Would You Still Buy Silver As An Investment At This Price?

specksnyder - at least you have a plan! Lasik, or coins, humm, tough choice...

I've heard silver is in a bubble now. RIght now I will buy silver coins for my collection, but not as an investment.

Even if the bubble bursts it's just a buy opportunity. People got used to cheap silver as governments dumped the metal on the market. But the reality is that supply doesn't match demand and the melt scrap is getting cleaned up. I don't expect silver to go very low at all any more, it's not gold, the industrial demand is reasonable and it's still cheap imo. In fact I can see several place where silver could replace gold in industrial supply and I also feel silver will take on an expanded demand from the average citizen of earth as currencies move to more shaky ground.

I bought some today

There's many factors at play to provide answers here. It all depends if you are in this for the long term, or short term. Someone who is already past retirement age, or nearing it, may have a different answer than someone my age (36 years) I have been buying silver for a long time, and continue to do so. Our dollar is in trouble in the U.S., and any paper I trade in for something that has been used worldwide as a currency for thousands of years is a good thing. Sure, I wish it was lower in price, so I could get more. But not only are metals going up, that junk paper is going down.

As you can see by some posts above, it is annoying coin collectors. But no matter how much they "will" it to go back down, it does not change the fundamentals as to why it was so cheap for so long in the first place. We are NOwhere near a bubble, the people around me at work, etc, have no clue what precious metals are worth, and that it has risen so quickly. When everyone knows, like in the housing bubble, then worry.

@Tim Stroud: I would chalk your comment up to misinformed. Hopefully you enjoy roll hunting, we will never see 22.00/oz for silver again.

If it were for investing purposes, I'd have to quote "scared money don't make money". I'm still buying...

First of all, how does one value silver and gold against a paper, fiat currency? The dollar is only good as a piece of toilet paper. Actually, it is not even suited for that job. How do you quantify, in dollars, the value of a metal that has been seen as real money for thousands of years? I mean, would it even matter if silver was a million dollars an ounce? If silver is money, and a paper dollar is not, and silver has intrinsic worth, and a dollar does not, than who cares if silver costs 'X' amount of dollars. Dollars are worthless and what we are actually seeing is people realize this and they are beginning to be willing to part with so many dollars for an ounce of silver/gold.

If you adjust for inflation we are NOWHERE near the '80 peak. Same with gold. There are psychological points for everyone to either sell or at least stop buying. I think the big psychological point will be $50, because that is what most people see as the highest price for an ounce, ever. Even though that is erroneous.

We'll see silver float around $50 an ounce for a while (when it gets there...which it will), but we will eventually see a breakout. Most folks who are going to start selling are 'weak hands'. They need the money and are araid they will miss out on their opportunity to profit.

I would categorize myself as a 'strong hand.' I don't need the money from the profits and I'm not fearful of a price dip. I'm also 'cost averaging.' I've bought silver really low and I'm still buying.

Until the world gets it's economical act together, silver and gold will only rise. And trust me, we are very far from seeing the US and Euro countries straighten out their currency situations.