OtherGround Forums .999 Silver = Best long term investment

12/28/11 6:41 AM
6/13/07
Posts: 11478
Oh, and what's up AG_Bull? Merry Christman, amigo. Any real estate deals?
12/28/11 6:51 AM
3/22/11
Posts: 377
truth be told silver should be $100 now (more like $110-$130) based on supply/demand fundamentals.

The current price for silver is set by the paper markets 99.6% of all silver traded is "paper" price:

-more than 1 billion oz of "silver" are traded per day on
COMEX/LBMA (SLV). PER DAY!

-750 million oz are mined per year from all the mines in the world

for every oz mined 266 oz are traded.

cartoon video put out by BrotherJohnF, skip to the 1:14 mark:
http://www.youtube.com/user/BrotherJohnF?blend=1&ob=video-mustangbase#p/u/0/tKIpbi9y8B0

For anyone truly interested in following silver BrotherJohnF does a daily blog and youtube update on the silver market. He is a little slanted to the numismatic side of silver collection and feels 1oz coins are the only option but other than that i agree with everything he posts.
12/28/11 6:56 AM
3/22/11
Posts: 378
MoreThanUFC - Oh, and what's up AG_Bull? Merry Christman, amigo. Any real estate deals?


Merry Christmas and happy new year MoreThanUFC.

Thanks for sending the info but no not yet on the real estate deals. Learning a lesson from my in-laws ... they have property out of state and trying to manage things remotely seems to be a real pain-in-the-@ss.

Im waiting for the right time in a market closer to home, might make a small investment in the next couple of months.
12/28/11 7:27 AM
6/13/07
Posts: 11483
I passed on some deals in southern Georgia. If I cant be there within an hour, I dont think it's wise.

I'm always here if you have any ideas you want to bounce off of me.
12/28/11 8:47 AM
7/26/07
Posts: 6891
Slight aside and off-topic but you always come across as incredibly happy-go-lucky OP. Fuck you?
12/28/11 2:17 PM
2/1/10
Posts: 407
So would it not be a good idea to buy both bullion and numastics? I try and buy equal amounts. Phone Post
12/28/11 2:26 PM
11/13/08
Posts: 3964
His math may be faulty, but in essence he is right.

Silver is a very good investment right now. Phone Post
12/28/11 4:14 PM
2/28/10
Posts: 865
Why has silver dropped in price this year?
12/28/11 5:19 PM
10/4/02
Posts: 15307
timessquare - Why has silver dropped in price this year?


I think there are a few reasons.

1) When SLV pushed close to $50/oz, the COMEX raised the margin rates on silver. This meant that traders had to either add more cash into their accounts to cover the higher requirements, or sell SLV in order to get under the cap. This forced selling spooked the average, uninformed investers, who thought the silver "bubble" had burst, so they jumped on the selling bandwagon. This brought the price of silver down into the low 30s.

2) A sluggish global economy. This caused lower demand for silver.

3) A declining stock market. Traders who had losses from stocks had to sell other assets to cover their losses. Since gold and silver were most likely profitable, they sold some of their precious metals to cover. This caused a further drop in PM prices.

IMO, PMs will rebound once people see "The Private Reserve Bank" fire up the printing presses again.
12/28/11 6:00 PM
3/22/11
Posts: 380
SirPrize - 
timessquare - Why has silver dropped in price this year?


I think there are a few reasons.

1) When SLV pushed close to $50/oz, the COMEX raised the margin rates on silver. This meant that traders had to either add more cash into their accounts to cover the higher requirements, or sell SLV in order to get under the cap. This forced selling spooked the average, uninformed investers, who thought the silver "bubble" had burst, so they jumped on the selling bandwagon. This brought the price of silver down into the low 30s.

2) A sluggish global economy. This caused lower demand for silver.

3) A declining stock market. Traders who had losses from stocks had to sell other assets to cover their losses. Since gold and silver were most likely profitable, they sold some of their precious metals to cover. This caused a further drop in PM prices.

