The Down Range Forum
Member Section => Down Range Cafe => Topic started by: david86440 on April 30, 2011, 06:52:39 PM
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How high is it going up before it plateaus or starts falling? On Friday it was $48 something an ounce.
I have a bunch I bought when it was $7.00-$14.00 and decided to get rid of a little this week. eBay is in a feeding frenzy with everyone buying it up.
1964 Kennedy's are going for upwards of $20.00, quarters over $8.00, Silver Eagles over $50.00
Am I foolish to be selling?
Here is a good link with current "Melt" values.
http://www.coinflation.com/
David
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Re: Where is the price of Silver going? - Up.
The dollar is being devalued, the Chinese are buying every last scrap they can get their hands on, demand is high and will remain so until the dollar is reconstituted based on some standard (not bloody likely), or it is replaced by the Amero or some other form of UN-mandated fiat currency.
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if it hit $50 I'd sell. I'm sure it won't be the peak, but you won't lose your ass either.
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I have several cheap commemorative coins my FIL gave me over the years. He was a collector of worthless crap but they are 1 troy ounce of silver. Are they worth anything more than their weight in silver?
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maybe, depend on what they are.
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I have several cheap commemorative coins my FIL gave me over the years. He was a collector of worthless crap but they are 1 troy ounce of silver. Are they worth anything more than their weight in silver?
Maybe, but usually not. They're circulated, which kills collector value. All you can hope is that 1 or 2 of them have become hot collector's items. Check eBay.
Look at it this way, though - those little cheap coins are worth almost $50 at the moment.
And TAB, as usual, is wrong. The projections are that silver should be running about $60-$80 an ounce right now, but its price is being manipulated. If you need the dollars, sell the silver, otherwise, if it were mine, I would hold it a while longer.
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maybe, depend on what they are.
They're cheap commemorative coins stamped to look like Silver Eagles. They're basically flea market knock-offs. I'm pretty sure they're silver, mostly..
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you never know, they might be very rare or have some other value too them.
I would not hold your breath, but you never know with stuff like that.
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I asked my wife to collect any gold she's not wearing at the moment. She has a few necklaces and a few other baubles she's never worn. At 1500 bucks an ounce, my 200 dollar, 18 carat wending band is nearly tripled in value in 27 years.
I don't need the money mind you but if it's just sitting there, it would be nice to know what it's worth.
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Historically, silver has been 1/5 the price of gold. Gold is now over $1500. Silver should be at $300. Buy more now, but don't cut into your ammo budget. .22LR is going to be great barter marterial... maybe better than silver.
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I have a 1964 Kennedy half dollar listed on eBay and it is currently at $28.09................I'm happy!
Time left: 8h 51m 10s (May 01, 201118:51:38 PDT)
Bid history:
15 bids
Current bid: US $28.09
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hmmm I have several hundred of those. conditions from really good to beat up... maybe I should sell some of them.
got a link to the auction?
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Remember, oil, silver and gold pricing here is based on the demand and the fact the dollar is worth less.
The dollar being worth less is a big problem.
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hmmm I have several hundred of those. conditions from really good to beat up... maybe I should sell some of them.
got a link to the auction?
You think I want competition? ;D
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you are going to get it anyways....
I'm sure there is a bunch on there right now.
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you are going to get it anyways....
I'm sure there is a bunch on there right now.
If you have several hundred to sell, you could buy all three of the toys you want.
200 1964 KENNEDY HALF DOLLARS 10 ROLLS 24 HR AUCTION
Item condition: --
Time left: 42m 39s (May 01, 201112:36:51 PDT)
Bid history:
4 bids
Current bid: US $3,550.07
2,785 results found for 1964 kennedy
http://shop.ebay.com/i.html?_from=R40&_trksid=p3984.m570.l1313&_nkw=1964+kennedy&_sacat=See-All-Categories
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I didn't know half dollars were worth more than a half dollar. When my mom gave me two of them I spent them. :(
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I didn't know half dollars were worth more than a half dollar. When my mom gave me two of them I spent them. :(
These just went for $19.00 each. I think he could have done better by selling less at a time.
