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Which Is Better To Invest In? Silver Or Gold?

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Pillar of the Community
United States
1126 Posts
 Posted 08/31/2012  09:16 am  Show Profile   Bookmark this reply Add stewart to your friends list
Don't believe the cheerleaders or the naysayers
Take the time to do your own empirical research and
come to take the actions that best fit your particular circumstances

Here are a few short Readers Digest version reasons of
why I voted the way I did and in which priority I put
each of the metals I purchase

Vote: Silver


1st PHYSICAL Silver: One of the most strategically important metals
of the 21st century,almost every electronic device today uses Silver,
Not just consumer uses which are prone to drops in economies
leading to less sales But all Major Military's are VERY dependent
on high tech equipment.

Medical: Silver has Anti-Microbial properties, bacteria dies
when it comes into contact with Silver. The amount of medical
uses for Silver is growing exponentially in recent years.

Mining: Where as in years past mines measured Silver grades in ounces per ton of ore extracted,
they are now down to measuring grams per ton of ore extracted.
along with the ever
increasing prices of diesel and electric to run the mines.

Recycling: Very little of the Silver used today gets recycled,
because the current low price of Silver and the small amounts
used in each of the millions of electronic devices or antibacterial
applications, makes it non cost effective to recover. And we are
just putting it back into the ground in landfills, and very quickly
depleting the above ground stocks.

GSR: (Gold Silver Ratio) these metals coming out of the ground in
mines roughly come out at a ratio of 10-15 oz's Silver for every
1 oz's of Gold, Yet the the paper Gold to Silver Ratio hovers
near 50 oz's of Silver to 1 oz Gold....Unsustainable

Money: Silver has been used as a store of value and for trade
for over 5000 years. It is only since the 60's for us that
there has been now precious metals in our coinage.
A very short time.

2nd PHYSICAL Gold: In the last few years Since 2007-2008 every country and Central Bank on the
Planet has made a major shift in their actions concerning Gold
They have been sellers of Gold for decades and now there is a race
going on to accumulate as much as they can. (Those at the top know
something is coming)
Has been used as a store of value and for trade
for over 5000 years

And thank you for bringing this up silverdollar2011
3rd PHYSICAL Nickel
Another very important strategic metal. for all of the
reasons cited above in previous posts.
And the only (mostly) pure metal
coin that can be had for face value
Not one nickel has left my house in quite some time


Paper Assets: Not a Chance

With the recent events of MF Global and PFG Best. Stealing customers
segregated accounts and not one person has gone to jail.
and the 7th district court of appeals recent
decision that when a person hands their money over to a bank it is no
longer theirs, it is the banks property
We have turned a corner in the world of ANY Paper assets
This the first one I could find for reference, There are many more
articles out there on the the subject below


Quote:
According to a federal appeals court ruling, Thursday, Bank of New York Mellon's secured loan will be put ahead of customer segregated accounts held by Sentinel--a landmark ruling that turns individual segregated accounts into the property of a third party under circumstances of duress. In other words, if a financial institution fails, clients, depositors and pension funds may not get some or all of their money back in a bankruptcy.

In essence, under the ruling, Securities Investor Protection Corporation (SPIC), Federal Deposit Insurance Corporation (FDIC) and other insurance programs no longer will/can protect customer funds, leaving millions of investors, depositors and retirees unaware that they are no longer account holders of their own funds, per se, but, instead, have suddenly become stockholders of the institution with which they have deposited their money.

http://www.beaconequity.com/now-ban...-2012-08-15/

This has been fun

Terry
Edited by stewart
08/31/2012 09:26 am
Pillar of the Community
United States
4008 Posts
 Posted 08/31/2012  7:44 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list

Quote:
I had no idea you could still get paper stock certificates. Why would anyone want to do that though?

As a way to protect your assets, Nod. If your broker holds your stocks "in street name", they essentially belong to the broker to manage in your name. If the brokerage company fails, they can grab those assets, liquidate them, and use the money to keep their company afloat. This happened at Sentinel, MF Global, and at PFG-Best. There are some VERY sticky fingers out there in the financial world that consider what's theirs as theirs and what's ours as up for grabs. Stock certificates registered in your name are physically delivered to you and no bankster or brokster can grab them from you.

It does make selling your stocks slower and more difficult, though, as you have to take the certificates to the local office for your broker in order to sell them. Can't do it with a few mouse clicks like you can with shares owned in street name and held by the broker. In years past, this made it a good choice to hold your shares in street name so that you could sell the shares quickly, if necessary. These days, however, the threat of theft by your broker may well be greater than any problems caused by not being able to sell shares quickly. You risk a 100% loss via a failed brokerage but maybe only a 10-15% loss via not being able to sell quickly. If your brokerage fails and disappears, it does not affect the stocks you own and hold yourself but it sure can affect anything that is owned in street name, hypothecated, re-hypothecated, etc.
Bedrock of the Community
13014 Posts
 Posted 08/31/2012  8:28 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list
For some reason I read that as stocks for silver, I agree with Edb and just forget what I said in my last post.

The most important thing really is to just keep an eye on everything. If you have a substantial investment just get out when it looks like its going to be another MF Global. Better to take a small loss than risk it all. Other times you can gamble itll recover if the investment is small and could bring back a great reward. But investing is unique to each individuals situation
Valued Member
United States
141 Posts
 Posted 09/01/2012  01:50 am  Show Profile   Bookmark this reply Add Shirayasha to your friends list
silver is better to invest in, it will make you more money. I put equal amounts of money into both gold and silver, and silver has paid off about 200, while gold has paid off around 60. however gold is just so amazing, its tempting not to own some.
Pillar of the Community
Canada
3692 Posts
 Posted 09/01/2012  11:29 am  Show Profile   Bookmark this reply Add Libertad to your friends list
silverdollar2011: Nickel is scarce? Sorry, but come to Canada or Australia where it is abundant. It's all about location. We're knee-deep in nickel.
Pillar of the Community
United States
4008 Posts
 Posted 09/01/2012  5:35 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list

Quote:
If you have a substantial investment just get out when it looks like its going to be another MF Global.

