Silver prices are insanely low now because the US economy is in a complete state of insanity. Eventually more and more people will recognize the importance and true value of sound money and silver prices will go to the moon. The longer it takes for prices to reveal silver's true value, the higher prices are going to go.
baddbluff
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Actually silver is nothing like stocks or real estate, which trend upward over time. PMs are all over the place and are completely unpredictable. People who hold most of their assets in PMs are better off opening a money market account. While it won't outpace inflation, at least it's going up in value.
Avago
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Disclosure: Economics rant below.
No, it will never recover. It'll just keep going down and down until it's worth zero, and keep going some more until you have to pay people to get rid of your silver!!
I don't think Diggin-N-Dumps was comparing PMs to stocks or real estate in essence, but was just commenting that generally all investments have some volatility. PMs to me are very predictable. They seem to mostly reflect the inverse of investor sentiment, meaning that when investors are confident in riskier assets like stocks, PM prices will drop like they are now; however, when the sentiment swings the other way and investors lose confidence in the markets, demand for PMs increases and so will the price. Therefore, if you seek to use PMs as a growth investment vehicle (terrible idea in my opinion) you must bet on an aggressive downturn or failure of the US/global economy. Also, it is a terrible idea to hold most of your assets in any one investment type. A diversified portfolio is king.
Investing in PMs as a growth option is a terrible idea, because generally their values keep pace with inflation. Your investment will not grow long-term. See the inflation-adjusted silver chart below. PMs as an investment keep pace with inflation over time (minus the spikes for economic crises and price manipulation) and serve to minimize risk, protect purchasing power, and hedge against inflation and devaluation of the dollar. If a bout of severe inflation were to occur, the paper dollar value of your PMs would increase in parallel.
For example, if you had $100 in paper currency and suddenly inflation increases to the point where the purchasing power of that money was 1/10 of what it was, suddenly you can only buy 1/10 of the groceries that you could before that inflation. On the other hand if you hold $100 in physical PMs and inflation occurs similarly, you could sell your PMs for $1000 inflated dollars and buy the SAME amount of groceries as before the inflation, because to buy the SAME amount of silver you will need to spend MORE inflated dollars.
Any thoughts?
No, it will never recover. It'll just keep going down and down until it's worth zero, and keep going some more until you have to pay people to get rid of your silver!!
I don't think Diggin-N-Dumps was comparing PMs to stocks or real estate in essence, but was just commenting that generally all investments have some volatility. PMs to me are very predictable. They seem to mostly reflect the inverse of investor sentiment, meaning that when investors are confident in riskier assets like stocks, PM prices will drop like they are now; however, when the sentiment swings the other way and investors lose confidence in the markets, demand for PMs increases and so will the price. Therefore, if you seek to use PMs as a growth investment vehicle (terrible idea in my opinion) you must bet on an aggressive downturn or failure of the US/global economy. Also, it is a terrible idea to hold most of your assets in any one investment type. A diversified portfolio is king.
Investing in PMs as a growth option is a terrible idea, because generally their values keep pace with inflation. Your investment will not grow long-term. See the inflation-adjusted silver chart below. PMs as an investment keep pace with inflation over time (minus the spikes for economic crises and price manipulation) and serve to minimize risk, protect purchasing power, and hedge against inflation and devaluation of the dollar. If a bout of severe inflation were to occur, the paper dollar value of your PMs would increase in parallel.
For example, if you had $100 in paper currency and suddenly inflation increases to the point where the purchasing power of that money was 1/10 of what it was, suddenly you can only buy 1/10 of the groceries that you could before that inflation. On the other hand if you hold $100 in physical PMs and inflation occurs similarly, you could sell your PMs for $1000 inflated dollars and buy the SAME amount of groceries as before the inflation, because to buy the SAME amount of silver you will need to spend MORE inflated dollars.
Any thoughts?
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fistfulladirt
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I believe we will see decades of stagflation, no growth in PM's, and higher taxes.
ArkieBassMan
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+1 I concur.
Avago
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If we see decades of a stagnant economy coupled with high inflation (which is entirely possible in my opinion), people will be driven in droves to PMs to protect the value of the wealth that they have from the inflation. Higher demand, higher price.
ArkieBassMan
Silver Member
In theory I agree. That makes perfect sense. In reality, I don't believe it will matter even a little. The price of silver will do exactly what The Powers That Be (TPTB) want it to do. Supply and demand has taken a backseat to speculation and manipulation. The demand for silver cannot possibly get any higher than it is now, yet the price is falling. It sells quickly and easily, all day, every day usually with a premium attached.
SilverFace
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The speculation and manipulation is in the USD and the false belief that we've had an real economic recovery and that QE has been a success and that it can come to an end without deflating asset bubbles in the stock, bond, currency and housing markets .
Eventually foreign central banks who have been largely responsible for helping the Fed to prop up the value of the USD with the continued misplaced trust that its still worthy of being the worlds reserve currency will come to their senses and this insane USD con game will come to an end.
Massive price inflation is coming soon and the demand for silver will be incredible. Here's a pretty good article that I was just reading earlier this morning. Im not familiar with this website but the article makes some good points that helps explain in more detail a lot of things I've been more generally well aware of for years.
We Will Experience the Anguish of Severe Inflation In the Coming Years - Here's Why - munKNEE dot.com
Eventually foreign central banks who have been largely responsible for helping the Fed to prop up the value of the USD with the continued misplaced trust that its still worthy of being the worlds reserve currency will come to their senses and this insane USD con game will come to an end.
Massive price inflation is coming soon and the demand for silver will be incredible. Here's a pretty good article that I was just reading earlier this morning. Im not familiar with this website but the article makes some good points that helps explain in more detail a lot of things I've been more generally well aware of for years.
We Will Experience the Anguish of Severe Inflation In the Coming Years - Here's Why - munKNEE dot.com
smittyw
Sr. Member
It was for fun and profit (collecting). Now it will be for fun and hobby till things change again. I too believe that this is cyclic. May take a while but the only thing constant in the world is change.
dreamboxvip
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Silver down yet again
Avago
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Republicans took control of congress = Potential looser regulation of corporations and markets = Good for corporations and markets = Bad for safe haven assets like PMs.
It is going to continue to go down. Through the end of the year I see lower gas prices fueling holiday spending (even though people drive less in the winter, the savings will add up), boosting the corporate earnings and markets again, driving PMs down even more. Get used to the dropping PM prices until the rug is pulled out from beneath us, as SilverFace points out.
baddbluff
Bronze Member
Glad I sold all my silver when I did. You conspiracy theorists who think the world is going to end and that silver and gold will be the only remaining currency are not going to be able to retire unless you can make at least 8-10% in a retirement savings vehicle (ie mutual funds). The DOW is 17,500 today, and will be 25k in no time, then 50k, and I will have millions while your Silver & Gold will be back to $5/oz & $200/oz like they were when I graduated HS. Don't risk your future - diversify your $ in something with a proven track record!
TheMastermind
Bronze Member
Investing and stockpiling PMs are not mutually exclusive, one can and should do both.
No one has rallied against diversification.
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