Discussion
Morning all.
I'm wondering what the general opinion is on buying silver. There is a guy at my work who is absolutely convinced its the way forward, and is putting all his money into it. Literally everything, house equity etc.
Now I'm not totally clued up but he has sold the story to me very well, but I'm sure for everyone who says silver is the place to put your money, there will be someone who'll say it isn't.
Many other guys at work have also recently bought into it, in different amounts, after listening to him.
Thanks
I'm wondering what the general opinion is on buying silver. There is a guy at my work who is absolutely convinced its the way forward, and is putting all his money into it. Literally everything, house equity etc.
Now I'm not totally clued up but he has sold the story to me very well, but I'm sure for everyone who says silver is the place to put your money, there will be someone who'll say it isn't.
Many other guys at work have also recently bought into it, in different amounts, after listening to him.
Thanks
(Yes, I'm long wheat and have been for the last 8 months.)It was along the lines of - (don't quote me)
Silver is a finite source/precious metal
All this economy problems and quantitive easing means the value of currency is going down, and this has the inverse effect on silver/gold.
He's very clued up on it and is utterly convinced its the way.. I just want in on it! haha
Silver is a finite source/precious metal
All this economy problems and quantitive easing means the value of currency is going down, and this has the inverse effect on silver/gold.
He's very clued up on it and is utterly convinced its the way.. I just want in on it! haha
Not sure that is correct. It's going up in value (well, it was 
) because investors were panicking over shares and looking for somewhere else to put their money, hence it's gone from cheap to bloody crazy to crazy. Now is probably too late but it's like a coin flip. I post this and it can go either up or down depending on how others feel.
) because investors were panicking over shares and looking for somewhere else to put their money, hence it's gone from cheap to bloody crazy to crazy. Now is probably too late but it's like a coin flip. I post this and it can go either up or down depending on how others feel.Things in silvers favor are that
1 silver is running at 50-1 the price of gold where the actual ratio of silver that exists is around 16-1
2 most of the silver supply is used and never recovered so above ground stocks are low where as 95% of all gold still exists
3 its still cheap at 615 per kilo you just get so much physical metal for your money where as in gold or platinum you would only get maybe a couple of small coins so its ideal for the masses to invest in
4 even working on the goverments own inflation figures of 5% we are in negative interest rates of 4.5% and this is optimistic
5 the worlds financial mess is not going to be fixed the system is just to big so all the goverment tricksters can do is try to print the debt away which will erode your savings at an unpresidented rate
its a scary world out there
1 silver is running at 50-1 the price of gold where the actual ratio of silver that exists is around 16-1
2 most of the silver supply is used and never recovered so above ground stocks are low where as 95% of all gold still exists
3 its still cheap at 615 per kilo you just get so much physical metal for your money where as in gold or platinum you would only get maybe a couple of small coins so its ideal for the masses to invest in
4 even working on the goverments own inflation figures of 5% we are in negative interest rates of 4.5% and this is optimistic
5 the worlds financial mess is not going to be fixed the system is just to big so all the goverment tricksters can do is try to print the debt away which will erode your savings at an unpresidented rate
its a scary world out there
He went into much more detail, but I can't remember it all. It was also to do with having something physical for your money, rather than just digital numbers in an online ISA.
thought he must be on commission
F458 said:
is he also selling silver as well as buying it? 
That was my first question! thought he must be on commission he will never be rich if thats all he does
silver has a very low value for the weight, even gold is dropping over the past few weeks.
do an online search for the price paid for silver compared to gold....its not worth it, gold is better by far, but soooo many doing it, its not a small market
silver has a very low value for the weight, even gold is dropping over the past few weeks.
do an online search for the price paid for silver compared to gold....its not worth it, gold is better by far, but soooo many doing it, its not a small market
T_Pot said:
he will never be rich if thats all he does
silver has a very low value for the weight, even gold is dropping over the past few weeks.
do an online search for the price paid for silver compared to gold....its not worth it, gold is better by far, but soooo many doing it, its not a small market
Of course gold is 'better' - but it costs a lot more! silver has a very low value for the weight, even gold is dropping over the past few weeks.
do an online search for the price paid for silver compared to gold....its not worth it, gold is better by far, but soooo many doing it, its not a small market
Relative to gold many people argue silver is highly undervalued.
I wouldn't touch gold with a barge pole at these prices.
One often overlooked issue with these 'economic failure' trades of gold or silver is that you really need to be holding the physical asset. If you just have silver Exchange Traded Funds (ETFs), there is a risk that you might be correct, but the ETF provider (a bank) fails as we reach economic meltdown. Of course if the economic world keeps going, just with a lot of inflation, the ETF should work. Personally, I think the downside risk is too high.
Steven Quas
Hamburg
Steven Quas
Hamburg
Steven Quas said:
One often overlooked issue with these 'economic failure' trades of gold or silver is that you really need to be holding the physical asset. If you just have silver Exchange Traded Funds (ETFs), there is a risk that you might be correct, but the ETF provider (a bank) fails as we reach economic meltdown. Of course if the economic world keeps going, just with a lot of inflation, the ETF should work. Personally, I think the downside risk is too high.
Steven Quas
Hamburg
This. If you are buying Silver or Gold for Meltdown Protection it is idiotic unless you hold physical stock. And you need to hold it somewhere you have access to it, i.e not in a Bank Vault!Steven Quas
Hamburg
marky1 - I am always surprised when I hear of people using commodity ETFs and similar funds as a hedge against the world's economic system collapsing. It really is lacking joined-up thinking. There are quite a few risks with holding physical silver or gold of course, particularly if anyone else knows, but that is a genuine hedge against currencies becoming near worthless.
