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Thread: Investment or Insurance

  1. #11

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    I'm sure people buy silver for a variety of different reasons, including investment and insurance. Then there's that group of folks who buy for speculation. We should also include those folks who buy and sell for price manipulation.

  2. #12

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    Quote Originally Posted by spaceman View Post
    Do people buy silver (and other precious metals) as an investment to make a profit on late or as insurance against economic hard times? What are everyone's thoughts on this?
    If you purchase 'paper' gold & silver you're 'investing'. If you purchase physical gold & silver you're storing wealth for a rainy day. :-)

  3. #13

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    There may be a time and place for paper but I've always been partial to physical. I've always liked the feel of it. ;-) JMO

  4. #14

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    Paper isn't silver, paper isn't gold. Paper is your faith that a rigged market that trades paper will be able to buy your paper from you and you can convert that fiat received into silver or gold. You are really just a debtor standing in line will all other debtors if the market goes bust. Just hope the merry-go-round doesn't stop before you want to get off.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  5. #15
    Join Date
    Apr 2011
    Posts
    9

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    I guess I fall into both categories, and perhaps create a third.

    When we originally started purchasing gold and silver (end of the 1990's), I was purchasing it as a form of insurance. Saying that, I've never sold anything I purchased, so we just kept building our stash. My wife started getting in on the game, as well.

    But we also saw that it is a form of investing, so, I guess we're in that category as well. Especially the stuff we bought around the 2000's.

    The third category which guided our purchases is purchasing PMs as "gifts". When our oldest child started approaching the age where the "Tooth Fairy" was going to make an appearance, it occurred to me that I couldn't just leave the traditional "quarter" under the pillow. HECK, that's what I got way back when!!! And leaving paper money just seemed really inappropriate. So, seeing as I had begun collecting U.S. Silver Eagles, the Tooth Fairy left her a U.S. Silver Eagle of the current year. That set the precedent, and we continued that. As luck would have it, we had 4 children, so it DID get to be a bit of an expense LOL, but the kids still have those coins, and it enabled us to explain to them at an early age of the value of precious metals. In addition, we just got in the habit of giving them to our kids for birthday, Christmas, etc. We even gave them away as birthday gifts to the children of close friends and relatives, using them as an opportunity to inform them about the value PMs.

    After all these years, I can divide our stash into "collectables" and "SHTF" stuff. Anything with a numismatic value or special meaning (for example, my wife likes pandas, so her stash has a collection of Chinese gold pandas), so these would only be sold if things got real bad. The rest of what we have includes "junk silver", silver bars, gold bars and such which don't have any real emotional attachment and we could easily part with them if need be.

    ~Rick
    Last edited by Rick Jay; 02-07-2022 at 01:14 PM.

  6. #16

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    Insidedealer wrote:

    Maybe the future will be different, but I've found that in my life silver has not protected me against inflation

    In 1964, the minimum wage was $1.25/hr, that's (5) silver quarters. What's five silver quarters worth today? If the min. wage workers of today could get paid in (5) silver quarters, they would be quite happy, so based on this, and other observations, I would say silver has held it's own against inflation. Of course, for those who bought during hyped times, they would not be doing to well -- however if averaged out I do believe silver has protected against inflation. I hold some silver dimes and quarters I found in rolls as a boy -- unlike the silver certificates I also collected, they can buy similar to what they once did (for their melt value). I and many people new nothing about stock back in the 1970's, so that was not really an option, and gold was way to rich for me, so for the common working man, silver has done quite well vs inflation, even more so for those living in countries in which the U.S. dollar was not common currency.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  7. #17

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    Quote Originally Posted by motocat View Post
    Insidedealer wrote:

    Maybe the future will be different, but I've found that in my life silver has not protected me against inflation

    In 1964, the minimum wage was $1.25/hr, that's (5) silver quarters. What's five silver quarters worth today? If the min. wage workers of today could get paid in (5) silver quarters, they would be quite happy, so based on this, and other observations, I would say silver has held it's own against inflation. Of course, for those who bought during hyped times, they would not be doing to well -- however if averaged out I do believe silver has protected against inflation. I hold some silver dimes and quarters I found in rolls as a boy -- unlike the silver certificates I also collected, they can buy similar to what they once did (for their melt value). I and many people new nothing about stock back in the 1970's, so that was not really an option, and gold was way to rich for me, so for the common working man, silver has done quite well vs inflation, even more so for those living in countries in which the U.S. dollar was not common currency.
    These are all good points. I should remember the customers who bought an ounce or 5 when they could when silver was occassionally pumped up from $4 to $8 between 1983-2006. For them, it was a lower cost good practical form of forced savings, those that were astute enough or listened to my advice and bought the "right" type of low premium real silver and not certificates or hyped Home Shopping Network or Franklin Mint silver.
    In my limited experience there were(are) many who did well stashing away silver coins that were in circulation before 1970(1964 was the last 90% year but they were around up to 1970-2). It was ez enough to pick out a 90% half or 2 from a roll of 20 you got at the bank. There were few who bought at $1-4, there were loads that bought at $16 and up in 1980-81, and some who bought between 1983-2007. More who bought at $10 plus since 2008. Out of thousands, I've only known 1 who "got rich", and he was already rich when he started, buying 40,000 silver dollars at $1 in 1964 and selling them for $40 in 1981.

    At this point, silver needs to go to up 20-40 fold, $500-1000/oz. in the next 20 years to be a real good investment if inflation returns to post 1964 norms of 5%+ per annum, it needs to go north of $100/oz to be ok. I suppose that's possible. We'll see.
    Last edited by insidedealer; 02-07-2022 at 08:20 PM.

  8. #18

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    i have no doubt cryptos have taken the inflation hedge momentum off PM

  9. #19

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    Quote Originally Posted by yellowsnow View Post
    i have no doubt cryptos have taken the inflation hedge momentum off PM
    When the tulips return to their intrinsic value, pm's will get their due.

    Just a question of "when "
    "Compulsory altruism is none too altruistic." - me

    "All of us necessarily hold many casual opinions that are ludicrously wrong simply because life is far too short for us to think through even a small fraction of the topics that we come across." -- Julian Simon

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