200 1964 KENNEDY HALF DOLLARS 10 ROLLS 24 HR AUCTION
Item condition: --
Ended: May 01, 201112:36:51 PDT
Bid history:
5 bids
Winning bid: US $3,800.00
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I just looked online to see what Kennedy half dollars are worth and 1964s are worth a lot more because they're real silver. I think the 2 I had were from the '70s and only worth 50 cents according to the site I found. But I have a couple of old silver dollars that I know are worth something because they're 90 years old.
P.S. I've been saving a bicentenial half dollar thinking it was worth something but it's only worth 50 cents. I guess they made a lot of them.
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US Coins made after 1964 are only worth face value, Dimes, quarters, Half, and whole dollars made before then are worth their weight in silver. Pennies made before 90 (I think, not sure of the date ) are worth their weight in copper,.
The nickle is the only US Coin that still has actual value since it is the only one still made of a pure metal, they are worth their weight in nickle.
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My belief is selling in this market is a very good idea. But I caution anyone wanting to buy though. Look at the price history of silver. It is more volatile than gold. The reason is silver, unlike gold, is used extensively in manufacturing as well as its use as a hedge for inflation and currency fluctuations. There are more things that can affect silver's price and when it is negative silver drops like a lead balloon. Just be cautious and buy only what you can realistically have 50 percent of its value cut in the space of a few weeks.
For me, I'm sitting on my supply right now and will only buy a little when there is a correction. In other words, I believe there is more downside risk than upside potential the higher the price goes.
Here's a web site that tracks the price of silver:
http://www.kitco.com/charts/historicalsilver.html
Oh one more thing: You know it's time to get out of the market when "Jim Bob Fudd" at the local range leans over to you on the line and says he has bought silver instead of ammo or a gun. You know then the show is almost over.....
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Silver will continue to climb, the Chinese Govt recently started allowing its subjects to buy silver legally.
Remember what happened to Titanium when they started buying it .
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That's why Ti framed pistols disappeared from the market, it would have been less expensive to make them out of Gold.
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1 oz Titanium coins from the US Mint have been more expensive than 1 oz gold for as far back as I can remember.
I never heard of a titanium coin. They made platinum coins and they're expensive.
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I never heard of a titanium coin. They made platinum coins and they're expensive.
You are right.
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I'm not a prophet and I'm not really that smart either. I just happen to have been trained and studied in this area for over 25 years. Here's some timely anecdotal evidence:
http://www.bloomberg.com/news/2011-05-06/silver-set-for-worst-weekly-drop-since-1975-as-investors-flee-commodities.html
Please see my earlier post on silver and its volatility. Please be careful...
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My last coins listed on eBay ended Sunday night and I did really well. I had a gut feeling not to list any more coins this week.
i think I went from "selling a little" to "sit on it".
I may be buying if it goes much lower.
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Look its a bubble.Like any bubble, the question is when to get in and when to get out. I sold mine 2 years ago. I would have made more by sitting on it. Still, I could have waited till next month and gotten screwed. Its like real estate. I sold my grandad's house six months too late and took a bath. If I'd sold earlier, I'd have made 30% more. Its just the way things work. I'm with Full Auto. I would not buy more and would think about gradually divesting some. Gold and silver are both grossly over valued now unless things totally tank. If they tank too far, they will be worthless compared to barter goods. FWIW.
FQ13
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I'll let you financial whiz kids take a look at this page:
http://stockcharts.com/h-sc/ui?s=$USD&p=D&yr=0&mn=3&dy=5&id=p29190642715&listNum=1&a=233422233
and try to explain to me...errr...us...and explain to me...errr....us... yeah, us, what that chart means.
otherwise, it's like all greek to me. ???
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I'll let you financial whiz kids take a look at this page:
http://stockcharts.com/h-sc/ui?s=$USD&p=D&yr=0&mn=3&dy=5&id=p29190642715&listNum=1&a=233422233
and try to explain to me...errr...us...and explain to me...errr....us... yeah, us, what that chart means.
otherwise, it's like all greek to me. ???
