Silver as a Protector of Wealth - Humbug !

[Pete]

Just checked out the HGM website where they are listing kilo silver bars.

The buy back price for a kilo of fine silver is today £274.02 and you will most likely pay about £10 to ship it to them.

 

I now looked up my spreadsheet for my kilo silver purchases over 3 years ago.

Remember the reason for stacking silver - you recall - preservation of wealth and protection against the collapse of fiat !!

 

My average cost per kilo ( note these are kilo chunks of metal not one ounce coins weighing up to a kilo ) is £846.50 and I did not pay more than 7% VAT at the time.

 

Makes you want to weep doesn't it !

[Danny-boy]

It does make me want to weep Pete.

I can't help thinking (or is that hoping) that your investment will come right in the next 10 years, but it's not certain and certainly not ideal.

[mr-dead]

Everything in cycles, we are at or near the bottom at the moment.

 

What goes down must go up lol

[Paul]

Last time i was in town visiting my local coin shop, we were chatting over a coffee and we chewing the cud over how it was so  crazy why prices are down when all the signs point otherwise.  They should be the same or better than the 2011 highs

 

I say to him, "well this volatility in silver this past 18 months, is making me sea sick, im trying to stack gold now so im more or less split 50/50"

 

He comes back to me saying, a person who has bought and sold items from him for over 30 years, the person had sold off x1 house & x3 flat sales for a good profit to invest 100% of it in silver.  (So you got to be looking a minimum of quarter million).

 

These purchases were made by him around 6 weeks before the 2011 highs. 

 

He says Paul, "at least you'll be here to see the to the highs again but i bet hes sweating now as hes now into his retirement years".

 

I certainly didn't foresee this volatility in prices.  My core reasons for coming into silver and gold still remain true and ill will still weather this storm for another 5 years to see how things play out.

 

Anyone who is 100% in precious metals - eek !!  Like Getting mugged for half your loot without any bruises 

[Scuzzle]

Silver is always a minimum 10 year hold so you have to wait it out, I have seen my stack value go down a good bit even though I have only had mine for 3 months, I have worked out though that I can bring down my cost average by selling on Ebay even at a loss and re-buying at todays prices.

[Paul]

Newbie stacker grab your hankies     

[DRooster]

I now looked up my spreadsheet for my kilo silver purchases over 3 years ago.

Take heart : surely a 3-year plan wasn't on the cards, even in your head.

This is just another "buying" period.

Fiat hasn't collapsed yet (I don't think it will) but the constant and more-and-more-acceptable QE is going to devalue most nations' fiat currency steadily

so your PM hoards are still doing the intended job.

 

And ... who would have the foresight/luck to put off buying until the present lower prices? Nah. Relax.

[Danny-boy]

Newbie stacker grab your hankies

Wow, that's scary Paul.

[DRooster]

Newbie stacker grab your hankies 

Oops!

I first read that as "grab your ankles" which is a whole other image!! 

[Paul]

[Paul]

Wow, that's scary Paul.

 

Got crappy maples and phillys at around that price to, that was a random invoice from 2011 tax year

[Ares]

Stiff upper lip and all that, wait until the next financial crisis and you'll be laughing

[DRooster]

Prices still descending as we speak ... ...

[Pete]

I welcome everyone's comments and yes it is very easy to say wait out the recovery etc and buy now to lower average cost.

That's all very good but it hurts when you compare 'current asset' value against 'not buying and keeping your hard-earned cash in the bank'.

Seasoned stackers buying silver today in theory need to buy 3 times the quantity and hope for a recovery.

New stackers are relatively lucky because the stuff is so cheap compared to the last highs when people like me followed the herd.

As for those who say it is better to buy gold, I am not convinced because the GSR ratio is so high meaning silver is underpriced or possibly gold is still over priced with further to fall.

My tea leaves cannot point to the right answer here.

As they say the only guarantees in life are death and taxes ( re- taxes / unless you are royalty or landed gentry with 'Breaking Bad' lawyers like Saul that is )

[motorbikez]

Just checked out the HGM website where they are listing kilo silver bars.

The buy back price for a kilo of fine silver is today £274.02 and you will most likely pay about £10 to ship it to them.

 

I now looked up my spreadsheet for my kilo silver purchases over 3 years ago.

Remember the reason for stacking silver - you recall - preservation of wealth and protection against the collapse of fiat !!

 

My average cost per kilo ( note these are kilo chunks of metal not one ounce coins weighing up to a kilo ) is £846.50 and I did not pay more than 7% VAT at the time.

 

Makes you want to weep doesn't it !

 

At least you have your own property & have not crystalised your notional loses by selling out like a lot of the lemmings.Silver bullion & other pm bullion are just like any other commodity they have their ups & downs as long as you don't have a substantial amount of your assets in any one class there is no problem.You have lost nothing unless you sell.

[KDave]

Diversification is key. However, the reasons for holding silver and gold remain the same regardless of how much the exchange rate has changed since you bought. The metal is still in your possession and its not going anywhere is it? 

 

Instead of silver you could have held cash and then invested in the Chinese stock market like Yang Cheng;

 

http://www.zerohedge.com/news/2015-07-28/how-chinese-farmer-lost-more-everything-trading-stocks

[HighlandTiger]

Oops!

