Do You Think Now Is A Good Time To Buy Silver

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Originally posted by wrk4lvg

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Originally posted by snowman

I still don't get it. Do you believe there will be a precipitous stock market crash and everyone will be scrambling to pay for goods and services with precious metal?

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Is it really THAT far fetched

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No it isn't.

Production requires investment and investment requires stability. Stability in the world and even in the U.S, IMO, is declining and will continue to do so for some time. For the simple reason that technology has made it easier to resist force. And lost scale advantages have made it harder and more expensive to exert force. An historical analogy may be the Armored Knight who acquired a scale advantage because amour was so expensive. But then one day the Armored Knight meet "him what has gunpowder." And it went down hill from there.

Under declining conditions of stability financial assets, IMO, will do worse and metals better. So long as it doesn't get too crazy. If instability causes, for example, production failures in the food supply then a stout pair of Keds to run from the cannibals will be worth more than a bar of gold.

"Oh my my look at him go."
"There must be a lot meat on them legs..."

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Originally posted by snowman

If you're looking to invest your money I would suggest avoiding silver. Commodities investing is for people with much more money than you and I have and silver really isn't a true precious metal. Unless you're one of those alarmists that can't be comfortable unless their wealth is sitting in a basement safe, I'd suggest putting some money in bonds, stocks or mutual funds. There are a lot of bargains out there right now. If you really want bullion, try a real precious metal like gold or platinum.

As far as silver coins go, I think they look great and any time is a good time to buy one.

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Referring to your bolding, I suggest you rethink this.

Why not be a MAN and buy options on full gold futures
I understand CBOT will start those in octobre
I did not look at prices but I guess you can easily loose a 1000 $ or turn it into 100 000 $ over three months
Probability of the first is probably slightly higher
I did options on shares and there I expected either to loose all or to get 4 to 7 times my money back ; I just did not have the discipline to sit out the dolldrums

Hi all, I've just gone thru this whole thread (whew!!)
It seems to me to be a bit of the old apple and orange going on here. Holding precious metals as a hard asset (in hand) is an entirely different proposition from investing in paper promises. The two different approaches have different goals, also, IMHO.
Collector coins, now, while I love them, are also a little dangerous if you hold them for retirement purposes..An example is a rare St Gaudens double eagle worth $20,000 which in a panicky crash would just be an ounce o gold you could get a lot of worthless paper for. We in the uS have been very fortunate not to have ever experienced any hyperinflation, but that is not to say it couldn't happen. If it does, those holding gold and silver bullion in spendable/tradeable chunks (coins) should get thru it. And lets not forget, thanks to "globalization" and our new "global economy" it is unlikely any big crash or blowup of the paper wealth would be isolated to just one country.

I'm not saying get a gun and head for the hills, but my point is that we as coin collectors have a unique informed perspective on the value of hard assets throughout history. Who better to appreciate the monetary (and aesthetic) value of these coins made of precious metals?

Now I'll jump off the platform and go get some very peaceful rest knowing my little stash of hard wealth will be there in the morning!

YES, it's ALWAYS a good time to buy silver (and gold) when you are paying for it with paper money!!

Love those smilies! Dennis

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Originally posted by sharktoy

I love buying silver coins. Do you realize silver is mined more than gold?

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That is the reason why silver is cheaper then gold
I think in 1806 the french set the exchange at 10.5 silver for 1 gold

In the late 1999's I saw the techno crash comming and bought puts to secure my ASML shares
To make a long story short instead of loosing 90% I lost only 45 %
So fully protecting a position is a very costly excercise and if you are slightly wrong in timing futile too

As to leaps
I never was into anything longer then 5 months remaining time in options because you can fairly well have expectations over 5 months
but who knows what 2009 will be like
Without looking up the prices I would expect that leap to sell for 30 to 50 % of physical gold which does not expire in 2009
The writer of the leap has the money in his pocket whatever happens
Leaps are not very liquid and time errodes away value like with any other option

If more people will buy silver the price of silver will go up...
So buying silver is good for the value of new silver coins.

For more rare coins the metal price has less influence as they
are more worth then their weight in silver.