Not into technical analysis....
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That's what my EKG looked like. ;D
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Well, I can try a little.
Those funny looking symbols are called candlesticks because that tend to look like them. I believe they are a notation developed by the Chinese many many years ago to track the prices of certain commodities.
Each candlestick represents what happened to the price of that commodity on one day.
The top or bottom of the candlestick represents the opening or closing price. If the candlestick is red (or solid) that indicates the closing price was lower than the opening price.
So, on a red candlestick, the opening price is at the top while the closing price is at the bottom. On a white candlestick, the opening price is the bottom and the closing is the top.
You will notice there are lines that can stick out of the top or bottom or both ends of the candlestick (on the top, they would look like the wick of the candle).
These represent the high or low price of the commodity on that day.
If the commodity opened/closed at the high/low price, there will not be a wick at that end of the candlestick.
The blue line that somewhat follows the course of the candlesticks is the Moving Average line. It is the average of the prices over the past specified number of days. By the notation in the upper left, you can see it is a 50 day moving average MA(50).
Investors tend to feel it is a good thing when the price moves above that line and might indicate an upward trend is growing strong. The reverse when it drops below that iine.
The red line somewhat below the blue line is marked as MA(200) so that would be the 200 day moving average.
Guys who have done much analysis think MAs of certain numbers of days are more meaningful. I have no idea what they base that on.
The MACD part of the graph is the Moving Average Convergence/Divergence plot.
It is thought to be a good thing if the markers are moving above the line and a bad thing if they are moving below.
The bar graph under the candlesticks indicates the volume of the trading for that day. It is listed so you don't go nuts with the fluctuations if there were only a small handfull if the item traded that day.
Well, that is about all I know about this. Wish I could tell you exactly when all this was lined up indicating you should buy or sell, but if I could do that with accuracy, the Barretts and ammo would be on me.
Good luck and take care
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Commodities represent real value. That value remains essentially unchanged over time. A bag of wheat is worth what a bag of wheat is worth... except when someone really wants to bake some bread. Then, that person will pay more for the bag. That's called market fluctuation.
Gold and silver are the same sort of commodity--from a monetary perspective--as wheat. They have actual, essentially unchanging value. The dollar on the other hand is currency by fiat. That means it has value because the government says it has value. In reality, a dollar is simply a piece of fairly good quality paper with essentially no real value--like an expired coupon. However, because we have all agreed to exchange these bits of paper for real goods and services, those bits of paper do have an accepted value.
But that value is diminishing, day by day.
Look at real products like oats, corn, petroleum, steel and the like. In the past two years, the cost (in dollars) of these items has increased by something around 80%. That is not because these items are in short supply or because they are actually worth more, but rather because the dollar is worth less. That called inflation
In the short term, gold and silver will appear to fluctuate against the dollar, so these items are not for the faint hearted investor who still thinks in terms of valuable dollars. In the longer term, it will take more and more dollars to purchase them, so the perception of value will be increased as a direct result of a devalued dollar.
The dollar has diminishing value--that is a simple fact. As a government, or society, or civilization, we cannot stop that--that is also a simple fact. It is currency by fiat, or money because we say it is money. But the FED is printing the stuff by the truckload and that makes every existing dollar worth less today than it was yesterday. That is called inflation. And at this point, it can only get worse.
Gold and silver represent real value because they are real, lasting, and in limited supply. We can't print gold or silver.
If you need some walking around money, sell small amounts of your hoard of gold or silver. Then, buy .22 LR cartridges by the caseload. And stock up on beans and rice and rice and beans. I believe we will live to see the day of hyper-inflation when the dollar has about the same value as a Reichsmark after Hitler's fall. It'll take a wheelbarrow full to buy a loaf of bread.
Or, you can move to la-la land and room with the Quaker and ride your unicorn to the gin-filled lake lined with sandwich trees and roast beef bushes.
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US Coins made after 1964 are only worth face value, Dimes, quarters, Half, and whole dollars made before then are worth their weight in silver. Pennies made before 90 (I think, not sure of the date ) are worth their weight in copper,.