If that were possible, that would be an effective way to protect yourself. Unfortunately, when an investment company goes belly up, it tends to do so VERY quickly. By the time we hear that it is in trouble, it is already too late to get your money out of there. It's a bit like a sudden market pull-back. We could all avoid those if we had the time to react. In most cases, though, we do not.
Bedrock of the Community
13014 Posts
 Posted 09/01/2012  6:00 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list
Very true we often dont have a lot of warning. I do my stocks myself at the moment, so I've put in sell orders that activate at certain levels if the stocks crash like that on companies I have a decent amount in. I'm not really concerned about any of them going belly up and I would still lose money, but its better than losing it all. I would imagine a stock broker would have a similar option to at least protect some of the investment but the risk is certainly real and why investments should be taxed lower than assured income
Pillar of the Community
United States
667 Posts
 Posted 09/05/2012  8:33 pm  Show Profile   Bookmark this reply Add mkfarm to your friends list
I am in favor of a diversified investment strategy that includes the speculation with PM's. To me 100$ stock or PM's is dangerous.

each and everyone has their own sound reasons between gold and silver. I like that part to be balance too. However even I move it around when it makes sense.

In 30 years I have never had a problem converting either stocks or PM's into cash when needed. In fact even with all of the automation we have today, I can convert PM's into cash on the same day, I can't do that with stocks.

With today's uncertainty I'm not to sure that my stocks will hold over over the short term. If I was going to retire soon I may really have to think about how much I want in stocks.

Pillar of the Community
United States
4008 Posts
 Posted 09/05/2012  11:18 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list

Quote:
I do my stocks myself at the moment, so I've put in sell orders that activate at certain levels if the stocks crash like that on companies I have a decent amount in.

Same here, BB. Stop loss and trailing stops are the way to go in a volatile market that is prone to the occasional crash. It's not a perfect strategy but then, what is? At least it limits big losses when we get one of those gut-wrenching plunges.


Quote:
I am in favor of a diversified investment strategy that includes the speculation with PM's. To me 100$ stock or PM's is dangerous.

I agree 100%. When investing, as in life, moderation seems to be the key.


Quote:
I can convert PM's into cash on the same day, I can't do that with stocks.

True, MK. But then there is a "settlement date" issue with stocks. I understand where this rule came from but it seems a little outdated, especially when one can buy and sell with a few mouse clicks and our brokers hold BOTH the stock and the money! It isn't as if there was a problem with 2 parties involved or they had to wait to be paid.


Quote:
If I was going to retire soon I may really have to think about how much I want in stocks.

Yes, that is a concern. A large loss just before or after retiring can be a real portfolio buster. Trailing stops and stop loss orders work well here too.

On the other hand, bonds have a lot more risk then bond buyers are getting paid to accept. I'd be REAL careful with them as well.

On the 3rd hand, lol, I have no worries about maintaining a decent PM hoard as insurance against financial Armageddon. It might or might not be the financial answer I seek but we won't know that until AFTER the SHTF. I know that I trust the solid value of PMs more than I trust the supposed value of paper with ink on it that is whipped up out of thin air and in any amount the Fed wants.
Bedrock of the Community
13014 Posts
 Posted 09/06/2012  12:51 am  Show Profile   Bookmark this reply Add basebal21 to your friends list

Quote:
On the other hand, bonds have a lot more risk then bond buyers are getting paid to accept. I'd be REAL careful with them as well.


Id actually be interested to know if these are even making money anymore when you factor in inflation
Pillar of the Community
United States
3294 Posts
 Posted 09/06/2012  09:29 am  Show Profile   Bookmark this reply Add nod2003 to your friends list
What inflation? The gub'mint says we have no inflation. ;)
Pillar of the Community
United States
2541 Posts
 Posted 09/06/2012  7:47 pm  Show Profile   Bookmark this reply Add Gothic Florin to your friends list
I don't know anyone who loaded up on silver and gold in 2002 and actually got "profit" of the last 10 years. My time horizon is 50 years, and precious metals have never beat equities over a 50 year rolling period going back to 1820.
Pillar of the Community
United States
4008 Posts
 Posted 09/06/2012  7:55 pm  Show Profile   Bookmark this reply Add Ed_B to your friends list

Quote:
Id actually be interested to know if these are even making money anymore when you factor in inflation

I agree. Historically, bonds have provided a positive cash flow that was in excess of taxes and inflation. I'm pretty sure that is not the case these days. Stocks and funds are beating bonds handily these days. I have a few mutual funds that are earning between 9 and 16% in 2012. That's WAY better than the 1.6% being paid for the US 10-year Treasury Bond.


Quote:
What inflation? The gub'mint says we have no inflation. ;)

Yep and if they are saying it, it MUST be true! Never mind what we all know from our trips to the gas station, the grocery store, the doc's office, the dentist's office, the college tuition office, the insurance office, the car dealership, the travel agent, our attorney's office, our accountant's office, etc, etc, etc.

Reality can be quite a shock to anyone who tries living in Fantasy-land.
Pillar of the Community
United States
667 Posts
 Posted 09/06/2012  7:57 pm  Show Profile   Bookmark this reply Add mkfarm to your friends list
Now you know one.
Pillar of the Community
United States
830 Posts
 Posted 09/07/2012  1:14 pm  Show Profile   Bookmark this reply Add GoThunder to your friends list
Here's another.
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