IMO, PMs will rebound once people see "The Private Reserve Bank" fire up the printing presses again.


would just like to add that:
1) the comex raised the margin req 5 times over a long weekend when markets were closed

2) the other reason PM's fell is because they still arent seen as a safe haven in uncertain times. We saw the same thing happen in the financial crisis, PM's tanked along with everything else. People rush to what they feel is the "safe" asset T-bills and get out risky gold/silver (truth be told most of these people arent really in PM's anyways rather in "paper gold/paper silver")

3) With everything going on in Europe people once again are uncertain about WTF to do ... where do they turn to? yup T-bills again, hence why the USD see's a brief rally (vs the euro).

i think if the comex hadnt stepped in with the 5 margin hikes when silver was at $50 we could have seen it rise to $100.
12/28/11 6:45 PM
2/1/10
Posts: 411
I just picked up a little over three oz today. Including a pre ordered 2012 ase for $33, and another ase for $28. Phone Post
12/28/11 7:41 PM
6/13/07
Posts: 11517
When people say PMs arent viewed as a safe haven, they are talking about the paper market. There have been several mini-shortages this year regarding physical.

A few thinks to look forward to in 2012:


Dodd-Frank regs take effect limiting shorting.

QE3 is coming. They may not call it that, but it is.

MF Global was just the tip of the iceberg. By rehypothecating many assests in their portfolio, they skewed the markets. Not for PMs, but other commodities. There are investment houses that are very quietly trying to un-rehypothecate right now. When the effects of that are felt, and there is less paper silver available than many believe there is, the price will climb

If the Europukes get their act together and enact actual reform, there will be a flight from the dollar again, driving up prices.

War with Iran is starting to seem inevitable.

12/28/11 7:44 PM
6/13/07
Posts: 11518
AlexanderTheGreatJJ - 
SgtJustinTeplitz -
Jacobmccrmck - Why does the price of something like that go up or down? What is its real value other than jewelry? <img src="/images/phone/apple.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>


throughout history of time,pure silver and pure gold coins have always been used as currency and it's still like that presently. They are rare and desired! Just ensure you do not buy worthless "Silver clad" or "Gold plated". BUY ONLY .999 SILVER COINS OR .9999 GOLD COINS, PERFERABLY AMERICAN EAGLES

WWW.KITCO.COM
Yes and silver has intrinsic value as it is used in computer and cell phones etc. <img src="/images/phone/apple.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>

Intrinsic value means that it is a scarce commodity, that it has value in and of itself without external factors. Industrial value is what I think you mean.
12/28/11 7:46 PM
6/13/07
Posts: 11519
Oh yeah. I didnt post this yesterday.

http://www.zerohedge.com/article/kitco-charged-massive-tax-fraud-scheme-business-viability-question

The company the TS keeps pushing... might as well use Goldline.

Stick with the big boys: Apmex, Gainesville, and BullionDirect. I'm sure there are other reputable bullion dealers out there.
12/28/11 8:16 PM
6/9/10
Posts: 754
At what price over/under spot are you guys buying? Just looking for an average so I can know what to expect.
12/28/11 8:28 PM
3/13/08
Posts: 6157
BetJits - I have a few thousand in silver doesn't take up that much space. Trust me. If you buy a couple ounces a month or when ever you get a few bucks it adds up quick. I look at it as money I would waste other wise. I buy it and forget about it, I'm long term. Hopefully in the future I will have accumulated ebough to buy some land. Agbull has some good insight on this. Hopefully he will post on this. <img src="/images/phone/droid.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>


You will get the last laugh


Awesome strategy!
12/28/11 8:30 PM
3/13/08
Posts: 6158
lol, SILVER IS DOWN TO 26.93/OZ.

WHY?

Because our dollar is at the year's high over foreign turmoil (Europe's debt problems, middle east questions, etc)

I hope it goes down either further, because when it goes up, it will be more money for us SILVER BUGS!!!
12/28/11 8:33 PM
3/13/08
Posts: 6159
Mencken -  Ok, I'll bite.  What legitimate support do you have for it being $100 in 2030?  An ROR of 5%, which is very conservative, will return $72.27 by 2030.   And to repeat, that is conservative.  Given that silver is going to $100, in your opinion, can you give you reasoning? 



