Silver is in backwardation again

Discussion in 'Financial Cents' started by pmbug, Jan 6, 2012.

  1. pmbug

    pmbug Golden Cockroach

  2. The Expendable

    The Expendable Bread and Circus Master

    Yeah... I have such a great mind for investments... A few months ago my mom had some cash from her retirement fund sitting in her safe, but I was worried about her just piddling it away. I told her she should buy some silver. After all, I had done a lot of research, and I knew that silver was undervalued in relationship to gold. I knew it could fluctuate a little, but in the long run I knew she would be safe. Plus, it was fairly liquid. If she needed cash, I could easily sell some of the silver for her. So she gave me $3000 to buy silver with.

    At the time, silver was sitting at around $43. I watched it for a couple of weeks and set a target price of less than $40. So when it hit $39 a few days later, I bought 60 American Silver Eagles. By the time I placed the order, it was back up to almost $40. With the "over melt" value, the shipping, etc., well... The total was around $2700.

    The day after I bought the silver... THE VERY NEXT DAY... silver dropped to $32! Another couple of days passed and it was below $30! Look at the historical silver price chart for September and you can see EXACTLY what day I bought.

    Some financial genius, huh? My mom took the news well. She knows it will rebound in the long run, but it kills me to know I could have bought 80 Eagles instead of 60 if I had waited just 24 hours.

    So, umm... anyone have any liquid cash they want me to invest for them? :)
    pmbug likes this.
  3. ghrit

    ghrit Bad company Administrator Founding Member

    Nah. Just tell us what and when you are buying and we'll wait a day --
  4. The Expendable

    The Expendable Bread and Circus Master

  5. Falcon15

    Falcon15 Falco Peregrinus

    Looking at silver as an investment, one must never forget the fundamentals. Fiats come, and fiats go, but silver has been money for 6500 years. That "value" you are quoting is a highly manipulated and very off kilter dollar amount. Physical silver and gold are not short term, fast money investments.

    They are not "investments" at all IMO. They are solid insurance. However you cut it, you will have money when others are clutching green paper bills wondering if they can wipe their behinds with it...
    VisuTrac and Sapper John like this.
  6. The Expendable

    The Expendable Bread and Circus Master

    Oh yeah, you're absolutely right. I say "investment" but I don't see it that way either. I'm not worried about the "money" I have lost, but that I wasn't able to buy more silver. Even though it's insurance, I'd still rather buy low than high.
    STANGF150 and Falcon15 like this.
  7. pmbug

    pmbug Golden Cockroach

    All indications are pointing to a repeat of early last year (actually happening a month earlier this time around). We may see $49 silver again this March/April if it plays out like last time.
  8. Pyrrhus

    Pyrrhus Monkey+++

    When silver is high, I buy silver. When silver is low, I buy more silver. Just keep plugging along at it. Shoot, your mom has as much as I have, and I've been buying for a lot longer.
  9. The Expendable

    The Expendable Bread and Circus Master

    Trust me, my mom has a lot more than I do too. I've been buying a few of the Silver Eagles and private bullion, but typically I buy the 90% "junk" coins. I don't worry too much about the numismatic quality, since I'm only concerned with the silver content.
    VisuTrac likes this.
  10. Pyrrhus

    Pyrrhus Monkey+++

    I buy junk silver and eagles based on my belief that I will one day use both for money. I had more eagles a month ago, but several became Christmas presents.

    I tend to spend a lot of my money on lead and lead slingers. Not that those are all that are needed, I just tend to enjoy a day at the range more than spreading coins out on my bed and looking at them.
    STANGF150 likes this.
  11. DKR

    DKR Raconteur of the first stripe

    time to buy and a time to sell

    The time to have purchased silver was at 6 to 10 dollars.

    I stopped buying when it hit 13.52/ox.

    Not harshing on anyone, your dough, your choice. It's just that if you look back more than a few years, you see a more historic 'value' of between 6 and 15 USD/oz.

    Of late I have been 'investing' in long term food storage, and other dense metal.

    I remember well how damn close we came under Carter, and if boofuxs gets re-elected, than that nightmare will rise from the past and become fact.
    Toss in a euro crash - well, I hope you have seeds for your garden.

    Then, that's just me.
  12. The Expendable

    The Expendable Bread and Circus Master

    Please. When silver was 6.00 to 10.00 I had no interest in prepping. Now I kick myself, but such is hindsight.
  13. Gray Wolf

    Gray Wolf Monkey+++

    Just take comfort in the fact that you DO have some silver, and quit paying attention to the smoke and mirrors shell game going on in front of the whole world.
    gunbunny and The Expendable like this.
  14. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++


    In 1964 for 1 dollar in silver coin you could buy 3 gallons of gas (.33/gal).
    with those same silver coins today would get you 5.88 gallons of gas (3.50/gal)

    and lets assume you paid 40 per oz silver but now it's only worth 29, you lost 38 percent of the value in silver. So lets reduce the total amt of gas you could buy by 38 percent.

    that would be nearly 4 gallons of gas for the same silver coins.

    Now that sounds like a good hedge against inflation to me.
    Gray Wolf and BTPost like this.
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