Another option is to buy SLW stock. Look in to it. Unless you're in the "oh noes the end is near" group, it makes a lot more sense. Incredible business model they have.
Silver to Soar in 2011? What did you say investment wise
- Thread starter Your_Pal
- Start date
Because of this thread, I'm going to buy my 5 month old niece £100 GBP worth of silver bullion. Hopefully it'll be worth enough to get her an OK-ish 2nd hand car by the time she's 17.
iShares Silver Trust (ETF): NYSE:SLV quotes & news - Google Finance
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http://www.wickedfire.com/shooting-...d-liabilities-acquire-assets.html#post1141898 (depending on your market)
The cons far out weight, for me, buying physical gold or silver over just ETFs. I'd recommend buying a few books on what ETFs are and what leveraged ETFs are so you know exactly what you're investing in.
If anyone has their heart set on physical gold or silver here are some solutions. This exert is taken from a friends membership site, he won't touch ETFs and probably has in excess of a million in silver and half a million in Gold held through GoldMoney.
As always do your own due diligence.
Please don't copy and paste the above elsewhere. It is from a paid membership site that Mike gave me access to and it's pretty good basics.
I'm thinking bars. Right now, I'm settled on 35 1oz of Credit Suisse gold and 10 100oz of Johnson Matthey silver. In addition to that, I'm thinking maybe 20oz of platinum and 1000oz palladium, not sure about brands.
But in any case, no coins. From what I'm seeing, the markup is high and fraud probability is higher. And all those "liquidity of small pieces" arguments don't really apply. I'm not planning on trading silver for bread.
I'm thinking about buying from Ampex. Not sure what's involved and the risks, but thanks for the tip about magnets.
I know about real estate even less than I know about metals. But buying a couple of houses (more likely apartments) is also in the planning aside from this.
I think I remember reading that post. I would love to leverage and buy a bunch of houses on credit and rent them out and use part of the rent to pay down the mortgages. But that sounds really risky.
If rental properties seem risky to you I suggest you keep your cash safely tucked away in the bank. Real estate, and more specifically rental properties, out of what's mentioned in this thread is the only investment you'll have any consistent predictability in.
Real estate will be your only investment where you have tangible values in terms of rents, heat, building cost, etc. that you can control and manipulate.
Yeah you really should buy some real estate with the amount you're talking about - its a buyers market right now too. Not sure what area you're in, but you can pick up more than one house without needing a mortgage and it will actually have intrinsic value and a guaranteed return (rent). Plus the added advantage is if you ever fall on hard times, you'll always have a place to live that's paid for.
It's not that believe the landlord business to be risky in general. I just don't know anything about it. I could end up buying overpriced property that I won't be able to rent out.
How many rental houses could I buy for, say, $400k in central Florida? Assuming I don't take on any mortgage and just pay for everything upfront.
Well, as I stated above, I'm no expert. But I think there is a possibility of real estate getting even cheaper than it is now. That's the primary reason I want to buy silver.
Imagine if shit gets even worse (not bad to the point of people murdering each other for a loaf of bread though), but worse than it is now. Let's say USD finally gets fucked and hyperinflation hits. I've lived through hyperinflation once, and it's not as bad as some people think. As a matter of fact, there are some once-in-a-lifetime opportunities.
With hyperinflation, holding on to cash sucks the most, obviously.
Buying real estate before it happens is a lot better, but not the best way to go.
Here is what I would do. I would buy metal before hyperinflation hits (ie, now). Then, I would sit on it until 1/3 to 1/2 of the country are totally fucked. Not necessarily unemployed, but really struggling. Only then I would sell the metal and buy real estate. That way, one can buy 2x or maybe 5-6 times more real estate for the same "amount" of pre-inflation cash.
Let's say that today a somewhat shitty rental house costs $100k (this is just hypothetically speaking, I don't know the price ranges).
If I buy $100k worth of gold/silver and then hyperinflation hits -- my $100k of metal is now worth $10m. But the same house is only worth $5m. So I can sell the metal and buy two houses for the same initial investment.
And if things don't get worse and there is no hyperinflation, then I would be able to sell off the metal either at the same price or with a small loss.
I had a dude pull into my condo a few months back in his Audi R8, fucker now owns 66 condos @ 150k a pop. Shit is poppin'
And stuff with your last few sentences... don't put all your eggs in the same basket... same thing applies to Metals.
