Silver Down To $20.76!

hmm, price of silver down, but cost of mint silver products up. Is this a new math I'm not aware of yet?

You are never going to win at the " Silver Ponzi" game .
Price drops are irrelevant because the premiums just go up !!

@Pacificoin Honestly, I think that's actually somewhat of a misconception. Spot price and physical price are not 100% correlated, but they are correlated eventually, meaning there may be a time lag. ASE premiums have come down, so have generic Buffalos. The retail demand for silver is normalizing against physical supply.

For better or for worse, at this point, paper silver still drives physical silver prices, to a certain degree. That correlation is larger than what some may expect, or care to admit, though. And I say this with the utmost respect, because in my opinion, I do agree that the paper silver market is a scam and manipulated by the powers that be. That said, retail customers still largely base the "fair" price in their mind on silver spot, so even though there may be reluctance on the seller to capitulate, they will eventually need to capitulate, in order to move product.

@coin rejector Maybe I should start buying some SLV in the near future!

@AllSeasons.... You seem knowledgeable but here's a quick read regarding the $SLV.... https://www.investopedia.com/articl...rust-etf.asp

I've been in/out of the $SLV over the years w/ Options, which are.... (the right to buy the stock, not own the stock) its somewhat of a complicated trading strategy. That being said, I think in our current environment (rising interest rates, probability of a recession, etc.) any long term duration investment or holding actual physical, has a better chance of paying off within the next 5 years vs. incurring a negative return on your investment. I do believe we could see another run on the price of silver, similarly to what happened in 2009-2011. Simply my humble opinion.

You all known the price of silver is almost irrelevant ? If you take the average cost of silver over decades it barely kept up with inflation? For example if you owned silver in 1981 it cost on average $10.89 per ounce and average per capita income was $22,390, in 2022 the average price of silver was 23.33 per ounce but the average income was $54,132.

In 1981 it would have taken the average worker 1 hour to buy 1 ounce of silver.

In 2022 it would have taken the average worker .9 of an hour or 54 minute of work to buy an ounce of silver.

It would have been cheaper to buy silver in 2022.

@hfjacinto It really depends on your time horizon. Precious metals, especially physical metal, generally speaking, are a store of value over the long term. However, when you look at silver, its prices are a lot more volatile compared to gold, so there are more shorter term opportunities, especially when it comes to the paper market. Silver spot price tends to mimic the market more, especially the NASDAQ, because silver is an industrial metal associated with (electric) car batteries, circuit boards, solar panels, etc. So while I don't disagree with your comment long term, I think in the short to medium term, there is money to be made in the paper market, by taking advantage of the gyrations in the market.

Now, as for risk appetite, that's another entirely different thing. The rule of thumb of investing is only invest what you can afford to lose, but with silver, it's very unlikely that you would lose everything, like a company going bankrupt. So in that sense, it is actually a safer investment than high growth companies that may or may not be a going concern in a year or two.

@thq I'm not disagreeing with hfjacinto over the long term. I was referring to opportunities in the short to medium term. But even if we were talking about the long term, I would rather have bought in at $20/ounce last year vs. $30/ounce the year before. Yes, eventually you're fine, but it would take longer to make you whole again, and your annualized return would be lower. It's just math.

I try to buy the dips and sales. But sometimes I should have waited. I took out a minimum distribution last month, added some cash and bought a 2023 1 oz gold buffalo, then gold dropped about $85. I think it will go higher in the long run.