Investing in Silver

[Peter36]

Moderators must have a tendency to neutrality. If someone being constitutionally biased, partisan becomes a moderator, that’s a disaster for a forum.
The day he'd become a moderator each post of mine would get edited/deleted 5 minutes after its publication

Please keep feeding this thread
... but don’t expect a lot of active participation, particularly when the line goes down

 

[SKenny]

I like Silver as an investment, but I like gold more.

To each his own.

 

[touchring1]

I like Silver as an investment, but I like gold more.

To each his own.

The older generation like gold, people in late 30s, 40s and 50s. The millennials not so much. Try look for someone in his 20s wearing gold, it won’t be common. The Gen Z don’t even wear ornaments.

I don’t care about gold or silver. What I like is profits, whichever can earn more for me 5-10 years down the road, I like more.

 

[SKenny]

The older generation like gold, people in late 30s, 40s and 50s. The millennials not so much. Try look for someone in his 20s wearing gold, it won’t be common. The Gen Z don’t even wear ornaments.

I don’t care about gold or silver. What I like is profits, whichever can earn more for me 5-10 years down the road, I like more.

I don't have a single piece of gold on my body!!

I like gold as an investment but NOT as an ornament.

 

[xin_bullion]

I like Silver as an investment, but I like gold more.

To each his own.

But silver has more upside based on price (historical high is $50 and now is $17+) and gold to silver ratio (historical low is 30+ and now is 80+).

 

[SKenny]

But silver has more upside based on price (historical high is $50 and now is $17+) and gold to silver ratio (historical low is 30+ and now is 80+).

I don't disagree. However silver price is far more volatile than gold. This is one of the main reason why I prefer gold.

 

[henrylbh]

I like Silver as an investment, but I like gold more.

To each his own.

Speculate can try but to invest in them

 

[coolhead]

sozzz...guys, do you all see a silver lining in the cloud?

Posted from PCWX using Redmi K20 Pro

 

[touchring1]

I like to keep an open mind. The behavior of gold and silver in the last 50 years (since 1970s) will not be repeated in the next 50 years for a simple reason - the world economy is a lot larger than 1970s and technology has changed.

In 1970s, the world economy has only about 500 million consumers (Western europe 170 million people + 200 million Americans + 100 million Japan).

In the next 50 years, there is 700 millions in EU, 1.4 billion China, 1.4 billion India, 500 million South East Asia, 500 million, Americas, etc, more than 3 billion consumers - 6 times more than in 1970s.

What happens in 30-40 years, no one can know today. Maybe bitcoin or some digital currency will replace gold as central bank currency? Gold will go back to the original purpose - just for jewellery or ornament. This is why we need to have a bit of everything. Because we won't know how the story will play out in the future.

I'm not asking people to buy bitcoin - I don't because there might be a better crypto that may replace it, but it's important to keep an open mind.

 

[henrylbh]

I like to keep an open mind. The behavior of gold and silver in the last 50 years (since 1970s) will not be repeated in the next 50 years for a simple reason - the world economy is a lot larger than 1970s and technology has changed.

In 1970s, the world economy has only about 500 million consumers (Western europe 170 million people + 200 million Americans + 100 million Japan).

In the next 50 years, there is 700 millions in EU, 1.4 billion China, 1.4 billion India, 500 million South East Asia, 500 million, Americas, etc, more than 3 billion consumers - 6 times more than in 1970s.

Will not be repeated in the next 50 years ...... meaning up or down or ding dong

Gold had ding dong for as long as 20 years during that period

Gold in US$ has gone down all the way from about S$2.30 to S$1.38.

 

[xin_bullion]

Will not be repeated in the next 50 years ...... meaning up or down or ding dong

Gold had ding dong for as long as 20 years during that period

Gold in US$ has gone down all the way from about S$2.30 to S$1.38.

Gold against USD for 20 years, gold has made 400+% gains and for past 5 years it has made 25+% gains.

(p.s. As a dealer and stacker, I opined gold & silver is more for safeguarding today’s savings for today’s purchasing power in the future rather than an investment. Gold and silver has no yield or dividend, in fact the money market pays you to take up a short position which is probably why many have speculated that the precious metal prices are highly manipulated.)

 

[Peter36]

p.s. As a dealer and stacker, I opined gold & silver is more for safeguarding today’s savings for today’s purchasing power in the future rather than an investment.

I agree, gold is fundamentally not an investment but sound money i.e. store of value.
Gold is also a commodity, i.e. an investment, but this is not its basic function.
As we have been living for 3 generations now within a fiat-based financial system, gold's function as money has faded into obscurity, so to speak, but still, it's there.
It's going to show itself again in times of fiat currencies crises.

"in fact the money market pays you to take up a short position"
I wish you could explain to me what does that mean

 

[henrylbh]

I agree, gold is fundamentally not an investment but sound money i.e. store of value.

How is it a store of value? I bought gold about U$800 in the 80s and still holding them. I lost big time. I think I would have been better off had I kept the same in S$ in the banks.

 

[SBC]

I will prefer to buy precious metal ETF.

 

[xin_bullion]

How is it a store of value? I bought gold about U$800 in the 80s and still holding them. I lost big time. I think I would have been better off had I kept the same in S$ in the banks.