The nickle is the only US Coin that still has actual value since it is the only one still made of a pure metal, they are worth their weight in nickle.
Not exactly true. 1/2 dollars to '76 are 40% silver. Pennies changed over in 1982, some are copper some are zinc.
For 1964 and earlier silver coins the conversion to bullion value is: 0.72 x silver price = face value multiple. For instance, at $10/ounce the multiple would be 7.2 for a silver coin a dime being worth 72 cents, a silver dollar being worth $7.20 and so on. Some people drift it to 0.718 or .719 times bullion price.
This runup above say $30 +/- was due to changes in margin requirements. Maybe over $24 or so. Anyway, the legislation in the healthcare bill or some bill at the same time required banks to back more of the silver ponzi schemes in March 2011 so...there you go. Saw this coming and was a buyer through about $27. Having enough to buy medicine for 6 mos. or so is just good insurance in planning for for a meltdown of fiat currency.
This thing is looking like a leadup to the Weimar Republic via Argentina-type practices. Maybe the government will get it under control....if they do I would say this is the last financial cycle they will have restraint in and the next big downturn will sink us.
In the late 90's anyone with 1/2 a brain who was watching could see this was coming. Legislation was changed so that the banks would no longer exlude borrowers due to "racist" lending policies as pushed by members of Congress with Barney Frank one of the leaders of the charge. We had just, a decade before, come off a huge banking scandal.....memories are short and greed of politicians and powerlust of policitians know no bounds.
It's all there in the history and on the web....look it up for yourself. Inflation is a backdoor tax on working people...it's how nations pay the debt they can't afford. If the runup in inflation is huge...where we are heading, nations will call in the currency at a reverse exchange rate....check out Austria after WWII as a good example. Austria had a 10 or 11 to one reverse split on marks...however people were limited to redeem only as much as could buy 100 new marks per person....all that other money they had in paper, bank accounts in ledgers, etc....went poof...another way governments get themselves out of a bind on the backs of working people.
SOMEONE PLEASE SAY IT ISN'T TRUE ABOUT THE WEIMAR REPUBLIC PROCESS. Someone here will probably nitpick some detail of my recollection to five decimal points to say it ain't so..... So if/when financial collapse happens, good luck to you whoever you are.
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I have a new quarter that QC missed I found yesterday. It has no cladding on it, it looks like a penny colored quarter.
Anyone have a clue who or how to get it appraised? It's my understanding that these coins can be highly collectable.
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It's all there in the history and on the web....look it up for yourself. Inflation is a backdoor tax on working people...it's how nations pay the debt they can't afford. If the runup in inflation is huge...where we are heading, nations will call in the currency at a reverse exchange rate....check out Austria after WWII as a good example. Austria had a 10 or 11 to one reverse split on marks...however people were limited to redeem only as much as could buy 100 new marks per person....all that other money they had in paper, bank accounts in ledgers, etc....went poof...another way governments get themselves out of a bind on the backs of working people.
SOMEONE PLEASE SAY IT ISN'T TRUE ABOUT THE WEIMAR REPUBLIC PROCESS. Someone here will probably nitpick some detail of my recollection to five decimal points to say it ain't so..... So if/when financial collapse happens, good luck to you whoever you are.
It's also how people like Soros and the ones he covers for transfer our wealth to them.
As for the Weimar and Argentina corollaries, sorry, Rastus, can't help ease your mind on this point. All I can do is relay my sense that - scary as it is - we are definitely in the season of the Second Coming, and things appear to be on plan. But since we can't know the hour, we prep to protect ourselves and our loved ones around us until then, and put our faith where it needs to be.
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Silver went from $48 last week down to $35.64 this week.
Does anyones opinion change? Buy, sell, hold?
