What is wrong with silver?

[matt0611]

I count it lucky that silver and gold are staying this low. It gives me more time to save up to buy more while the price is low. I hope it stays low for a long time actually. Or at least a very slow rise.

[KCIndy]

I'm thinking about keeping what silver I have and just putting my savings henceforth into low risk (low-yield) investments like t-bills and CDs. I would appreciate anyone's thoughts on the subject.

Well, call me a pessimist, but T-Bills and CDs are damned hard to swap for bullets or beans if TSHTF, especially if said CDs and T-Bills are locked in a safe deposit box in a locked up bank somewhere.

Also, even if you had them on hand, if things go totally to hell the T-Bills won't be worth ANYTHING as trade unless someone forgot to stock up on toilet paper.

[oyarde]

Silver ? why, nothing is wrong, I bought some today , about five months from now, it should be, much higher, just my guess...

[Dr.3D]

Silver ? why, nothing is wrong, I bought some today , about five months from now, it should be, much higher, just my guess...

LOL, the dollar will just be lower.

[Carson]

Really when you get down to it the important thing is the silver you have will still be the silver you have, up or down. You should be able to trade it for what ever the dollar happens to be worth up, down, or sideways.

Down you pay no capital gains taxes...

so really it seems there is no down side to having it...but I could be sadly mistaken‽

[oyarde]

Capital Gains ? that is blasphemy , you are supposed to gain, paying taxes on again ? Now, that, is offensive

[Tpoints]

I have continued to buy physical silver for the past year or so. It just makes so much sense to my understanding of monetary theory and our current precarious financial state. However, every day I look at the price of silver, while I know the economy is being flooded with new "high-powered money" (credit), and....nothing. The price seems flat between $30-40 per oz. I understand naked short selling is partly responsible for keeping the price of silver artificially down but what else? Are people still buying claims on silver and not the real thing? I'm thinking about keeping what silver I have and just putting my savings henceforth into low risk (low-yield) investments like t-bills and CDs. I would appreciate anyone's thoughts on the subject.

Also, buying gold right now if just not in my budget.

did you expect it to be $100 per oz?

[thoughtomator]

The point of buying silver is to protect against currency debasement. Currency debasement has been ongoing for quite some time and since the first QE has accelerated. Based on Fed actions we have every reason to expect continued and more aggressive debasement to continue until they are no longer able to do so - which may well be at the point where printing a dollar is pointless because it won't be worth anything, in any amount.

Silver in this context is a way to preserve wealth in spite of these overt, massive currency manipulations. Silver investors see every price drop as an opportunity to buy more. It's a long term (10+ yrs) investment. The timeline you're looking at when buying silver is MINIMUM five years from now, after Print & Pray policy has run its natural course (destroying the currency). Then you'll be holding something that still represents real wealth while all holders of dollars will be looking at something that can't buy a loaf of bread with less than a wheelbarrow full.

On the question of silver vs. gold, the reasons to choose silver are:

1) Silver has a far easier entry price point which makes it good for people who aren't wealthy, and also allows acquisition in smaller increments.

2) Gold has been confiscated by the government in the past and has a far greater chance of being confiscated in the future. Silver is HARD to confiscate due to weight and the amount you need to have to be worth the effort of confiscation.

3) The historical ratio of silver value to gold value (due to ratio of their relative presence in the Earth's crust) is 1:16. The current ratio is closer to 1:50, meaning silver has a lot of relative ground that it can potentially make up vs. gold.

4) Gold has a premium associated with it due to visibility and its other desirable properties (doesn't tarnish, can store wealth in a more compact manner than silver). Silver does not have this premium.

5) Current silver prices are artificially low due to JPM shenanigans which you can search the net for all the gory details. But basically they are offering it to you now at a far lower price than it would be in a free market, so why the heck not take the massive discount being offered to you?

6) Tungsten fakes. Worth it for gold; the equivalent substitution for silver can't be done cost-effectively.

[S.Shorland]

'E lost 'is leg to a French cannon ball aaarrr Jim Lad.

[S.Shorland]

Serious answer: The dollar index long term looks like a double bottom to me.So how can that possibly occur?I would NEVER put all my eggs in one basket because I think inflation or deflation are both possible.You can open a treasury account and buy short term us treasuries and also hold silver too.I own Robert Prechter's book as well as Peter Schiffs'.In a longer term scale,read Revelation 6:6.