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Silver Really Worth Investing In?

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Pillar of the Community
Numisma's Avatar
United States
4963 Posts
 Posted 01/11/2016  08:25 am  Show Profile   Bookmark this reply Add Numisma to your friends list Get a Link to this Reply
I really only collect coins with numismatic value. However, it can be nice to have a good, hefty mass of fine bullion in your hand.
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thq's Avatar
United States
3343 Posts
 Posted 01/11/2016  09:12 am  Show Profile   Bookmark this reply Add thq to your friends list Get a Link to this Reply
My dad hunted for rocks and stored them in glass jars. He bought part of an old tourist ruby mine, which he visited annually for at least 15 years. After he died we hauled the jars of unidentified rocks to the landfill and found a buyer for the mine, at about 1/3 of the price he paid for it. We never found his little ziploc bag of tiny ruby chips, which had an aggregate value of about $25. Counting the cost of the trips to the dump, the loss on sale of the mine, the cost of the annual trips to the mine, and converting to 2016 basis, his rock hunting hobby cost in excess of $100,000. But it was his hobby. If he had spent the money golfing it would have cost about the same, with as little to show.

I have the same collecting genes, but decided a long time ago to collect things that were small and valuable. I stack coins, but I like to pick and choose what I stack. My heirs will get better value from those coins than we did out of dad's pile of rocks.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
01/11/2016 12:35 pm
Valued Member
Misterpostman's Avatar
Australia
208 Posts
 Posted 01/11/2016  09:54 am  Show Profile   Bookmark this reply Add Misterpostman to your friends list Get a Link to this Reply
Here are a few arguments in favor:
1. Buying some silver (within reason) is FUN, and you still own something of value. Other kinds of fun such as vacations or fine dining are enjoyable, but don't end with you holding an asset.
2. If silver is at say $14 an ounce, you do not have to pay that much. At an LCS or online dealer you probably will, but if you search estate sales, Craigslist, even ebay, you can find it for less. (with stocks, the price is the price, and real estate has room for bargaining, but it is rare to get something for <50% of FMV, which can happen it garage and estate sales. I made money in silver and gold last year, even with falling prices.
3. As we all know, when silver prices drop, premiums go up. Melt on US 90% is about 10X face, but lots of people are paying 12 or 13 X on ebay and Craigslist. This limits the downside risk. This is even more true for semi numis like Silver Dollars. How low can they go really?
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Coinfusion's Avatar
United States
500 Posts
 Posted 01/11/2016  1:08 pm  Show Profile   Bookmark this reply Add Coinfusion to your friends list Get a Link to this Reply
I agree with the others in that I don't look at my modest silver holdings as an "investment". I am not a stacker but I do collect world bullion coins and look forward to the start of the new year. So far I have picked up the 2016 Kangaroo, Lunar Monkey, Panda, Elephant and the Benin Lion. When it is available I will pick up the 2016 ASE and a few others I will need to keep my sets current that I started 4 or 5 years ago.

I do this because I enjoy it and baring a future major financial obstacle my collection of bullion / coins will just get passed down to the next generation so I don't worry about what is worth today vs the future.

Have some fun! And
Pillar of the Community
United States
3789 Posts
 Posted 01/11/2016  11:34 pm  Show Profile   Bookmark this reply Add yup7676 to your friends list Get a Link to this Reply
I bought silver as a teen, American silver eagles. I have seen them in my young life go full circle. Unless you can teach yourself to recognize when the market is in an uptrend and decide to sell and take profits, those coins you have really wont do much for you.

So by buying coins early, such as a roll of silver coins, you are buying an asset that doesn't pay you even a dividend, which when you compound dividends and start early, it will give you huge financial rewards.

So again, Silver is a HORRIBLE investment.
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