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Look crusader has it slighly wrong. The only "fixed price, or real value" for commodities is the cost of production. Every thing else is percieved or market value. How many dollars am I willing to trade for an ounce of silver? If my perception of the economy is good and I have faith in the dollar is high, I'll trade fewer dollars for it than if I think the dollar will tank. Its not too different then houses. Homse that lost half their value in the last five years are the same house. Its the percieved value that has shifted. Gold and silver are ultimately not that much dififferent than dollars or wheat in that they are worth exactly what someone is willing to pay you for them on any given day. The diference between dollars and silver is a near universal consensus that silver is a more permenant store of value than the dollar. Still, this shifts according to industrial demands and the state of the economy. You couldn't give silver away in the '90s. Now it is going strong. But the fact that the price has declined is simply a function of a glut on the market. Fewer peope want it now than did six months ago. Don't think there is anything "magic" about precious metals. They will almost never become worthless, but their day to day value can shift radically. They are an iffy investment, but a good reserve.
FQ13
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Silver went from $48 last week down to $35.64 this week.
Does anyones opinion change? Buy, sell, hold?
Buy more, discount pricing! ;D
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Look crusader has it slighly wrong. The only "fixed price, or real value" for commodities is the cost of production. Every thing else is percieved or market value. How many dollars am I willing to trade for an ounce of silver? If my perception of the economy is good and I have faith in the dollar is high, I'll trade fewer dollars for it than if I think the dollar will tank. Its not too different then houses. Homse that lost half their value in the last five years are the same house. Its the percieved value that has shifted. Gold and silver are ultimately not that much dififferent than dollars or wheat in that they are worth exactly what someone is willing to pay you for them on any given day. The diference between dollars and silver is a near universal consensus that silver is a more permenant store of value than the dollar. Still, this shifts according to industrial demands and the state of the economy. You couldn't give silver away in the '90s. Now it is going strong. But the fact that the price has declined is simply a function of a glut on the market. Fewer peope want it now than did six months ago. Don't think there is anything "magic" about precious metals. They will almost never become worthless, but their day to day value can shift radically. They are an iffy investment, but a good reserve.
FQ13
And why is there a glut on the market? Because wankers have sold lots of it when the price run-up had hit a pre-defined maximum. It will happen again when the price of silver passes the next "magic" number. However, the points that Rastus, Solus and others have made (about the demand for the metal) still hold, and once the profit takers are done the price will go up again.
Although some of your points may be true in microcosm and at this precise point in time, they miss the greater points of PM demand and transfer of buying power away from the US and to other countries, who want what we have - and once had. Not to mention the huge devaluation of the dollar that has already occurred, with more to come. Remember, gold used to be $36 an ounce - right where silver is today.
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Silver went from $48 last week down to $35.64 this week.
Does anyones opinion change? Buy, sell, hold?
I'm waiting for below $32 to start buying again. That's just me, not a financial recommendation.
Value is always a perception. If you are hungry the value is in food. There is always another economy on the other side of a failed economy...how to carry sweat equity from one to the next is the question. Real estate is good, stocks of solvent companies are good, gold and silver is good...what is best depends on timing and what "the other side" looks like. If a currency collapses, it's a sure thing that even a twinkie has more value than the old currency....so it's all relative and according to the timing.
For instance, if there is a collapse I like having food to eat and so will everyone else. If everything is paralized for a few weeks then that bag of beans will be worth more than a Rolex to a starving banker....trade him out...then after everything gets square sell it back to him in the new currency and buy a whole bunch of beans....get the gist? Stay away from advice from simple minded people who preach one thing or the other...recognize the changing dynamics of human/societal need. Value changes dependent upon what cycle is occuring and where you are in it....so long as eveyone is fat dumb and happy metals stay low and that's when it makes the most sense, generally to get them. At this point...I'm thinking of it as an insurance policy. If it goes bad I have insurance, if the economy/currency does not fail or suffer greatly from right now....so what I lose money on insurance all the time.....
If you are looking to make money on metals or if you are looking for insurance or something else....determine your goals, identify your needs then finance it as you can.
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Silver went from $48 last week down to $35.64 this week.
Does anyones opinion change? Buy, sell, hold?
I'm still holding. Since a sharp sell off in silver just occurred, don't be surprised if it goes back up a bit. Keep an eye on industrial production, specifically in electronics and other industries that use silver in their manufacturing process. If their orders start to slow, you will see the demand for silver drop, which pull down the price even further.