It’s all about cyclical investment (70s to 80s) and for 80s gold has peaked.
Maybe you can read on this article why gold could be on it’s new cycle (2020-2030s)
https://goldswitzerland.com/viktor-turns-10k-into-1-billion/

1970 – 1980 GOLD – FROM $10K TO $160K UP 16X
Viktor had received a $10,000 inheritance which he bought gold for at $35 per ounce. Since this was a 10 year investment, Viktor decided that his stop loss would need to be a generous 33%.
The positive surprise came earlier than even Viktor could have hoped for when Nixon closed the gold window on August 15th, 1971. Gradually gold appreciated in the 1970s but with major corrections. Still, by early January 1980 gold was $559. So based on his plan, Viktor exited gold at that time to enter a new 10 year investment. With the benefit of hindsight Viktor could have made a lot more since gold went to $850 by the end of January 1980.
But Viktor stuck to his plan. And it wasn’t a bad plan, $10,000 had grown to $159,700 by January 1980 when he sold his gold at $559. So he had earned almost 16X his money in 10 years.

 

[xin_bullion]

I will prefer to buy precious metal ETF.

When you hold gold to protect against all the risks in the world, you clearly don’t want to hold it in a bank. If it’s for investment purposes, then you shouldn’t be looking at Gold ETF, there are much better financial products that has way better yield than Gold ETF.

I opined that Gold held for wealth preservation purposes must be held in physical form and outside the banking system. The more counter-parties between yourself and your gold, the higher the risk.

I reckoned you will eliminate the counter party risk by holding onto the physical form. And gold is very liquid compared to silver, you can walk to most banks and bullion dealer to cash in and the spread is usually very tight for bullion bars (e.g. 1kg).

 

[SBC]

When you hold gold to protect against all the risks in the world, you clearly don’t want to hold it in a bank. If it’s for investment purposes, then you shouldn’t be looking at Gold ETF, there are much better financial products that has way better yield than Gold ETF.

I opined that Gold held for wealth preservation purposes must be held in physical form and outside the banking system. The more counter-parties between yourself and your gold, the higher the risk.

I reckoned you will eliminate the counter party risk by holding onto the physical form. And gold is very liquid compared to silver, you can walk to most banks and bullion dealer to cash in and the spread is usually very tight for bullion bars (e.g. 1kg).

There are always 2 school of thought. Will consider when I richer or easier on my cash flow.

 

[touchring1]

It’s all about cyclical investment (70s to 80s) and for 80s gold has peaked.
Maybe you can read on this article why gold could be on it’s new cycle (2020-2030s).

The word investment is a very dangerous word today because it gives a false sense of security and legitimacy. In today’s world, there are lots of scams, even blue chip stocks have accounting fraud or mismanagement. Governments around the world are now also less likely to bail out state owned or backed companies. Recently, some Chinese SOEs defaulted on their bonds. This is a sign of things to come.

If a bank defaults, savers can see their deposits stuck and even those insurance guaranteed amounts can get stuck for many years while the due process is worked out. In the US, some depositors only just got their insurance payout for their deposits stuck during 2008 global financial crisis. Some more principle amount only, without accrued interest.

We are still at an early stage but if another Asian financial crisis happens, be it starting in China or HK, a lot of savers and bond holders will be very worried with no where to run. By then I would expect new laws to prevent withdrawal of large amounts of cash from banks (in name of anti-money laundering) to prevent people from fleeing the system. So you can only FAST to another bank or spend the cash, buy gold, but by then you might need to pay GST to buy physical bullion.

 

[xin_bullion]

The word investment is a very dangerous word today because it gives a false sense of security and legitimacy. In today’s world, there are lots of scams, even blue chip stocks have accounting fraud or mismanagement. Governments around the world are now also less likely to bail out state owned or backed companies. Recently, some Chinese SOEs defaulted on their bonds. This is a sign of things to come.

If a bank defaults, savers can see their deposits stuck and even those insurance guaranteed amounts can get stuck for many years while the due process is worked out. In the US, some depositors only just got their insurance payout for their deposits stuck during 2008 global financial crisis. Some more principle amount only, without accrued interest.

We are still at an early stage but if another Asian financial crisis happens, be it starting in China or HK, a lot of savers and bond holders will be very worried with no where to run. By then I would expect new laws to prevent withdrawal of large amounts of cash from banks (in name of anti-money laundering) to prevent people from fleeing the system. So you can only FAST to another bank or spend the cash, buy gold, but by then you might need to pay GST to buy physical bullion.

In a bid to increase precious metal trading volume, the 7% GST for investment grade precious metals has been exempted since 2012.
https://www.iras.gov.sg/irashome/up...estment Precious Metals_(Twelfth Edition).pdf

Since then, the trading volume and delivery of physical precious metal (gold & silver) coins and bullion has gone from strength to strength.

Yes, most if not all investment products carry certain risk, even Reits (over gear issue) or bonds (default issue). That’s why some have chosen to allocate certain percentage of their savings to precious metals to safeguard their purchasing powers as we are certainly charting into uncertain times with the longest-running bull market in history celebrated its 10-year anniversary on March 2019.

I opined the bull market may have reach it’s tail end of it’s cyclical trend and this cyclical trend may move towards precious metal as it has been in a consolidation pattern for the longest time.

 

[coolhead]

Anyone on the silver bandwagon? Or should I say....anyone see a silver lining in the clouds?
Silver mining stocks on a BOOM here.