Steven Quas
Hamburg
Steven Quas
Hamburg
+1 go physical or go home.
As a principle perhaps BHP or RIO are better bets if you want an income and capital gains linked to metals etc
As a catastrophe hedge you cant eat silver, its not very nutritious so its value only exists in a non Armageddon scenario.
Tesco's RPI linked bonds are interesting if held in a tax free wrapper for inflationista's
That being said Richard Koo wrote an interesting paper recently overlaying the US, UK and Japan... with interesting correlations!
Deflation may be the result. In which case Tesco bonds still look good, as does cash increasingly. Assets will suck, that may include gold and silver.. which in a disaster will go much lower as financial institutions liquidate to cover shortfalls.. which is what's being suggested is happening now.
As a principle perhaps BHP or RIO are better bets if you want an income and capital gains linked to metals etc
As a catastrophe hedge you cant eat silver, its not very nutritious so its value only exists in a non Armageddon scenario.
Tesco's RPI linked bonds are interesting if held in a tax free wrapper for inflationista's
That being said Richard Koo wrote an interesting paper recently overlaying the US, UK and Japan... with interesting correlations!
Deflation may be the result. In which case Tesco bonds still look good, as does cash increasingly. Assets will suck, that may include gold and silver.. which in a disaster will go much lower as financial institutions liquidate to cover shortfalls.. which is what's being suggested is happening now.
NorthernBoy said:
Er, what about the VAT?
It's payable on silver, which sort of screws using it as an investment.
No VAT with Bullionvault - See quote from website below.It's payable on silver, which sort of screws using it as an investment.
"There is no Value Added sales tax (VAT) to pay unless you withdraw your silver from the London vault. Silver withdrawal is available in whole 1,000-oz bars only. VAT is currently charged at 20% by HM Revenue & Customs."
Just my 10 pence worth.....
Silver is a very volatile commodity and you should be extremely cautious when looking at either going in to buy it physically, via futures or via some sort of ETF (LSIL LN for example). I trade silver mostly through this ETF - LSIL LN - as I take a leveraged view of the price and trade it based around target prices on either the up or downside. For example - when there was a lot of chatter in the market around a $50/oz this naturally formed a physiological level that you would see aggressive selling - and sure enough we did. I huge sell off occurred and silver related products (ETFs, futures etc) dropped like stones.
So where next? I have a price at which I keep buying this stuff (sub $29) and I have a price that I will sell that at ($33 o/b). This is the only way to trade this commodity in my eyes but this is just my opinion & I have to be ready to change my limits at anytime. It is a manufacturing metal and therefore if the economy goes into recession, it will crash but then it is also a precious metal that once used cannot be reused and so surely the price should go up? This is the dilemma.
Now Gold - again just my opinion - but I am long gold. Via physical and ETF's. Why? Well mainly as I can't find anything else that I really am interested in to invest my money in where I see solid stability and growth over the next 5 years. Yes there are some cheap equities in the market but then these equities traded down much much lower in 2008 post Lehman - not saying this is like Lehman --> its actually a lot worse!!!!
So gold is a natural hedge to the Euro son crisis, recession, deflation and sovereign debt issues anywhere because it is the choice of the biggest investors in the world - Sovereigns. Yes it sits in vaults all over the world but the demand from India and China for example continues to complement the gov demand and push these prices higher. Gold will average 2k+ next year and the recent downtrend in Gold in my view has been holders selling to cover loses they are making in equities and redemptions in their funds needing cash.
Always my opinion only but a really good resource I enjoy reading is www.oilngold.com
Best of luck, DJ
Silver is a very volatile commodity and you should be extremely cautious when looking at either going in to buy it physically, via futures or via some sort of ETF (LSIL LN for example). I trade silver mostly through this ETF - LSIL LN - as I take a leveraged view of the price and trade it based around target prices on either the up or downside. For example - when there was a lot of chatter in the market around a $50/oz this naturally formed a physiological level that you would see aggressive selling - and sure enough we did. I huge sell off occurred and silver related products (ETFs, futures etc) dropped like stones.
So where next? I have a price at which I keep buying this stuff (sub $29) and I have a price that I will sell that at ($33 o/b). This is the only way to trade this commodity in my eyes but this is just my opinion & I have to be ready to change my limits at anytime. It is a manufacturing metal and therefore if the economy goes into recession, it will crash but then it is also a precious metal that once used cannot be reused and so surely the price should go up? This is the dilemma.
Now Gold - again just my opinion - but I am long gold. Via physical and ETF's. Why? Well mainly as I can't find anything else that I really am interested in to invest my money in where I see solid stability and growth over the next 5 years. Yes there are some cheap equities in the market but then these equities traded down much much lower in 2008 post Lehman - not saying this is like Lehman --> its actually a lot worse!!!!
So gold is a natural hedge to the Euro son crisis, recession, deflation and sovereign debt issues anywhere because it is the choice of the biggest investors in the world - Sovereigns. Yes it sits in vaults all over the world but the demand from India and China for example continues to complement the gov demand and push these prices higher. Gold will average 2k+ next year and the recent downtrend in Gold in my view has been holders selling to cover loses they are making in equities and redemptions in their funds needing cash.
Always my opinion only but a really good resource I enjoy reading is www.oilngold.com
Best of luck, DJ
Gassing Station | Finance | Top of Page | What's New | My Stuff