For some perspective the price of silver in May 1994 was around $8.29 (inflation adjusted) per ounce. So if you want to know where a real floor might be, I would say around $9.00 per ounce might be an accurate estimate. As one can see we have a way to go before it gets there, if it does. But keep in mind why silver was that cheap. We were coming out of a recession, and we were in the midst of a deflationary period begun by Paul Volker back in the late 70s and early '80s. Always interpret price movements in context of the macro economic and geo political events of the time.
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Also in the 60's and 70's governments called in their silver coins and melted them down creating a glut. The glut was about to end when digital photos hit the scene...so it lasted a bit longer than anticipated. Silver is consumed and consumption generally outstrips replacement at the low prices...with the prices of the last couple of years not so much.
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Much of the demand for silver today maybe caused by folks looking for a better alternative than the Dollar.
I imagine most of us have heard the Doom and Gloom stories about how the US Dollar is going to go the way of the currency of Argentina with it's runaway inflation of the past many decades.
If they are right and inflation of the dollar reaches 30% and is going higher, it would be wise to by as much silver as you can get your hands upon, replacing investments in stocks or bonds or others dependent upon the dollar.
They are not really looking to grow their investment, just a way not to have it destroyed by inflation.
If $1 buys a loaf of bread now and silver is $35/oz and inflation takes the price of bread to $2 and the price of silver to $70/oz, you haven't gained any bread buying power, but you haven't lost the buying power you would have had you stayed invested in dollars.
If you believe we are headed for an inevitable economic crash with it's attendant inflation, buy all you can with your currently invested dollars.
If you think we will weather this economic storm with minor inflation, treat silver as another type of investment, buying low and selling high.
The smart setup for investing in silver would be to create a Roth IRA for it and have a Roth IRA set up for your other money making investments. With a Roth IRA you pay taxes on what you deposit but NO TAXES ever on what it earns and you withdrawal.
So, if you have good money making investments in a Roth IRA, consider buying silver for a Roth IRA with it's earnings. You can transfer assets between Roth IRAs without penalty and can withdraw funds after age 55 without penalty if you have held it for 5 years or longer.
Again, if I were an expert here and never missed a call, I'd be buying for the crowd.
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I believe we are going to see some continued fluctuation in both silver and gold prices. However, that said, I believe the longer term thinking sees both going higher.
Silver is a good choice for several reasons. Because the current silver price is relatively low in comparison to gold, silver coins are more readily exchangeable for goods and services than even small gold coins. As an example, a silver dollar has value as an ounce of silver, or now about $35. The smaller gold coins are normally 1/10 of an ounce of gold. At $1500/ounce, even a diminutive gold coin is valued at $150. Silver dimes, quarters and half-dollars have significantly lower values due to the amount of silver contained therein. So, if you need to bartar for something like a loaf of bread or a kilo of rice or a six pack of comfort, a silver coin or two will do the job. A small gold coin is too much overkill and will not be as readily tradeable.
Further, silver has value as an industrial commodity. Manufacturers use incredible amounts of silver for various applications. There is a finite amount of silver on this old globe of ours, so as the available silver is used, the remaining will of necessity increase in value. Sure, we are recycling some of it, but much of the industrial silver is lost forever.
As I mentioned in an earlier post, neither silver nor gold are for nervous investors interested in short term profits. The dailly prices will keep you up at night. But, if the dollar continues to lose value, these two commodities do represent long term stability and may give you a leg-up after the crash.
Just don't forget to invest in rice and beans and beans and rice so you can stay alive to spend your wealth.
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Save advice from oth Solus and the crusading bunny. ;D
Yup, silver would be the commodity to use for day to day trading. Gold would be a small amount, difficult to assay, at least initially and hard to make change for...you want a loaf a bread, a gallon of milk and a pound of baloney and even 1/10 ounce gold is a problem. The same thing can be had with a few dimes, a quarter or so in silver and the old silver coins are readily recognizable.
