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 Replies: 84 / Views: 8,520 |
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Valued Member
United States
456 Posts |
Quote:
It is very bulky which is why gov'ts sold it many years ago, and why it was undervalued for so long. It has fallen in value in terms of gold for all of recorded human history. I wouldn't bet against a 5000 year trend. It's mostly a commodity. Well the gold/silver ratio has fluctuated pretty wildly since the industrial revolution between 20 to 100, so I don't think generalizing it as a consistent devaluation relative to gold is appropriate. Regardless, I don't see what this has to do with liquidity. Apparently I'm missing something. . . |
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Valued Member
United States
329 Posts |
I read a research report back in '11 that claimed that silver was going to 100 oz. within 6 months because of solar panels. I read another report claiming it was going to 25 for the exact same reason. The difference was the latter report predicted at the voume of orders would decline to such an extent that Chinese production would be sufficent sooner rather then later. I dumped most of my silver. I've been a big fan of paladium though.
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Valued Member
United States
329 Posts |
why pay for he premium of a proof coin. Id rather grab a $20 gold piece then.
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Valued Member
United States
329 Posts |
I bought 4 Canadian maples and the price was $1526.75 which is roughly $50. For some reason they wanted about another $20 for eagles. They can keep them.
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Valued Member
United States
329 Posts |
Well the gold/silver ratio has fluctuated pretty wildly since the industrial revolution between 20 to 100, so I don't think generalizing it as a consistent devaluation relative to gold is appropriate. Regardless, I don't see what this has to do with liquidity. Apparently I'm missing something. . .
In the ancient world it was about 3 to 1, so I would say there is a more than apparent long term trend.
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Valued Member
United States
329 Posts |
The size and depth of the market.
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Valued Member
United States
456 Posts |
Ok, I have no idea about the ratio thousands of years ago, but I'll take your word for it. So are you honestly saying we should ignore the fluctuations over the last 200, 100, 50, or even 10 years and only look to how it has changed since 3000 B.C.?
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Valued Member
United States
329 Posts |
no, you should not view silver as the same as gold. Its not as scarce, nor as highly desired as gold. I remember back in the 90s my boss was using a 100 oz silver bar as a paper weight. I thought for sure someone would steal it, but no one did.
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Valued Member
United States
456 Posts |
Quote:
no, you should not view silver as the same as gold. Its not as scarce, nor as highly desired as gold. I remember back in the 90s my boss was using a 100 oz silver bar as a paper weight. I thought for sure someone would steal it, but no one did. When did I say or imply that they should be viewed the same? Of course gold is more scarce and valuable. Hence the gold/silver ratio is greater than 1. I'm glad your office didn't have a thief, but what does that have to do with the gold/silver ratio? What does this have to do with liquidity, which was the reason for my original question? |
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Valued Member
United States
329 Posts |
Perhaps you should take a look at the sharp declines throughout history vs. gold. It hit 200 during the depression. I would say Silver presents significant risk in a crisis. Not so much so with gold. I have nothing against silver, it remains an important industrial commodity and does possess monetary charcteristics, I just question its record of protecting wealth. The notion that because its 17 x less scarce than gold therefore it should trade at 20 to 1 r whatever is nonsense. There are plenty of things that are scarcer then silver, yet trade for less.
I much favor gold over silver.
Edited by wjl
04/12/2013 9:44 pm
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Valued Member
United States
456 Posts |
Back to the OP's question, I am going to hold off getting the high premium items for now. It seems the premiums for these items tend to remain steady for a while after a price drop. If anything I might take advantage of this and look to sell some high premium stuff if the price is right and add more ounces.
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Valued Member
United States
329 Posts |
What does this have to do with liquidity, which was the reason for my original question?
Its a very small market in terms of dollar volume. Like a mid cap vs. a bluechip.
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Pillar of the Community
 United Kingdom
616 Posts |
wjl I asked a simple question and about half this thread is you talking about nothing really related. I appreciated your opinion but I wish you would confine it to one or two concise posts. Honestly, when I ask people if it is a good time to buy higher premium silver items because of the price dip that is what I am interested in and I expect answers like yes good time to buy silver. Now personally I don't have a LCS and buy virtually entirely online or coin shows and I noticed thanks to a tip on this board 2013 Pandas have been selling for spot + $5.75 at Goldmart. So today they where much cheaper than last week. Like many people I like the volitilty of silver and it's industrial uses which can cause large moves in both directions. I agree gold stores easier and see it wise to play both metals. But since I personally am not a zombie apocolypse guy if I want gold or silver purely for investment in PMs then I would go ETFs to avoid premiums. But I sold all those a couple weeks ago. What I am now looking at is can I get some collectable or semi-collectible pieces that will hopefully in the next 20 years have a spike I can sell for a annualized 8% return or at least break even after inflation. Beyond that I just want to collect something I enjoy owning for whatever reason. Personally I think gold still has a big leg down to go but that is just conjecture. Probably the most important thing for me is since my time horizion is in the 20 year range if I catch something 20% before the bottom or 20% off the bottom makes no difference except I got to enjoy owning one longer. In my case collecting gold and silver is a hobby that may someday bring some financial gain but I never count on seeing any real profit or even recovering my purchase price. Silver is shiny and prettier than gold and more affordable so I like many people collect it. Hope that explains where I am coming from.
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Valued Member
United States
329 Posts |
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Valued Member
United States
329 Posts |
Well good luck. I would be careful about a long term view on silver given ts long term record. I sold most of my silver for palladium as silver is primarily an industrial trade, it has monetary characteristics due to the ratio trade with gold. How do you sell all tht silver? Silver spikes are short lived When I did do a good amount of seling back in 2011, I had a very difficult time selling silver, but not gold. That is what is meant by liquidity.
As for premium you should avoid it in any market extreme.
Edited by wjl
04/13/2013 04:45 am
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Replies: 84 / Views: 8,520 |
First Page
Posted 04/12/2013 8:07 pm
