View Single Post
      07-11-2013, 11:23 AM   #13
RandomHero
Private First Class
United_States
25
Rep
159
Posts

Drives: 2008 335i e92
Join Date: Apr 2013
Location: Austin,tx

iTrader: (0)

Quote:
Originally Posted by E90-F30 View Post
Buy bullion.

Nothing less than 10oz. If you can afford it, buy a 100oz bar while the price is low.

If not, buy in 10oz/50oz increments.

As of right now $19.86/Troy Oz.

I use APMEX and Provident for my purchases.
I see very little reason to buy bullion. In fact, in can decrease the liquidity of your investment. Many places charge ASK: Spot+10% and BID:Spot-10% . That’s essentially a 10% commission charge in and another 10% out. That’s a serious hit to your cost and selling basis.

There are several ETFs that specifically track the spot price of silver. They have low expenses, low trade costs, and you have no issues related to storage. That would be a much better choice.

Quote:
Originally Posted by bosstones View Post
I'm not a silver investor but isn't it still a bit high (historically)? Seems to be headed down in price but I don't think I'd buy any. I base this only on looking at a pricing chart from '95 to the present day. That said, there are some cool pieces (coins, rounds, and bars) out there.
A bit of both. Over the past 10 years it has increased significantly. However, within the past 2 years it has taken a significant hit. I show that July 2003 the spot price was around $5.33. In July 2011 it was around $40.11. Currently it’s trading at $19.90

Quote:
Originally Posted by E90-F30 View Post
Silver is used in virtually everything electronic, and the supply one day will be down to null.

It will never reach the price of gold, but it will rise significantly in the next 15-20 years due to depleting supply.

Investing in silver today, would be like investing in gold in the early 70s.
While that may be true, you’re talking about at least a 15-20 year time horizon. That’s a very significant amount of time. The best question to ask yourself is: Would there be better opportunities to invest my money over that time period.

Quote:
Originally Posted by MediaArtist View Post
They are mining more Silver today than in any time in history due to new mining technology. There is actually an abundance of supply.

Yes, Silver may run out, but I don't see that happening for a very long time.
This is very true, and one of the main contributors to why the spot price has decreased significantly over the past two years.


If you’re planning to hold this for less than a couple years, I personally think there are much better opportunities out there. I understand that people like trading commodities because they are very transparent investments. You know what you own and with bullion you actually have something tangible that has value.

Again, commodities can be fine investments. However, you need to consider how long you will realistically own it (time horizon). There is also a famous investment saying that goes something like “Never try to catch a falling knife.” Silver has been on a steady decline for quite some time now.

Is it a good investment choice? That’s up to you. I personally don’t think so, and have not recommended it to anyone. At this point that seems to be the majority opinion from most research firms and analysts. With that said, no one has a crystal ball. Just make sure that you truly believe that it is the best opportunity to invest your money and stick to your plan (don’t sell it prematurely based on emotion).
Appreciate 0