Here's the deal everybody and there brother has been pushing the metals for the last couple years and the markets are pretty hard right now if you go dump a 100 or 200k into metals there is a good chance your are going to turn the 100k into 50k. If I am in your shoes the last thing I am going to do is dump all that cash into metals, I think its suicide. If you are 100pct sure you dont need any of that money for lets say 10 years or longer ok then give it a whirl but if you think you might need it sooner stay away. We are at the top of the market, this is a classic example of buy high and sell low. If anything take like 20% and buy some metal just to get your feet wet. And either hold the rest or find a more suitable alternative until the prices come back down to reality.
You are insane to think that the PM markets are at a top... Do you really understand what is going on in the world to make a statement like that? Do you even know that barely 2% of people are invested in the PM market right now? Back in 1980 it was 15%+...
You are clueless on monetary history...
That's true. But what can possibly happen to make USD (or Euro or even Yen) appreciate in value over the next 3-5 years? I just don't see any fundamentals that signal a turnaround. And if major currencies don't get stronger, then gold/silver won't get cheaper. So no matter how obscene the price of metal is today, how can it crash?
Even during the end of 2008 and the big mess, gold fell but recovered within 6 months.
I'm only considering investing a small part of the cash I'm sitting on. It's basically a rainy day fund. Not a speculative thing, but something to assure that I'll always have 2-4 years of living expenses covered, today or 10 years from now.
That's pretty much what I want to do. But then again, why would the prices come back down? Aside from the purely psychological assertion that they are just too high, what would make people (and more importantly central banks) want to start selling off gold and silver?
Based on market fundamentals that should be the case, but the problem is large institutional investors hold so much in inventory that they can manipulate prices as they wish. HSBC and JPMorgan just got busted doing it a few months ago, and I read something that JPMorgan was holding an enormous short position on silver, so nothing is guaranteed.
Think about it - if silver was guaranteed to go up to say $50/oz, then the market would have already seen the price go up to $50/oz. Obviously there are a lot of market forces working against what should be monetary fundamentals right now, so don't risk more than you can afford to lose.
All I can say is that unless you're planning on holding for the "long term" do not screw with the stock market. There is so much manipulation and other crap going on behind the scenes that you don't understand it's unreal.
You are MUCH better off investing in real estate if you have 100-200k.
I traded for 3 years and let me tell you, 99 out of 100 people don't have what it takes to trade successfully (the smarts, the emotional fortitude, etc.) And that includes me.
What will most likely happen is that you'll buy a bunch of silver, and at the first real correction you'll panic and sell it all a few days before it starts skyrocketing again. There is no worse feeling in the world!
If you insist on buying a bunch of silver, decide in advance where you're gonna stop out and stick to it NO MATTER WHAT.
You are MUCH better off investing in real estate if you have 100-200k.
I traded for 3 years and let me tell you, 99 out of 100 people don't have what it takes to trade successfully (the smarts, the emotional fortitude, etc.) And that includes me.
What will most likely happen is that you'll buy a bunch of silver, and at the first real correction you'll panic and sell it all a few days before it starts skyrocketing again. There is no worse feeling in the world!
If you insist on buying a bunch of silver, decide in advance where you're gonna stop out and stick to it NO MATTER WHAT.
These might hurt - all too thinly traded to move out of it fast enough before the manipulation kicks in.
I'm counting on it.
I believe the reason metal has been rallying is because those same entities you are referencing have been selling off their dollar-based assets (while keeping dollar-based liabilities) and buying gold/silver.
So when they're finished, the next logical step for them would be to crash the dollar.
If your assets are in gold (or other commodities) while your liabilities are in dollars, then you would do everything in your power to devalue the dollar, wouldn't you?
Of course, on the other end of the scales, they have a lot of money owed to them by the general population in the form of credit card balances and other unsecured debt.
If however they manage to pass that debt onto others in the form of derivatives, then they have nothing to lose and a lot to gain.
If this theory is true, then the big boys don't really care what the price of the gold is. It could be $5k/oz and they would still keep buying it (for as long as they have any dollar-based assets left to get rid of) because they can make gold be worth $20k/oz later on if they want to.
If I owe you $1500 and Joe Sixpack owes me $1500, then my net worth is $0. But what if I sell Joe's debt for $1450 and use that cash to buy an ounce of gold. After that, what if I crash the dollar so that the dollar is left with 10% of its former value (purchasing power).
My ounce of gold is now worth $14500, so I sell it. I pay you back your $1500, and I'm left with $13000 minus the $50 discount I lost selling Joe's debt to some sucker and some $2 in interest servicing your loan to me during that time.
I'm now worth $12948 "new" dollars or $1294.80 pre-inflation dollars. That's out of $0 of actual net worth before.
Multiply the numbers in this example by a few billion, and you get the outlook of what seems to be happening now.