Curious about silver

[sectshun8]

There's been plenty of talk from peers in another forum regarding investing in silver. Using all that clad, melting down silver jewelry for the cash, and then buying up 10oz. bars.

I like the idea of it, having silver and gold bars stacked up in my safe... but I was just thinking. With silver, sure a few years ago it was much lower than the near $20/oz it is now... but odds are it might not be worth much more than it is now to make much a profit on it before we die. I mean, you buy now, paying let's say $20/oz just for a round figure, buy up 100oz... is a three dollar increase an ounce really worth the investment 20-30yrs later You might be able to sell for a little over spot and squeeze out a little more, but really? Seems like a lot of work for not much return...

Unless of course silver skyrockets into the hundreds of dollars range

 

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[Rasputin]

With silver, sure a few years ago it was much lower than the near $20/oz it is now... but odds are it might not be worth much more than it is now to make much a profit on it before we die. I mean, you buy now, paying let's say $20/oz just for a round figure, buy up 100oz... is a three dollar increase an ounce really worth the investment 20-30yrs later You might be able to sell for a little over spot and squeeze out a little more, but really? Seems like a lot of work for not much return...

That is why I won't invest in silver right now. (Or gold for that matter.) If you do buy enough now to make a significant profit in the event it goes up a few more dollars, you then have the logistical problem of storage and the expense of shipping when you sell. Instead, I bought 100 oz. of palladium a year ago when it had dropped to 274.00 an ounce. If I had the money to invest again right now, I would probably buy platinum. There is in my opinion more "wiggle room" at it's current price.

 

[nyiangelo]

I think your kind of under estimating the value of silver. Back in the 70-80's I'm sure people never believed it would hit $50 an ounce. It takes money to make money. No you not gonna make a "ton" of money with a 100oz. Right now I'm not sure I would buy silver or gold. The market is to jumpy. It could go way up or way down. But I do feel safer having some PMs as an investment against the dollar. There's a lot of people that have made money right now , because they got in that market a couple years ago.

I think your peers are talking about it as a hedge against inflation and devaluation of the dollar. Silver is considered a bargain when you consider the standard gold to silver ratio. I for one think it's going to go up.

 

[Jowlz]

I've been buying silver for quite a few years. I bought a bunch at $3-4 per ounce (really 5-6 after shipping etc), and I am still buying. But I am buying differently. When it was rock bottom I bought 10oz and 100oz bars. Since it has gone upwards of $18 an ounce, I have mainly been buying coins. While I believe Silver will hit 35-40 in the next few years, I also think the coins may be a cushion if silver plunges. With the economy the way it is, I think silver will continue to climb for a while.

 

[FreedomUIC]

I remember reading an article somewhere.. that there is roughly two more years left of silver in the earths crust where we can get at it. China has opened its door for the people, so they to can own PM's. With that said, silver is becoming
the next industrial PM to be used in most everything. My belief is that Silver will dry up in the years to come even more than it has now. The big boy's are all liqudating the "Paper" silver and they might be short when it comes to paying their clientele, guess what. Up goes the price of silver. There is a shortage of silver, guess what. Up goes the price of silver. I think 19.80 to 20.50 will be he new standard for silver for the next year or so then it will jump again up another dollars or so and three years down the line look for it to increase by at least another $5.00 per ounce.

Silver is where the money will be at if you can wait that long (Personal Opinion).

One analyst predicted $100.00 an ounce within the next 5 - 7 years and at gold at close to 64 to 1 ratio, something has to give
someplace and I bet it is not going to be gold.

 

[Tuberale]

The answer will be known in the future. Until then, the answer is like that old joke: Q: Briefs or boxers? A: Depends.

Gold might be smart. It usually is a great hedge against inflation. And it appears what the dollar can buy vs. what it did buy 5 years ago shows the value of the dollar has decreased dramatically.

Silver has been good to me so far. Bought silver at 5-7x face, now at more.<G> High quality silver coins a better long-term investment, but coin market poorly capitalized, and could retreat suddenly at any time.

Palladium an excellent hedge IMO. Palladium only metal associated with cold fusion, and could skyrocket in value. But cold fusion has only worked with one very clean source of palladium. Platinum does not seem to have the right make-up to be a substitute. Still pretty cheap, might be the golden goose.

While doing estate planning a few years ago, was advised (and I think it still holds today) that if you have sufficient funds, PMs a good hedge against inflation. Recommend you put 1-5% of net worth into PMs, but not more unless you have a better crystal ball than most. Remember what happened to the German mark at the end of WWII, when people took wheelbarrow-loads of money to buy a loaf of bread. Not as likely to happen again. Sometimes we learn from history. Sometimes we learn several times.