Yeah, rice and beans, flour etc..like in an earlier post on another subject. You don't live well, but one person can survive for a year on 200 lbs rice, 200 lbs beans and about 50 lbs of flour. Not much of a diet, but in today's price and job environment that's about as cheap as you can get and live for a while. Of course throw in some sugar, salt, vitamins, etc....some canned meat is would be nice.
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I'm thinking with silver prices down this week and my Mosin stuff on eBay doing really well, I'll be able to buy back some of the silver I sold last week at $50.00/oz.
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Silver went from $48 last week down to $35.64 this week.
A lot of this has been caused by George Soros selling out a lot of his position. Also the COMEX has changed their margin buying guidelines because the price has become so inflated in such a very short time. Remember, silver was trading at $16.00 a year ago. We've had some inflation, especially with fuel and food, but a lot of goods have gone down. Electronics, many firearms, as well as ammunition are far cheaper today than they were just a year or two ago.
http://seekingalpha.com/article/267650-soros-other-hedge-fund-managers-dumping-precious-metals
We should be looking at sub $20.00 silver right now, not $36.00 to $47.00 silver. It is grossly overpriced at the moment. This is a lot like the silver run in the 80's by the Hunt brothers. The difference is back then you had a Texas billionaire, (Nelson Bunker Hunt), heavily leveraging silver in an effort to artificially run up the price. Today you have another billionaire, (George Soros), doing much the same thing except his intention is not to corner the market on silver the way the Hunt brothers tried to do.
When these guys do this type of thing a lot of neophyte investors get sucked in, buying all the way up. Most will inevitably get burned big time. Soros is already dumping, so expect the price to fall even more in the not too distant future. It may take a little longer this time because you have a lot of doom and gloom people buying it in the belief the economy is going to crash. That, along with TV ads appearing every 10 minutes telling everyone to buy because of how great it is, (gold & silver).
It most likely won't crash and burn the way it did in the 80's because Soros doesn't have the extremely large position the Hunt brothers did. Also he is not as heavily leveraged, and is selling off at a much more controlled rate. With that said their won't be enough common folk buying to support the price. Remember with most any commodity, when the sheep are buying, you should already be selling. When the short order cook at Denny's is talking about investing in silver, the plateau has already been reached. In commodity trading by the time the "news" leaks out, the run is over. Bill T.
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I just took delivery today of some silver dollars that I ordered before the price went down. :-\ They cost a pretty penny but each one is graded MS-70, which is perfect. These flawless dollars should be worth something to collectors even if silver goes down again. I'm keeping my fingers crossed.
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Frank, I'm thinking you have it pretty close to right. My modest position in gold is all US coinage, so no assay is needed, and it has dopubled in value since my purchase some years ago. Silver dollars are exactly the same thing. If everything DOESN'T go to heck, you still have something of value to any collectors.
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Here are some good reasons to stay away from gold and silver for the present time.
http://www.fool.com/investing/general/2011/02/18/the-shocking-truth-behind-the-gold-bubble.aspx
http://money.cnn.com/2011/01/10/pf/investing/investing_in_gold.moneymag/index.htm
http://www.businessinsider.com/reasons-why-the-gold-bubble-will-burst-2010-10
http://www.investorplace.com/38023/gold-prices-bubble-investing-gld-etf/
http://m.ibtimes.com/silver-bubble-burst-143027.html
http://online.barrons.com/article/SB50001424052970204261904576242884254621982.html
It's not so much it's a "bad" investment, as it is a drastically overpriced one. At least for now. A lot of gold and silver brokerage houses are playing it up with TV ads telling you how "worthless" American currency is, and how quickly it is losing it's value. That, along with a high debt is being used to spread a lot of false panic. The fact of the matter is you shouldn't have more than 10% of your investments in gold and silver because for the most part it's dead money. It is an insurance of sorts, and if you are over insured it becomes a waste of money. In another 6 months or less you'll be able to pick this stuff up a lot cheaper. 3 coin shops within 10 minutes of my house have closed up because numismatists are holding off adding to their collections because of the over inflated prices. A lot of lookers, but no buyers. Bill T.