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Silver as a Protector of Wealth - Humbug !


Pete

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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.   :(

I agree that we are not likely to see a change in the monetary system and that most people do not have a clue as to how the worlds monetary system works. In my experience even banking staff are blind to it and don't understand the term 'fiat currency'.

 

Believing something is not likely is not the same as thinking that it will not happen however. You only need to look back a few years in history to see people panning rivers for gold flakes to buy bread due to the destruction of their fiat currency. As most people did not understand what 'fiat currency' was, they were powerless to even see it coming let alone do anything about it. Zimbabwe 100 trillion dollar notes are doing quite well on eBay today though!

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Wise words from Tiger and Pirate there, I agree with a LOT of that.

PM needs to be turned back into FIAT before spending ... unless there's a post-apocalyptic film with us in it, which I doubt but loads of folk seem to expect.

I no longer eat rice or lentils, so that's me out on a limb! (Mmmm cannibalism Mmmm)

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Of course PM need to turn to fiat to spend, now, but look at what that fiat can buy now vs when you bought equivalent PM too.

There is no doubt fiat has devalued over the last 4 or 5 years too. So holding Ag or fiat has been the same by all accounts, your wealth has been eroded.

Had you put £1000 in the bank 5 years ago, it'd buy you less today just like £1000 in Ag buys you less today swapped into fiat then spent.

BUT, fiat buying power will never revert, at least not in a world where deflation is seen as bad by banks and insolvent governments.

Ag will likely go back up in buying power, directly or exchanged for fiat (if you think that is somehow different).

Just look at history.

And don't buy PM for short term gain to get bigger piles of worth less fiat.

And don't buy at the top ideally, though if you do just wait for the next top. Simple.

There is no doubt at all in my mind that by the next top your money will have survived devaluation of it's worth way better as Ag than fiat!

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Ask the partners of moderately wealthy Cyprans and Greeks!

Money ultimately is a means of exchange, not wealth storage.

£100,000 in fiat in the bank with near zirp is just as bonkers as all gold holding.

Better to buy a range of things to store wealth, so hedge your bets.

Really though PM are one of the few things left to buy that haven't had their values bumped by over investment with credit driven purchases or a race for yield. Ie residential property etc.

I agree though, getting a partner to buy into that concept is another matter.

10% in PM seems fairly prudent though.

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I believe having pm's as an insurance is the best

way to view your investment in them.

 

think of it like taking pictures of precious moments

and then using up precious time and money to back

up those pictures. would anyone say that you are

wasting your time and money backing up important

photos? after all your computer/camera haven't died

yet?

 

gold represents an investment into a non degradable

item that holds the value of the effort put into making it.

it stores this wealth which can be used in the time of

crisis. expecting gold to be priced at or above what you

bought it at is not what they mean by protecting wealth.

 

a can of baked beans always stores a cans worth of

baked beans regardless of what the market is currently

pricing it at.

 

HH

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Exactly.

They do protect wealth. Their value will always get you a similar amount of stuff vs what you put in.

Buy cheaper and trade them when they're worth more and you can do a bit better.

Vice versa you'll do a bit worse but again, who buys PM physical and expects to make fast money on a bull rally while prices are at all time highs and rising.

If you buy near the top it's only the end of the world if you're silly enough to sell up when the market goes bearish.

Just hold and wait, assuming you don't lose it in s boating accident!

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Had you put £1000 in the bank 5 years ago, it'd buy you less today just like £1000 in Ag buys you less today swapped into fiat then spent.

 

Actually not true. A 42" TV in 2005 was about £1500, now you can buy them for a couple of hundred quid. Don't assume everything goes up in price, especially tech and gadgets. I had to take a HP agreement to buy my first PC in about 1997, can't t remember the exact cost, but it was several thousand. I can buy a laptop now quicker and with much more memory for a tenth of the price.

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By my calculations we may at worse have to wait till 2035 for the next big move on siver, so if the central bankers control everything then 20 years for us to accumulate so no rush.

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By my calculations we may at worse have to wait till 2035 for the next big move on siver, so if the central bankers control everything then 20 years for us to accumulate so no rush.

 

Well you can just go back and re-do your calculations. I'm not waiting till i'm 70 to cash in on my silver.  :(

 

I'd prefer it if you can make it sometime around 2025-2030 please  ;)

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Actually not true. A 42" TV in 2005 was about £1500, now you can buy them for a couple of hundred quid. Don't assume everything goes up in price, especially tech and gadgets. I had to take a HP agreement to buy my first PC in about 1997, can't t remember the exact cost, but it was several thousand. I can buy a laptop now quicker and with much more memory for a tenth of the price.

You don't really need tech and gadgets though.

Go back to basics and everything important costs more.

Good food (not processed junk), rent, homes, travel, cars. And some of those are only affordable at current prices due to cheap credit.

If the bulk of your costs were TV and tech gadgets for inflation to really feel low, then you're already used to losing a fortune on tech, so losing value on Ag (which will ultimately bounce back) still isn't a terrible position to be in.

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This is why the true cost of living inflation figures are kept artificially low, the price of everyday essentials creeps up a few pence but a massive widescreen TV comes down a hundred quid and it looks like you've never had it so good.  The poor struggle with buying food and essentials but the cost of living inflation index says everyone has more money in their pocket than last year so it makes for skewed figures not reflecting the real picture.

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Well you can just go back and re-do your calculations. I'm not waiting till i'm 70 to cash in on my silver.  :(

 

I'd prefer it if you can make it sometime around 2025-2030 please  ;)

 

cash in your silver for what? cash?

 

http://www.gold-eagle.com/article/real-yield-purchasing-power

 

using depreciation of cash yield to determine if cash

is worth less.

 

HH

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Yes I am going to go really mad and cash in my silver for cash. And then even madder I'm going to spend that cash on frivolous items like food and heat. :)

 

 

I'm just saying that I'd rather hold onto silver until

I can come up with a strategy on what to do with

the money should I sell.

 

HH

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I'll be getting myself an on/off grid hybrid solar system later this year. Pays for itself in about 10 years (8 if you don't want the off grid option) then its all profit after that. Also if the grid goes down, i can run the essentials. Good from a prepper and investment point of view.

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I'll be getting myself an on/off grid hybrid solar system later this year. Pays for itself in about 10 years (8 if you don't want the off grid option) then its all profit after that. Also if the grid goes down, i can run the essentials. Good from a prepper and investment point of view.

Just be careful, my 10kw system can only produce 1kw/day in the depths of winter on a bad day and 80kw/day in the height of summer on a good so make sure you have a back up

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Just be careful, my 10kw system can only produce 1kw/day in the depths of winter on a bad day and 80kw/day in the height of summer on a good so make sure you have a back up

1kw/day as in 1kwh/day?

Still pretty reasonable for winter if that's the case and you had nothing else!

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Just be careful, my 10kw system can only produce 1kw/day in the depths of winter on a bad day and 80kw/day in the height of summer on a good so make sure you have a back up

 

you can use the extra electricity to make and

sell ice cream?

 

HH

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