Is silver stacking a loss leader?

[Lowlow]

For me I think a quote from the character Algamish in the book "The Richest Man in Babylon" pretty much sums it up ... "I found the road to wealth," he said, "When I decided that a part of all I earned was mine to keep. And so will you."

Recommend reading that 100 year old book for free online to understand why he said that, could change your life.  The book is so popular it is one of the few books of that age that is still available in any bookstore in America.

I don't think of silver as an "investment" anymore than I think of holding Federal Reserve Notes as an investment, but if you are living in the black and not in debt you have to store your resources in something - that could be real estate, stocks, bonds, collectibles (which is what your high premium silver coin is), options, futures, cash, etc.  Precious metals are a "special something", let's say, that is a lot like real estate in the sense that it is tangible property and isn't subject to counter-party risk, but is also portable and easily stored.  PM is like the ultimate reserve currency.

Regarding that premium you paid, suggest you investigate the difference between precious metal trading vs collecting and numimatics.

[Nora]

On 2/11/2018 at 09:31, BookBayJOHN said:

Please correct me if I'm wrong,  but if you buy a 2 ounce coin at £39 with a silver content worth about £24 this has a premium mark up of £15. Which is fair enough.

Now, if I sell this coin and I'm only offered around the Spot price, I basically lose around £15. So how can that be seen as an investment?

 

Yeah, I totally get where you are coming from!  This is why I don't really use silver as an investment, but more as a store of wealth.  One of the best companies to do this with that I have come across is called the United Precious Metals Association.  If I purchase from them and vault with them, then I can sell back to them with a 0% buy/sell spread, which allows my account with them to be really liquid - I can easily switch between gold, silver, and paper dollars with very little loss.  This company is based in Utah in the USA, but has clients across the globe.  Maybe there is another similar company closer to you.  Best of luck to you! : )

[OldBoyStacker]

I've made small profits on bullion but avoid high premium and art bars as they are impossible to shift IMO. I see people buy them for 150 dollars an Oz and 3 months later try to sell them and fail miserably - lucky to achieve 50 dollars.

I have also noticed over the years that to begin with you want to believe everything the Youtuber's are saying about huge profits and buy into it fully, you soon learn that its all baloney.

There's also a fair few "facebook groups" about silver (UK Silver Stackers being the main one), none of which are helpful as everyone on them is a scammer, they lick there lips when new people enter the fray and try to flog all there "dud" silver onto a poor unsuspecting noob for way more than spot, and in turn the novice is stuck with a bunch of over priced stuff they will never shift for a profit.

So glad I found this forum.

[sixgun]

Buying silver is an investment. Granted investing is something done for profit but there is no time frame given in the definition. There is nothing about dividends or interest in the definition of an investment.

We have experienced falling or at least static silver prices since 2011 so silver is seem as a loser. It has in many circumstances been a poor investment over this period of time but those buying silver are not doing it b/c they think it is a loser. People buy silver for lots of reasons but for the vast majority it is b/c they believe the value will rise.

Silver is probably one of the best investments there is around at the moment. The demand is large and there is a decreasing available supply. The futures is bright, the future is silver.

[vand]

On 11/02/2018 at 21:31, Lowlow said:

For me I think a quote from the character Algamish in the book "The Richest Man in Babylon" pretty much sums it up ... "I found the road to wealth," he said, "When I decided that a part of all I earned was mine to keep. And so will you."

Recommend reading that 100 year old book for free online to understand why he said that, could change your life.  The book is so popular it is one of the few books of that age that is still available in any bookstore in America.

I don't think of silver as an "investment" anymore than I think of holding Federal Reserve Notes as an investment, but if you are living in the black and not in debt you have to store your resources in something - that could be real estate, stocks, bonds, collectibles (which is what your high premium silver coin is), options, futures, cash, etc.  Precious metals are a "special something", let's say, that is a lot like real estate in the sense that it is tangible property and isn't subject to counter-party risk, but is also portable and easily stored.  PM is like the ultimate reserve currency.

Regarding that premium you paid, suggest you investigate the difference between precious metal trading vs collecting and numimatics.

Richest Man In Babylon is a classic which everyone should read..

 

wrt “silver as an investment”, it depends. An investment is the exchange of underconsumption in the present with the expectation of higher and more valuable consumption in the future, and I would say that PMs have historically fulfilled this role.  But timeframe is the issue. I would be supremely confident that my grandchildren’s grandchildren would be able to take PMs passed down from previous generations and convert them to consumption or other forms of wealth, but I am not confident you can say the same for Apple shares, US treasuries, bitcoins or any other asset class. OTOH, absent an imminent economic crisis (which is another discussion), PMs are least Likely for short term re-evaluated higher as they have the least potential to produce economic output and create wealth, which is the domain of higher risk but higher reward assets.

[Alun]

I recently bought the 4 available Queen's Beasts coins because i think they look fantastic, have a great story behind them and the set will look great when all 10 are  mounted. This has been my introduction into precious metals.
Now, I have been reading up on the subject of silver stacking and one thing puzzles me. Why is it seen as an investment and not a loss making hobby?
Please correct me if I'm wrong,  but if you buy a 2 ounce coin at £39 with a silver content worth about £24 this has a premium mark up of £15. Which is fair enough.
Now, if I sell this coin and I'm only offered around the Spot price, I basically lose around £15. So how can that be seen as an investment?  
YouTube is full of videos of people with piles of identical coins. I would really like to know the reason why.
Thanks
 

Can't answer your Question John but can say your coins will look fantastic in one of my boxes [emoji16]

Alun