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 Replies: 22 / Views: 3,469 |
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Pillar of the Community
United States
863 Posts |
I was recently talking to a financial investor and he told me that it is better to invest in silver than gold. his reason was that a regular person can aquire a lot of silver and therefore it has a chance to all go up in value while the average person would only be ably to invest in a few peices of gold over their entire life time.
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Pillar of the Community
United States
648 Posts |
That might be true. I look at silver and gold like this. For money that I know I will not spend for awhile, I prefer to preserve it in gold and forget about it. For the purposes of investment, risk-vs-reward, speculation and mainly collecting, I stack silver bullion. Both are very fun to own in my opinion - but there is something about silver that intrigues me which is why I invest more in it. And yes I do believe silver has a non-manipulated fair chance at going up @ some point in our life time. Stack wisely!  Edited by tripncoins
04/01/2012 09:38 am
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Pillar of the Community
United States
759 Posts |
No offense, but if that was truly his reasoning, he is NOT somebody anyone should take advice from. That said, silver may very well perform better than gold, but his reason is not one any educated or sophisticated investor would cite.
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New Member
United States
18 Posts |
I think the real reason for silver being preferred as an investment is actual consumption versus production. In the case of silver, production is not projected to keep up with consumption and in some cases, it's only because of recycling that there is any surplus at all of silver. Silver is used in medical items, solar cells, electronics, besides collectors. Even with less being used for photography, the other uses seem to be increasing. Gold on the other hand is used in jewelry and some electronics. It usually can be recycled, because it doesn't break down (oxidize) like silver. When you put silver into clothing like socks, there is no chance of recycling.
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New Member
United States
18 Posts |
Related to my previous response, the ratio of gold to silver is something like 50 to 1, but that ratio could change to 25 to 1 (or even lower) which would make your silver twice as valuable as gold, irrespective of the price of gold. Just saying.....
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Valued Member
United States
259 Posts |
it's kinda a moot point if you can't afford gold. When it was $600-800 I was a buyer; not now. Still accumulating silver though.  |
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Pillar of the Community
United States
4008 Posts |
I'm wondering if the phrase "if you can't afford gold" really applies to buying silver as an alternative. Personally, I think that owning both would be pretty darned cool. Consider the fact that it is possible to buy smaller gold coins, such as the 1/10th and 1/4 oz. sizes instead of buying larger weights of silver. A 1/10th oz. gold coin, for example, only costs a little more than an average 5-oz. silver bar and less than the Engelhard and JM 5-oz. silver bars. Yes, buying ANY PM is better than none. I think that most of us here would agree on that. But, if money is tight, we can always save up for the things that we want and that includes PMs.
Silver is certainly more volatile than gold and often goes up or down in price about twice the percentage that gold does in a day. Still, PM ownership is a longer term proposition, so volatility only matters if we are selling and PMs are down.
Gold is better than silver in that it is much more space efficient. If we have to "get outta Dodge" quickly, we can grab a few ozs. of gold in a hurry and make our exit. Trying to do that with pounds of silver is more difficult. Germans who escaped Germany just before WW II often did so with their wealth converted to a few gold coins that they had sewed inside the lining of their coat.
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Pillar of the Community
Canada
3692 Posts |
Well, Ed, in that case why not go all out with D colored, VVS, well-cut diamonds?
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Pillar of the Community
United States
3670 Posts |
"Still accumulating silver though."
You know it brother you an I both....
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Pillar of the Community
 United States
863 Posts |
I have found that it is very difficult to find gold coins and when I do find one there is often a premium attached. I have been lucky enough to be able to buy decent silver coins including morgans for spot
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Pillar of the Community
United States
808 Posts |
Quote:
...in that case why not go all out with D colored, VVS, well-cut diamonds? Ah! And the advantage still goes to gold! Unlike diamonds, gold is easily divisible without destroying value and has maximum liquidity. In an emergency, It'd be much harder to recover maximum value from a large diamond unless you just happened upon the right buyer. An unlikely prospect, to say the least. |
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Pillar of the Community
United States
1454 Posts |
The average person wouldn't trust diamonds, anyway. Too easy to fake and likely no equipment readily available to test authenticity/quality. But silver is still a better barter item than gold, IMO.
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Pillar of the Community
United States
3670 Posts |
Like BF says diamonds are forever as if you buy one you are stuck with it FOREVER....
Did anyone see where that jeweler in France seems like just made the worlds first entire diamond ring, cut from one diamond, the band an all at over 150 CC's. It looked like a sucker pop ring priced at 70 million, lol. Good luck moving that piece, if anyone wants a picture of it, I will try an find a link.....
Edited by Silverhawk74
04/02/2012 6:09 pm
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Pillar of the Community
Canada
1502 Posts |
It's getting to that the silver market's too small and too manipulated for my taste. Gold on the other hand don't see as much volatility. Gold's an odd material... we as humans are drawn to it for some odd reason, all throughout history. The chinese character for money is a combination of the characters for "gold" and "weapon/conflict"
And enough of the "gold is too expensive to buy" argument. I can spend $100 in gold just as easily as I can spend $100 in silver. The size/weight/amount of the product I bought makes no difference, since it's still $100 in value regardless. A 10% increase for $100 of silver is $10 just as it is for $100 of gold.
I would seriously consider switching financial advisors if the advice to go for silver versus gold is based on "a lot more" versus "a lot less"
Edited by poboxw
04/02/2012 8:19 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
Well, Ed, in that case why not go all out with D colored, VVS, well-cut diamonds? You could do that but it is tricky. Diamonds are also a manipulated market with scarcity carefully arranged so that the prices are kept artificially high. Emeralds and rubies are more rare than diamonds, although this may not be true of the really high quality diamonds. I'm sure that good money could be made in high quality diamonds but the successful investor would either have to have a lot of gem knowledge or work closely with an agent who does. Not my thing, although it might be fine for someone else. |
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Pillar of the Community
Canada
3692 Posts |
Yes, I was talking about the highest possible quality diamonds in 1 carat. Larger diamonds with a good cut and clarity are becoming hard to come by. And it's pretty easy to spot a fake if you've seen enough diamonds and fakes - you don't need a lot of equipment, just some ka-nallij (knowledge).
But anyways, I totally agree that gold is the most liquid and divisible, but I was merely talking about comparable size for hiding them. Don't forget your bread!
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Replies: 22 / Views: 3,469 |
Posted 04/01/2012 09:19 am
