Silver

Discussion in 'Survival & Sustenance Living Forum' started by fireguy, Mar 8, 2011.

  1. fireguy

    fireguy New Member

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    I think this applies under the sustenance part of this forum. I've been getting pretty antsy about my investments that have only recently gotten back to where they were a couple years ago.

    Instead of contributing to the ROTH and conventional IRA, does it make sense to anybody besides me to put the money into silver? I can afford the silver as opposed to gold, it might come down, but will never be worth nothing, which is a fate that I think the dollar is headed for.

    Anybody else changing their investments to get away from the dollar?
     
  2. Poink88

    Poink88 New Member

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    I am funneling most of my "disposable" or extra cash (which is not much) into silver, guns and ammo. These commodities should hold their value well even if dollar drops rock bottom.

    I stopped buying silver when it hit $20.00 about 8 months ago and I am feeling sorry now since it is almost $36/oz. :eek:
     

  3. Seven

    Seven New Member

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    ^that.

    For the past couple years I've been collecting pre-1964 dimes and quarters. They aren't as easy to find as they once were though. You can still find some .999oz silver casino tokens on eBay for less than the cost of 1oz. of silver.
     
  4. Poink88

    Poink88 New Member

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    While I target bullion silver (99.9% pure silver) and preferably legal tender like Silver Eagles and Canadian Maple Leaf, I opened my net and got a few sterling (92.5% silver) collectible sets for cheap (less than spot) from eBay. That was back when silver was less than $18/oz too.

    One of the set is 97 oz pure silver (after factoring .925 from total weight) :cool:
     
  5. bkt

    bkt New Member

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    I used to buy gold and silver, but it's down to mostly just silver these days with prices being where they are.

    Short answer to your question: it makes a helluva lot of sense to have a store of wealth in something other than paper currencies (that includes stocks). I still have my Roth IRA and my 401k at work, but I buy silver every month or two.

    It was great when it was between $4 and $9 per ounce. Now it's over $36. But when you consider the ratio of value for gold to silver has held steady at 1:16 for several thousand years, with gold priced where it is silver should cost in the neighborhood of $90/oz. So it's still cheap!

    Apmex has been a great online source -- prices over spot are better than I can get locally and they're quick and you get what you ask for.

    Incidentally, don't buy any bullion that doesn't have the purity and weight on it.
     
  6. JonM

    JonM Moderator

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    when the economy is tanking isnt the time to buy precious metals. even if it goes triple what it is now soon as the current economic cycle swings the other way the price of metals will drop thru the floor overnite.

    the time to buy was 3-4 years ago BEFORE the crunch. when the price plummets thats when ill buy metals.
     
  7. Poink88

    Poink88 New Member

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    You are right if the dollar doesn't go belly up and it recovers. The way we are spending and the rate our debts are rising...I doubt it.

    Most likely, our government will default on our debts and replace the dollar eventually.

    I hope I am mistaken.
     
    Last edited: Mar 8, 2011
  8. jca1

    jca1 New Member

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    There is something that will never be worthless, I think it is:

    Food and the ability to trap, shoot, clean, cook, grow, catch, harvest and preserve it.



    Everything else is up in the air if you ask me. I doubt Gold and silver and other precious metals will ever be worthless but if the SHTF big time, the ability to survive will be far more valuable.

    I won't buy any gold or silver until that market tanks and people start panic selling it for cheap. You can believe that someone is getting rich off gold, but it ain't you and me.
     
    Last edited: Mar 8, 2011
  9. Poink88

    Poink88 New Member

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    I do what little I can and prepare for what I fear might happen. You do as you please. :)
     
  10. Cnynrat

    Cnynrat New Member

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    I'm new to the world of precious metals as an investment vehicle. I've been thinking I should put some of my resources there, but I'm a little concerned about whether I'd end up buying at or near the peak.

    What do you guys think about buying pre-1965 silver coins? They don't have the purity marked on them, but should be well known that they are 90% pure. Bulky to store, but they come in nice small units of value which would make trading them easier.
     
  11. Poink88

    Poink88 New Member

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    Grab as much as you can of the pre '64 coins. Problem is that they are up in cost as well.
     
  12. jca1

    jca1 New Member

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    Well said.^

    I'm not real smart and I'm not too proud to admit it. My problem is that everyone always told me to buy low and sell high. Several years ago my wife got on that whole beanie baby thing, remember that? Anyway, time she got really interested in it they were already selling high. We bought right many of them thinking they would be collectible for a few more years and continue to go up in value. Today we have a box full of beanie babies that are not worth their weight in owl crap. I realize this is apples to oranges but the principle is the same. The people who made money off beanie babies had bought them early on and then sold them for inflated prices. I feel like that's exactly whats happening with gold and such right now. The people who are getting wealthy are the ones selling the gold not buying it.

    Feeling that way certainly does not make me right, in fact you probably know a lot more about these type things than I do.

    I'm sure there will never come a time that gold and silver will be worthless but it seems to me that people who are buying gold and stuff now, when it's high, may very well find themselves with a golden box of beanie babies.
     
  13. Cnynrat

    Cnynrat New Member

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    To your point jca1, here is the price of sliver from 1985 to the present. From 1985 until 2005 it was under $9/oz, and usually around $4-5/oz. Now it's hovering above $36/oz. Lead may be a better investment.

