OT: Investing in silver

[TasteofUConn]

Based on what, and why now? Which factors support the view silver may not continue trending down? Demand analysis?

Good questions. In the last 2 years, fundamentals in the stock market have diverged from valuations. There are several indicators that the stock market is overvalued. Further, we have been running at 0% interest rates, or thereabout, for quite some time, and the Fed has been monitizing debt at an unprecedented rate. When housing starts printed high last week, stocks went down, which is Alice in Wonderland level backwards. They went down because stock investors believed that improved housing conditions portend an improving economy, which would force the Fed to raise interest rates for the first time in 5 or so years. That raise would cause a flight from stocks, because many believe that the stock market has only remained high because the Fed has been aggressively goosing the economy. Flight from stocks will result in flight into commodities. Thus, buy silver. Of course, there's always the "economy is going to crap hard" angle too, which is the obverse. Seems to me that the Fed is in a corner, and getting out will be good for metals, whether they get out willfully or not. Just my opinion. I've been wrong before.

 

[Gringo]

I sold a second home I bought ten years ago as an investment and put 75% of the proceeds into 1 stock gluu mobile about 6 months ago. I'm up on it but I believe its a generational type stock that will one day trade between 70-100. High risk but its possible that if I'm right I will have made 5-7 x what I made working for 20 years

Scrappy sometimes I can't tell if you're serious or not.

If you are serious I really hope that works out for you and maybe it will. But putting 75% 0f the proceeds in a mobile gaming company, or any company for that matter, is not the best idea.

 

[TasteofUConn]

If you are serious I really hope that works out for you and maybe it will. But putting 75% 0f the proceeds in a mobile gaming company, or any company for that matter, is not the best idea.

Depends on who you are, your financial situation, and such. Father of 3 young ones, barely making ends meet - probably a bad call. Older, DINKS, extra capital laying around - who knows.

 

[scrappy2.0]

Scrappy sometimes I can't tell if you're serious or not.

If you are serious I really hope that works out for you and maybe it will. But putting 75% 0f the proceeds in a mobile gaming company, or any company for that matter, is not the best idea.

I'm 3/4 on single stock investments since 1997. The first two had a big element of luck and timing but nevertheless it paid for a nice home which allowed me to save for the second and bank my pay checks which is one reason I stopped working at 45. I rented that one out for ten years so this is house money . This is something I studied for 6 months and was patient to get the stock at my price and I was aggressive and confident with the purchase. My intentions is to let it fully play out-- for me I've done better on holding for a period of time than playing the waves of stock movement. I think in life you believe in something you do the diligence you go for it. Best wishes

 

[Gringo]

I'm 3/4 on single stock investments since 1997. The first two had a big element of luck and timing but nevertheless it paid for a nice home which allowed me to save for the second and bank my pay checks which is one reason I stopped working at 45. I rented that one out for ten years so this is house money . This is something I studied for 6 months and was patient to get the stock at my price and I was aggressive and confident with the purchase. My intentions is to let it fully play out-- for me I've done better on holding for a period of time than playing the waves of stock movement. I think in life you believe in something you do the diligence you go for it. Best wishes

I wish you luck and hope it works out.

 

[Gringo]

Depends on who you are, your financial situation, and such. Father of 3 young ones, barely making ends meet - probably a bad call. Older, DINKS, extra capital laying around - who knows.

It depends. If the 75% of the sale of his house is only a portion of his overall portfolio, then possibly. However if it is 75% of his total portfolio then I disagree.

Any quality investment manager will not recommend putting 75% of total capital in one growth stock, regardless of the life / financial situation. At the very least the recommendation would be to spread the investment among multiple growth companies.

Of course it can work out, but the risk is really high.

I guess what I'm saying is scrappy has a huge set of brass balls. I hope it works out.

 

[sledog]

Get the bullets. They ostensibly work against vampires in a pinch.

 

[superjohn]

If you really want a safe investment in precious metals, start stealing copper pipes and wires from construction sites.

Or slide under cars with an electric saw and steal catalytic converters. Good money and it gives you a rush of adrenaline.

 

[raf46]

So instead of having paper cash every paycheck to blow on crap i figure just invest in silver and let it sit and accumalate over time. Ive thought of junk silver (90% pre 65 coins), bars, rounds (non monetized coin medallions), and monetized collectable coins. I decided on

View attachment 9602
(5 oz America the Beautiful coins)

as they can increase in two possible ways. 1. collectability - some earlier versions have doubled and tripled in value and 2. silver price rising.
Any thoughts suggestions from any seasoned precious metal stackers?

CONNECTICUT MUNICIPAL funds are exempt from state and federal taxes. Is tax free money as long as you reside in and buy CT Munies.

 

[SubbaBub]

Glad to see the BY knows as much about personal finance as it does everything else which is not much. If you are buying precious metals as a cash equivalent hedge against inflation as part of a diversified portfolio or as safe harbor between investments then that's fine. If your intention is to time the price of a commodity based on a hunch about short term price movements, then you are bound to be wrong. You may as well just give it to me. I promise I'll do something cool with it.

But, if you insist on getting financial advice from strangers on the internet, you could do a lot worse than reading these:

http://www.reddit.com/r/personalfinance/wiki/commontopics

http://www.reddit.com/r/personalfinance/wiki/investing

 

[The Smart One]

....But, if you insist on getting financial advice from strangers on the internet, you could do a lot worse than reading these:...

Isn't that the age we live in? That of the internet. Its like the library of the past. Tons of info to be had. Im investing silver and am open minded to any type of info I can get. I have tried getting financial advice from those in person and I look back at it and regret the wasted time.

 

[Danzz]

There is no true safety net but the key to investing is diversification. You really don't want to bet it all on one roll of the dice. This isn't my invention, it is the advice any reputable investment advisor will give you.

 

[SubbaBub]

Isn't that the age we live in? That of the internet. Its like the library of the past. Tons of info to be had. Im investing silver and am open minded to any type of info I can get. I have tried getting financial advice from those in person and I look back at it and regret the wasted time.

The question isn't to buy silver or not buy silver, but why are you buying it and is there a better use of your capital.

The best financial advice isn't sexy. It's quite boring. The links I provided contain what are widely considered the best long term strategy for financial independence. Especially, if you are not already wealthy and can leverage various other strategies.

 

[Sky ball]

I have about $5,000 worth of newer silver dollars. Worth about $24 each last I checked. I did not acquire as an investment but as a currency need when the Zombie Apocalypse happens and banks are closed and you can't get any cash. Silver will be Gold! Huh? LOL