I first read that as "grab your ankles" which is a whole other image!! 

 

As Homer would say.... "mmmmmmmm ankles"

 

[BaldyBob]

It is hard to watch the price plummet, but for me PM's are a form of insurance. Yes the price goes up and down (well down mainly), but when the time is right it will prove its worth if necessary. (For me it's 'worth' is security, not guaranteed profit).

 

How much have you lost on Car, house/contents, holiday, life, and health insurance this year?

 

You won't see that money again, but your PM's will always retain some fiat value until you need them.

 

If I never need them in the next 25 years, well I will take the loss if there is one, and be grateful that the worst scenario's in my mind never played out. Of course, it could go to da moon!

 

 

[SilverPirate]

I enjoy stacking,OK just lately it has p@$£ed me off with some sales i have made but i will get over it.

I think as it as a hobby with benefits.OK the benefits right now are plain crap but i will keep stacking not out of blind stupidity in the hope it will rise,

but because i enjoy it, it looks nice and i am a Pirate at heart.

If your not enjoying it,Stop or have a break from it,or stack collect something else for a while,throw the stack under the bed and forget about it.

One day you can come back to it,sell it play with it start again or just give it all away to the kids.All the other money sapping things we have bought for fun in the past are half a mile down in landfill by then, at least you have something to show for it.

Just buy metal with non essential spare dosh and it won't hurt. I remember seeing this guy on You Tube once he read some book and emptied all his savings into silver, how is he feeling right now,but one day who knows? this time next year Rodders we will be millionaires.

 

Keep the faith my fellow stackers if your fed up with it go and enjoy whats left of the summer, come back later in the year if it has gone down ,go out and buy some more, have that buying fix, i like it and i bet you do too.

Get your whole stack out tonight and lay it all over the dinning table and admire it,don't look at the silver price look at what you have achieved,what you have saved in your alternative bank account and give your self a pat on the back.your not down,your not out of pocket it's there in front of you.

 

That's my motivational P.M. pep talk for the day over, Happy stacking .  Aaaaaaaaaaargh go play Pirates.Me hearty's

[sovereignsteve]

Ha, you may have had some summer down sarf but up here, I think I've seen about 2 hours of sun all "summer"!

[SilverPirate]

Ha, you may have had some summer down sarf but up here, I think I've seen about 2 hours of sun all "summer"!

LOL It's grim up norf.

[AuFinger]

It's best to stop comparing PM to fiat only.

Value the Ag against what it'll actually buy you.

Ag values spiked a few years ago but given we all had more wealth back then too then I don't really see an issue with falling fiat price unless you bought silver to try 'make' fiat gains.

If you do that, then that's a strategy problem.

[FriedrichVonHayek]

It's best to stop comparing PM to fiat only.

Value the Ag against what it'll actually buy you.

Ag values spiked a few years ago but given we all had more wealth back then too then I don't really see an issue with falling fiat price unless you bought silver to try 'make' fiat gains.

If you do that, then that's a strategy problem.

Unfortunately we do have a Fiat money system now and probably into the future,so we have to value it in Fiat currency.

I don't think anyone who bought at the highs in 2011 will take any solace that they own precious metals,I am sure they would prefer to own Fiat in hindsight as it buys you much more than the metals.

[HighlandTiger]

Value the Ag against what it'll actually buy you.

 

 

Errrrrr, actually silver will buy you diddly squat. You want to buy anything, then I'm afraid you are going to have to use those little bits of paper, or numbers on a screen that you despise so much. People can't even pop to Tesco's with legal tender silver coins and buy anything 

 

99.9999999% of the worlds population don't even understand the word "Fiat Currency", the best they'd do, is think it is some special deal from an Italian car manufacturer. Money as the worlds population understand it, is not going anywhere, it is not going to collapse and if anyone is betting on a new monetary system being implemented in the next few years are going to be sadly disappointed.  

[SilverPirate]

PM's is a part of prepping.Prepping for our future.In a crisis we may not be able to spend it but it will be a reserve till it is all over,(whatever  "it" is).just like these earthen ware pots full of coins in the middle of a farmers field awaiting there owners to ride the storm and reclaim it.

Do you take your money out of the bank and put it under the dog just in case of a banking collapse?

Do you fill the garage with every type of prepping equipment going and shed loads of rice and lentils to see you through a SHTF scenario?

Do you fill a safe with as much silver and gold as you can fit in it?

Do you buy bad dogs and weapons to defend yourself.

All of the above or do sod all and order a take away and have a beer?

We can over analyse everything and prepare for anything.

If ,buts and maybe's.

I don't know the answers to any of it, i am just trying to cover my sorry backside as best i can for what ever life throws at it.

JP Morgan has stacked shed loads of Silver allegedly. Are they long or do they know something is coming like the collapse of the credit system world wide?

Is world war three coming with the Russians? Are our pensions going to be raided,will our government raid our savings to pay debt ? where do you stop worrying?

It becomes depressing in the end.Silver and Gold on it's own surly is not the answer but a spread bet , a portfolio,if this fails that will see me through fingers crossed.