    [​IMG]
     
  14. Poink88

    Poink88 New Member

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    IMHO, silver price have been kept at bay artificially for so long.

    The biggest part is losing the dollar status as world currency of trade because of our debts. We cannot pay it no matter how you calculate it since we cannot even pay the interest anymore. Our debtors are no longer letting us roll our old Treasury bills so we will have to find someone else who will take it ....at a higher interest rate. Guess what will happen after.

    We are printing dollars will continue doing so w/o anything to back it up...basically dollar will turn into funny money.

    Maybe I am reading this all wrong and I am hoping I am mistaken but I cannot see a way around it.
     
  15. bkt

    bkt New Member

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    I disagree. If it were true that the prices of metals were rising MUCH higher and faster than the prices of other commodities, you might be right. But they're not. EVERYTHING is rising - corn, wheat, soy, rice, sugar, uranium, oil, cotton, etc. - and that tells me it isn't that these things are becoming more scarce but that the currency we're using to buy them is dropping in value quickly.

    It is always a good time to exchange fiat paper currency for something with intrinsic value. Gold and silver hold their value relative to other commodities very, very well.

    And unless you're aware of some magic that someone can do to make our domestic and foreign debt disappear, this problem isn't going to go away quickly. In fact, it is likely to get a good deal worse.

    Always do what works best for you. I still have my mutual funds, but I'm also keeping some wealth (maybe 10-20%) in metals.
     
  16. bkt

    bkt New Member

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    Don't buy metals as an investment. Buy them as a hedge against the dollar tanking. If you want a good investment idea, buy mining stocks. Silver Wheaton is doing well. China has said they want to bring a huge number of nuclear power plants online in the next few years, so that suggests buying uranium mine stock is a good idea.

    Yes, junk silver is fine. In fact, it is an extremely smart thing to get rolls of dimes, quarters and halves to go with 1oz and bigger pieces. That gives you more flexibility.

    I should have said above that I look for weight and purity on bullion rounds and bars. Sovereign coinage with known purity is fine, too, of course.
     
    Last edited: Mar 9, 2011
  17. bkt

    bkt New Member

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    Yes, it has. JPMorgan-Chase and other big banks have been screwing with metals prices for years -- go to gata.org and look around. The evidence is damning.

    When a bank does a naked-short sell of paper silver for a quantity greater than is mined in several years then gets caught on the wrong side of the deal, eventually people are going to want their metal. What happens when the metal simply doesn't exist? Banks might be able to settle in cash for some clients, but that will have an affect on prices.

    Nope. You're reading it right.
     
  18. fireguy

    fireguy New Member

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    This is exactly where I'm coming from. There is funny business in the silver market that has kept it from it's historic value compared to gold. The dollar is being printed into worthlessness, and I don't want to rely solely on dollars in the nest egg.
     
  19. TrueNorth

    TrueNorth New Member

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    Well I do a reasonable bit of investing with my limited finances, and I have a BBA so I'm comfortable with my choices. That said, don't let me make up anyones mind for them.

    I was buying silver about 1.5 years ago. I stopped 1 year ago, and I am selling as of last week. I figured I made a 60% return on my investment and I'll take that. I am in Canada though, and our dollar is on a high note now, and we have less debt than the US, so US citizens take note that what I do may not be for you.

    For investors:
    Buying gold as an investment for retirement is likely a bad idea now. You are paying a high price because of the economic turmoil, but that should pass, and when it does silver/gold etc will go down. Who can tell the future but 2 years ago when the economy was better, silver was at $12 an ounce, if the economy returns to that good time (and it likely will one day), silver will fall to that level again also.

    For SHTFers'
    For those that believe that currencies will implode, sure buy silver as an intrinsic value retainer. But I'd argue against that now as well. If you truly are preparing for SHTF, then what are you intending to buy with all your silver? I'd say, if you believe society will collapse, then buy ammo, or other more functional goods. Since that is what you'll use the silver for in the future. Get those goods now wile the price is low, because in SHTF ammo will be priceless, and you'll need alot of silver to buy it anyways. Use your dollars where they are powerful, adn that is buying goods now, not commodities.

    For those with silver now:
    Sell it, or hold onto it. I leave it to you. Like any investment, sell when it is high and you make profit. Selling silver now gives you cash - (yes, cash may very well implode) SO, convert your silver to cash, THEN convert the cash to ammo. The profit you made on the silver will get you more ammo/food than your original investment could, so your "profit" is in having more goods!
    If you choose to hold it for intrinsic/trade value, then continue to do so, but I'd be careful about adding to your supply now.

    Lastly,

    for anyone who will continue to buy silver no matter what, I say this: buy bullion with a face value. I recommend Canadian gold/silver Maple Leafs. These coins are the purest silver/gold coins in the world (.99999 if you get years 2007 on I believe, .9999 before that). There is NO purer metal in the world than those coins. If buying silver especially, get the 1oz coins with a $5 face value. The face value is fiat CDN Dollar currency, but if silver does become worthless, the coin is still backed up for paper currency value of $5. ($50 for the gold coins).

    Coins cost a premium over the silver bars, but are backed up by the face value which I believe is a safety net for value.

    Sorry for the long post, but this is something I actually know a bit about! I hope this helps someone!
     
  20. Cnynrat

    Cnynrat New Member

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    TrueNorth - Thanks for that reply, I found it to be well thought out.