1.Wars.

2.Lack of confidence in currency.

3.Higher production costs.

4.Lower supply = higher demand.

5. Gold was worth $49.50 earlier this year (2011) and why wouldn't it at least double with inflation?

Just warming up...
12/28/11 8:37 PM
3/13/08
Posts: 6160
FatFrenchFry - Why would you take silver over other precious metals? <img src="/images/phone/apple.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>



Gold is higher than platinum now (and platinum's rarer). Gold is due for a correction AND a lower rate of return

Historically, silver is ALWAYS desired and is at a normal ratio of 15-1 gold-silver

Gold is 1550/oz, so silver should be 100+ (historically anyway)

Higher ability to jump + always desired + costs of mining silver going higher = better investment than other metals

Gold may reach 3000/oz in 20 years (less than double) and silver will more than triple!
12/28/11 8:38 PM
3/13/08
Posts: 6161
Respect - 
SgtJustinTeplitz - .999 silver is the best long term investment. With silver down to $28.60 an ounce, it will eventually hit $100/ounce. I say No Later Than 2030 will it be $100/ounce. What other investment has such a great rate of return? It may continue to go down temporarily, but will inevitably hit the $100 mark in 20 years or less.

Thoughts???


I find your wild speculation to be incredibly conservative. Silver will be $300/ounce by 2025.



It wouldn't even shock me...and that's 10X +!!!
12/28/11 8:40 PM
3/13/08
Posts: 6162
Cotton - Good stuff, Justin.


Thanks Cotton!
12/28/11 8:42 PM
3/13/08
Posts: 6163
AG_bull - 
Mencken -  Ok, I'll bite.  What legitimate support do you have for it being $100 in 2030?  An ROR of 5%, which is very conservative, will return $72.27 by 2030.   And to repeat, that is conservative.  Given that silver is going to $100, in your opinion, can you give you reasoning? 


$100 by 2030 is close to a 7% ROR, i think we will see $100 WELL before that time. As for reasons i could go into great detail but for anyone really interested in the subject watch Mike Maloneys video

http://www.youtube.com/watch?v=E5VNAEmmBQM

if you want just the reasons for silver check out the 31:14 mark (watch 4mins up to 35:14)

FatFrenchFry - Why would you take silver over other precious metals? <img src="/images/phone/apple.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>


gold:silver ratio (currently at 1:55) will revert back to its norm closer to 1:16 making silver a better choice than gold. Yes gold is less volatile, it will take off first but silver will play catch up then overtake the momentum of gold.




100% correct! I can tell you're VERY intelligent and if people know what's best for them, they would listen to you!
12/28/11 8:47 PM
3/13/08
Posts: 6164
BetJits - I just picked up a little over three oz today. Including a pre ordered 2012 ase for $33, and another ase for $28. <img src="/images/phone/droid.png" alt="Phone Post" border="0" style="vertical-align:middle;"/>


In the long term, you just made a nice profit. Good stuff!
12/28/11 8:51 PM
3/13/08
Posts: 6165
Bootsy Collins - Slight aside and off-topic but you always come across as incredibly happy-go-lucky OP. Fuck you?


Fuck me? Fuck you. I take so many meds you have no idea. Because I am a positive influence on the mixed martial arts community I suck for it?

Are you really from Ireland? Been to Shannon and it's nice.

Why the fuck do you call yourself Bootsy Collins, a happy-go-lucky guy, and piss on people's parades? You can't piss on my parade pal. Go ruin some other thread. This is for grown ups talking about bettering their financial well-being tough guy.
12/28/11 9:07 PM
7/10/11
Posts: 1559
RepsOne - I'd rather invest money in iron ore until that time. Consistent returns and massive 10 year supply contracts = good tax friendly return and early retirement.


This guy understands.