Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login

Site Notices
12/6/2019 7:27:02 PM
Posted: 12/17/2016 12:44:27 AM EST
The price of silver has dropped by about $2.50 over the last three months. 

With Trump winning and the stock market skyrocketing, is the price of silver going to continue to drop dramatically? 

Is this the time to buy silver, or is going to come down more? 
Link Posted: 12/17/2016 12:54:37 AM EST
Nobody knows. Figure out how much of your wealth you want to keep in silver and DCA your way there. Silver isn't an investment like your 401k. Its an insurance policy with a tendency to become a hobby. And within that hobby you will find that some silver always goes up in price regardless of spot. So while the conventional investment advice people shit all over this thread, just remember that silver can be more than a commodity if you put the leg work in. And spare the whining. That research takes less time than researching any company on the nyse.
Link Posted: 12/17/2016 12:59:02 AM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By GrasshopperNOmore:
Nobody knows. Figure out how much of your wealth you want to keep in silver and DCA your way there. Silver isn't an investment like your 401k. Its an insurance policy with a tendency to become a hobby. And within that hobby you will find that some silver always goes up in price regardless of spot. So while the conventional investment advice people shit all over this thread, just remember that silver can be more than a commodity if you put the leg work in. And spare the whining. That research takes less time than researching any company on the nyse.
View Quote

It's my (simplistic) understanding that as the stock market rises, precious metals fall. When stocks look like a good bet people buy stocks and sell precious metals, and when the stock market looks like a bad bet people sell stocks and buy precious metals. 

What I am wonder is, if I buy silver now at, whatever it is, $16.75, then am I going to be kicking myself in 3 months when Trump gets the 15% corporate tax rate and silver drops to $5?

How likely is something like that?
Link Posted: 12/17/2016 1:08:37 AM EST
I'm not going to buy until it's below $10/oz.  Which I believe will happen in the next two years.
Link Posted: 12/17/2016 1:10:39 AM EST
As stated, nobody knows. My suspicion is that silver will drop further.

If one wants to invest in a precious metal these days, I recommend looking at palladium.

Of course, it is not well suited to the small scale style of investing that works well for silver.

But, it is used in catalytic converters, so, as the economy improves, and vehicle production jumps, palladium should move up in price.

But, nobody knows for sure.
Link Posted: 12/17/2016 1:17:34 AM EST

Buy some now, buy some later. Average out your purchases over x amount of time.
Link Posted: 12/17/2016 1:21:44 AM EST
silver will drop further vs USD as euro fails and they escape to USD. once all the eggs are in one basket thats the time to buy
Link Posted: 12/17/2016 1:22:59 AM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By motown_steve:

It's my (simplistic) understanding that as the stock market rises, precious metals fall. When stocks look like a good bet people buy stocks and sell precious metals, and when the stock market looks like a bad bet people sell stocks and buy precious metals. 

What I am wonder is, if I buy silver now at, whatever it is, $16.75, then am I going to be kicking myself in 3 months when Trump gets the 15% corporate tax rate and silver drops to $5?

How likely is something like that?
View Quote



Its more complicated than that. And none of us will ever know. I say if you want to start buying PMs, make a plan and stick to it. The spot price is irrelevant until you decide to sell. For me thats if I make a shitload of money, or when I crown myself King Shitlord of the wasteland. Worst case- my kids inherent it all. I don't really see a downside to buying metals if done with a plan.
Link Posted: 12/17/2016 1:25:04 AM EST
As soon as the market starts to pull back, the price of silver will start to come back up.  Who knows when that will be though.
Link Posted: 12/17/2016 1:48:44 AM EST
It has quite some distance to fall.
Link Posted: 12/17/2016 1:57:09 AM EST
PMs typically fall when interest rates rise. There's an opportunity cost to holding PMs--if you've got $10K in gold or silver, that's $10K that's not earning interest somewhere. That's not a big deal if interest rates are zero, but if they're at 3%, then that's $300 per year you're giving up by holding PMs instead of putting it in an interest-bearing account. That tends to drive down the price. You'll notice that interest rates have been going up lately. The 10-year rate has gone up from about 1.4% last summer to about 2.6% now.

There are exceptions if things are so bad that fear drives people to hold real assets instead of financial instruments.
Link Posted: 12/17/2016 2:02:53 AM EST
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By GarandM1:
I'm not going to buy until it's below $10/oz.  Which I believe will happen in the next two years.
View Quote


$8 Is my bench mark.
More than that it's an expensive paper weight.
Link Posted: 12/17/2016 2:19:42 AM EST
Link Posted: 12/17/2016 3:08:21 AM EST
As silver is an industrial metal, there is some floor to the price. 

I'll be shocked if we see spot drop below 10, because our paper dollars just aren't worth what they used to be.
Top Top